Case: Meganathan v. Signal International, LLC

1:13-cv-00497 | U.S. District Court for the Eastern District of Texas

Filed Date: Aug. 7, 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 Aug. 7, 2013, four 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 Int…

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

On Aug. 7, 2013, four 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. Signal is based in Pascagoula, Mississippi and is in the business of providing repairs to offshore oil rigs in the Gulf Coast region. Three plaintiffs worked at Signal's site in Orange, Texas and one plaintiff worked in Pascagoula. The complaint alleged that plaintiffs paid Signal's recruiters as much as $20,000 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 asserted claims under the Trafficking Victims Protection Reauthorization Act (18 U.S.C. §1584 et seq, the Racketeer Influenced Corrupt Organizations Act (18 U.S.C. §1962, the Declaratory Judgment Act (28 U.S.C. §2201), as well as claims of fraud, negligent misrepresentation, and breach of contract. Plaintiffs were represented by a private law firm.

In July 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. Magistrate Judge Hawthorn found the similarity in issues in the cases was not substantial enough to warrant transfer because the current venue was otherwise proper.

In June 2015, 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, finding that there was significant overlap between Signal's crossclaims in this case and in David.

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 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, Meganathan, the Court asked the parties for updates every 120 days as to the status of the bankruptcy proceedings. However, the latest is from Nov. 8, 2016 (simply stating that the proceedings remain ongoing). The bankruptcy case closed on February 5, 2019, however the case remains open and no further updates have been filed.

	Document
1:13-cv-00497	Docket [PACER]	Nov. 29, 2016	Nov. 29, 2016 Docket
1 1:13-cv-00497	Complaint Meganathan v. Signal International L.L.C	Aug. 7, 2013	Aug. 7, 2013 Complaint
38 1:13-cv-00497	Report and Recommendations of United States Magistrate Judge	July 3, 2014	July 3, 2014 Magistrate Report/Recommendation 2014 U.S.Dist.LEXIS 126737
44 1:13-cv-00497	Order Denying Defendants Motion to Transfer Meganthan v. Signal International, LLC	July 16, 2014	July 16, 2014 Order/Opinion
47 1:13-cv-00497	Report and Recommendation Denying Defendant Signal's Motion to Dismiss (Doc. No. 16) Meganathan v. Signal International, LLC	July 29, 2014	July 29, 2014 Magistrate Report/Recommendation 2014 U.S.Dist.LEXIS 126779
49 1:13-cv-00497	Report and Recommendation Denying the Burnett Defendants' Motion to Dismiss (Doc. No. 11) Meganthan v. Signal International, LLC	July 31, 2014	July 31, 2014 Magistrate Report/Recommendation 2014 U.S.Dist.LEXIS 126780
102 1:13-cv-00497	Order Severing and Transferring Signal's Cross-Claims to the Eastern District of Louisiana	June 17, 2015	June 17, 2015 Order/Opinion
103 1:13-cv-00497	Memorandum and Order on the Parties' Motions to Exclude Expert Testimony	June 26, 2015	June 26, 2015 Order/Opinion 2015 WL 11109846
279-1 15-11498	Plan Support Agreement U.S. District Court for the District of Delaware	Sept. 1, 2015	Sept. 1, 2015 Settlement Agreement
109 1:13-cv-00497	Status Report	Nov. 8, 2016	Nov. 8, 2016 Pleading / Motion / Brief

