Judge orders release of M/V Luta

A federal judge ordered yesterday the immediate release of cargo ship M/V Luta to its owners.

U.S. District Court for the NMI designated judge David O. Carter gave the order after Japanese investor Takahisa Yamamoto reached a settlement agreement with the vessel’s custodian, National Maritime Services Inc.

Following the settlement, Carter relieved NMS of its duties as custodian of M/V Luta and dismissed a previous threat to hold Yamamoto in contempt for not paying his share of custodial fees.

The settlement agreement between Yamamoto and NMS was kept confidential.

At yesterday’s hearing, Carter first met with Yamamoto’s counsel, George Lloyd Hasselback, and William Fitzgerald, who is counsel for the vessel’s owner, Luta Mermaid LLC, and its members: Abelina T. Mendiola, Deron T. Mendiola, and Fidel S. Mendiola III. Bruce Berline appeared as counsel for Norton Lilly International Inc.

Carter later announced that the parties have reached a settlement filed under seal. The judge also announced his ruling.

The written agreement requires Yamamoto to pay NMS for custodial fees.

On Tuesday, Yamamoto failed to personally appear at the scheduled hearing as he was reportedly in Hawaii. Hasselback and NMS counsel Sean Frink, however, informed the court about their settlement discussions.

Carter then gave Yamamoto until yesterday, Wednesday, to settle with NMS his share of $130,000 in custodial fees.

It was U.S. District Court for the NMI designated judge Frances Tydingco-Gatewood who threatened Yamamoto with contempt two weeks ago for failing to pay his outstanding balance of $130,000 in custodial fees. Yamamoto had already initially paid $30,000 in custodial fees.

Tydingco-Gatewood directed Yamamoto to appear in court and explain why he should not be held in contempt for resisting the court’s order for him to pay his share of custodial fees.

The vessel’s crew, Long Consulting, and Norton Lilly have complied with the court’s order by paying their shares for custodial fees in the total amount of $28,916. The crew and the two companies are intervenors in Yamamoto’s lawsuit against Lt. Gov. Victor Hocog and the owners of M/V Luta.

Tydingco-Gatewood determined that Yamamoto’s relationship with Abelina T. Mendiola and her family demonstrated he was a joint venture with them in M/V Luta.

Yamamoto is suing Hocog, Luta Mermaid, and the Mendiolas for allegedly refusing to pay back the $3.4 million that he put up for the vessel. The vessel was seized shortly after the U.S. Marshal Service seized the ship last Oct. 25. NMS was then appointed as substitute custodian of the vessel.

Yamamoto’s several other claims in the lawsuit are pending in court.