THE Commonwealth Casino Commission is directed to file its objections, if any, to the sale of Imperial Pacific International LLC’s casino gaming machines pursuant to the receivership no later than June 30, 2022, the federal court stated in an order.
“A failure to file any objection in this proceeding will be deemed its consent,” said Chief Judge Ramona V. Manglona of the District Court for the NMI.
IPI is opposing the lifting of the stay on the limited receivership in the lawsuit of seven construction workers who have sued the casino developer over allegations of forced labor and human trafficking.
The plaintiffs were previously employed by IPI’s former contractor and subcontractor, MCC International and Gold Mantis, both of which have already settled with the workers.
On May 26, 2021, the federal court entered a default judgment in favor of the workers plus post-judgment interest and attorneys’ fees for a total amount of $5.9 million.
IPI has appealed the judgment to the U.S. Court of Appeals for the Ninth Circuit.
Recently, Judge Manglona said IPI had failed to comply with its obligation under the stay agreement with the seven workers by not making a required payment on May 1 and failing to cure the default within 10 days.
On May 31, the judge ordered American Contractors Indemnity Company to release to the plaintiffs the $3 million secured by IPI’s appeal bond.
Represented by attorneys Aaron Halegua and Bruce Berline, the plaintiffs are Tianming Wang, Dong Han, Yongjun Meng, Liangcai Sun, Youli Wang, Qingchun Xu, and Duxin Yan. They have requested the court to lift the stay on the limited receivership to sell IPI’s casino gaming equipment so that the judgment can be satisfied.
IPI, through attorney Kevin Abikoff, has filed an opposition to lifting the stay of limited receivership for its gaming equipment.
Abikoff said 4 CMC § 51564 required the plaintiffs to first obtain permission from the casino commission and a license from the commission prior to seeking the writs and the limited receivership over the casino gaming machines.
After a hearing was held on June 9, Judge Manglona ordered the plaintiffs’ attorneys to serve the casino commission with the following:
1) The applications for a writ of execution and this court’s orders granting the writs of executions in U.S.A. Fanter Corporation v. Imperial Pacific International (CNMI) LLC, Case No. 1:20-cv-00003 (ECF Nos. 108, 110), and this above-captioned matter.
2) The court’s memorandum decision granting the motion for a limited receivership and establishing the terms of the receivership in U.S.A. Fanter Corporation v. Imperial Pacific International (CNMI) LLC, Case No. 1:20-cv-00003; and
3) Plaintiffs’ and IPI’s stipulation allowing plaintiffs to assume all rights as to the receivership previously held by Fanter and this Court’s order granting the stipulation filed in U.S.A. Fanter Corporation v. Imperial Pacific International (CNMI), LLC, Case No. 1:20-cv-00003.
According to Judge Manglona, “Without deciding whether a court ordered receivership sale over IPI’s casino gaming machines requires the Commission’s permission and a license prior to the sale, the court nonetheless finds it prudent to obtain the Commission’s position on the sale of IPI’s casino gaming machines.”
Judge Manglona scheduled a motion hearing for July 15, at 10 a.m.
USA Fanter, for its part, 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 the Saipan casino investor’s real property in Garapan.
According to that lawsuit, IPI had paid USA Fanter $300,000 only and the unpaid balance due was not less than $2,089,345.28.
Judge Manglona has issued a final judgment in favor of USA Fanter.
