Owners of Saipan Grand Hotel prevail

The owners of Saipan Grand Hotel have prevailed in the sexual harassment lawsuit filed against them by the U.S. Equal Employment Opportunity Commission on behalf of a band singer who alleged that a then restaurant manager of the hotel made sexual advances on her.

The eight jurors said “no” to the special verdict form’s question: Did plaintiff EEOC prove by a preponderance of the evidence that defendants subjected [the singer] to a sexually abusive or hostile work environment?

With their “no” answer, the jurors were not required to answer the remaining questions in the special verdict form.

It is the first EEOC jury trial in the CNMI as employers who were previously sued had opted to settle.

U.S. District Court for the NMI courtroom deputy Tina Matsunaga read the verdict yesterday at 9:35am. The jurors started deliberating Friday and resumed their deliberations on Monday and yesterday. They deliberated for an hour yesterday before reaching a unanimous verdict.

After the verdict was read, a beaming Steven Pixley, counsel for Tan Holdings Corp. and Asia Pacific Hotels Inc., shook hands with his co-counsel, Vincent J. Seman.

The singer, Michelle Bunoan, who was seated between EEOC attorneys Derek Li and Nancy Griffiths, kept her head down, staring at the prosecution’s table.

EEOC had alleged that Asia Pacific Hotels and Tan Holdings allowed Bunoan to be subjected to sexual harassment that was severe enough to create a hostile, abusive work environment.

EEOC alleged that Tomas Alegre, the then hotel’s restaurant manager, subjected Bunoan to unwelcome touching inside her hotel room in the early morning of Jan. 2, 2008.

In his deposition, Alegre, who is now in the Philippines, said that he had a consensual relationship with Bunoan. Alegre disclosed, among other things, that the singer, who was drunk at the time, invited him to her room.

Pixley later told reporters that they are exceedingly pleased with the verdict.

In a separate statement, Pixley said it was a hard fought trial, but at the end of the day the jury found that the complaining witness was not exposed to a hostile work environment.

“The simple truth is that my clients have expended a considerable amount of human resources, time, and treasure ensuring compliance with all applicable laws including those addressing sexual harassment and discrimination issues. Tan Holdings and Asia Pacific Hotels are good corporate citizens,” he said. (See complete statement on Page 11)

Saipan Grand Hotel general manager Ed Cho said they are happy with the outcome, expressing belief that the company did everything right in how it handled the issue.

EEOC trial attorney Li told reporters that they intend to appeal.

Li said they will review the records to see what issues or decisions were wrong and then they will decide what particular point will be the basis of their appeal.

Li, however, thanked the jurors for “taking the time to carefully consider the evidence of this case.”

“The message that we want to leave to the people of Saipan is that no employer is above the law. And for a meritorious case, the EEOC will protect the rights of all employees—residents of Saipan and nonresidents of Saipan,” Li said.

Chief Judge Ramona V. Manglona presided over the trial that began on Dec. 12.