Ex-Dynasty workers ask court to issue $4.2M in default judgment

The 15 former foreign workers of the defunct Tinian Dynasty Hotel & Casino have asked the federal court to issue a default judgment holding the owner and management of Tinian Dynasty liable to pay them $4.2 million in damages.

The 15 plaintiffs, through counsel Samuel Mok, said the deliberate choice of Tinian Dynasty’s owner, Hong Kong Entertainment (Overseas) Investment Ltd. (HKE), and management, Mega Stars Overseas Limited, not to retain an attorney to represent them in this case makes decision on the merits impossible.

“This is because a corporation cannot appear pro se and must be represented by an attorney,” Mok said.

The lawyer said the Federal Rules of Civil Procedure Rule 55 explicitly authorizes a court to strike the answer of a corporate defendant and enter default and default judgment if the corporation fails to appear with legal counsel.

“This is what occurred in this case,” Mok pointed out.

The plaintiffs sued HKE and Mega Stars for allegedly lying to them that they were legally authorized to work despite the denial of their CNMI-Only Transitional Worker permit petitions.

The plaintiffs sued HKE and Mega Stars for fraudulent concealment, constructive fraud, and for negligent misrepresentation and wrongful termination against public policy against HKE.

Mok said majority of the 15 plaintiffs have lived in the CNMI for many years and have children who are U.S. citizens.

Mok said HKE and Mega Stars deliberately and/or negligently withheld material information related to the status of their CW-1 petitions in order to keep them from transferring to other employers.

Mok said default judgment is warranted if the money at stake is proportional to the harm caused by the defendants’ conduct.

He said the money damages claimed by the plaintiffs are significant.

He said the damages represent lost wages and employment related benefits for one full year for each of the plaintiffs.

The lawyer said there is no excusable neglect in this case.

He said HKE and Mega Stars chose not to retain an attorney to represent them despite being given ample time to do so by the court.

“Allowing default to occur under these circumstances was not the result of excusable neglect but a deliberate choice by the defendants,” Mok said.

The former workers filed their statement of damages following U.S. District Court for the NMI Chief Judge Ramona V. Manglona’s order directing them to provide the court with the exact amount of damages they are seeking.

The 15 former employees are Eric F. Dona, Donny Rivera, Melinda Rivera, Chung-Liang Chiu, Shingo Kajiwara, Han Shao, Lorenzo Pacia III, Didith Pacia, Ming Yang Yuan, Chuan Hui Xu, Flordeliza F. Camiguing, Jovelyn F. Reyes, Richard Julio L. Reyes, Ernesto Y. Rivera, and Jose C. Cadion Jr. The compensatory damages for lost of earnings and benefits they are asking ranges from $20,878 to $46,933.

In February 2018, Chun Wai Chan, a corporate representative of both HKE and Mega Stars, informed the court that Tinian Dynasty’s operation stopped in August 2015, and when the hotel operation halted in March 2016, no more income could be generated since then.

Chan also informed the court that they could not afford to pay a private counsel in this case.