ECF Number	Description	Date	Link Date / Link
1	COMPLAINT against All Defendants ( Filing fee $ 400 receipt number 0540-4255184.), filed by Raju Meganathan, Saravanan Ramasamy, Maruthamuthu Mayavu, Saravanachlevan Narayanasamy. (Attachments: # 1 Exhibit 1 - RICO Fraud Chart, # 2 Civil Cover Sheet)(Dodson, John) (Entered: 08/07/2013) 1 Exhibit 1 - RICO Fraud Chart View on PACER 2 Civil Cover Sheet View on PACER	Aug. 7, 2013	Aug. 7, 2013 PACER
	Case Assigned to Judge Marcia A. Crone. (aam, )	Aug. 7, 2013	Aug. 7, 2013 PACER
	DEMAND for Trial by Jury by Maruthamuthu Mayavu, Raju Meganathan, Saravanachlevan Narayanasamy and Saravanan Ramasamy. (aam, )	Aug. 7, 2013	Aug. 7, 2013 PACER
	In accordance with the provisions of 28 USC Section 636(c), you are hereby notified that a U.S. Magistrate Judge of this district court is available to conduct any or all proceedings in this case including a jury or non-jury trial and to order the entry of a final judgment. The form Consent to Proceed Before Magistrate Judge is available on our website. All signed consent forms, excluding pro se parties, should be filed electronically using the event Notice of Consent to Proceed Before Magistrate Judge. (aam, )	Aug. 8, 2013	Aug. 8, 2013 PACER
2	ORDER REFERRING CASE to Magistrate Judge Zack Hawthorn to conduct all pretrial proceedings. Signed by Judge Marcia A. Crone on 8/8/13. (mrp, ) (Entered: 08/09/2013)	Aug. 8, 2013	Aug. 8, 2013 PACER
3	NOTICE of Attorney Appearance - Pro Hac Vice by Timothy H Birnbaum on behalf of Maruthamuthu Mayavu, Raju Meganathan, Saravanachlevan Narayanasamy, Saravanan Ramasamy. Filing fee paid in the amount of $ 100.00, receipt no. 0540-4263112. (dlc, ) (Entered: 08/13/2013)	Aug. 12, 2013	Aug. 12, 2013 PACER
4	NOTICE of Attorney Appearance - Pro Hac Vice by Joshua Samuel Sohn on behalf of All Plaintiffs. Filing fee $ 100, receipt number 0540-4265921. (Sohn, Joshua) (Entered: 08/14/2013)	Aug. 14, 2013	Aug. 14, 2013 PACER
5	SUMMONS Issued as to Malvern C. Burnett, Global Resources, Inc., Gulf Coast Immigration Law Center, L.L.C., Law Offices of Malvern C. Burnett, A.P.C., Michael Pol, Signal International L.L.C., Signal International Texas, G.P., Signal International Texas, L.P., and Signal International, Inc. and emailed to plas' atty for service (aam, ) (Entered: 08/20/2013)	Aug. 20, 2013	Aug. 20, 2013 PACER
6	*STRICKEN PER STANDING ORDER MC-12. PLEASE IGNORE.* Unopposed MOTION for Extension of Time to File Responsive Pleadings by Signal International L.L.C.. (Herman, Jonathan) Modified on 9/9/2013 (bjc, ). (Entered: 09/09/2013)	Sept. 9, 2013	Sept. 9, 2013 PACER
7	*STRICKEN PER STANDING ORDER MC-12. PLEASE IGNORE.* Unopposed MOTION for Extension of Time to File Responsive Pleadings by Signal International Texas, G.P.. (Herman, Jonathan) Modified on 9/9/2013 (bjc, ). (Entered: 09/09/2013)	Sept. 9, 2013	Sept. 9, 2013 PACER
8	*STRICKEN PER STANDING ORDER MC-12. PLEASE IGNORE.* Unopposed MOTION for Extension of Time to File Responsive Pleadings by Signal International Texas, L.P.. (Herman, Jonathan) Modified on 9/9/2013 (bjc, ). (Entered: 09/09/2013)	Sept. 9, 2013	Sept. 9, 2013 PACER
