Atty. Torres opposes E-Land’s request to compel him to arbitration

Attorney Vincent DLG. Torres is opposing a request to the federal court to compel all the claims in his lawsuit against E-land World Co. Ltd. and others to arbitration before the American Arbitration Association.

Torres, through counsel William M. Fitzgerald, said E-Land and co-defendants continue to misstate and mischaracterize the facts in order to create a false narrative that will comport with these general principles.

Fitzgerald said the court must decide the question of arbitrability because Torres did not agree to be bound by the arbitration clause or the rules of the American Arbitration Association.

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, are asking the federal court to compel all his claims to arbitration before the American Arbitration Association.

E-Land World Co. Ltd., Micronesia Resort Inc., Suwaso Corp., and Kwang Won Seo, through counsel Richard W. Pierce, said the arbitrator should decide any dispute on Torres’ claims.

Pierce said Torres is legally bound by the broad arbitration agreement in the Purchase and Sale Agreement of Capital Stock of Suwaso Corp.

The agreement, Pierce said, was executed on Aug. 23, 2012 and amended on Oct. 12, 2012 by Yusuke Fumoto, an individual residing in Japan, and Micronesia Resort Inc., an entity incorporated under the CNMI laws.

Pierce said Torres negotiated the agreement on behalf of Fumoto. The agreement, he said, effectuated the transfer of a majority ownership interest in Suwaso Corp. from Fumoto to Micronesia Resort Inc.

In Torres’ opposition, Fitzgerald said the arbitration clause does not encompass the claims included in Torres’ complaint because count one concerns oral promises made to Torres not in the agreement and the agreement did not create the accounting and fiduciary duties of four counts in the lawsuit.

Fitzgerald said Torres cannot be forced to arbitrate based on agency because he is not acting on Fumoto’s behalf and not attempting to vindicate Fumoto’s interest.

He said Torres is not a third-party beneficiary because no direct benefit is bestowed on him by the agreement.

Torres sued E-Land World Co. Ltd., Suwaso Corp., Micronesia Resort Inc., 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 case was originally filed in the Superior Court.

The defendants moved to transfer the lawsuit to the U.S. District Court for the NMI.