Island Paradise Resort Club, its buildings, equipment, fittings, hotel goods, vehicles, and other sundry items have been seized for auction sale by the Bureau of Public Safety to satisfy the judgment of debt to the Koror Ngarametal Association.

The order to enforce the judgment against Island Paradise Resort Club was issued on March 6, 2020, by Associate Justice Kathleen Salii to satisfy the judgment against IPRC.

Judgment was issued on January 10, 2020, against IPRC as a result of Civil Action 16-053 where plaintiffs Ngarametal Association had claimed breach of contract by the IPRC.  The judgment issued adjudged Island Paradise Resort Club in breach of contract and awarded damages in the amount of $2,079,342.73.

The amount of damages included compensatory damages of $125,000, lost rent of $526,500 and $1,427,842.73 for the construction of the new building.

According to the civil suit filed the Ngarametal Association, when Island Paradise Resort Club was constructing its hotel in 2010 and it caught fire, the fire destroyed Bai-ra-Metal, a two-story, 10,000 square feet of steel frame and concrete building belonging to Ngarametal Association.  The fire is said to have destroyed the entire structure including all valuables, fixtures, furniture, equipment and other improvements on the premises.

The suit claimed that Island Paradise Resort Club had agreed to construct a building to replace the original one that burned down caused by the fire at the Island Paradise Resort Club.  It claims that IPRC had failed multiple times to fulfill all its promises based on multiple extension contracts and settlement agreements.

Despite multiple agreements, IPRC had breached “covenant of good faith and fair dealing”.  In June of 2016, Ngarametal Association filed a suit against the IPRC.  This January, the court ruled in favor of the Plaintiff awarding damages.  This month the court issued an order enforcing the judgment which now resulted in the seizing of assets of the resort for auction to satisfy the debt.

As of yesterday, an appeal was filed by IPRC appealing the judgment. (L.N. Reklai)