DPL denies Club 88’s allegations, files counterclaim

THE Department of Public Lands denied the allegations of Club 88 and filed a $10.5 million counterclaim against the e-gaming company.

DPL Secretary Marianne C. Teregeyo, through Assistant Attorney General Christopher Timmons, also filed a counterclaim and cross-claims against Kan Pacific doing business as Mariana Resort and Imperial Pacific doing business as Best Sunshine International. Last December, Kan Pacific announced that it had assigned its remaining lease to Best Sunshine.

The department filed counterclaims for breach of contract against the three companies.

DPL, in addition, filed counterclaims for anticipatory repudiation and restraint of trade in violation of the Sherman Act and Clayton Act against Kan Pacific and Imperial Pacific.

The Sherman Act provides that every contract, combination in the form of trust or otherwise or conspiracy in restraint of trade or commerce is illegal.

Saipan Entertainment doing business as Club 88 earlier sued Kan Pacific for breach of contract, unjust enrichment and fraudulent nondisclosure while Imperial Pacific was sued for intentional interference with a contract.

Club 88 sued DPL and Teregeyo to enjoin the CNMI government from consenting to any assignment of the resort lease until the controversy surrounding the validity of the resort lease is resolved.

DPL in its counter-affidavit stated that the resort lease as amended or superseded by the Dec. 16, 1977 lease and all subsequent amendments is a valid and binding contract between DPL and Kan Pacific.

DPL stated that the lease as superseded by the Dec. 16, 1977 lease and all subsequent amendments require Kan Pacific to obtain consent from DPL prior to transferring any interest in the resort property to a third party.

The document stated that Kan Pacific transferred 3,500 square feet of its interest in the resort lease to Saipan Entertainment or Club 88.

The affidavit stated that Kan Pacific did not obtain consent from DPL prior to entering into the sublease with Club 88.

DPL’s affidavit stated that as a result of Club 88’s malicious lawsuit, the department has been forced to expend resources to defend itself.

DPL asked the Superior Court to hold Kan Pacific and Imperial Pacific jointly liable to pay $10.5 million for colluding to restrain trade which is in violation of commonwealth law and federal law.

DPL also asked that the court declare Saipan Entertainment’s sublease with Kan Pacific for a portion of Mariana Resort and Spa premises executed on Nov.18, 2013 void.

DPL, moreover, asked for an injunctive relief restraining Kan Pacific and Imperial Pacific from colluding to withhold or rig bids in violation of federal and commonwealth laws.

Source: Marianas Variety

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