Case: Joseph v. Signal International, LLC

1:13-cv-00324 | U.S. District Court for the Eastern District of Texas

Filed Date: May 21, 2013

Case Ongoing

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Case Summary

This case is part of the series of Signal International cases. It is stayed during defendant's bankruptcy and settlement proceedings. On May 21, 2013, 33 Indian guestworkers filed this lawsuit in the U.S. District Court for the Eastern District of Texas for harm suffered as a result of an allegedly fraudulent and coercive employment recruitment scheme. Plaintiffs filed this suit after District Judge Jay Zainey denied class certification on January 3, 2012 in a related case, David v. Signal Inte…

This case is part of the series of Signal International cases. It is stayed during defendant's bankruptcy and settlement proceedings.

On May 21, 2013, 33 Indian guestworkers filed this lawsuit in the U.S. District Court for the Eastern District of Texas for harm suffered as a result of an allegedly fraudulent and coercive employment recruitment scheme. Plaintiffs filed this suit after District Judge Jay Zainey denied class certification on January 3, 2012 in a related case, David v. Signal International.

Plaintiffs were allegedly brought into the United States to provide labor and services to Defendant Signal International at its Orange, Texas site. Signal is based in Pascagoula, Mississippi and is in the business of providing repairs to offshore oil rigs in the Gulf Coast region. The complaint alleges that plaintiffs paid defendant Signal's recruiters as much as $25,000 for travel, visa, and recruitment fees, but upon arrival in the United States found out they would not receive the green cards promised to them. Instead, plaintiffs were forced to pay additional fees to live in racially segregated labor camps ($1050 per month), and were subject to squalid living conditions and threats of both legal and physical harm if they complained about the conditions or decided not to provide labor. Plaintiffs also alleged that the fear and coercion plaintiffs they experienced were exacerbated upon learning of abuses occurring at Signal's Pascagoula, Mississippi site.

The amended complaint, filed on behalf of 47 individuals, asserted claims under the Trafficking Victims Protection Act (18 U.S.C. §1589 (forced labor) and 18 U.S.C. §1590 (trafficking)), the Racketeer Influenced Corrupt Organizations Act (18 U.S.C. §1962), the Civil Rights Act of 1866 (42 U.S.C. §1981), the Ku Klux Klan Act of 1871 (42 U.S.C. §1985), the Thirteenth Amendment, as well as claims of fraud, negligent misrepresentation, and breach of contract. Plaintiffs were represented by a private law firm.

In February 2014, Magistrate Judge Zack Hawthorn denied Signal's motion to transfer this case to the Eastern District of Louisiana. The plaintiffs in this case only overlapped with the David case insofar as their FLSA claims in the David case were concerned. Additionally, the plaintiffs in this case sued based on events at Signal's Orange, Texas site, whereas plaintiffs in cases pending in the Eastern District of Louisiana sued based on events at Signal's Pascagoula, Mississippi site. Although the Court declined to transfer this case, in May 2014, Magistrate Judge Hawthorn entered a consent order that discovery from the cases in the Eastern District of Louisiana would be allowed to be used here. Additionally, in Dec. 2014, Magistrate Judge Hawthorn severed and transferred Signal's cross-claims against co-defendants (immigration attorneys, recruiters, and labor brokers) to the Eastern District of Louisiana.

In Oct. 2014, Magistrate Judge Hawthorn granted Signal's motion to compel production of plaintiffs' T- and U-visas and applications for such visas. Although a similar motion had already been denied for the cases pending in the Eastern District of Louisiana, the court found that the materials' relevance outweighed any potential in terrorem effect. The Court warned that it would reconsider if Signal sought discovery that was clearly aimed at harassment. Plaintiffs did not comply with this order until Mar. 4, 2015, but the court denied Signal's motion for sanctions, saying its lack of diligence in pursuing the documents rendered it ineligible for relief.

In March 2015, the Court held that Texas laws should apply in the breach of contract and fraud claims, because it did not find that a true conflict existed between Texas and other jurisdictions.

In July 2015, the court stayed the case after Signal filed for bankruptcy. In re Signal Int’l, Inc, et al., No. 15-11498 (Bankr. D. Del. July 12, 2015). As a part of the bankruptcy filings, the plaintiffs entered into a plan support agreement (PSA) which contemplated a settlement of the claims of this lawsuit against Signal entities through a consensual Chapter 11 plan proposed by Signal. The PSA, with a liquidation trust for distribution of settlement proceeds, became effective on Dec. 14, 2015.

