IPI posts initial $1M bond in the case of 7 ex-construction workers

Pursuant to the Stay Agreement that was filed with the U.S. District Court for the NMI over a week ago, Imperial Pacific International (CNMI) LLC has posted an initial $1-million bond in exchange for the seven workers staying the enforcement on their judgement pending IPI’s appeal, and to stay the limited receivership.

Last Friday, attorneys Aaron Halegua and Bruce Berline, who are the lawyers for the seven workers, and attorney Kevin Abikoff who represents IPI, filed a joint stipulation with the U.S. District Court for the NMI informing the court that IPI has secured an initial “supersedeas bond” in the amount of $1 million last Feb. 11, and is now asking the court to approve their Stay Agreement.

“The parties request that the court approve the Stay Agreement in its entirety, including the three executed mortgages and the provision that the court retain jurisdiction over the enforcement of its provisions,” the lawyers stated.

They informed the court that pursuant to the Stay Agreement, in the event that the Stay Agreement is approved, the parties will file a stipulation agreeing to grant the plaintiffs’ motion to take over the limited receivership in the case of USA Fanter Corp., Ltd., but to stay the work of the limited receiver so long as IPI complies with the terms of the Stay Agreement.

Also, the parties agree that plaintiffs have a valid lien as to IPI’s other personal property by virtue of the writ of execution that was executed by the U.S. Marshals on July 20, 2021.

“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,” they agreed.

According to a previous article on Saipan Tribune, the parties executed an agreement to stay enforcement, with an effective date of Feb. 3.

The Stay Agreement states that the plaintiffs 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.

The plaintiffs in this case are Tianming Wang, Dong Han, Yongjun Meng, Liangcai Sun, Youli Wang, Qingchun Xu, and Duxin Yan. They sued IPI for labor violation and human trafficking allegations.

The plaintiffs were previously employed by IPI’s former contractor and subcontractor, MCC International and Gold Mantis, both of which have already settled with the workers.