THE seven workers who sued Imperial Pacific International LLC over labor abuse and human trafficking allegations scheme are demanding payments from IPI’s real estate properties.
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 District Court for the NMI 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, which has filed an appeal to the U.S. Court of Appeals for the Ninth Circuit, failed to pay the judgment. This resulted in the federal court’s granting the plaintiffs’ application for a writ of execution for the seizure of IPI’s personal property, including its casino gaming machines.
On March 16, 2022, the court granted a stipulation, filed in the Fanter case (U.S.A. Fanter Corporation v. Imperial Pacific International (CNMI), LLC, Case No. 1:20-cv-00003) between the plaintiffs and IPI that stayed enforcement of the writ.
Under the stay agreement, the court amended the receivership in the Fanter case to add the seven workers as additional creditors with the right to “step into the shoes of Fanter” to enforce the judgment owed to the plaintiffs.
In that stay agreement, IPI recognized that in the event it failed to comply with the stay agreement, the plaintiffs would have the right to proceed with enforcement via receivership.
On May 27, District Court for the NMI Chief Judge Ramona V. Manglona found that IPI had defaulted on the agreement.
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.
Halegua on Tuesday asked the court for an order directing IPI and the real estate parties to deliver to the plaintiffs (a) all prepaid rents and security deposits for the collateral properties; (b) copies of any leases, rent rolls, accounting documents, and all other books and records related to the collateral properties; and (c) until all monies owed by IPI to the plaintiffs are paid, any and all future rents or income received for the collateral properties within 72 hours of receiving those funds.
Halegua noted that the stay agreement explicitly permits the plaintiffs to simultaneously pursue multiple avenues to collect upon their judgment against IPI.
Halegua also requested the court for an order awarding reasonable attorneys’ fees to plaintiffs for time spent on the rent demand letters and the motion.
The plaintiffs also have a pending separate motion requesting the court to lift the stay on the limited receivership to sell IPI’s casino gaming equipment so that judgment can be satisfied. The federal court has yet to rule on that request.
The Commonwealth Casino Commission, through Assistant Attorney General Carl Dela Cruz, told the court that the CCC has no objection to the sale of IPI’s gaming machines.
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.
As for the request to lift the stay on the receivership, Judge Manglona scheduled a hearing for July 15, at 10 a.m.
