USDOL files notice of default against IPI

It says IPI failed to make payments due by August 1 and September 1.

Northern Mariana Islands.- The United States Department of Labor (USDOL) has initiated proceedings against Imperial Pacific International (IPI) for its failure to meet payment obligations stipulated in a consent judgment. 

USDOL lawyer Charles Song has filed a notice of default with the District Court for the Northern Mariana Islands arguing the casino operator has failed to make a US$249,287 payment due on August 1 and the US$249,287 instalment due on September 1. According to The Saipan Tribune, IPI made a partial payment of US$50,000 in August.

This legal dispute stems from a lawsuit for labour violations, which led to the consent judgment entered into by USDOL and IPI on April 11, 2019. The judgment aimed to address violations concerning unpaid minimum wages and overtime premiums under the Fair Labor Standards Act (FLSA). IPI’s non-compliance with the payment terms led to the district court issuing a contempt order on January 21, 2021. This mandated IPI to settle unpaid payroll and related dues.

Consequently, IPI entered into the first amended consent judgment and made the required payments. USDOL later identified additional violations of the Immigration and Nationality Act and the Fair Labor Standards Act. IPI entered into a second amended consent judgment, committing to make payments between January 2022 and January 2024. 

USA Fanter seeks another limited receivership against IPI

USA Fanter Corp has filed a motion in the US District Court for the Northern Mariana Islands, seeking a limited receivership against IPI. The purpose is to facilitate the sale of vehicles and heavy equipment to satisfy a judgment exceeding US$200,000.

This was awarded in a breach of contract suit filed by USA Fanter against IPI in October 2021. IPI was held in contempt on October 13, 2022. USA Fanter requested the court enter a default judgment against the company, seeking US$226,127.05. The court heard USA Fanter’s motion on November 29, 2022, and found sufficient evidence for the principal damages amount.

On February 8, 2023, USA Fanter sought a writ of execution from the court, with the aim of auctioning IPI’s motor vehicles to satisfy the judgment.