In Dec. 2015, in the related EEOC case, the EEOC announced that the parties had reached a settlement for all cases, approved by the bankruptcy court. Signal would pay $5 million to 476 guestworkers through a claims process. All aggrieved individuals included in the litigation could receive relief in spite of the bankruptcy proceedings. Signal's CEO also issued an apology for its conduct.

In this case, Joseph, the parties are updating the court every 120 days as to the status of the bankruptcy proceedings. As of the parties' most recent Feb. 27, 2020 update to the Court, this settlement process remains ongoing.

	Document
1:13-cv-00324	Docket Joseph v. Signal International LLC	Oct. 30, 2019	Oct. 30, 2019 Docket
1 1:13-cv-00324	Complaint Joseph v. Signal International LLC	May 21, 2013	May 21, 2013 Complaint
74 1:13-cv-00324	Order Denying Signal Defendants' Motion to Transfer Joseph v. Signal International LLC	Feb. 11, 2014	Feb. 11, 2014 Order/Opinion
99 1:13-cv-00324	Report and Recommendation Denying Defendant Signal's Motion to Dismiss (Doc. No. 70). Joseph v. Signal International LLC	June 17, 2014	June 17, 2014 Magistrate Report/Recommendation
100 1:13-cv-00324	Report and Recommendation of United States Magistrate Joseph v. Signal International LLC	June 18, 2014	June 18, 2014 Magistrate Report/Recommendation 2014 U.S.Dist.LEXIS 127486
115 1:13-cv-00324	Order Denying Burnett Defendants' Motion To Transfer Joseph v. Signal International LLC	July 14, 2014	July 14, 2014 Order/Opinion
124 1:13-cv-00324	Report and Recommendation Denying the Burnett Defendants' Motion to Dismiss (Doc. No. 32)	Aug. 4, 2014	Aug. 4, 2014 Magistrate Report/Recommendation
148 1:13-cv-00324	Memorandum and Order on Signal's Motion to Compel (Doc. No. 127)	Oct. 15, 2014	Oct. 15, 2014 Order/Opinion
205 1:13-cv-00324	Order Severing and Transferring Signal's Cross-Claims to the Eastern District of Lousiana	Dec. 8, 2014	Dec. 8, 2014 Order/Opinion
208 1:13-cv-00324	Third Amended Complaint	Dec. 23, 2014	Dec. 23, 2014 Complaint

