Case: Kambala v. Signal International, LLC

1:13-cv-00498 | U.S. District Court for the Eastern District of Texas

Filed Date: Aug. 7, 2013

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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, 16 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 Jan. 3, 2012 in a related case, David v. Signal Internat…

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, 16 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 Jan. 3, 2012 in a related case, David v. Signal International. The amended complaint, filed on behalf of 21 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 Kux 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 the Equal Justice Center and the Transnational Worker Rights Clinic.

Plaintiffs were allegedly brought into the United States to provide labor and services to defendant Signal International. Signal was based in Pascagoula, Mississippi and was in the business of providing repairs to offshore oil rigs in the Gulf Coast region. One plaintiff worked in Pascagoula; the remaining plaintiffs worked at Signal's Orange, Texas site. The complaint alleged 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 ($1050 per month) to live in racially segregated labor camps, 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.

In July 2014, U.S. 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 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.

Trial was set for December 2015. However, 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, the parties were to update the court every 120 days as to the status of the bankruptcy proceedings. The parties' report on July 5, 2018 noted that 20 of the 21 plaintiffs had reached a settlement with the Burnett (immigration attorney) defendants, and the remaining one plaintiff could not be located. The plaintiffs advised that they would be dismissing their claims against them soon because the Burnett defendants had met their obligations under the settlement. Plaintiffs requested the stay remain in effect as to the Signal defendants and Dewan (recruiter) defendants.

On August 24, 2018, Magistrate Judge Hawthorn issued a report and recommendation to dismiss without prejudice the one remaining plaintiff who did not respond to the court’s order. District Judge Ron Judge Clark adopted the report and recommendation on September 12, 2018 and dismissed this plaintiff without prejudice.

	Document
1:13-cv-00498	Docket Kambala v. Signal International LLC	Sept. 12, 2018	Sept. 12, 2018 Docket
1 1:13-cv-00498	Complaint Kambala v. Signal International LLC	Aug. 7, 2013	Aug. 7, 2013 Complaint
56 1:13-cv-00498	Order Denying Defendants' Motion to Transfer	July 16, 2014	July 16, 2014 Order/Opinion
117 1:13-cv-00498	Third Amended Complaint	May 6, 2015	May 6, 2015 Complaint
131 1:13-cv-00498	Plaintiff's Status Report Kambala v. Signal International L.L.C.	April 3, 2017	April 3, 2017 Pleading / Motion / Brief
132 1:13-cv-00498	Status Report Kambala v. Signal International LLC	Nov. 6, 2017	Nov. 6, 2017 Pleading / Motion / Brief
133 1:13-cv-00498	Status Report	March 6, 2018	March 6, 2018 Pleading / Motion / Brief
138 1:13-cv-00498	Report and Recommendation Dismissing Plaintiff Dalli	Aug. 24, 2018	Aug. 24, 2018 Magistrate Report/Recommendation

