Insurance firm sued for breach of contract

Mei Li sued Oceania Insurance Corporation through her counsel Joseph E. Horey for four causes of action — breach of contract, violation of Consumer Protection Act, unfair claims settlement practices, and unjust enrichment.

Li wants Oceania to pay her general and special damages in an amount to be proven at trial including incidental and consequential damages, punitive damages, prejudgment interest as allowed by law, liquidated damages under the Consumer Protection Act, costs of suit, attorney’s fees, 12 percent damages upon the amount of loss, restitution of the amount for unjust enrichment and other relief as the court may deem just and proper.  

Li is a former employee of Grace International Inc.

The complaint stated that on Sept. 23, 2002, the defendant issued a surety bond to Grace International Inc. garment factory guaranteeing payment to each of 12 employees including Li the sum of $1,586 in wages, $500 in air fare and $300 in medical expenses in the event of failure of payment by Grace International.

On Aug. 15, 2003, Li filed a complaint with the Division of Labor against Grace International.

Her case was heard before the Department of Labor hearing office on May 22, 2007.

The complaint stated that on July 5, 2007, the hearing office issued an administrative order finding Grace International liable to pay Li the amount of $1,598 in unpaid wages, $1,598 in liquidated damages and $2,332 in medical expenses.

The Labor hearing officer stated that “the bond that was filed with the contract shall compensate the complainant to the extent of the limits of the bond if the respondent does not meet its obligations within 15 days of the issuance of this order.”

Grace International  did not appeal the order of the Labor hearing office.

On Nov. 30, 2007, Oceania Insurance issued a check to the Department of Labor for Li’s unpaid wages only in the amount of $1,586. Li purchased a ticket from Saipan for Beijing, China for $390.95 on the same day.

She left Saipan on Dec. 3, 2007 but she continued to seek payment from the defendant for the remaining amount of $2,722.35 as ordered by the Labor hearing office. The complaint stated that the defendant agreed to pay her the remaining amount on April 11, 2008. But she said no payments have been made.

Under the Bond, Grace International has performed all obligations but the defendant’s failure to pay the plaintiff for her medical expenses and air fare constitutes a breach of the Bond.

According to Horey, “the plaintiff is aggrieved as a result of the defendant’s violations of the Consumer Protection Act and is entitled to recovery of her actual damages, an additional equal amount as liquidated damages, costs and reasonable attorney’s fees.”

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