DISTRICT Court for the NMI Chief Judge Ramona V. Manglona has ordered Imperial Pacific International LLC and IPI chairwoman Cui Li Jie to purge their contempt of court by Friday, March 12, at 1:30 p.m. by paying $1,182,793 owed as back wages under the 2019 consent judgment.
The judge also ordered the defendants to deposit $800,000 in an escrow account to secure the future payment of wages to IPI employees.
In addition, the judge ordered the defendants to pay outstanding back wages owed to former workers employed after the 2019 consent judgment was entered.
If the defendants fail to comply with her orders, Judge Manglona said she will exercise her equitable powers through the Fair Labor Standards Act and appoint Civille & Tang PLLC and its team of professionals, acting by and through its principal representative Joyce C.H. Tang, as the federal equity receiver, effective Friday, March 12, 2021 at 1:30 p.m.
“Tang shall possess all the powers of a federal equity receiver and is vested with the power and authority provided under Federal Rule of Civil Procedure 70 to perform all acts deemed necessary to comply with this order,” the judge said.
In her order on Wednesday, the judge authorized the receiver to perform the following:
• Compel, take, and record evidence, including: requiring the production of documents and other records from the defendants and/or third-parties; requiring responses to interrogatories, other information and admissions; and conducting depositions and/or hearings.
• Communicate with any party.
• Take possession of the defendants’ property including all buildings, fixtures, improvements and appurtenances thereon, and personal and business property such as vehicles and equipment. The receiver has such authority to preserve and protect the value of the properties, to put the properties into sellable condition, and to arrange the sale of each of the properties pursuant to the terms of this order.
• Select the property the receiver liquidates with the goal of purging defendants’ contempt in the most expeditious manner.
• Arrange for the sale of defendants’ property, subject to confirmation by the court, in accordance with the procedures in 28 U.S.C. § 2001 and the [receivership] order.
• Employ attorneys, accountants, appraisers, auctioneers, brokers, or other professional persons in connection with the listing and sale of the properties.
• Enter into a commercially reasonable brokerage contract to retain the services of a licensed real estate broker(s) to list defendants’ property for sale.
• List real property in an unfinished or improved conditions.
• Enter into real property, manage the real property, collect rents on the real property, take any action reasonably necessary to protect and preserve the value of the real property prior to sale, and to put it into a saleable condition, including making expenditures of funds that are first approved by the court, for reasonable and necessary maintenance and improvements.
Moreover, the judge ordered the receiver to comply with the following requirements for the purchases of IPI’s assets:
• The terms of any purchase agreement shall include the balance of the purchase price paid in cash at closing, and may include an earnest money deposit, in an amount to be approved by the court.
• A closing shall not occur until after the sale has been confirmed by further order of the court.
• At closing, the purchaser(s) shall receive documents transferring title to the properties executed by the receiver.
• In the event a closing takes place prior to court order regarding the distribution of proceeds, the receiver shall hold all of the proceeds of any sale of the property, net of any closing costs, including any earnest money deposits, in an interest-bearing account until such time as the court further orders regarding the distribution of those proceeds to purge contempt.
Tang will serve for as long as necessary to purge the defendants of their contempt, the judge stated.
Tang will receive compensation at the rate of $350 per hour plus applicable business gross revenue tax.
The judge said the receiver shall be compensated from the defendants’ cash or the proceeds of the sale of IPI assets. Compensation shall include the receiver’s fees and expenditures, the judge added.
She ordered IPI to cooperate with the receiver’s effort to comply with all the obligations under the order.
She said the defendants are restrained and enjoined from the following:
(1) Transferring their interest, ownership, or control of any entity in which they presently hold such interest, ownership or control.
(2) Transferring or encumbering any real estate held by themselves individually or in entities otherwise owned or controlled by them.
(3) Voting themselves to have any increase in salary or other compensation.
(4) Making transfers of money, property or assets among themselves or any entities owned or controlled by them except as and to the extent needed for operations purposes or as are shown to be normal and customary payments of salary or other compensation.
(5) Interfering in any way with the properties that are the subject of the order.
The court said it retains specific and continuing jurisdiction to enforce the provisions of the order.
