JOSHUA Gray has petitioned the federal court to issue an order to show cause why it should not enter an order holding Imperial Pacific International and its executive director, Howyo Chi, in contempt for not complying with a previous order.
IPI’s former director of operations, Gray successfully sued the company for racial discrimination and wrongful termination.
Represented by attorneys Aaron Halegua and Bruce Berline, Gray was awarded by the federal court a total of $5.68 million in compensatory and punitive damages.
After the court allowed Gray to participate in the receivership proceedings, he applied for a writ of execution, which the court granted.
In Gray’s latest motion, Halegua said IPI failed to comply with an Oct. 23, 2023 order directing the casino operator to “ensure and fund the security of IPI’s Personal Property until it is sold by the Limited Receiver and delivered to the buyer. Within fourteen days of the filing of the inventory list by the Receiver, IPI shall file with the Court a sworn declaration and supporting evidence demonstrating its compliance with this provision.”
Gray wants an order to show cause directing IPI to compensate Gray for the liquor stolen from the casino; imposing a daily fine of $10,000 until IPI complies; incarcerating Chi if IPI’s noncompliance persists; and directing IPI to pay Gray reasonable attorneys’ fees and costs resulting from its disobedience.
According to Halegua, he never received any communication from IPI about any measures that it was taking to comply with the order to ensure the security of IPI’s personal property, let alone a sworn declaration attesting to the adequacy of those measures.
“In late November 2023, I was informed by Clear Management, the court-appointed receiver, that after it had performed a full inventory of IPI’s Liquor, which was held inside the Casino, two boxed bottles of McCallan No. 6 (an expensive whiskey) were stolen. The theft was reported to IPI and to the police. Clear Management was therefore forced to remove these items from the auction of IPI’s Liquor. Although IPI was responsible for ensuring the security of IPI’s Personal Property at the Casino, Clear Management moved IPI’s Liquor into two storage rooms, each with only a single entrance, and put a padlock on those doors,” Halegua said.
In late February 2024, Halegua said he was informed by Clear Management that 12 bottles of 50-year-old Moutai and five bottles of 30-year-old Moutai — an expensive Chinese liquor — were stolen from the locked storage rooms at the casino.
“The theft was reported to IPI and to the police. I personally visited the Casino in March 2024 and viewed the rooms holding the liquor. It was clear that someone could enter the storage room on the right (when facing both doors) without removing the lock by simply loosening a few screws and taking off the entire door hinge,” Halegua said.
A bottle of the McCallan No. 6 (700 ml) stolen from the casino is available for purchase online in the United States as of April 7, 2024, for $4,499.99 on the website frootbat.com and for $6,699.99 on caskcartel.com, the lawyer said.
The winner of the liquor auction, Leader Capital, after discovering that the 17 bottles of Moutai were missing, stated that the “total market price” for these items is “over $100,000,” and requested that the company receive a credit in this amount to be applied to the vehicle auction, Halegua said.
“IPI should compensate plaintiff for the liquor stolen due to its noncompliance,” he added.
He said, “The stolen liquor was subject to a writ executed by Plaintiff and therefore it is more appropriate that the compensation be paid to Gray rather than in the form of a fine to the court.”
IPI should pay a $10,000 per day fine until it complies with the order, and if it still fails to comply, Howyo Chi should be incarcerated until IPI complies, Gray’s motion stated.
“The harm threatened by IPI’s noncompliance is enormous. IPI’s Personal Property — which includes Rolls Royces and dozens of other vehicles, crystal dragons, other art, and furniture and equipment — is likely worth millions of dollars. If that property is stolen or damaged, the value obviously disappears or decreases. As for the effectiveness of the sanction, a significant fine is necessary to motivate IPI. While IPI often claims to lack any resources, the company clearly has access to vast resources. As soon as IPI was threatened with a contempt motion, it suddenly had the money to hire more security guards,” Halegua said.
Since monetary sanctions alone may be insufficient to compel IPI to comply with the order, Gray also requests that the court instruct IPI and its principals, including Chi, that continued disobedience will result in even more severe contempt sanctions, up to and including incarceration, Halegua said.
“Plaintiff specifically requests that the court order that if IPI does not comply with the order within ten calendar days of being held in contempt, that Mr. Chi be incarcerated until IPI is found to be in compliance,” Halegua added.
Variety was unable to get a comment from IPI.
