THE issue over the additional amount owed by Imperial Pacific International LLC to some of its employees has been resolved, and the parties are in the process of obtaining signatures to an “Amendment to Payment Plan of First Amended Consent Judgment, attorney Michael Dotts said in his 30th status report to the federal court on Monday.
“As part of the amendment,” Dotts said, “IPI will be allowed to defer the September 1 settlement payment and use those funds to help pay for securing the remaining tower cranes against typhoons.”
He said no settlement payment was due during the reporting period.
The next settlement payment will be due on Sept. 1, but “there is a tentative agreement with the United States Department of Labor to defer this payment so that IPI can use the money to fund securing the tower cranes,” Dotts reiterated.
As for payroll, he said: “No payroll was due during the reporting period (August 2 through August 9, 2021). IPI’s next payroll is due on August 13, (Payroll 17).”
Regarding employee housing, food and repatriations, he said there is nothing new to report.
Dotts noted that the construction work at the casino resort in Garapan remains suspended as ordered by the court.
In his previous status report, Dotts mentioned the concern over the safety of one of the cranes on the jobsite.
“The Commonwealth Casino Commission apparently asked that counsel advise the court of this,” Dotts added.
In a separate motion filed on Monday, Dotts asked the federal court to grant his request to withdraw from representing IPI for non-payment of his legal fees.
There are no pending motions or hearing dates, he added.
“IPI has continuously filed weekly status reports as ordered by the court with regards to the status of the payments of wages, the status of housing and food provided to foreign workers, and other matters concerning the employees and the company. IPI has made 30 weekly status reports to date, including this week’s filing, that show IPI has been diligent in staying current on payroll, making settlement payments on time, and providing food and housing to its employees. Under an amendment to the Consent Judgment, [US]DOL has agreed that IPI may make these reports directly to [US]DOL.”
General counsel
According to his memorandum to support his motion to withdraw, Dotts has been providing legal services to IPI since about the beginning of IPI’s involvement on Saipan.
Dotts acted essentially as general counsel from about April 22, 2020 until about December 1, 2020, under a written agreement.
Dotts suspended work under that agreement due to nonpayment. It would have expired on December 31, 2020.
Dotts said his firm entered into a new agreement after this case arose and IPI made a partial payment of what was owed.
“The Firm entered an appearance in this matter on about January 20, 2021. IPI and the firm entered into the third written retainer agreement on about February 16, 2021 that covered the [US]DOL case and other matters including this matter. The February 16, 2021 retainer agreement, referred to as the ‘Interim Retainer Agreement,’ provided in relevant part that the Firm would continue to represent IPI in this action, and IPI would make regular monthly payments to the Firm…. The Interim Retainer Agreement also provided that if IPI failed to make the monthly payments the Firm could seek to withdraw in all matters where it had appeared, stated the motion.
“As part of the Interim Retainer Agreement, IPI promised to pay $203,520.59, the amount agreed owed on prior billings.”
Dotts said, “IPI was to begin paying the past due balance at the rate of $20,000 per month beginning on July 1, 2021. IPI failed to pay the monthly payments due on May 1, June 1, and July 1. As of July 1, 2021, IPI owed the Firm $75,000 to apply toward current billings and $20,000 to apply to the past due balance due under the promissory note ($95,000). As of August 2, 2021, that amount increased to $140,000.”
On July 10, 2021, Dotts said, a message was sent to IPI CEO Ray Yumul advising that if IPI did not make a substantial payment to the firm by the date Dotts returned to Saipan from off-island, the firm would move to withdraw as counsel in all matters it was handling for IPI.
Dotts said he returned on about July 21, 2021, and no payment had been made.
On July 29, 2021, his firm gave a final notice by email to Yumul of the firm’s intent to file the motion to withdraw and asked if IPI would object.
He said Yumul that same day responded, “I don’t expect to object to your withdrawal.”
Yumul also advised that IPI had an attorney to substitute for Dotts, but the attorney later declined to substitute for him in the lawsuit, Dotts added.
Under the amended judgment entered between IPI and the U.S. Department of Labor on March 29, 2021, IPI shall make incremental monthly payments of $164,270.08 from April 1, 2021 to Dec. 1, 2021, for a total amount of $1,478,430.72.
To date IPI, has made a payment of $821,350.60, from January to August 2021.
