Genc v. Imperial Pacific International (CNMI), LLC

District Court, Northern Mariana Islands·Decided March 17, 2025·No. 1:20-cv-00031·Unknown

Opinion

FILED Clerk District Court MAR 17 2025 for the Northern, Mariana Islands IN THE UNITED STATES DISTRICT COURT (Debdty □□□□□□ ° OZCAN GENC, HASAN GOKCE, and Case No. 1:20-cv-00031 SULEYMAN KOS, on behalf of themselves and all others similarly situated, DECISION AND ORDER Plaintiffs, GRANTING IN PART Vv PLAINTIFFS’ SECOND MOTION FOR ENTRY OF DEFAULT JUDGMENT (CNMI), LLC, IMPERIAL PACIFIC INTERNATIONAL HOLDINGS LTD., Defendants. Plaintiffs Ozcan Genc, Hasan Gékee, and Siileyman Kés, are the lead plaintiffs of the class of Turkish nationals with whom Defendants Imperial Pacific International (CNMI), LLC (“IPI”) and Imperial Pacific International Holdings, Ltd. (“IPI Holdings’) (collectively, □□□□□□□□ ~7 |! contracted to work in construction of the Imperial Palace Hotel in Saipan in 2020 under the H- 2B temporary non-agricultural workers program. (Mem. Decision 15, ECF No. 45.) Before the Court is Plaintiffs’ second motion for entry of default judgment on the sole remaining cause of action in this action, breach of contract, against IPI and IPI Holdings. (“Mot.,” ECF No. 109). 55 Plaintiffs’ Motion is supported by F. Mert Oztuna’s Declaration. (ECF No. 109-1.) Defendants filed their Opposition (ECF No. 111), with supporting exhibits (ECF No. 112-1—112-3), to which 1! Plaintiffs replied (ECF No. 113). Prior to filing the instant Motion, Plaintiffs submitted an *° |! amended damages spreadsheet to reflect the inclusion of damages for some plaintiffs that “ recently opted into the class (ECF No. 101-1), supported by a declaration by Oztuna (ECF No. 101). At the hearing on the instant Motion, Plaintiffs further amended their spreadsheet of

