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Garment firm seeks to collect over $56K
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Posted on Apr 24 2001
A Saipan garment manufacturing company has filed a civil court complaint against a security services agency for breach of contract and unjust enrichment in connection with the latter’s alleged failure to pay proper wages to its employees.
Locally-based firm KGC International doing business as Villagomez Security Services allegedly failed to pay 14 of its employed security guards the proper overtime payments required under the CNMI and US minimum wage and overtime laws, according to plaintiff Hansae (Saipan) Inc.
The guards during the years 1998-2000 were detailed by its employer to the Hansae garment factory on Saipan.
The plaintiff, with pressure from the US Department of Labor, was compelled to settle in full the wage and overtime claims that were due the security guards who performed services manning the garment factory.
The US Department of Labor had threatened the company the government will seize garments being shipped in interstate commerce and take other legal action if Hansae does not disburse payment to the workers.
After having delivered full payment to each of the 14 security guards, Hansae is now seeking from the security services agency owned by Jose Villagomez a reimbursement for the wages and overtime compensation given to the latter’s employees.
The garment factory is demanding that the defendants repay, indemnify and/or reimburse Hansae for the full payment it has rendered to the security guards.
According to the court complaint, the failure of the security firm to pay its own workers their lawful overtime pay constituted to a breach of contract.
The plaintiff is seeking to collect damages in the amount of $56,722, alleging that the breach of contract as acted out by the defendant was willful, reckless, and malicious.
Hansae is also intent to recoup the wages and overtime payments it made to the 14 security guards, with an interest rate of nine percent per annum, reasonable costs, interests, and attorney’s fees, as well as punitive damages.
