‘Sale of ship will only put Yamamoto in worse position’

Japanese investor Takahisa Yamamoto has offered no legal reason to insist on the sale of M/V Luta since it will put him in a worse position, according to the owner/operators of the vessel.

In fact, based on the evidence in the record, Yamamoto was never entitled to a maritime lien on M/V Luta, according to lawyer William M. Fitzgerald, who represents defendants Luta Mermaid LLC, its president Abelina T. Mendiola, and members Deron T. Mendiola, and Fidel S. Mendiola III.

Fitzgerald asked the U.S. District Court for the NMI to invalidate the lien and invalidate its order to sell M/V Luta.

Fitzgerald said that Yamamoto withdrew his motion to bar any other parties to intervene in his lawsuit to prevent other intervenors from coming forward additional claims.

Defendants have attempted to settle with the three existing intervenors but a fourth has appeared, Rota Terminal & Transfer Co. Inc., which claims that M/V Luta owes it $165,766 in services, costs, fees, and interest.

Fitzgerald said an additional claim of $165,766, which will be paid before Yamamoto’s claim, makes it more unlikely that he will receive anything if the vessel is sold.

The lawyer said setting aside the order for the sale of M/V Luta and releasing the vessel, contingent upon the agreement by the three other intervenors to settle with M/V Luta, gives Yamamoto a better chance to recover, than allowing the sale to go forward.

He said if M/V Luta is sold, the three intervenors—former captain of M/V Luta and six crewmembers, Long Consulting LLC, and Norton Lilly International—would all recover their entitlement before Yamamoto would receive anything.

Fitzgerald said the three intervenors have claims, which could total more than $1 million and it is unlikely that the vessel would fetch that much at an auction.

The captain and crew members are demanding payment of $183,648 in unpaid wages, while Long Consulting is claiming $300,000 in unpaid services. Norton Lilly is claiming $131,801 in unpaid services.

Last week, the fifth claimant, the Commonwealth Ports Authority, filed a complaint to collect $20,463 in alleged unpaid services.

Yamamoto is suing Lt. Gov. Victor Hocog and the owner/operators of M/V Luta for allegedly refusing to pay back the $3.4 million that he put up for the vessel.

After Yamamoto filed the lawsuit last Oct. 25, the U.S. Marshal Service seized the ship. The National Maritime Services was then appointed as custodian of the vessel.