damages orally and thereafter submitted the updated spreadsheet to show their claim for $1,148,893.51. (Pls’ Ex. 18A, ECF No. 119.) Finally, Plaintiffs also rely on filings in support of their first motion for entry of default judgment on the breach of contract claim. (See ECF No. 77-1–77-2, 77-6–77-17.) For the following reasons, the Court GRANTS Plaintiffs’ Motion for entry of default judgment but awards Plaintiffs damages in the lower amount of $833,750.23. I. PROCEDURAL BACKGROUND On December 30, 2020, the Clerk entered default against Defendants IPI and IPI Holdings. (ECF No. 10.) On the same day, the Court preliminarily certified the collective action and finalized the certification on February 8, 2021, under Rule 23 for their breach of contract claim. (Mins., ECF No. 11.) Plaintiffs now move the Court to enter default judgment for the breach of contract cause of action in their Complaint (ECF No. 1), based on the “Letter of Commitment” entered into between each of the workers and IPI. (Mot. 1.) Plaintiffs filed their first motion for entry of default judgment for their breach of contract cause of action on the basis of both the Letter of Commitment and an IPI-IDS contract in which none of the Plaintiffs were named parties nor signatories (ECF No. 77-1). (ECF No. 77.) However, after the Court ordered supplemental briefing on the IPI-IDS contract, Plaintiffs withdrew their first motion for entry of default judgment on their breach of contract cause of action. (Mins., ECF No. 98.) Plaintiffs thereafter filed an amended damages spreadsheet with a declaration from Öztuna to indicate the updated damages claimed by the class to include the recently included opt-in plaintiffs. (ECF Nos. 98, 101, 101-1.) IPI filed an opposition to the amended spreadsheet. (ECF No. 103.) Plaintiffs subsequently filed the Motion now before the Court, which was stayed pursuant to 11 U.S.C. § 362(a)(1) because of IPI’s bankruptcy petition. On June 29, 2024, this Court’s bankruptcy division granted relief from the stay to allow Plaintiffs to have their right to damages determined in this proceeding. In re Imperial Pacific International (CNMI) LLC, Case No. 1:24- bk-00002, ECF No. 109 (June 10, 2024). At the hearing on Plaintiffs’ Motion, Plaintiffs orally amended their damages spreadsheet (Ex. 18A) and the Court admitted Plaintiffs’ prior filings at ECF Nos. 77-1–77-2, 77-6–77-17 for consideration. II. FACTUAL BACKGROUND Plaintiffs are skilled and experienced Turkish electricians, carpenters, welders, and plumbers. (Compl. ¶ 23.) IDS recruited Plaintiffs to build IPI’s hotel-casino complex in Garapan, Saipan. (Id.) IDS presented the Letter of Commitment (Id. ¶¶ 24–26, 29, 39–40, 91), which is attached to Plaintiffs’ first motion for entry of partial default judgment (Letter of Commitment, ECF No. 77-2), naming IPI as the employer, and outlines terms of employment—including hourly and overtime wage rates for 270 hours of work per month. (Compl. ¶ 26.) The Letter of Commitment provided that a Turkish cook would prepare meals. Specifically, the Complaint states “[t]he Letter of Commitment promised that the employer would provide three meals a day prepared by a Turkish cook.” (Id. ¶ 29.) Plaintiffs arrived in Saipan in January 2020. (Id. ¶ 36.) Thereafter, “Defendants broke their promise in the Letter of Commitment to provide a Turkish cook. The meals that IPI offered were prepared to the state of Chinese workers and was, for the Turkish workers, practically inedible.” (Id. ¶ 37.) The Letter of Commitment explicitly states: “The Employee’s transportation, accommodation and three meals a day shall be at the expense of the Employer. The meals shall be made by a Turkish Cook and the nominated doctor shall check for the calories.” (Letter of Commitment 1 (emphasis added).) Plaintiffs state that the Letter of Commitment is a “valid and binding contract between Plaintiffs and Defendants.” (Compl. ¶ 91.) They claim they satisfactorily performed their employment duties and responsibilities but 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.” (Id. ¶¶ 92– 93.) Thus, Plaintiffs seek “actual and consequential damages and prejudgment interest.” (Id. ¶ 94.) Plaintiffs additionally pray for “[a]n order for a complete and accurate accounting of all the compensation to which Plaintiffs are entitled.” (Id. at Prayer for Relief (C).) Ultimately, as stated in their Motion and at the hearing, Plaintiffs request the following awards of damages: 1. Health insurance premiums: $18,987.83; 2. Turkish Food/meals: $869,120.00; 3. Airfare round-trip ticket: $129,000; 4. Home leave/paid leave/sick leave: $39,050.40; 5. Repatriation: $1,592.00 for Öztuna; These five categories of damages, including the stipulated amounts submitted by the parties, comprise Plaintiffs’ requested amount of $1,057,750.23. (Mins., ECF No. 123.) At the default judgment hearing, Director of IPI Howyo Chi testified on behalf of IPI. Director Chi testified that the Turkish workers staying at the staff housing dorm requested that he look for a cook and Chi found them a Chinese cook to cook Chinese food for them. The Turkish worker who requested this on behalf of the workers was the project manager, Volkan Koymen. Chi testified Koymen hired the Chinese worker. Further, Chi testified that Koymen had Turkish construction workers working in the kitchen. Chi was unable to say exactly how long the Chinese chef cooked for the workers but testified that the chef cooked for at least three to six months. Chi also testified that during the entire time he has been with IPI, no Turkish worker rejected the food or filed a food quality complaint. Chi stated that no Turkish worker demanded Hallal food. He further testified no Turkish worker was denied access to food. Chi stated the HR Counter was open during business hours, 8:00 a.m. to 6:00 p.m. and there was a drop box if someone wanted to leave an anonymous note. Chi further asserted about twen

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