On July 10, U.S. District Court Judge Ramona V. Manglona entered a default judgment against Imperial Pacific International (IPI), operator of the sole casino on the Pacific island of Saipan, in connection with a lawsuit filed by seven former workers. Saipan is part of the Commonwealth of the Northern Mariana Islands, a U.S. territory.
Aaron Halegua, counsel for the plaintiffs, said the workers were subjected to what amounted to human trafficking, paying hefty recruitment fees to win supposedly high-paying construction jobs, only to be forced to work long hours for low wages under dangerous conditions.
“They endured scorched legs, burnt hands and smashed fingers to build that casino, but never received a penny of compensation for their suffering. We are glad that they are one step closer to obtaining justice,” Halegua said.
In response, IPI said any wage claims by the plaintiffs are invalid because they voluntarily illegally entered the CNMI to work. Ironically, in the past the U.S. Equal Employment Opportunity Commission looked at IPI, concerned that it had engaged in unlawful employment practices, including hiring illegal foreign laborers.
Manglona, who will determine damages in the case, called IPI’s noncompliance and delays in this lawsuit “mind-boggling and “very frustrating,” reported the Saipan Tribune.
IPI general counsel Michael W. Dotts said the entry of default “is a hard blow, but it’s not fatal. IPI can come back and IPI will come back and litigate this case to the end.”
In other IPI news, the embattled casino operation was recently ordered to appoint a new CEO to replace Mark Brown or risk losing its operating license. Brown left in December. Edward Deleon Guerrero, chairman of the Commonwealth Casino Commission, said in a statement, “We continuously pressed upon them that it is an utmost urgency that Imperial Pacific International Holdings Limited appoint a chief executive officer even on an interim basis or acting capacity. We have reached the point now where we have no other options except to issue the order.”
IPI is also being sued by several private vendors and also owes revenue-share obligations to the local government. One lawsuit brought by former contractor Pacific Rim Land Development is said to be worth approximately $6.8 million. IPI’s counsel has filed a motion with the U.S. District Court, warning the company may be forced to shut down if forced to pay.
“If the judgment becomes enforceable while the appeal is pending, IPI will be unable to pay it, and will likely have to close permanently,” the Saipan Tribune quoted counsel as saying.
The onetime high roller palace has recently been late paying its utility bills, and even endured a power outage for non-payment. IPI was also late paying the full balance of its annual US$15 million casino license fee last September. It has been fallen behind on payroll as well.