ECF Number	Description	Date	Link Date / Link
1	COMPLAINT against All Defendants ( Filing fee $ 400 receipt number 0540-4255246.), filed by Malkiah Paul, Harbans Singh, Srinivasa Rao Gonna, Srinivasa Rao Kambala, Unnikrishna Pillai Balakrishna Pillai, Pradeep Kumar, Antony Antony Valilyaparambil, Amandeep Singh Kang, Ponniah Muthu Kumar, Harvinder Singh, Abdullah Keepurath Maideen, Francis Sequira, Annadurai Ruthirapathi, Saravanan Arunachalam, Mahendran Periyasamy, Chandra Sekhar Dwadasi Rama. (Attachments: # 1 Exhibit RICO Fraud Chart, # 2 Civil Cover Sheet)(Willett, Christopher) (Entered: 08/07/2013) 1 Exhibit RICO Fraud Chart View on PACER 2 Civil Cover Sheet View on PACER	Aug. 7, 2013	Aug. 7, 2013 RECAP
	Case assigned to Judge Ron Clark. (pkb, )	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. (pkb, )	Aug. 8, 2013	Aug. 8, 2013 PACER
2	ORDER REFERRING CASE to Magistrate Judge Zack Hawthorn for all pretrial proceedings. Signed by Judge Ron Clark on 8/9/13. (tkd, ) (Entered: 08/12/2013)	Aug. 12, 2013	Aug. 12, 2013 PACER
3	SUMMONS Issued and emailed to attorney Christopher Willett for service in case as to Dewan Consultants PVT. LTD., Global Resources, Inc., Gulf Coast Immigration Law Center, L.L.C., Indo-Ameri Soft, L.L.C., J & M Associates of Mississippi, Inc., J & M Marine & Industrial, LLC, Signal International Texas, L.P. and Billy R. Wilks. (Attachments: # 1 Summons(es), # 2 Summons(es), # 3 Summons(es), # 4 Summons(es), # 5 Summons(es), # 6 Summons(es), # 7 Summons(es))(pkb, ) (Entered: 08/13/2013) 1 Summons(es) View on PACER 2 Summons(es) 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	Aug. 13, 2013	Aug. 13, 2013 PACER
4	SUMMONS Issued and emailed to attorney Christopher Willett for service in case as to Sachin Dewan, Law Offices of Malvern C. Burnett, A.P.C., Malvern C. Burnett, Michael Pol, Kurella Rao, Signal International LLC, Signal International Texas, G.P. and Signal International, Inc. (Attachments: # 1 Summons(es), # 2 Summons(es), # 3 Summons(es), # 4 Summons(es), # 5 Summons(es), # 6 Summons(es), # 7 Summons(es))(pkb, ) (Entered: 08/13/2013) 1 Summons(es) View on PACER 2 Summons(es) 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	Aug. 13, 2013	Aug. 13, 2013 PACER
5	NOTICE of Attorney Appearance - Pro Hac Vice by Kayvon Sabourian on behalf of All Plaintiffs. Filing fee $ 100, receipt number 0540-4322831. (Sabourian, Kayvon) (Entered: 09/19/2013)	Sept. 19, 2013	Sept. 19, 2013 PACER
6	AMENDED COMPLAINT against Sachin Dewan, Dewan Consultants PVT. LTD., Global Resources, Inc., Gulf Coast Immigration Law Center, L.L.C., Indo-Ameri Soft, L.L.C., J & M Associates of Mississippi, Inc., J & M Marine & Industrial, LLC, Law Offices of Malvern C. Burnett, A.P.C., Malvern C. Burnett, Kurella Rao, Signal International LLC, Signal International Texas, G.P., Signal International Texas, L.P., Signal International, Inc., Billy R. Wilks, filed by Malkiah Paul, Harbans Singh, Srinivasa Rao Gonna, Srinivasa Rao Kambala, Unnikrishna Pillai Balakrishna Pillai, Pradeep Kumar, Amandeep Singh Kang, Ponniah Muthu Kumar, Harvinder Singh, Abdullah Keepurath Maideen, Francis Sequira, Annadurai Ruthirapathi, Saravanan Arunachalam, Mahendran Periyasamy, Chandra Sekhar Dwadasi Rama. (Attachments: # 1 Exhibit RICO Fraud Chart)(Willett, Christopher) (Entered: 10/03/2013) 1 Exhibit RICO Fraud Chart View on PACER	Oct. 3, 2013	Oct. 3, 2013 RECAP
