By FERDIE DE LA TORRE
\nferdie_delatorre@saipantribune.com
\nREPORTER<\/p>\n
Despite receiving numerous warnings from the U.S. District Court on the consequence of failing to retain a lawyer in connection with the lawsuit filed by its former foreign workers, an officer of the owner of the defunct Tinian Dynasty Hotel and Casino still appeared at a hearing last Friday without a counsel.
\nChun Wai Chan, director of Tinian Dynasty\u2019s owner, Hong Kong Entertainment (Overseas) Investment Ltd. (HKE), appeared telephonically at the status conference.
\nChan informed U.S. District Court for the NMI Magistrate Judge Heather L. Kennedy that they do not have the resources to hire a lawyer.
\nKennedy reiterated that the law says a corporation must have counsel to represent them.
\nKennedy stated that Eric F. Dona and co-plaintiffs have filed their motion to strike the answer of defendants HKE and Mega Stars Overseas Ltd. to the lawsuit.
\nThe magistrate judge said plaintiffs also filed a motion for entry of default and default judgment.
\nChan stated that he did not understand the wording and that he needed to find out more about the motions.
\nKennedy advised Chan that he could not respond, but if he retains an attorney, that lawyer would have a certain time to respond to the motions and there may or may not be a hearing.
\nKennedy explained that the court may issue a decision without a hearing.
\nThe magistrate judge emphasized that HKE and Mega Stars could not proceed in this matter without an attorney and that the court may be left with little choice but to grant plaintiffs\u2019 motion if there is no counsel to represent defendants.
\nChan replied that he understood.
\nKennedy told plaintiffs\u2019 counsel, Samuel Mok, that she will file a report and recommendation to U.S. District Court for the NMI designated judge Frances Tydingco-Gatewood about the matter.
\nIn plaintiffs\u2019 motion, Mok asked the court to strike defendants\u2019 answers to the complaint and enter default and default judgment against HKE and Mega Stars in an amount of damages to be determined at a hearing.
\nMok said HKE and Mega Stars are not represented by counsel despite receiving several warnings from the court that the consequence of failing to retain legal counsel could be the striking of their answers and entry of default and default judgment.
\nFurther, Mok said, defendants have made clear they do not intend to retain legal counsel due to lack of funds.
\nLast February, Chan disclosed that the total outstanding liabilities of the owner of Tinian Dynasty has now climbed to over $250 million, excluding the $75 million in civil penalty assessed by the U.S. Department of the Treasury Financial Crimes Enforcement Network (FinCEN).
\nChan revealed that HKE\u2019s outstanding liabilities is continuously increasing due to late payment penalties and interest.
\nChan disclosed Tinian Dynasty\u2019s outstanding liabilities in his response to the court\u2019s show-cause order directing HKE to explain as to why sanctions should not be imposed against them for failure to obtain a lawyer in connection with a lawsuit filed by foreign workers over the denial of their CNMI-only Transitional Worker (CW-1) petitions.
\nKennedy issued the order to show cause after Chan, who appeared telephonically at the hearing, informed the court that they have not retained counsel and that they do not intend to do so because of financial inability.
\nChan said Tinian Dynasty\u2019s casino operation stopped in August 2015, and when the hotel operation halted in March 2016 no more income could be generated since then.
\n\u201cWe ran out of money and cannot pay to all departments of government, the staffs, the suppliers, the shareholder, and the attorney we used to hire,\u201d he said.
\nAt the Jan. 16, 2018 hearing, Daniel Guidotti moved to withdraw as counsel for HKE and Mega Stars as the companies failed to pay his attorney\u2019s fees. Kennedy granted Guidotti\u2019s motion.
\nMok is counsel for Eric F. Dona and six other co-plaintiffs. There are 15 named plaintiffs in this case.
\nIn their lawsuit, Dona and co-plaintiffs alleged that the owners and management of Tinian Dynasty lied to them about their immigration legal status.
\nMok alleged that the owners and management of Tinian Dynasty lied that the workers were legally authorized to work notwithstanding the denial of their CW-1 petitions.<\/p>\n","protected":false},"excerpt":{"rendered":"
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