9	*STRICKEN PER STANDING ORDER MC-12. PLEASE IGNORE.* Unopposed MOTION for Extension of Time to File Responsive Pleadings by Signal International, Inc.. (Herman, Jonathan) Modified on 9/9/2013 (bjc, ). (Entered: 09/09/2013)	Sept. 9, 2013	Sept. 9, 2013 PACER
	*Documents 6,7,8 and 9 have been stricken in violation of Standing Order MC-12. Attorney has been notified and will file motions for extension of time.* (bjc)	Sept. 9, 2013	Sept. 9, 2013 PACER
10	MOTION to Dismiss pursuant to FRCP 12(B)(2) by Malvern C. Burnett, Gulf Coast Immigration Law Center, L.L.C., Law Offices of Malvern C. Burnett, A.P.C.. (Attachments: # 1 Exhibit 1 - Affidavit, # 2 Text of Proposed Order)(Cerniglia, Timothy) Modified on 9/10/2013 (bjc, ). (Entered: 09/10/2013) 1 Exhibit 1 - Affidavit View on PACER 2 Text of Proposed Order View on PACER	Sept. 10, 2013	Sept. 10, 2013 PACER
11	MOTION to Dismiss pursuant to FRCP 12(B)(6) by Malvern C. Burnett, Gulf Coast Immigration Law Center, L.L.C., Law Offices of Malvern C. Burnett, A.P.C.. (Attachments: # 1 Exhibit 2 - La. Complaint, # 2 Text of Proposed Order)(Cerniglia, Timothy) Modified on 9/10/2013 (bjc, ). (Entered: 09/10/2013) 1 Exhibit 2 - La. Complaint View on PACER 2 Text of Proposed Order View on PACER	Sept. 10, 2013	Sept. 10, 2013 PACER
12	MOTION to Change Venue by Malvern C. Burnett, Gulf Coast Immigration Law Center, L.L.C., Law Offices of Malvern C. Burnett, A.P.C.. (Attachments: # 1 Exhibit 1 - Venue Motion, # 2 Text of Proposed Order)(Cerniglia, Timothy) (Entered: 09/10/2013) 1 Exhibit 1 - Venue Motion View on PACER 2 Text of Proposed Order View on PACER	Sept. 10, 2013	Sept. 10, 2013 PACER
13	Unopposed MOTION for Extension of Time to File Responsive Pleadings by Signal International L.L.C., Signal International Texas, G.P., Signal International Texas, L.P., Signal International, Inc.. (Attachments: # 1 Text of Proposed Order)(Herman, Jonathan) (Entered: 09/11/2013) 1 Text of Proposed Order View on PACER	Sept. 11, 2013	Sept. 11, 2013 PACER
	ORAL ORDER granting 13 Motion for Extension of Time to File. Signed by Magistrate Judge Zack Hawthorn on 9/11/13. (zjh1)	Sept. 11, 2013	Sept. 11, 2013 PACER
14	*FILED IN ERROR. PLEASE IGNORE.* Unopposed MOTION for Extension of Time to File Response/Reply to Defendant Burnett's Motions to Dismiss and to Transfer Venue, and Anticipated Motions by Defendant Signal by Maruthamuthu Mayavu, Raju Meganathan, Saravanachlevan Narayanasamy, Saravanan Ramasamy. (Attachments: # 1 Text of Proposed Order)(Sohn, Joshua) Modified on 9/20/2013 (bjc, ). (Entered: 09/20/2013) 1 Text of Proposed Order View on PACER	Sept. 20, 2013	Sept. 20, 2013 PACER
	*FILED IN ERROR. Document # 14, motion for extension of time. No certificate of service. PLEASE IGNORE. Atty will refile.* (bjc)	Sept. 20, 2013	Sept. 20, 2013 PACER