7	SUMMONS Issued as to Sachin Dewan, Dewan Consultants PVT. LTD and mailed via USPS to attorney Christopher Willett to perfect service. (Attachments: # 1 Summons(es))(pkb, ) (Entered: 10/23/2013) 1 Summons(es) View on PACER	Oct. 23, 2013	Oct. 23, 2013 PACER
8	MOTION for Extension of Time to File Answer re 1 Complaint and 6 Amended Complaint by Billy R. Wilks. (Attachments: # 1 Envelope(s))(pkb, ) (Entered: 11/07/2013) 1 Envelope(s) View on PACER	Nov. 6, 2013	Nov. 6, 2013 PACER
9	WAIVERS OF SERVICE Returned Executed by Srinivasa Rao Kambala. Signal International LLC; Signal International Texas, G.P.; Signal International Texas, L.P. and Signal International, Inc. waivers sent on 10/7/2013, answers due 12/6/2013. (tkd, ) (Entered: 11/08/2013)	Nov. 8, 2013	Nov. 8, 2013 PACER
10	WAIVER OF SERVICE Returned Executed by Srinivasa Rao Kambala. Indo-Ameri Soft, L.L.C. and Kurella Rao (located in Belize) waivers sent on 10/16/2013, answers due 1/14/2014. (tkd, ) (Entered: 11/08/2013)	Nov. 8, 2013	Nov. 8, 2013 PACER
11	ORDER granting 8 Motion for Extension of Time to Answer. Wilks has until December 8, 2013, to file an answer. Signed by Magistrate Judge Zack Hawthorn on 11/8/2013. (bjc) (Entered: 11/08/2013)	Nov. 8, 2013	Nov. 8, 2013 PACER
	Set/Reset Deadlines: Billy R. Wilks answer due 12/8/2013. (bjc)	Nov. 8, 2013	Nov. 8, 2013 PACER
12	SUMMONS Returned Executed by Srinivasa Rao Kambala. Billy Wilks served on 10/27/13. (tkd, ) (Entered: 11/13/2013)	Nov. 12, 2013	Nov. 12, 2013 PACER
13	SUMMONS Returned Executed by Srinivasa Rao Kambala. J & M Associates of Mississippi, Inc. and J & M Marine & Industrial, LLC served on 10/27/2013, answers due 11/18/2013. (tkd, ) (Entered: 11/13/2013)	Nov. 12, 2013	Nov. 12, 2013 PACER
14	MOTION for Stay Pendente Lite and for Transfer Pursuant to First-Filed Rule by Signal International LLC, Signal International Texas, G.P., Signal International Texas, L.P., Signal International, Inc.. (Attachments: # 1 Exhibit 1, # 2 Exhibit 2, # 3 Exhibit 3, # 4 Text of Proposed Order, # 5 Text of Proposed Order)(Herman, Jonathan) Modified on 12/6/2013 (tkd, ). (Entered: 12/05/2013) 1 Exhibit 1 View on PACER 2 Exhibit 2 View on PACER 3 Exhibit 3 View on PACER 4 Text of Proposed Order View on PACER 5 Text of Proposed Order View on PACER	Dec. 5, 2013	Dec. 5, 2013 PACER
15	MOTION Extension of Time for Service of Defendants by Saravanan Arunachalam, Chandra Sekhar Dwadasi Rama, Srinivasa Rao Gonna, Srinivasa Rao Kambala, Amandeep Singh Kang, Ponniah Muthu Kumar, Pradeep Kumar, Abdullah Keepurath Maideen, Malkiah Paul, Mahendran Periyasamy, Annadurai Ruthirapathi, Francis Sequira, Harbans Singh, Harvinder Singh, Antony Antony Valilyaparambil. (Attachments: # 1 Text of Proposed Order)(Willett, Christopher) (Entered: 12/05/2013) 1 Text of Proposed Order View on PACER	Dec. 5, 2013	Dec. 5, 2013 PACER
16	MOTION to Dismiss Pursuant to FRCP 12(b)(6) by Signal International LLC, Signal International Texas, G.P., Signal International Texas, L.P., Signal International, Inc.. (Attachments: # 1 Text of Proposed Order)(Herman, Jonathan) Modified on 12/6/2013 (tkd, ). (Entered: 12/05/2013) 1 Text of Proposed Order View on PACER	Dec. 5, 2013	Dec. 5, 2013 PACER
