CHIEF Judge Ramona V. Manglona of the District Court for the NMI said Imperial Pacific International LLC has failed to comply with its obligation under the stay agreement with the seven construction workers who sued the casino investor over allegations of labor violations and human trafficking.
Because IPI failed to make a payment by May 1, and failed to cure the default within 10 days, Judge Manglona directed the American Contractors Indemnity Co. to release to the plaintiffs the $3 million secured by an appeal bond.
As for the plaintiffs’ request that the court also lift the stay on the limited receivership for IPI’s casino gaming equipment, Judge Manglona said further briefing is necessary.
The judge ordered IPI to file its brief in opposition to the lifting of the stay on the limited receivership no later than June 2, while the plaintiffs were given until June 7 to file their response.
The court set a hearing for June 9 on the plaintiffs’ request to lift the stay on the limited receivership.
According to the plaintiffs, IPI did not timely increase the supersedeas or appeal bond on May 1.
The plaintiffs sent a default notice to IPI the next day, but IPI failed to make a payment within the 10-day cure period. IPI also never contacted the plaintiffs during that period.
As provided in the stay agreement, the plaintiffs filed a motion requesting the court to declare that IPI was in default and order the remedies provided in the stay agreement.
The parties earlier executed an agreement to stay enforcement with an effective date of Feb. 3, 2022. The plaintiffs agreed to stay enforcement of their default judgment in exchange for IPI and certain other parties securing an appeal bond in the amount of $6 million on or before June 30, 2022, committing other collateral, and fulfilling other obligations set forth in the stay agreement.
IPI secured an initial appeal bond in the amount of $1 million on Feb. 11, 2022 and reimbursed the expenses and a portion of the legal fees incurred by the plaintiffs on Feb. 9, 2022.
The stay agreement provides that IPI shall post a supersedeas or appeal bond in the total amount of $6 million by making six installment payments pursuant to a schedule with a set deadline for each payment.
IPI failed to make an installment payment due on May 1, 2022.
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 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, Judge Manglona entered a default judgment in favor of the workers plus post-judgment interest and attorneys’ fees for a total amount of $5.9 million.
After IPI’s motion for reconsideration was denied by the federal court, the casino investor appealed to the U.S. Court of Appeals for the Ninth Circuit.