15	Unopposed MOTION for Extension of Time to File Response/Reply in Opposition to Defendant Burnett's Motions to Dismiss and to Transfer Venue, and Anticipated Motions by Defendant Signal by Maruthamuthu Mayavu, Raju Meganathan, Saravanachlevan Narayanasamy, Saravanan Ramasamy. (Attachments: # 1 Text of Proposed Order)(Sohn, Joshua) (Entered: 10/11/2013) 1 Text of Proposed Order View on PACER	Oct. 11, 2013	Oct. 11, 2013 PACER
16	First MOTION to Dismiss Pursuant to Fed. R. Civ. P. 12(b)(6) by Signal International L.L.C., Signal International Texas, G.P., Signal International Texas, L.P., Signal International, Inc.. Responses due by 10/25/2013 (Attachments: # 1 Text of Proposed Order Proposed Order on Defendants' Motion to Dismiss)(Herman, Jonathan) (Entered: 10/11/2013) 1 Text of Proposed Order Proposed Order on Defendants' Motion to Dismiss View on PACER	Oct. 11, 2013	Oct. 11, 2013 PACER
17	First MOTION to Change Venue Pursuant to First-Filed Rule by Signal International L.L.C., Signal International Texas, G.P., Signal International Texas, L.P., Signal International, Inc.. (Attachments: # 1 Exhibit Southern Poverty Law Center. # 2 Exhibit Consent to Sue. # 3 Proposed Order (Herman, Jonathan) Modified on 10/15/2013 (mrp, ). (Entered: 10/11/2013) 1 Exhibit Southern Poverty Law Center press release regarding David v. Signal Intl View on PACER 2 Exhibit The consent to sue of the lead plaintiff, Meganathan, offered as a repre View on PACER 3 Text of Proposed Order Proposed Order for Motion of Signal Defendants for Stay P View on PACER	Oct. 11, 2013	Oct. 11, 2013 PACER
	ORAL ORDER granting 15 Motion for Extension of Time to File Response/Reply. Signed by Magistrate Judge Zack Hawthorn on 10/15/13. (zjh1)	Oct. 15, 2013	Oct. 15, 2013 PACER
18	ORDER to Conduct Rule 26(f) Conference with a proposed Scheduling Order. Signed by Magistrate Judge Zack Hawthorn on 11/12/13. (mrp, ) (Entered: 11/13/2013)	Nov. 12, 2013	Nov. 12, 2013 PACER
19	ADVISORY ORDER. This case is assigned for trial to Judge Marcia A. Crone, and is referred to the undersigned Magistrate Judge for pretrial proceedings. Judge Crone's procedures and rules of practice govern this action unless the parties consent to proceed before the Magistrate Judge. Signed by Magistrate Judge Zack Hawthorn on 11/12/13. (mrp, ) (Entered: 11/13/2013)	Nov. 12, 2013	Nov. 12, 2013 PACER
20	RESPONSE in Opposition re 10 MOTION to Dismiss pursuant to FRCP 12(B)(2) of Burnett Defendants filed by Maruthamuthu Mayavu, Raju Meganathan, Saravanachlevan Narayanasamy, Saravanan Ramasamy. (Attachments: # 1 Text of Proposed Order)(Sohn, Joshua) (Entered: 11/15/2013) 1 Text of Proposed Order View on PACER	Nov. 15, 2013	Nov. 15, 2013 PACER
21	RESPONSE in Opposition re 11 MOTION to Dismiss pursuant to FRCP 12(B)(6) of Legal Facilitator Defendants filed by Maruthamuthu Mayavu, Raju Meganathan, Saravanachlevan Narayanasamy, Saravanan Ramasamy. (Attachments: # 1 Text of Proposed Order)(Sohn, Joshua) (Entered: 11/15/2013) 1 Text of Proposed Order View on PACER	Nov. 15, 2013	Nov. 15, 2013 PACER
22	RESPONSE in Opposition re 12 MOTION to Change Venue of Burnett Defendants filed by Maruthamuthu Mayavu, Raju Meganathan, Saravanachlevan Narayanasamy, Saravanan Ramasamy. (Attachments: # 1 Text of Proposed Order)(Sohn, Joshua) (Entered: 11/15/2013) 1 Text of Proposed Order View on PACER	Nov. 15, 2013	Nov. 15, 2013 PACER
