USDOL lien on IPI’s Flame Tree Terraces to be released

The U.S. Department of Labor has informed the U.S. District Court for the NMI that Imperial Pacific International (CNMI) LLC and its parent company, Imperial Pacific International Holdings Ltd., have satisfied their monetary obligation under the court’s first amended consent judgment and is acknowledging the release of the lien on IPI’s Flame Tree Terraces that was recorded in USDOL’s favor.

According to the acknowledgment of satisfaction of judgment jointly signed by USDOL lawyer Charles Song and IPI lawyer Kevin Abikoff, the judgment amount of over $3.3 million in the consent judgment and first amended consent judgment has been fully paid by IPI, with the final payment transmitted on Feb. 8, 2022.

“The parties acknowledged that IPI has made full payment of the judgment amount secured by the lien in favor of plaintiff against the Flame Tree Terrace,” the motion stated.
Because full and complete satisfaction of the court’s monetary judgment has been acknowledged, the clerk of the court has been authorized and directed to make an entry of the full and complete satisfaction on the docket of the judgment, releasing USDOL’s lien on IPI’s Flame Tree Terraces.

“Plaintiff acknowledges that the lien established by the consent judgment, recorded on March 25, 2021, as amended by the first amendment to consent judgment recorded on March 30, 2021, will be released through the recording of this acknowledgement of satisfaction of judgment with the Commonwealth Recorder’s, Saipan,” the motion said.

The clerk of court has yet to make an entry of full and complete satisfaction.
According to court documents, back on April 11, 2019, the court entered a consent judgment through which IPIH and IPI agreed to the entry of a judgment to be paid to USDOL in the total amount of $3,360,000, comprising of back wages, liquidated damages, and civil monetary penalties, among other things.

On March 23, 2021, the court entered a first amendment to the consent judgment, through which the parties agreed to a modified payment schedule under which IPI would pay $1,478,430.08—the remaining amount due under the judgment—and agreed that, as security for IPI’s monetary liability of $1,478,430.08, IPI would to record a lien in favor of plaintiff against the leasehold parcels of property known as the Flame Tree Terrace.

On Aug. 12, 2021, the court entered an amendment to the payment plan under the first amended consent judgment, modifying the payment plan under which IPI would make payment of the judgment, but not otherwise amending the terms of the first amended consent judgment, including as regards the security interest in Flame Tree Terrace.

Although IPI has fully paid of the first amended consent judgment, USDOL and IPI are currently awaiting the court’s approval of their second amendment to the consent judgment that would require IPI to pay over $2 million because IPI was found in contempt, again, of the court’s previous injunction in favor of USDOL in its case against IPI over Fair Labor Standards Act violations.