IPI opposes Turkish workers’ request for over $800K default judgment over meals

Imperial Pacific International (CNMI) LLC has filed a motion in opposition of the default judgment request made by its former Turkish workers asking the District Court for the NMI grant a judgment of over $800,000 for meals they claimed they were promised but not provided.

Yesterday, IPI, through attorneys Stephen Nutting and Michael Chen filed a Memorandum of law in opposition to plaintiffs’ amended declaration and exhibits related to motion for default judgment.

Based on the memorandum, IPI is asking that the court to deny the plaintiffs’ motion for default judgment with respect to food/meals at $869,120 and claims for unpaid wages for additional work outside the scope of work.

According to IPI, plaintiffs’ demands of $869,120 for Turkish meals have no contractual basis for various reasons.

“The alleged oral promise to provide Turkish meals to the Turkish team lacks sufficient facts to constitute a cause of action. [Also], plaintiffs failed to present reliable evidence to substantiate their claim for $869,120 relating to Turkish meals charged at a generous if not extravagant rate of $40 per day per person,” IPI argues.

However, IPI said it concedes to the plaintiffs’ motion for default judgment concerning Health insurance premiums worth $18,987.83, round trip airfare no more than $1,500 per person for qualified plaintiffs, and six days paid leave for qualified plaintiffs, no more than $24,220.

In November 2020, the plaintiffs initiated a complaint against their former employer asserting three distinct claims: violation of the Fair Labor Standards Act by failing to pay minimum and overtime wages, unlawful retaliation in contravention of the FLSA, and breach of contract.

For the breach of contract cause of action, the contract that was allegedly breached by IPI is the “letter of commitment.” Plaintiffs alleged that defendants breached the contract by failing to provide all the work hours promised or the monthly wage promised, failing to provide a Turkish cook, failing to provide roundtrip airfare home to Turkey for workers owed leave after six months, failing to provide health insurance, and failing to provide paid sick leave.

IPI failed to answer the complaint and defaults were entered against them on December 30, 2020.

Plaintiffs voluntary dismissed defendant IDS Development Management & Consultancy for failure to effectuate services on June 2, 2021 which was granted by the court on August 9, 2021.

A default judgment was entered in March 2022 in favor of the Plaintiffs on their two FLSA claims against IPI which was subsequently satisfied through a mutually agreed settlement approved by the Court.

Regarding the breach of contract claim, the court granted the plaintiffs’ motion for class action certification under Federal Rule of Civil Procedure in August 2021.

On June 12, 2023, plaintiffs filed a motion for entry of partial default judgment for the remaining cause of action, breach of contract.

In the Motion for Default Judgment, plaintiffs asserted themselves as “third-party beneficiaries” and sought to enforce a construction contract between IPI and IDS.

According to the terms of the construction contract as offered by plaintiffs in the Motion for Partial Default Judgment, IPI would pay IDS at a higher hourly rate for additional work outside the scope of work as originally contemplated by IPI and IDS.

Plaintiffs also sought to enforce the provision of Turkish kitchen equipment, valued at $100,000, found in the IPI-IDS construction contract.

Additionally, the plaintiffs attempted to enforce an alleged oral agreement in which it was claimed that the “Turkish team” was promised the provision of Turkish meals.

Plaintiffs also asked for the payment of health insurance premium in the amount of $18,726.20 in total, six day paid leave of $17,246.40 in total, and round trip airfare valued at $2,041.48 per person for qualified plaintiffs.

After a few rounds of briefings, on September 28, 2023, Plaintiffs, through their attorney, Richard Miller, withdrew the motion for partial default judgment and requested for leave to amend the complaint in open court.

Court granted the Plaintiffs’ withdrawal of the motion for partial default judgment.