Covered by the order of visiting federal Judge John A. Houston were the lawsuits separately filed by Erlinda G. Paguta, Anecia M. Perez, and 121 other former workers of the defunct garment factory.
On April 7, 2011, the defendants were separately ordered to show cause by April 22, 2011 why the automatic bankruptcy stay issued on Aug. 15, 2006 should be lifted.
In her order, Guam federal Judge Frances M. Tydingco-Gatewood told the defendants that “failure to respond shall result in lifting of the stay.”
“No response to the order to show cause has been received as of the date of this order,” Houston stated in his May 12, 2011 written order.
“This case may now be prosecuted as required by the Federal Rules of Civil Procedure and the Local Rules of this District,” Houston added.
Paguta and Perez separately sued La Mode for discrimination in 2006, and both demanded jury trial.
Through attorney Joe Hill, 121 former La Mode workers sued the factory for illegal termination, unpaid wages and overtime, and illegal wage deductions or kickbacks. They were seeking a multi-million-dollar judgment.
Included also as defendants were Golf Apparel Brands,Inc., Edward Kahn, also known as Eddie Kahn, and Barry Kahn.
Through their lawyers, the defendants filed notice of automatic stay, declaring that the La Mode Inc. filed a voluntary petition for bankruptcy notice on July 25, 2005.
