Case: Marimuthu v. Signal International, LLC

1:13-cv-00499 | 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. Defendant’s bankruptcy terminated February 9, 2019, but the parties continue to coordinate the distribution of the settlement funds.On Aug. 7, 2013, ten Indian guestworkers filed a 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 fil…

On Aug. 7, 2013, ten Indian guestworkers filed a 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.

Plaintiffs were allegedly brought into the United States to provide labor and services to defendant Signal International at its Orange, Texas site. Signal was based in Pascagoula, Mississippi and was in the business of providing repairs to offshore oil rigs in the Gulf Coast region. 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.

Plaintiffs asserted claims under the Trafficking Victims Protection Act (18 U.S.C. §1589 (forced labor) and 18 U.S.C. §1590 (trafficking)), 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 private law firms.

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. 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. Magistrate Judge Hawthorn also issued a report and recommendation on July 30, 2014, denying Signal's motion to dismiss, holding that plaintiffs had pleaded enough factual content to draw the reasonable inference that the alleged pendent state law claims occurred in Texas, so that the Court had personal jurisdiction over defendants for alleged tortious acts committed there. Judge Crone adopted Magistrate Judge Hawthorn's report and recommendation on Sept. 9, 2014.

On Sept. 16, 2014, plaintiffs filed an amended complaint to allege that the Burnett (immigration attorney) defendants had violated the Ku Klux Klan Act and state tort law. On Feb. 27, 2015, Magistrate Judge Hawthorn recommended denying the Burnett defendants' motion to dismiss, finding that plaintiffs had validly pleaded the new claims. Judge Crone adopted this report and recommendation on Mar. 23, 2015.

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.

While discovery was underway, the Court stayed the case in July 2015 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, Marimuthu, the parties are updating the court every 120 days as to the status of the bankruptcy proceedings. In September 2018, the court dismissed one plaintiff who became non-responsive and could not be located.

As of the parties' most recent July 3, 2019 update to the Court, the remaining nine plaintiffs had reached a settlement with the Burnett (immigration attorney) defendants. The plaintiffs advised that they would be dismissing their claims against them soon because the Burnett defendants had met their obligations under the settlement. In addition, the plaintiffs reached a settlement with the Dewan (recruiter) defendants. They similarly had met their obligations and the plaintiffs planned to dismiss claims against them. The status report also noted that the Signal bankruptcy proceeding was closed on February 5, 2019. Part of the plan was to distribute the proceeds of the Signal Litigation Trust to plaintiffs, but none had been distributed. The automatic stay was no longer in effect because the bankruptcy case terminated. The plaintiffs asked the court to further stay the case while they coordinated dismissal of the Burnett and Dewan defendants and awaited distribution for the Signal Litigation Trust.

	Document
1:13-cv-00499	Docket	Sept. 13, 2018	Sept. 13, 2018 Docket
1 1:13-cv-00499	Complaint and Jury Demand	Aug. 7, 2013	Aug. 7, 2013 Complaint
58 1:13-cv-00499	Order Denying Defendants' Motion to Transfer	July 16, 2014	July 16, 2014 Order/Opinion
60 1:13-cv-00499	Report and Recommendation Denying Defendant Signal's Motion to Dismiss (Doc. No. 24)	July 30, 2014	July 30, 2014 Magistrate Report/Recommendation
61 1:13-cv-00499	Report and Recommendation of United States Magistrate Judge	Aug. 1, 2014	Aug. 1, 2014 Magistrate Report/Recommendation 2014 U.S.Dist.LEXIS 126783
64 1:13-cv-00499	Report and Recommendation Granting in Part the Burnett Defendants' Motion to Dismiss Marimuthu v. Signal International L.L.C.	Aug. 12, 2014	Aug. 12, 2014 Magistrate Report/Recommendation 2014 WL 12744039
68 1:13-cv-00499	Order Adopting Report and Recommendation of United States Magistrate Judge Marimuthu v. Signal International L.L.C.	Sept. 9, 2014	Sept. 9, 2014 Order/Opinion
76 1:13-cv-00499	First Amended Complaint and Jury Demand Marimuthu v. Signal International L.L.C.	Sept. 16, 2014	Sept. 16, 2014 Complaint
76 1:13-cv-00499	First Amended Complaint and Jury Demand	Sept. 16, 2014	Sept. 16, 2014 Complaint
126 1:13-cv-00499	Report and Recommendation on Burnett's Motion to Dismiss (Doc. No. 77)	Feb. 27, 2015	Feb. 27, 2015 Magistrate Report/Recommendation 2015 U.S.Dist.LEXIS 36743

