E-Land, co-defendants want to transfer suit to federal court

E-Land World Co. Ltd., the majority shareholder of Coral Ocean Point Golf Resort, and three others who are being sued by attorney Vincent DLG. Torres, want to transfer to federal court Torres’ lawsuit that was filed in the Superior Court.

E-Land World Co. Ltd., Suwaso Corp., Micronesia Resort Inc., and Kwang Won Seo, through counsel Richard W. Pierce, filed on Friday a notice of removal of Torres’ lawsuit.

Pierce said his clients want to remove this suit pursuant to Chapter 2 of the Federal Arbitration Act.

Pierce said in that Chapter, the U.S. Congress gave federal courts jurisdiction over matters relating to international arbitration agreements and awards in light of “the emphatic federal policy in favor of arbitral dispute resolution” that “applies with special force in the field of international commerce.”

Pierce said Congress also gave federal courts jurisdiction to ensure compliance with the U.S.’ treaty obligations under the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards.

Pierce said in his complaint, Torres asserts claims that “related to,” within the meaning of the Federal Arbitration Act, a Purchase and Sale Agreement of Capital Stock of Suwaso Corp., executed on Aug. 23, 2012 and amended on Oct. 12, 2012, by Yusuke Fumoto and Micronesia Resort Inc.

Pierce said the Purchase and Sale Agreement—which is at the center of Torres’ complaint—resulted in the transfer of majority of Suwaso’s stock from Fumoto to Micronesia Resort Inc.

In doing so, Pierce pointed out, the Purchase and Sale Agreement established a commercial relationship between Fumoto, who resides in Japan, and Micronesia Resort Inc., which is located in CNMI.

Pierce said the Agreement also established commercial relationships among defendants and Torres, who held, and continues to hold, a 15 percent interest in Suwaso.

Pierce said the Agreement broadly requires arbitration or any disputes related to it.

The lawyer also noted that Torres erroneously sued E-Land World Co., Ltd. as E-Land Word Ltd.

He said Torres also erroneously sued Micronesia Resort Inc. and Kwang Won Seo as Micronesian Resort Inc. and Dennis Seo, respectively.

Torres, a minority shareholder of Suwaso Corp. that owns Coral Ocean Golf Resort, sued Suwaso’s majority shareholder E-Land World Ltd. and some of its current and former directors and employees for allegedly failing to provide a proper accounting, embarking upon a scheme to misappropriate business opportunities and funds, and negotiating loans over $5 million without proper authorization.

The other co-defendants in the case are Jong-Ho Roh, Seong Min Kang, Il Kyu Kim, Tae Ho Kim, Steve Hwang, and three unnamed co-defendants.

According to the lawsuit, E-Land, a large Korean corporation, is the sole shareholder of Micronesian Resort Inc. (MRI). MRI is the majority shareholder of Suwaso Corp. Suwaso owns Coral Ocean. Roh is an E-Land employee and a former director of MRI and Suwaso.

Kang, Il Kim, and Tae Kim are former directors and officers of MRI and Suwaso. Hwang is an agent of E-Land who allegedly provided legal advice to all the defendants. Seo is an employee of E-Land allegedly delegated to manage and or act on behalf of Suwaso.

Torres, through counsel William M. Fitzgerald, asked the Superior Court to hold E-Land and co-defendants liable to pay him in unspecified damages, court costs, and attorney’s fees. He demanded a jury trial.

Torres requested the court to issue a mandatory injunction compelling Suwaso to produce records and an accounting pursuant to the Suwaso bylaws and CNMI law.