Move seeks to invalidate seizure of M/V Luta

Saying that Japanese investor Takahisa Yamamoto is their joint business venturer, the owners and operators of Luta Mermaid LLC, which owns M/V Luta, are asking the federal court to declare the vessel’s arrest as invalid.

Luta Mermaid LLC, Abelina T. Mendiola, Deron T. Mendiola, and Fidel S. Mendiola III, through counsel William M. Fitzgerald, also asked the court to deny Yamamoto’s request to sell M/V Luta.

In papers filed on Monday, Fitzgerald asserted that joint ventures cannot have a valid maritime lien on a vessel in which they have an interest, as they are not strangers to the ship.

Yamamoto is suing Lt. Gov. Victor Hocog and the owners/operators of Luta Mermaid LLC 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.

Last week, Yamamoto, through counsel George Lloyd Hasselback, asked the court to have M/V Luta sold to prevent the ship’s further deterioration and the excessive cost of keeping the vessel while his lawsuit is pending in court.

Fitzgerald said that a part-owner of a vessel cannot obtain a lien against co-owners. That means stockholders in a corporation that owns a vessel are regarded as part owners, he added.

He pointed out that Yamamoto’s complaint does not cite any document that would support his position that $3.4 million that he put up were loans, rather than an investment.

Fitzgerald said this lack of documents is “all the more astonishing” since Yamamoto is a licensed tax accountant in Japan and Abelina Mendiola is a “simple housewife.”

Fitzgerald cited Abelina Mendiola’s declaration that the deal between them is based on a personal relationship of joint venturers who were to share any profits on a 50-50 basis.

Fitzgerald also explained that it was only when he returned to Saipan last Sunday from New York that he agreed officially to serve as counsel for the Mendiolas.

In her declaration, Abelina Mendiola, 53, said it was Yamamoto’s idea to go into the shipping business on Rota as he wanted to acquire the Sunset Villa, owned by her sons.

Abelina Mendiola said that Yamamoto discussed with her husband, Fidel S. Mendiola Jr., his plan to do business on Rota, throughout all the time even up to June this year, and that they agreed that Yamamoto will finance the businesses and they would provide time and services in management, operations, and logistics.

She said they agreed that this was a 50-50 joint venture, ultimately using Luta Mermaid LLC as their vehicle.

Abelina Mendiola filed in court copies of exchange of emails between her and Yamamoto, and between Yamamoto and co-defendant Robert Toelkes, relative to their 50-50 joint venture.