Imperial Pacific International claims irregularities in bid to retain casino license
The long-running battle between Imperial Pacific International (IPI) and the Commonwealth of the Northern Mariana Islands (CNMI) is taking a new turn. While the embattled casino operator still hopes to retain gaming exclusivity at Saipan's Palace Casino, it now claims the Federal Casino Commission (CCC) violated its constitutional rights.
IPI took a tough stance against the CCC after being given a 30-day ultimatum to settle $62 million in unpaid fees. The situation has escalated and IPI is now threatening legal action against the regulator.
Last week, the CCC issued a warning to IPI to pay outstanding amounts within 30 days or face the revocation of its gaming license. In its latest attempt to fight back, the IPI accused the CCC of multiple violations it said undermined its fundamental freedoms.
IPI claims no due process
According to Marianas Variety, IPI's legal strategy is diverse. The embattled company claims that CCC violated the terms of the license agreement and allegedly violated IPI's fundamental rights, which are protected by the U.S. Constitution and the Constitution of the Northern Mariana Islands.
IPI believes that the CCC’s actions violated due process. This is a right guaranteed by the U.S. Constitution.
The legal showdown follows IPI's repeated attempts to defend itself in various legal proceedings against allegations of misconduct related to its gaming license. One of them even included an appearance in front of the United States. Ninth Circuit Court of Appeals.
IPI is seeking the cancellation of all unpaid royalties, citing alleged breaches by CCC as the basis for the action. The company is requesting a jury trial and asking the Northern Mariana Islands District Court to declare it exempt or exempt from regulatory fees set forth in the casino license agreement.
Additionally, IPI is seeking an injunction to stop collecting any annual regulatory fees, arguing that they are unconstitutional. Additionally, the company is pushing for the CCC to refund all regulatory fees paid in the past.
The litigation between IPI and CCC adds new complexity to an already troubled relationship between the two companies. The casino operator has appealed to the U.S. Supreme Court to hear the case, arguing in support of the request that it violated constitutional rights.
Legal issues continue to pile up
Even in the unlikely event that the U.S. Supreme Court rules in IPI's favor, the company will still be owed tens of millions of dollars in private lawsuits. Many of the lawsuits still have outstanding balances, and IPI has given no indication that it is prepared to pay those balances.
This has resulted in the Northern Mariana Islands Court agreeing to cannibalize the National Palace assets. A new case is emerging in which a law firm has filed suit on behalf of IPI over unpaid invoices.
Hughes Hubbard & Reed LLP (HHR) has filed a civil lawsuit against the company, alleging breach of contract, unjust enrichment and other claims. It is seeking more than $8.5 million, as well as any other compensation it may deem reasonable.
The law firm has been behind several high-profile legal battles against IPI, competing (and losing) against Pacific Rim Land Development, USA Fanter, Joshua Gray, CCC and others. IPI initially agreed to pay the company $200,000 per month from December 2021 to November 2023, the lawsuit said.
That amount was later increased to $250,000 per month, in addition to the $150,000 paid earlier this year. HHR claims payment was never received.
Based on current figures, if the lawsuit is successful, it would mean IPI owes well over $80 million in unpaid regulatory fees and legal claims. The company has shown no willingness to repay even a small portion of its growing debt, which could give the Commonwealth of the Northern Mariana Islands some leverage to finally end the fight.
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Source: www.casino.org