ECF Number	Description	Date	Link Date / Link
1	COMPLAINT against All Defendants ( Filing fee $ 400 receipt number 0540-4255566.), filed by Rajendran Sappani, Balamurugan Marimuthu, Satheesh Kannan Marimuthu, Moorthy Nadhamuni, Muruganandam Arumugam, Venkata Satya Sivagi Ra Talabathulla, Rajendran Subramani, Muralidharan Arumugam, Sammanasunathan Siluvaimuthu, Satyanarayana Ellapu. (Attachments: # 1 Civil Cover Sheet)(Findlay, Eric) (Entered: 08/07/2013) 1 Civil Cover Sheet View on PACER	Aug. 7, 2013	Aug. 7, 2013 PACER
2	DEMAND for Trial by Jury by Muralidharan Arumugam, Muruganandam Arumugam, Satyanarayana Ellapu, Balamurugan Marimuthu, Satheesh Kannan Marimuthu, Moorthy Nadhamuni, Rajendran Sappani, Sammanasunathan Siluvaimuthu, Rajendran Subramani, Venkata Satya Sivagi Ra Talabathulla. (Findlay, Eric) (Entered: 08/07/2013)	Aug. 7, 2013	Aug. 7, 2013 PACER
3	NOTICE of Attorney Appearance by Michael Douglas Findlay on behalf of Muralidharan Arumugam, Muruganandam Arumugam, Satyanarayana Ellapu, Balamurugan Marimuthu, Satheesh Kannan Marimuthu, Moorthy Nadhamuni, Rajendran Sappani, Sammanasunathan Siluvaimuthu, Rajendran Subramani, Venkata Satya Sivagi Ra Talabathulla (Findlay, Michael) (Entered: 08/07/2013)	Aug. 7, 2013	Aug. 7, 2013 PACER
	Case Assigned to Judge Marcia A. Crone. (rll, )	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. (rll, )	Aug. 8, 2013	Aug. 8, 2013 PACER
4	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
5	SUMMONS Issued and electronically mailed to attorney Eric H. Findlay for service in case as to Malvern C. Burnett, 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., Signal International LLC, Signal International Texas, G.P., Signal International Texas, L.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), # 8 Summons(es), # 9 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 8 Summons(es) View on PACER 9 Summons(es) View on PACER	Aug. 13, 2013	Aug. 13, 2013 PACER
6	NOTICE of Attorney Appearance - Pro Hac Vice by Lousene Hoppe on behalf of All Plaintiffs. Filing fee $ 100, receipt number 0540-4351340. (Hoppe, Lousene) (Entered: 10/08/2013)	Oct. 8, 2013	Oct. 8, 2013 PACER
7	NOTICE of Attorney Appearance - Pro Hac Vice by Timothy O'Shea on behalf of All Plaintiffs. Filing fee $ 100, receipt number 0540-4351523. (O'Shea, Timothy) (Entered: 10/08/2013)	Oct. 8, 2013	Oct. 8, 2013 PACER
8	NOTICE of Attorney Appearance - Pro Hac Vice by James E Dorsey on behalf of All Plaintiffs. Filing fee $ 100, receipt number 0540-4351566. (Dorsey, James) (Entered: 10/08/2013)	Oct. 8, 2013	Oct. 8, 2013 PACER
9	NOTICE of Attorney Appearance - Pro Hac Vice by Thomas S Fraser on behalf of All Plaintiffs. Filing fee $ 100, receipt number 0540-4351623. (Fraser, Thomas) (Entered: 10/08/2013)	Oct. 8, 2013	Oct. 8, 2013 PACER
10	NOTICE of Attorney Appearance - Pro Hac Vice by Sten-Erik Hoidal on behalf of All Plaintiffs. Filing fee $ 100, receipt number 0540-4352259. (Hoidal, Sten-Erik) (Entered: 10/09/2013)	Oct. 9, 2013	Oct. 9, 2013 PACER
11	SUMMONS Returned Executed by Satheesh Kannan Marimuthu. Signal International Texas, G.P. served on 10/1/2013, answer due 10/22/2013. (mrp, ) (Entered: 10/18/2013)	Oct. 17, 2013	Oct. 17, 2013 PACER
12	SUMMONS Returned Executed by Balamurugan Marimuthu. Signal International LLC served on 10/1/2013, answer due 10/22/2013. (mrp, ) (Entered: 10/18/2013)	Oct. 17, 2013	Oct. 17, 2013 PACER
