Alvarez sues ex-employers for allegedly refusing to transfer company shares

Manuel Alvarez filed yesterday a lawsuit in federal court against his former employers for allegedly refusing to transfer the shares of the company promised to him and for refusing to pay him proper wages and overtime.

Alvarez, through counsel Mark Scoggins, is suing Seahorse Inc. and its owner, Shao Walker, for violation of the Fair Labor Standards Act, violation of CNMI Wage and Hour Act, breaches of contract, and conversion.

Alvarez asked the U.S. District Court for the NMI to hold the defendants liable to pay him damages, attorney’s fees, and court costs.

Saipan Tribune tried but failed to contact Walker for her comment.

According to Scoggins in the complaint, in 2005 Seahorse was incorporated as a business primarily engaged in tourism and marine sports on Saipan.

Scoggins said Alvarez contributed equipment, labor, expertise, and experience to Seahorse’s establishment.

Scoggins said Walker contributed money to the company.

The lawyer said at the time of the incorporation of Seahorse, Alvarez and Walker agreed that Alvarez would receive half of the shares in the corporation after 10 years of operation.

From the time of incorporation, Alvarez was an employee of Seahorse, Scoggins said.

Scoggins said Alvarez worked at least 12 hours per day, six days a week, and six hours every Sunday.

The lawyer said for the first nine years of his employment, it was agreed that Alvarez would be paid $35 per day, but that he would actually only receive $25 per day with the remaining $10 per day held back for exigencies such as medical travel or other unexpected expenses.

For roughly the final year of Alvarez’s employment, Scoggins said, he was paid $400 per week.

Scoggins said in some months, plaintiff would also receive an additional $200 for work performed for Walker’s other companies.

The lawyer said at no time during his employment, Alvarez was properly compensated and paid overtime.

Scoggins said that in February of 2015, after roughly 10 years of Seahorse business activity, Alvarez asked Walker for half of the Seahorse shares as she had promised.

Scoggins said Walker refused to transfer the shares as promised.

In late 2015, Alvarez became ill and needed medical attention off-island.

Scoggins said when Alvarez requested that the company pay for the medical treatment, persons working on behalf of Walker attempted to force Alvarez to sign over title to certain property in exchange for the travel expenses.

Walker allegedly refused to provide the travel expenses to Alvarez.

Scoggins said when Alvarez returned from his first trip to the Philippines, he found that Walker had changed the locks on Alvarez’s living quarters and personal office.

This, Scoggins said, converted all of the personal property belonging to Alvarez, and effectively making him homeless.

Scoggins said despite demands, Walker still has not allowed Alvarez to return to his living quarters and office, nor has she allowed him to retrieve his property.

Scoggins said Walker and Seahorse used the profits and proceeds from Seahorse to start other businesses.