ECF Number	Description	Date	Link Date / Link
	Case Assigned to Judge Ron Clark. (aam, )	May 21, 2013	May 21, 2013 PACER
	***FILED IN ERROR. Please ignore document #2, Order Governing Proceedings. This order was entered prematurely by the Court. (tkd, )	May 21, 2013	May 21, 2013 PACER
1	COMPLAINT against All Defendants ( Filing fee $ 400 receipt number 0540-4146745.), filed by Biju Makrukkattu Joseph. (Attachments: # 1 Civil Cover Sheet, # 2 Exhibit, # 3 Summons(es), *FILED IN ERROR. SUMMONS(ES) ARE NOT FILED AS ATTACHMENTS. THEY NEED TO BE EMAILED TO THE CLERK'S OFFICE FOR ISSUANCE. PLEASE IGNOR.* # 4 Summons(es), # 5 Summons(es), # 6 Summons(es), # 7 Summons(es), # 8 Summons(es), # 9 Summons(es), # 10 Summons(es), # 11 Summons(es), # 12 Summons(es), # 13 Summons(es), # 14 Summons(es), # 15 Summons(es), # 16 Summons(es), # 17 Summons(es), # 18 Summons(es), # 19 Summons(es), # 20 Summons(es))(Landers, Daniella) (Entered: 05/21/2013) 1 Civil Cover Sheet View on PACER 2 Exhibit View on PACER 3 Summons(es) View on PACER 4 Summons(es) View on PACER 5 Summons(es) View on PACER 6 Summons(es) View on PACER 7 Summons(es) View on PACER 8 Summons(es) View on PACER 9 Summons(es) View on PACER 10 Summons(es) View on PACER 11 Summons(es) View on PACER 12 Summons(es) View on PACER 13 Summons(es) View on PACER 14 Summons(es) View on PACER 15 Summons(es) View on PACER 16 Summons(es) View on PACER 17 Summons(es) View on PACER 18 Summons(es) View on PACER 19 Summons(es) View on PACER 20 Summons(es) View on PACER	May 21, 2013	May 21, 2013 Clearinghouse
2	FILED IN ERROR. Please ignore.ORDER GOVERNING PROCEEDINGS. Rule 26(f) attorney conference must occur by 6/11/13. Rule 16 Management/Scheduling Conference set for 8/28/2013 at 9:00 AM in Ctrm 2 (Beaumont) before Judge Ron Clark. Signed by Judge Ron Clark on 5/21/13. (tkd, ) Modified on 5/21/2013 (tkd, ). (Entered: 05/21/2013)	May 21, 2013	May 21, 2013 PACER
3	SUMMONS Issued as to All Defendants and emailed to plas' atty for service. (aam, ) (Entered: 05/22/2013)	May 22, 2013	May 22, 2013 PACER
4	ORDER REFERRING CASE to Magistrate Judge Zack Hawthorn for all pretrial proceedings. Signed by Judge Ron Clark on 5/22/13. (tkd, ) (Entered: 05/23/2013)	May 22, 2013	May 22, 2013 PACER
5	NOTICE of Attorney Appearance - Pro Hac Vice by Keith Barnett on behalf of All Plaintiffs. Filing fee $ 100, receipt number 0540-4155821. (Barnett, Keith) (Entered: 05/28/2013)	May 28, 2013	May 28, 2013 PACER
6	NOTICE of Attorney Appearance - Pro Hac Vice by John H Fleming on behalf of All Plaintiffs. Filing fee $ 100, receipt number 0540-4159980. (Fleming, John) (Entered: 05/30/2013)	May 30, 2013	May 30, 2013 PACER
7	NOTICE of Attorney Appearance - Pro Hac Vice by Kurt Lentz on behalf of All Plaintiffs. Filing fee $ 100, receipt number 0540-4163747. (Lentz, Kurt) (Entered: 06/03/2013)	June 3, 2013	June 3, 2013 PACER
10	NOTICE of Attorney Appearance - Pro Hac Vice by Kara D Duffle on behalf of All Plaintiffs. Filing fee $ 100, receipt number 0540-4182854. (Duffle, Kara) (Entered: 06/17/2013)	June 17, 2013	June 17, 2013 PACER
8	NOTICE of Attorney Appearance - Pro Hac Vice by Gabriel Adam Mendel on behalf of All Plaintiffs. Filing fee $ 100, receipt number 0540-4182522. (Mendel, Gabriel) (Entered: 06/17/2013)	June 17, 2013	June 17, 2013 PACER
9	NOTICE of Attorney Appearance - Pro Hac Vice by Teresa L Sulmers on behalf of All Plaintiffs. Filing fee $ 100, receipt number 0540-4182825. (Sulmers, Teresa) (Entered: 06/17/2013)	June 17, 2013	June 17, 2013 PACER
11	WAIVER OF SERVICE Returned Executed by Biju Makrukkattu Joseph. Gulf Coast Immigration Law Center, LLC. waiver sent on 6/25/2013, answer due 8/26/2013. (pkb, ) (Entered: 07/12/2013)	July 12, 2013	July 12, 2013 PACER
12	WAIVER OF SERVICE Returned Executed by Biju Makrukkattu Joseph. Malvern C. Barnett waiver sent on 6/25/2013, answer due 8/26/2013. (pkb, ) (Entered: 07/12/2013)	July 12, 2013	July 12, 2013 PACER