17	ADVISORY to the Parties. Signed by Magistrate Judge Zack Hawthorn on 12/11/13. (tkd, ) (Entered: 12/12/2013)	Dec. 12, 2013	Dec. 12, 2013 PACER
18	ORDER to Conduct Rule 26(f) Conference by 12/20/13 and file a joint report by 1/3/14. Signed by Magistrate Judge Zack Hawthorn on 12/11/13. (tkd, ) (Entered: 12/12/2013)	Dec. 12, 2013	Dec. 12, 2013 PACER
19	NOTICE of Attorney Appearance - Pro Hac Vice by Erin Casey Hangartner on behalf of Signal International LLC, Signal International Texas, G.P., Signal International Texas, L.P., Signal International, Inc.. Filing fee $ 100, receipt number 0540-4449171. (Hangartner, Erin) (Entered: 12/18/2013)	Dec. 18, 2013	Dec. 18, 2013 PACER
20	RESPONSE in Opposition re 16 MOTION to Dismiss Pursuant to FRCP 12(b)(6) filed by Saravanan Arunachalam, Unnikrishna Pillai Balakrishna Pillai, Chandra Sekhar Dwadasi Rama, Srinivasa Rao Gonna, Srinivasa Rao Kambala, Amandeep Singh Kang, Ponniah Muthu Kumar, Pradeep Kumar, Abdullah Keepurath Maideen, Malkiah Paul, Mahendran Periyasamy, Annadurai Ruthirapathi, Francis Sequira, Harbans Singh, Harvinder Singh, Antony Antony Valilyaparambil. (Attachments: # 1 Text of Proposed Order)(Willett, Christopher) (Additional attachment(s) added on 12/26/2013: # 2 Revised Proposed Order) (tkd, ). (Entered: 12/23/2013) 1 Text of Proposed Order View on PACER 2 Revised Proposed Order View on PACER	Dec. 23, 2013	Dec. 23, 2013 PACER
21	RESPONSE in Opposition re 14 MOTION for Stay Pendent Lite and for Transfer Pursuant to First-Filed Rule filed by Saravanan Arunachalam, Unnikrishna Pillai Balakrishna Pillai, Chandra Sekhar Dwadasi Rama, Srinivasa Rao Gonna, Srinivasa Rao Kambala, Amandeep Singh Kang, Ponniah Muthu Kumar, Pradeep Kumar, Abdullah Keepurath Maideen, Malkiah Paul, Mahendran Periyasamy, Annadurai Ruthirapathi, Francis Sequira, Harbans Singh, Harvinder Singh, Antony Antony Valilyaparambil. (Attachments: # 1 Exhibit H-2B Application (TWC), # 2 Text of Proposed Order)(Willett, Christopher) (Additional attachment(s) added on 12/26/2013: # 3 Revised Proposed Order) (tkd, ). (Entered: 12/23/2013) 1 Exhibit H-2B Application (TWC) View on PACER 2 Text of Proposed Order View on PACER 3 Revised Proposed Order View on PACER	Dec. 23, 2013	Dec. 23, 2013 PACER
22	RESPONSE in Support re 14 MOTION for Stay Pendent Lite and for Transfer Pursuant to First-Filed Rule filed by Signal International LLC, Signal International Texas, G.P., Signal International Texas, L.P., Signal International, Inc.. (Hangartner, Erin) (Entered: 12/31/2013)	Dec. 31, 2013	Dec. 31, 2013 PACER
23	NOTICE of Change of Address by Erin Casey Hangartner (Hangartner, Erin) (Entered: 01/02/2014)	Jan. 2, 2014	Jan. 2, 2014 PACER
24	REPORT of Rule 26(f) Planning Meeting by All Plaintiffs and Signal Defendants. (Willett, Christopher) Modified on 1/6/2014 (bjc, ). (Entered: 01/03/2014)	Jan. 3, 2014	Jan. 3, 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. 6, 2014	Jan. 6, 2014 PACER
25	PROTECTIVE ORDER. Signed by Magistrate Judge Zack Hawthorn on 1/8/2014. (bjc) (Entered: 01/08/2014)	Jan. 8, 2014	Jan. 8, 2014 RECAP