13	SUMMONS Returned Executed by Balamurugan Marimuthu. Signal International Texas, L.P. served on 10/1/2013, answer due 10/22/2013. (mrp, ) (Entered: 10/18/2013)	Oct. 17, 2013	Oct. 17, 2013 PACER
14	Unopposed MOTION for Extension of Time to File Responsive Pleadings 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) (Entered: 10/21/2013) 1 Text of Proposed Order View on PACER	Oct. 21, 2013	Oct. 21, 2013 PACER
	ORAL ORDER granting 14 Motion for Extension of Time to File. Signed by Magistrate Judge Zack Hawthorn on 10/22/13. (zjh1)	Oct. 22, 2013	Oct. 22, 2013 PACER
15	SUMMONS REISSUED as to Sachin Dewan, Dewan Consultants PVT, LTD. with the raised court seal for international service. (Attachments: # 1 Dewan Summons)(mjc, ) (Entered: 10/30/2013) 1 Dewan Summons View on PACER	Oct. 29, 2013	Oct. 29, 2013 PACER
16	SUMMONS Returned Executed by Rajendran Sappani, Balamurugan Marimuthu, Satheesh Kannan Marimuthu, Moorthy Nadhamuni, Muruganandam Arumugam, Venkata Satya Sivagi Ra Talabathulla, Rajendran Subramani, Muralidharan Arumugam, Sammanasunathan Siluvaimuthu, Satyanarayana Ellapu. Global Resources, Inc. served on 10/17/2013, answer due 11/7/2013. (mjc, ) (Entered: 11/06/2013)	Nov. 6, 2013	Nov. 6, 2013 PACER
17	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
18	ADVISORY ORDER. This case is assigned 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
19	SUMMONS Returned Executed by Balamurugan Marimuthu. Malvern C. Burnett served on 10/15/2013, answer due 11/5/2013. (mrp, ) (Entered: 11/15/2013)	Nov. 12, 2013	Nov. 12, 2013 PACER
20	SUMMONS Returned Executed by Balamurugan Marimuthu. Law Offices of Malvern C. Burnett, A.P.C. served on 10/15/2013, answer due 11/5/2013. (mrp, ) (Entered: 11/15/2013)	Nov. 12, 2013	Nov. 12, 2013 PACER
21	SUMMONS Returned Executed by Balamurugan Marimuthu. Gulf Coast Immigration Law Center, L.L.C. served on 10/15/2013, answer due 11/5/2013. (mrp, ) (Entered: 11/15/2013)	Nov. 12, 2013	Nov. 12, 2013 PACER
22	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 0540-4408323. (Hangartner, Erin) (Entered: 11/18/2013)	Nov. 18, 2013	Nov. 18, 2013 PACER
23	MOTION to Stay re 1 Complaint,, MOTION to Change Venue /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 - SPLC Press Release, # 2 Exhibit 2 - Consent to Sue, # 3 Exhibit 3- Minute Entry (Doc. 108), # 4 Text of Proposed Order re: motion to stay pendente lite, # 5 Text of Proposed Order re: motion to transfer)(Hangartner, Erin) (Entered: 11/21/2013) 1 Exhibit 1 - SPLC Press Release View on PACER 2 Exhibit 2 - Consent to Sue View on PACER 3 Exhibit 3- Minute Entry (Doc. 108) View on PACER 4 Text of Proposed Order re: motion to stay pendente lite View on PACER 5 Text of Proposed Order re: motion to transfer View on PACER	Nov. 21, 2013	Nov. 21, 2013 PACER
24	MOTION to Dismiss Pursuant to Fed.R.Civ.P. 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)(Hangartner, Erin) (Entered: 11/21/2013) 1 Text of Proposed Order View on PACER	Nov. 21, 2013	Nov. 21, 2013 PACER
