Court accepts stay agreement between 7 workers and IPI

The U.S. District Court for the NMI has accepted the stay agreement between Imperial Pacific International (CNMI) LLC and seven former workers who had sued the company for labor violations.

According to her order, District Court for the NMI Chief Judge Ramona Manglona found the stay agreement in its entirety sufficient to warrant a stay on the default judgement previously granted in favor of the former workers.

“The stay agreement, including the three executed mortgages (and all other appendices attached) is approved in its entirety by the court, and all parties to that stay agreement are ordered to comply with its terms and conditions. Furthermore, the stay agreement and its appendices are deemed sufficient to warrant a stay,” she ordered.

Manglona also affirmed that the plaintiffs maintain a valid lien as to IPI’s personal property, other than IPI’s gaming equipment.

“This lien shall remain in place until IPI has complied with all its obligations under the stay agreement, and that IPI shall not transfer, pledge, or otherwise encumber its personal property without the express written consent of plaintiffs or permission of this court. In addition, the court shall retain jurisdiction over the enforcement of any provision of the stay agreement,” the judge said.

Previously, the court issued a judgment in this matter in favor of the workers in the amount of $5,430,595.58.

IPI appealed the judgment to the Ninth Circuit, but initially did not post a bond or any security.

In response, the plaintiffs commenced efforts to enforce their judgment, including obtaining a writ of execution on IPI’s personal property which was executed by the U.S. Marshals on July 20, 2021.

The workers and IPI then executed an agreement to stay enforcement that includes multiple appendices, with an effective date of Feb. 3, 2022, which shall stay enforcement of their default judgement in exchange for IPI securing a supersedeas bond in the amount of $6 million on or before June 30, 2022.

IPI fulfilled its initial obligations under the stay agreement by securing a supersedeas bond in the amount of $1 million on Feb. 11, 2022, and reimbursing certain expenses and a portion of the legal fees incurred by plaintiffs in seeking to enforce their judgment prior to executing the stay agreement.

On Feb. 18, 2022, the parties filed a stipulation finding that the stay agreement in its entirely, including all appendices, provides plaintiffs with adequate security.