Genc v. Imperial Pacific International (CNMI), LLC

District Court, Northern Mariana Islands·Decided August 9, 2021·No. 1:20-cv-00031·Unknown

Opinion

FILED Clerk District Court AUG 09 2021 for the Northerry Mayiana Islands By 49: I IN THE UNITED STATES DISTRICT COURT (D@puig Clerk)

oe OZCAN GENC, HASAN GOCKE, and Civil Case No. 1:20-cv-00031 SULEYMAN KOS, on behalf of themselves and all other similarly situated, Plaintiffs MEMORANDUM DECISION AND □ ORDER GRANTING PLAINTIFFS’ y MOTION FOR RULE 23 CLASS ACTION CERTIFICATION (CNMI) LLC, and IMPERIAL PACIFIC Defendants. On November 20, 2020, Plaintiffs Ozcan Gene, Hasan Gocke, and Stileyman Kés (collectively “Plaintiffs”) filed the instant action against Defendants Imperial Pacific International (CNMI), LLC, Imperial Pacific International Holdings, Ltd. (collectively “IPI”), and IDS Development Management & Consultancy (“IDS”).! Plaintiffs’ Complaint asserted three causes of action: (1) Federal Labor Standards Act (“FLSA”) minimum wage and overtime violations, (2) FLSA retaliation violations, and 1g (3) a state-law breach of contract claim. (ECF No. 1.) Plaintiffs filed a Motion to Certify Class Under

Federal Rule of Civil Procedure 23, seeking to certify a proposed class for their breach of contract ' At the initiation of this suit, Plaintiffs sought damages from a third Defendant: IDS Development Management & Consultancy. However, Plaintiffs have been unable to serve or reach IDS representatives and IDS has since been dismissed as a defendant. (Order Dismissing IDS, ECF No. 44.)

claim and defining the class as “all Turkish nationals with whom Defendants contracted to work in construction of the Imperial Palace Hotel in Saipan in 2020 under the H-2B temporary non-agricultural workers program.” (Mot. to Certify Class 1, ECF No. 13.) On March 3, 2021, a hearing on the Rule 23 class action certification was held at which time the Court granted Plaintiffs’ motion. (Min., ECF No. 30.) The Court now enters this Memorandum Decision providing its reasons for granting the motion. In 2019, a number of highly skilled and experienced Turkish electricians, carpenters, welders and plumbers were recruited in Turkey by Defendant IDS to build IPI’s hotel-casino complex in Garapan, Saipan.2 To entice the Turkish workers, IDS presented letters of commitment (“Taahhütname” in Turkish) naming IPI as the employer and laying out a number of attractive terms and conditions of employment in Saipan. (ECF Nos. 13-1 (Turkish), 13-2 (English).) These promises included a set period of employment, certain rates of compensation including overtime, a set number of regular and overtime hours, Turkish meals, life and workplace accident insurance, and other terms and conditions. Attracted by the offer, Plaintiffs set out to begin processing the paperwork for their travels to and employment in Saipan. To do this, IDS required Plaintiffs to provide IPI a promissory note in 30,000 Turkish lira, approximately $4,000.00, and to find a guarantor. (Compl. 7.) Plaintiffs also

2 IDS is a company registered in several countries including Turkey which recruits workers in Turkey and the Middle East for construction projects around the world. (Compl. 4, ECF No. 1.) needed to travel from their various hometowns to Ankara, Turkey for interviews at the U.S. Embassy. This trip enabled Plaintiffs to acquire U.S. H-2B nonimmigrant visas, which allows employers to hire nonimmigrants to perform nonagricultural labor or services in the United States. (Id. at 5.) Plaintiffs successfully processed their paperwork and embarked on their journeys half-way around the world. Plaintiffs allege that IPI breached the letters of commitment. In June 2020, payments to Plaintiffs began to dwindle precipitously. Plaintiffs’ hours were cut: “All overtime was eliminated, leaving Plaintiffs with no more than 40 hours of regular wages earned per week.” (Id. at 7.) Compensation frequently arrived late—sometimes a week, sometimes longer. “By early September, Plaintiffs had not been paid by IPI for more than a month.” (Id. at 9.) IPI continued to pay Plaintiffs well past the biweekly deadlines, sometimes failing to provide payment altogether. And, for several of the Turkish workers, they were not paid the compensation rate agreed to.3 IPI also allegedly failed to fulfill their end of the bargain in other ways. IPI did not provide Turkish meals; rather, IPI prepared Chinese-tasting food which was, “for the Turkish workers, practically inedible.” (Id. at 7.) Additionally, IDS’s Pacific Projects Director and IPI company 3 In a separate matter with IPI as named Defendants, the U.S. Secretary of the Department of Labor (“Secretary”) moved for a finding of civil contempt against IPI entities for failure to remit payment to 136 workers under a 2019 Consent Judgment. See Order Appointing Receiver and Setting Terms of Receivership, Acosta v. IPI et al., 1:19-cv-00007 (D. N. Mar. I. Mar. 10, 2021), ECF No. 50. The Court found IPI in civil contempt and ordered IPI to immediately pay the back wages to the 136 workers who performed services in 2016 and 2017, and also required IPI to immediately pay $788,022.54 in 2020 and 2021 unpaid wages. Order Finding Civil Contempt and Imposing a Stop Work Order, Acosta v. IPI et al., 1:19-cv-00007 (D. N. Mar. I. Jan. 21, 2021), ECF No. 19. The Court takes judicial notice of these circumstances and that IPI has since made substantial payments to the more recent unpaid wages, including members of this FLSA collective action. See United States v. Wilson, 631 F.2d 118, 119 (9th Cir. 1980) (“[A] court may take judicial notice of its own records in other cases”). IPI’s payments have thus reduced the amount owed in total compensatory damages since the initiation of this lawsuit, and as reflected in Plaintiffs’ Second Amended Statement of FLSA Damages (ECF No. 31). representative Volkyan Koymen informed Plaintiffs that IPI would not honor their promise to compensate eligible Turkish workers for their return ticket to Turkey.4 And, although healthcare insurance premiums were deducted from Plaintiffs’ biweekly paychecks, they soon learned that their health insurance “had been suspended for nonpayment of premiums.” (Id.) Plaintiffs filed their Complaint in November 2020 and subsequently moved to certify the proposed class for their breach of contract claim under Federal Rule of Civil Procedure 23. Before filing their motion to certify class, Plaintiffs moved for entry of default against IPI as it did not plead or defend within the time permitted by the Federal Rules of Civil Procedure. The Clerk entered an amended entry of default against IPI in December 2020. Prior the hearing on the motion to certify class, the Court issued a Briefing Order directing IPI to respond to the motion and set the matter for a hearing. (Briefing Order, ECF No. 22.) Plaintiffs served a copy of the Briefing Order and the Notice of Hearing (ECF No. 23) to IPI. (Proof of Service, ECF No. 28.) IPI failed to file any response and failed to appear at the motion hearing. To date, IPI has not made an appearance in this action. “The class action is ‘an exception to the usual rule that litigation is conducted by and on behalf of the individual named parties only.’” Wal-Mart Stores, Inc. v. Dukes, 564 U.S. 338, 348 (2011) (quoting Califano v. Yakasaki, 442 U.S. 682, 700-701 (1979)). To obtain certification, Plaintiffs bear

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