25	Unopposed MOTION for Extension of Time to File Response/Reply as to 23 MOTION to Stay re 1 Complaint, MOTION to Change Venue /Transfer Pursuant to First-Filed Rule, 24 MOTION to Dismiss Pursuant to Fed.R.Civ.P. 12(b)(6) by Muralidharan Arumugam, Muruganandam Arumugam, Satyanarayana Ellapu, Balamurugan Marimuthu, Satheesh Kannan Marimuthu, Moorthy Nadhamuni, Rajendran Sappani, Sammanasunathan Siluvaimuthu, Rajendran Subramani, Venkata Satya Sivagi Ra Talabathulla. (Attachments: # 1 Text of Proposed Order)(Findlay, Eric) (Entered: 11/26/2013) 1 Text of Proposed Order View on PACER	Nov. 26, 2013	Nov. 26, 2013 PACER
	ORAL ORDER granting 25 Motion for Extension of Time to File Response/Reply. Signed by Magistrate Judge Zack Hawthorn on 11/26/13. (zjh1)	Nov. 26, 2013	Nov. 26, 2013 PACER
26	Unopposed MOTION for Declaratory Relief or for Extension of Time for Service on Defendants Residing in a Foreign Country by Muralidharan Arumugam, et al., (Attachments: # 1 Text of Proposed Order, # 2 Exh A)(Findlay, Michael) Modified on 12/5/2013 (mrp, ). (Entered: 12/04/2013) 1 Text of Proposed Order View on PACER 2 Exhibit A View on PACER	Dec. 4, 2013	Dec. 4, 2013 PACER
	ORAL ORDER denying 26 Motion. The undersigned finds Fed. R. Civ. P. 4 straightforward as it concerns the time limits to serve an individual and corporation in a foreign country. Thus, an order clarifying the court's interpretation of the rule is unnecessary. Signed by Magistrate Judge Zack Hawthorn on 12-6-2013. (Hawthorn, Zack)	Dec. 6, 2013	Dec. 6, 2013 PACER
27	RESPONSE in Opposition re 23 MOTION to Stay re 1 Complaint, MOTION to Change Venue /Transfer Pursuant to First-Filed Rule filed by Muralidharan Arumugam, Muruganandam Arumugam, Satyanarayana Ellapu, Balamurugan Marimuthu, Satheesh Kannan Marimuthu, Moorthy Nadhamuni, Rajendran Sappani, Sammanasunathan Siluvaimuthu, Rajendran Subramani, Venkata Satya Sivagi Ra Talabathulla. (Attachments: # 1 Text of Proposed Order)(Findlay, Michael) (Entered: 12/16/2013) 1 Text of Proposed Order View on PACER	Dec. 16, 2013	Dec. 16, 2013 PACER
28	RESPONSE in Opposition re 24 MOTION to Dismiss Pursuant to Fed.R.Civ.P. 12(b)(6) filed by Muralidharan Arumugam, Muruganandam Arumugam, Satyanarayana Ellapu, Balamurugan Marimuthu, Satheesh Kannan Marimuthu, Moorthy Nadhamuni, Rajendran Sappani, Sammanasunathan Siluvaimuthu, Rajendran Subramani, Venkata Satya Sivagi Ra Talabathulla. (Attachments: # 1 Text of Proposed Order)(Findlay, Michael) (Entered: 12/16/2013) 1 Text of Proposed Order View on PACER	Dec. 16, 2013	Dec. 16, 2013 PACER
29	SUMMONS Returned Executed by Balamurugan Marimuthu, Satheesh Kannan Marimuthu. Signal International, Inc. served on 10/1/2013, by personal service. (mll, ) (Entered: 12/17/2013)	Dec. 16, 2013	Dec. 16, 2013 PACER
30	REPORT of Rule 26(f) Planning Meeting. (Findlay, Michael) (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
31	PROTECTIVE ORDER. Signed by Magistrate Judge Zack Hawthorn on 1/8/2014. (bjc) (Entered: 01/08/2014)	Jan. 8, 2014	Jan. 8, 2014 RECAP
	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
32	SUMMONS REISSUED and given to plaintiff's counsel for service as to Dewan Consultants PVT, LTD. (mrp, ) (Entered: 02/06/2014)	Feb. 3, 2014	Feb. 3, 2014 PACER
33	SUMMONS REISSUED and given to Plaintiff's counsel for service as to Sachin Dewan. (mrp, ) (Entered: 02/06/2014)	Feb. 3, 2014	Feb. 3, 2014 PACER

Case: Marimuthu v. Signal International, LLC

1:13-cv-00499 | U.S. District Court for the Eastern District of Texas

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