Initiation of proceedings: In 2019, seven Chinese construction workers at the Imperial Pacific casino construction site in Garapan, Saipan, filed a lawsuit against their former employers Gold Mantis Construction Decoration (CNMI), LLC, and MCC International Saipan LTD., Co. These two construction companies were contracted by Imperial Pacific International (CNMI), LLC, to construct its casino project in Saipan. All three companies are registered in the Commonwealth of the Northern Mariana Islands (CNMI), a territory of the United States in the western Pacific Ocean. 

Main claims: The plaintiffs, recruited from China, alleged various claims related to forced labour, negligence, and liability for injuries sustained during their employment on the Imperial Pacific casino construction site in Garapan, Saipan, in the western Pacific Ocean.  

Court proceedings: In early 2021, the plaintiffs settled their claims against Gold Mantis and MCC for undisclosed amounts and dismissed them from the lawsuit. Consequently, Imperial Pacific International (CNMI), LLC remained the sole defendant. 

In June 2020, after months of discovery and pre-trial motions, the U.S. District Court for the Northern Mariana Islands entered default judgment (a ruling granted by a judge or court in favour of a plaintiff in the event that the defendant in a legal case fails to respond to a court summons or does not appear in court) against Imperial Pacific International (CNMI), LLC, due to repeated violations of court discovery orders. 

The plaintiffs subsequently filed a petition for damages under the Trafficking Victims Protection Reauthorization Act (TVPRA), seeking compensation for emotional distress, lost income from physical injuries, future lost income, and pain and suffering related to those injuries. They also sought punitive damages. 

Following a hearing in August 2020, the court denied Imperial Pacific International motion to set aside the default judgment and ordered the parties to file supplemental briefing on the issue of entry of default judgment against one of multiple jointly liable defendants. 

On May 24, 2021, the U.S. District Court for the Northern Mariana Islands issued a default judgment. The court determined that Imperial Pacific International (CNMI), LLC knowingly benefited from the plaintiffs’ forced labour and other illegal practices on the construction site. According to the court, the company was ´´deeply involved with selecting and supervising the contractors, knew of its contractors’ policies on work hours and harsh punishments, carried out the health and safety inspections, provided workers transportation to and from the construction site as well as housed the workers, knew about its contractors exploitative and illegal practices, and denied entry to an Occupational Safety and Health Administration investigator who came to inspect safety conditions.´´  

Consequently, the Court ordered Imperial Pacific International (CNMI), LLC to pay $5,430,595.58 to the seven Chinese construction workers as compensation for forced labour, human trafficking, and workplace injuries suffered during their employment on the Imperial Pacific casino construction site. 

On April 14, 2022, the U.S. District Court for the Northern Mariana Islands granted the plaintiffs’ request for attorneys’ fees in the amount of $687,793.70, which was added to the initial amount of $5,430,595.58.