23	RESPONSE in Opposition re 16 First MOTION to Dismiss Pursuant to Fed. R. Civ. P. 12(b)(6) of Signal Defendants filed by Maruthamuthu Mayavu, Raju Meganathan, Saravanachlevan Narayanasamy, Saravanan Ramasamy. (Attachments: # 1 Text of Proposed Order)(Sohn, Joshua) (Entered: 11/15/2013) 1 Text of Proposed Order View on PACER	Nov. 15, 2013	Nov. 15, 2013 PACER
24	RESPONSE in Opposition re 17 First MOTION to Change Venue Pursuant to First-Filed Rule of Signal Defendants filed by Maruthamuthu Mayavu, Raju Meganathan, Saravanachlevan Narayanasamy, Saravanan Ramasamy. (Attachments: # 1 Text of Proposed Order)(Sohn, Joshua) (Entered: 11/15/2013) 1 Text of Proposed Order View on PACER	Nov. 15, 2013	Nov. 15, 2013 PACER
25	PROTECTIVE ORDER. Signed by Magistrate Judge Zack Hawthorn on 11/18/13. (mrp, ) (Entered: 11/18/2013)	Nov. 18, 2013	Nov. 18, 2013 RECAP
26	NOTICE of Attorney Appearance - Pro Hac Vice by Erin Casey Hangartner on behalf of Signal International L.L.C., Signal International Texas, G.P., Signal International Texas, L.P., Signal International, Inc.. Filing fee $ 100, receipt number 0540-4408224. (Hangartner, Erin) (Entered: 11/18/2013)	Nov. 18, 2013	Nov. 18, 2013 PACER
27	NOTICE of Change of Address by Erin Casey Hangartner (Hangartner, Erin) (Entered: 01/02/2014)	Jan. 2, 2014	Jan. 2, 2014 PACER
28	REPORT of Rule 26(f) Planning Meeting. (Attachments: # 1 Exhibit 1 - Complaint)(Sohn, Joshua) (Entered: 01/13/2014) 1 Exhibit 1 - Complaint View on PACER	Jan. 13, 2014	Jan. 13, 2014 PACER
	NOTICE of Hearing: Scheduling Conference set for 1/28/2014 10:00 AM in Ctrm 4 (Beaumont) before Magistrate Judge Zack Hawthorn. (ttp, )	Jan. 13, 2014	Jan. 13, 2014 PACER
	NOTICE of Hearing: Telephonic Scheduling Conference set for 2/13/2014 10:30 AM before Magistrate Judge Zack Hawthorn. (ttp, )	Jan. 30, 2014	Jan. 30, 2014 PACER
29	Minute Entry for proceedings held before Magistrate Judge Zack Hawthorn: Scheduling Conference held on 2/13/2014. (DCR Op: Piper, T.) (ttp, ) (Entered: 02/18/2014)	Feb. 13, 2014	Feb. 13, 2014 PACER
30	SCHEDULING ORDER: Docket call is set for 8/7/15 at 10:00 a.m. in Courtroom #3 before Judge Marcia A. Crone. Case will be set for Final Pretrial Conference and Trial at the docket call. Amended Pleadings due by 5/12/2014. Discovery due by 12/15/2014. Motions due by 1/15/2015. Signed by Magistrate Judge Zack Hawthorn on 2/18/14. (mrp, ) (Entered: 02/18/2014)	Feb. 18, 2014	Feb. 18, 2014 PACER
31	MOTION to Withdraw as Attorney Jonathan M. Herman and Middleberg Riddle Group by Signal International L.L.C., Signal International Texas, G.P., Signal International Texas, L.P., Signal International, Inc.. (Attachments: # 1 Text of Proposed Order)(Herman, Jonathan) (Entered: 04/03/2014) 1 Text of Proposed Order View on PACER	April 3, 2014	April 3, 2014 RECAP

Case: Meganathan v. Signal International, LLC

1:13-cv-00497 | U.S. District Court for the Eastern District of Texas

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