Settlement deal with Luta owners jeopardized

With Japanese investor Takahisa Yamamoto’s failure to pay his share of custodial fees for cargo ship M/V Luta, the vessel remains in the custody of the National Maritime Services, and inventors in his lawsuit have been unable to put into effect their settlement with the ship’s owners.

This was the assertion of attorney Bruce Berline who, as counsel for Norton Lilly, asked the U.S. District Court for the NMI last week to release M/V Luta immediately in order to preserve and effectuate the settlement with the vessel owners.

Yamamoto allegedly has an outstanding balance of $130,406 for his share in custodial fees.

On Friday, designated judge Frances M. Tydingco-Gatewood heard Norton Lilly’s motion to release the vessel.

Berline said Norton Lilly and the other intervenors—the vessel’s crew and Long Consulting—entered into a settlement with owners of M/V Luta. That settlement is contingent upon the vessel’s release.

Berline pointed out that the court last Feb. 10 vacated Yamamoto’s arrest warrant for the ship and the order to sell the vessel.

In that same order, Tydingco-Gatewood ordered the vessel to be released, but made the order contingent on the parties paying NMS’ custodial fees.

Berline said all the intervenors paid their share of fees but Yamamoto failed to pay his share.

Berline said Yamamoto’s arrest warrant for the vessel has been vacated and its continued detention only serves to increase custodial fees and to punish the intervenors.

Berline said NMS has other remedies available to seek payment of its fees from Yamamoto other than indefinite detention of the vessel.

Tydingco-Gatewood issued an order to show cause last week against Yamamoto for failing to pay by no later than Feb. 14 toward his outstanding balance of $130,406 in custodial fees. Yamamoto had already initially paid $30,000 in custodial fees.

Tydingco-Gatewood ordered Yamamoto to appear personally in court tomorrow, Tuesday, and explain why he should not be held in contempt.

Yamamoto’s counsel, George Lloyd Hasselback, was also ordered to appear at the hearing.

The judge said failure to comply with the court’s order to pay NMS may result in a finding of contempt, and the imposition of monetary and other sanctions.

The boat’s crew, Long Consulting, and Norton Lilly have complied with the court’s order by paying their shares for custodial fees, totaling $28,916.

Tydingco-Gatewood determined that Yamamoto’s whole relationship with Abelina T. Mendiola and her family demonstrates he was a joint venturer with them on M/V Luta.

Abelina T. Mendiola is president of Luta Mermaid and Luta Mermaid’s members are Deron T. Mendiola, and Fidel S. Mendiola III.