Garment case ordered transferred to Honolulu

California District Judge Christina Snyder has ordered the transfer of the $1 billion class action suit filed in Los Angeles by Chinese workers against garment manufacturers and retailers to the U.S. District Court of Hawaii.

Snyder issued the ruling in response to the defendants’ motion to transfer the case to Saipan, where they said the physical evidence and pertinent documents are located.

The judge agreed that the California court was not a convenient forum “because the conduct at issue took place on Saipan,” and many potential witnesses reside in Asia.

However, Snyder said the district court of the Northern Marianas might not be a convenient forum either because the plaintiffs face the possibility of suffering from “local bias” on Saipan.

“The small size of the jury pool in Saipan, the apparent importance of the employment of foreign workers in Saipan’s garment industry, along with the negative publicity present by plaintiffs, present serious questions as to the ability to impanel an impartial jury in this action,” Snyder said in a decision issued Oct. 1.

She decided that the Honolulu court is a more convenient forum since Hawaii has a significantly larger jury pool than Saipan and “where all parties will enjoy a constitutional right to trial by jury.”

The class action was filed by the California-based law offices of Milberg Weiss against 11 garment manufacturers on Saipan and 17 retailer companies based in the United States. It was filed on behalf of 10 “fictitiously named” garment workers from China and other potential class members.

The lawsuit alleged violations of the Racketeer Influenced and Corrupt Organization Act, and the claims focus on employment conditions in the garment factory.

Attorneys for the plaintiffs alleged that the retailer firms that purchase textile products produced in Saipan have conspired with the manufacturers to exploit foreign garment workers.

Steven Pixley, attorney for Willie Tan’s garment companies, said that although the defendant companies preferred to have the case tried on Saipan, they were “happy” with Snyder’s decision just the same.

He said the decision has offered a happy compromise.

“We believe we can get a fair trial in Hawaii,” Pixley said.

He added, however, that “we’re researching the possibility of filing a motion to ultimately transfer the case to Saipan where we believe it actually belongs.”

Timothy Skinner, a Saipan-based attorney for the plaintiffs, said Honolulu can be a neutral zone.

“We agree with the judge’s analysis regarding the difficulty of impaneling a jury or juries to hear cases relating to the garment industry on Saipan,” Skinner said.

Snyder has stayed the proceedings of the case for 45 days pending its transfer to the Honolulu court.

“This stay is without prejudice to the defendants seeking a further stay from the transferee court at the conclusion of the said 45-day period,” Snyder said. (MCM)