Imperial Pacific International (IPI) suffered yet another damaging setback on Monday, with the US Supreme Court dismissing its appeal, thereby endorsing the Ninth Circuit’s former adjudication pertaining to the dispute. This ruling grants the Commonwealth Casino Commission (CCC) the authority to proceed with the revocation hearing concerning IPI’s casino license, potentially signalling the demise of the Imperial Palace Casino in Saipan.
The Provider Expended All Legal Remedies
The casino, under the management of IPI, ceased its operation in March 2020 due to the global impact of the COVID-19 pandemic. The failure to pay its obligatory license fees led to a license suspension in April 2021. IPI raised objections to this decision, arguing that the casino’s closure was primarily due to force majeure. Despite this justification, the Supreme Court emphasised that the force majeure event had drawn to close, hence IPI was obliged to meet its financial commitments.
In retaliation, IPI initiated civil lawsuits against the CCC, claiming contractual breaches in relation to its casino license and an alleged infringement of its regulatory power in interpreting the agreement. These ensuing legal battles granted the embattled operator a temporary reprieve to address its prevailing difficulties, yet all efforts seem to have been futile.
The final offering of the CCC provided IPI a deadline of December 30, 2023 to repay the $62 million in outstanding license fees or permanently lose its license. As this deadline passed without any initiative from the operator to meet its financial responsibilities, the Supreme Court’s decision paves the way for the CCC to conduct a revocation hearing, likely signalling the conclusion of this long-drawn saga.
Likelihood of a License Revocation Grows
Members of the Commission voiced their relief following the Supreme Court’s ruling, appreciating the chance to determine the future of IPI’s license. Commissioner Ramon Dela Cruz emphasised the ample opportunities and due process provided to IPI to fulfil its financial liabilities to the CNMI government. The forthcoming revocation hearing slated for January 31, 2024 is set to resolve this long-standing issue once and for all.
Edward E. Manibusan, the Attorney General, praised the recent legal progress, underlining the critical need to ensure IPI delivers on its obligations to the CNMI. Despite the impending license revocation being a logical progression for the Commission, the collection of their dues from IPI could prove challenging, given the operator has depleted most of its assets, even auctioning off its stock of alcohol.
This triumph is meaningful to the Commonwealth’s inhabitants by enforcing IPI’s failure to honour its contractual and legislative duties to the people of the CNMI.
Attorney General Edward E. Manibusan
In spite of legal wrangles and appeals, the ruling from the nation’s highest court validates CCC’s authority to seek the termination of IPI’s casino license. Considering an official hearing remains part of the process, it seems like a mere formality. This case underscores the extraordinary extents to which even a minor casino operator would go to protect its business, against seemingly improbable odds.
