FAILURE to purge contempt will result in a three-day jail sentence for Imperial Pacific International LLC executives, said Chief Judge Ramona V. Manglona of the District Court for the NMI after a show cause hearing on Thursday.
She found IPI in contempt of court for failing to pay the previously issued sanctions order in the discrimination lawsuit of Joshua Gray, a former IPI employee.
The judge said the deadline for IPI to pay the plaintiff in full is Thursday, Oct. 14, by 8 a.m.
Judge Manglona said if they fail to purge contempt, IPI and its officers will be held responsible and will be subject to further sanctions, including a three-day jail sentence.
The judge also directed IPI and its counsel to provide a copy of the order that the court will issue to IPI directors, executives, and officers.
She then granted the plaintiff’s attorney’s fees and costs caused by IPI’s disobedience.
Gray, who is represented by attorney Bruce Berline, sued the casino investor over allegations of discrimination.
Gray also accused IPI of retaliation after he complained about its employment practices.
He is seeking damages and other relief as the court may deem appropriate.
In April, the federal court issued an order striking IPI answers to the lawsuit and directed the clerk of court, Magistrate Judge Heather Kennedy, to enter a default against the defendant for failing to comply with a previous discovery order.
A default means the plaintiff has won the case but has not settled the issue of any monetary compensation for damages.
At the hearing on Thursday, Judge Manglona also asked Berline to attend a receivership hearing involving IPI in a contractor lawsuit on Oct. 14 at 2:30 p.m.
USA Fanter Corporation Ltd., through attorney Colin Thompson, has asked the federal court to appoint a receiver for IPI for sale of real property.
USA Fanter sued IPI for its failure to pay the full amount due to the plaintiff under their construction contract for labor and materials provided for the improvement of IPI’s real property.
The lawsuit stated that IPI had paid USA Fanter $300,000 only and the unpaid balance due was not less than $2,089,345.28.
The judge has issued a final judgment in favor of USA Fanter.