13	WAIVER OF SERVICE Returned Executed by Biju Makrukkattu Joseph. Law Offices of Malvern C. Burnett, A.P.C. waiver sent on 6/25/2013, answer due 8/26/2013. (pkb, ) (Entered: 07/12/2013)	July 12, 2013	July 12, 2013 PACER
14	Defendant's Unopposed First Application for Extension of Time to Answer Complaint re Signal International, LLC.( Herman, Jonathan) (Entered: 07/15/2013)	July 15, 2013	July 15, 2013 PACER
15	Defendant's Unopposed First Application for Extension of Time to Answer Complaint re Signal International, Inc..( Herman, Jonathan) (Entered: 07/15/2013)	July 15, 2013	July 15, 2013 PACER
16	Defendant's Unopposed First Application for Extension of Time to Answer Complaint re Signal International Texas, G.P..( Herman, Jonathan) (Entered: 07/15/2013)	July 15, 2013	July 15, 2013 PACER
17	Defendant's Unopposed First Application for Extension of Time to Answer Complaint re Signal International Texas, L.P..( Herman, Jonathan) (Entered: 07/15/2013)	July 15, 2013	July 15, 2013 PACER
	Defendants' Unopposed First Applications for Extension of Time to Answer Complaint are GRANTED pursuant to Local Rule CV-12 for Signal International, Inc, Signal International Texas G.P., Signal International Texas L.P. and Signal International LLC to 8/19/2013. 30 Days Granted for Deadline Extension.( tkd, )	July 16, 2013	July 16, 2013 PACER
	***FILED IN ERROR. Please ignore document #18, First Amended Complaint. Attorney will refile to add the new plaintiffs to the docket sheet.(tkd, )	July 31, 2013	July 31, 2013 PACER
18	FILED IN ERROR. Please ignore.AMENDED COMPLAINT against All Defendants, filed by All Plaintiffs. (Attachments: # 1 Exhibit A)(Landers, Daniella) Modified on 8/1/2013 (tkd, ). (Entered: 07/31/2013) 1 Exhibit A View on PACER	July 31, 2013	July 31, 2013 PACER
19	FIRST AMENDED COMPLAINT against All Defendants, filed by All Plaintiffs, Pankajakshan Madhavan, Ravi Rowthu, Gijo John, Suresh Kokkoth, Sebastian George Pananijkal, Varghese Kannampuzha Devassy, Joy Kallachiyil Varkey, Biju Potrayil, Abraham Varghese, Vasavan Babu, Iju James, Omanakuttan Govindan Kakkanthara. (Attachments: # 1 Exhibit A)(Landers, Daniella) Modified on 8/2/2013 (tkd, ). (Entered: 08/01/2013) 1 Exhibit A View on RECAP	Aug. 1, 2013	Aug. 1, 2013 RECAP
20	NOTICE of Attorney Appearance - Pro Hac Vice by Jaliya S Faulkner on behalf of All Plaintiffs. Filing fee $ 100, receipt number 0540-4248408. (Faulkner, Jaliya) (Entered: 08/01/2013)	Aug. 1, 2013	Aug. 1, 2013 PACER
21	ADVISORY to the Parties. Signed by Magistrate Judge Zack Hawthorn on 8/6/13. (tkd, ) (Entered: 08/07/2013)	Aug. 6, 2013	Aug. 6, 2013 PACER
22	ORDER GOVERNING PROCEEDINGS. Rule 26(f) attorney conference must occur by 9/5/13 with a joint report due 10/10/13. Rule 16 Management/Scheduling Conference set for 10/17/2013 at 10:15 AM in Ctrm 4 (Beaumont) before Magistrate Judge Zack Hawthorn. Signed by Magistrate Judge Zack Hawthorn on 8/6/13. (tkd, ) (Entered: 08/07/2013)	Aug. 6, 2013	Aug. 6, 2013 PACER
23	MOTION to Transfer Action Pursuant to First Filed Rule by Signal International Texas, G.P., Signal International Texas, L.P., Signal International, Inc., Signal International, LLC. (Attachments: # 1 Exhibit 1, # 2 Exhibit 2, # 3 Exhibit 3, # 4 Exhibit 4, # 5 Exhibit 5, # 6 Exhibit 6, # 7 Exhibit 7, # 8 Text of Proposed Order)(Herman, Jonathan) (Entered: 08/19/2013) 1 Exhibit 1 View on PACER 2 Exhibit 2 View on PACER 3 Exhibit 3 View on PACER 4 Exhibit 4 View on PACER 5 Exhibit 5 View on PACER 6 Exhibit 6 View on PACER 7 Exhibit 7 View on PACER 8 Text of Proposed Order View on PACER	Aug. 19, 2013	Aug. 19, 2013 PACER
24	MOTION to Dismiss Pursuant to Fed. R. Civ. Pro. 12(b)(6) by Signal International Texas, G.P., Signal International Texas, L.P., Signal International, Inc., Signal International, LLC. (Attachments: # 1 Text of Proposed Order)(Herman, Jonathan) (Entered: 08/19/2013) 1 Text of Proposed Order View on PACER	Aug. 19, 2013	Aug. 19, 2013 PACER