	ORAL ORDER granting 15 Motion for Extension of Time for Service. Signed by Magistrate Judge Zack Hawthorn on 1/9/14. (zjh1)	Jan. 9, 2014	Jan. 9, 2014 PACER
26	NOTICE of Discovery Disclosure by Saravanan Arunachalam, Unnikrishna Pillai Balakrishna Pillai, Chandra Sekhar Dwadasi Rama, Srinivasa Rao Gonna, Srinivasa Rao Kambala, Amandeep Singh Kang, Ponniah Muthu Kumar, Pradeep Kumar, Abdullah Keepurath Maideen, Malkiah Paul, Mahendran Periyasamy, Annadurai Ruthirapathi, Francis Sequira, Harbans Singh, Harvinder Singh, Antony Antony Valilyaparambil Pursuant to Local Rule CV-26(c) (Willett, Christopher) (Entered: 01/10/2014)	Jan. 10, 2014	Jan. 10, 2014 PACER
27	SUMMONSES Issued as to Sachin Dewan, Dewan Consultants PVT. LTD., Global Resources, Inc., Gulf Coast Immigration Law Center, L.L.C., Law Offices of Malvern C. Burnett, A.P.C., Malvern C. Burnett and emailed to plf's attorney for service. (tkd, ) (Entered: 01/22/2014)	Jan. 22, 2014	Jan. 22, 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
28	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
29	SCHEDULING ORDER setting various deadlines. Final Pretrial Conference set for 12/3/2015 at 9:00 AM and Jury Selection/Trial set for 12/7/2015 at 9:00 AM - all to be held in Ctrm 2 (Beaumont) before Judge Ron Clark. Signed by Magistrate Judge Zack Hawthorn on 2/18/14. (tkd, ) (Entered: 02/18/2014)	Feb. 18, 2014	Feb. 18, 2014 PACER
30	WAIVER OF SERVICE Returned Executed by Srinivasa Rao Kambala. Gulf Coast Immigration Law Center, L.L.C, Law Offices of Malvern C. Burnett, A.P.C., Malvern C. Burnett waiver sent on 1/23/2014; answers due 3/24/2014. (tkd, ) (Entered: 02/28/2014)	Feb. 27, 2014	Feb. 27, 2014 PACER
31	MOTION to Transfer Venue by Gulf Coast Immigration Law Center, L.L.C., Law Offices of Malvern C. Burnett, A.P.C., Malvern C. Burnett. (Attachments: # 1 La Complaint - David v signal, # 2 Order - Achari v Signal, # 3 Proposed Order)(Cerniglia, Timothy) Modified on 3/24/2014 (tkd, ). (Entered: 03/21/2014) 1 Exhibit La Complaint - David v signal View on PACER 2 Exhibit Order - Achari v Signal View on PACER 3 Text of Proposed Order View on PACER	March 21, 2014	March 21, 2014 PACER
32	MOTION to Dismiss for Lack of Jurisdiction by Gulf Coast Immigration Law Center, L.L.C., Law Offices of Malvern C. Burnett, A.P.C., Malvern C. Burnett. (Attachments: # 1 Exhibit Affidavit of Burnett, # 2 Text of Proposed Order)(Cerniglia, Timothy) (Entered: 03/21/2014) 1 Exhibit Affidavit of Burnett View on PACER 2 Text of Proposed Order View on PACER	March 21, 2014	March 21, 2014 PACER
33	MOTION to Dismiss by Gulf Coast Immigration Law Center, L.L.C., Law Offices of Malvern C. Burnett, A.P.C., Malvern C. Burnett. (Attachments: # 1 Text of Proposed Order)(Cerniglia, Timothy) (Entered: 03/21/2014) 1 Text of Proposed Order View on PACER	March 21, 2014	March 21, 2014 RECAP
34	WAIVER OF SERVICE Returned Executed by Srinivasa Rao Kambala. Sachin Dewan and Dewan Consultants PVT. LTD. waivers sent on 2/19/2014, answers due 4/21/2014. (tkd, ) (Entered: 03/25/2014)	March 21, 2014	March 21, 2014 PACER

Case: Kambala v. Signal International, LLC

1:13-cv-00498 | U.S. District Court for the Eastern District of Texas

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