RNV Construction sues Imperial Pacific over unpaid fees

RNV, through its attorney Jennifer Dockter, filed the complaint on Monday, stating that Imperial Pacific owes a balance of $161,500 under the original $3.2 million contract to construct a casino training facility in the Duty Free Shopping mall; and $1,510,578.70 for variation costs when Imperial Pacific demanded a number of “fixes” in the completed project.

Imperial Pacific signed the contract on April 13, 2015, and the training facility— Best Sunshine Live — has been in operation for more than a year now.

According to the complaint, when RNV began the construction of the casino facility, Imperial Pacific demanded significant changes to the original project which resulted in increased costs on the part of RNV.

RNV said Imperial Pacific demanded that those changes be made immediately, and this forced RNV to make its employees work almost 24 hours a day to complete the changes.

The variation costs, RNV said, came to $1,808,398.90. RNV completed the casino training facility in June 2015.
According to the lawsuit, Imperial Pacific made incremental payments but those were untimely.

During a “walkthrough” in the completed casino facility in Nov. 2015, Imperial Pacific again demanded that the VIP room be “fixed.” RNV said it made the “fix” at no additional cost to Imperial Pacific.

But on May 25, 2016 Imperial Pacific informed RNV it would not pay the outstanding balance until RNV made additional “fixes” again. RNV said it made the fixes at no additional cost to Imperial Pacific.

On June 22, Imperial Pacific certified that RNV’s work was complete and promised to pay.

But RNV said despite repeated promises, Imperial Pacific has failed to pay the remaining amount.

RNV’s lawsuit alleges breach the contract, breach of the implied covenant of good faith and fair dealing, and unjust enrichment.

The construction firm said Imperial Pacific has no intention of paying, and that the casino operator “intentionally induced RNV to undertake work at no cost upon its false promise of payment.”

RNV demands an award of actual and compensatory damages for breaches of the duty of good faith and fair dealing, breach of contract, unjust enrichment, and fraud in an amount to be proven at trial.

Imperial Pacific released the following statement:

“RNV Construction, the local company that was chosen to construct Best Sunshine Live, has been substantially paid by Imperial Pacific International but has breached its contract with Imperial Pacific. Imperial Pacific has filed a counterclaim against RNV.

“Imperial Pacific disputes the amount that RNV Construction has sought to collect as it does not represent what was agreed upon.

“RNV’s complaint states that Imperial owes a balance of only $161,500 under the original $3.2 million contract to construct a casino training facility in the Duty Free Shopping mall and $1,510,578.70 for other costs that Imperial disputes.

“IPI said it fully respects its local business partners. However, it said RNV Construction has breached its contract with IPI and has engaged in unfair practices.

“IPI said it will continue to work with business partners, the CNMI government and the community to further grow the local economy, offer job opportunities and to promote Saipan as a premier international tourist destination.

“IPI said the lawsuit does not affect the ongoing construction of its multimillion-dollar hotel and casino project in Garapan.”