25	WAIVER OF SERVICE Returned Executed by All Plaintiffs. J&M Marine & Industrial, L.L.C. waiver sent on 6/25/2013, answer due 8/26/2013. (pkb, ) (Entered: 08/20/2013)	Aug. 20, 2013	Aug. 20, 2013 PACER
26	WAIVER OF SERVICE Returned Executed by All Plaintiffs. J&M Associates, Inc. of Mississippi waiver sent on 6/25/2013, answer due 8/26/2013. (pkb, ) (Entered: 08/20/2013)	Aug. 20, 2013	Aug. 20, 2013 PACER
27	WAIVER OF SERVICE Returned Executed by All Plaintiffs. Billy R. Wilks waiver sent on 6/25/2013, answer due 8/26/2013. (pkb, ) (Entered: 08/20/2013)	Aug. 20, 2013	Aug. 20, 2013 PACER
28	NOTICE of Attorney Appearance - Pro Hac Vice by Erin Casey Hangartner on behalf of Signal International Texas, G.P., Signal International Texas, L.P., Signal International, Inc., Signal International, LLC. Filing fee $ 100, receipt number 0540-4277134. (Hangartner, Erin) (Entered: 08/21/2013)	Aug. 21, 2013	Aug. 21, 2013 PACER
	***FILED IN ERROR. Please ignore documents # 29 and 30, Motions to Dismiss. The wrong PDF documents were attached. Attorney will refile. (tkd, )	Aug. 26, 2013	Aug. 26, 2013 PACER
29	FILED IN ERROR. Please ignore. MOTION to Dismiss for Lack of Jurisdiction by Law Offices of Malvern C. Burnett, A.P.C.. Responses due by 9/23/2013 (Attachments: # 1 Exhibit Exhibit 1, # 2 Text of Proposed Order Proposed Order)(Cerniglia, Timothy) Modified on 8/26/2013 (tkd, ). (Entered: 08/26/2013) 1 Exhibit Exhibit 1 View on PACER 2 Text of Proposed Order Proposed Order View on PACER	Aug. 26, 2013	Aug. 26, 2013 PACER
30	FILED IN ERROR. Please ignore. MOTION to Dismiss by Law Offices of Malvern C. Burnett, A.P.C.. (Attachments: # 1 Exhibit Exhibit 2, # 2 Text of Proposed Order Proposed Order)(Cerniglia, Timothy) Modified on 8/26/2013 (tkd, ). (Entered: 08/26/2013) 1 Exhibit Exhibit 2 View on PACER 2 Text of Proposed Order Proposed Order View on PACER	Aug. 26, 2013	Aug. 26, 2013 PACER
31	MOTION to Dismiss for Lack of Jurisdiction by Law Offices of Malvern C. Burnett, A.P.C.. (Attachments: # 1 Exhibit 1-Defendant Affidavit, # 2 Proposed Text - Rule 12(b)(2) Order)(Cerniglia, Timothy) (Entered: 08/26/2013) 1 Exhibit 1-Defendant Affidavit View on PACER 2 Proposed Text - Rule 12(b)(2) Order View on PACER	Aug. 26, 2013	Aug. 26, 2013 PACER
32	MOTION to Dismiss by Law Offices of Malvern C. Burnett, A.P.C.. (Attachments: # 1 Exhibit 2 - La. Complaint, # 2 Proposed Text - Rule 12(b)(6) Order)(Cerniglia, Timothy) (Entered: 08/26/2013) 1 Exhibit 2 - La. Complaint View on PACER 2 Proposed Text - Rule 12(b)(6) Order View on PACER	Aug. 26, 2013	Aug. 26, 2013 PACER
33	ANSWER to 1 Complaint by Billy R. Wilks, J&M Associates, Inc. of Mississippi, J&M Marine & Industrial, L.L.C. (Attachments: # 1 Letter from Pltf's Atty, # 2 Letter from Billy Wilks)(tkd, ) (Entered: 08/27/2013) 1 Letter from Pltf's Atty View on PACER 2 Letter from Billy Wilks View on PACER	Aug. 26, 2013	Aug. 26, 2013 PACER
34	NOTICE of Attorney Appearance - Pro Hac Vice by Hal D Ungar on behalf of Signal International Texas, G.P., Signal International Texas, L.P., Signal International, Inc., Signal International, LLC. Filing fee $ 100, receipt number 0540-4285873. (Ungar, Hal) (Entered: 08/27/2013)	Aug. 27, 2013	Aug. 27, 2013 PACER
35	NOTICE of Attorney Appearance - Pro Hac Vice by Elham R Rabbani on behalf of Signal International Texas, G.P., Signal International Texas, L.P., Signal International, Inc., Signal International, LLC. Filing fee $ 100, receipt number 0540-4291435. (Rabbani, Elham) (Entered: 08/30/2013)	Aug. 30, 2013	Aug. 30, 2013 PACER

Case: Joseph v. Signal International, LLC

1:13-cv-00324 | U.S. District Court for the Eastern District of Texas

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