M/V Luta custodian wants contempt proceeding vs Yamamoto reinstated

The former custodian of cargo ship M/V Luta has asked the federal court to reinstate contempt proceedings against a Japanese investor for, among other things, failing to pay at least $30,000 a month.

Alan Swimmer, president of Florida-based National Maritime Services, said that $112,994 is past due and should have been paid by Takahisa Yamamoto as of Aug. 31, 2017.

In his declaration in federal court on Friday, Swimmer said that Yamamoto made only one $30,000 payment after he and NMS settled and the court entered its orders releasing M/V Luta and putting the contempt proceedings against Yamamoto on hold.

Since that first payment on March 15, 2017, Yamamoto has paid a total of only $40,000, rather than the $150,000 (five months x $30,000) that he had agreed to, Swimmer said

“Despite repeated demands and attempts to work with Mr. Yamamoto through his attorneys in order to determine whether we could resolve the issue without court involvement, we have not been able to receive any meaningful response from Mr. Yamamoto,” he said.

Swimmer’s declaration was attached in support of the company’s motion for the reinstatement of contempt proceedings against Yamamoto.

NMS counsel Sean E. Frink asked the U.S. District Court for the NMI to order Yamamoto to explain in court why he should not be held in contempt and more sanctions instituted.

“Quite simply, Mr. Yamamoto should be forced to live up to his legal obligations and the promises that he made in order to cause the court to release him from the then looming contempt sanctions,” Frink said.

NMS requested the court to compel Yamamoto to comply with his obligations under the settlement deal by delivering full assignment of all of his claims that are part of his lawsuit.

Frink said Yamamoto should also be required to pay NMS for the fees and costs NMS incurred to take this new measure.

Last March 8, U.S. District Court for the NMI designated judge Frances Tydingco-Gatewood placed the contempt proceedings against Yamamoto on hold to give Yamamoto the chance to comply with the terms of the settlement agreement between him and NMS.

The judge warned that if Yamamoto fails to fulfill the terms of the settlement agreement, he may be subject to further contempt proceedings.

Yamamoto has agreed to enter a stipulated judgment in the amount of $167,627 in favor of NMS.

Last Feb. 22, U.S. District Court for the NMI designated judge David O. Carter ordered the immediate release of the M/V Luta to its owner, Luta Mermaid LLC, after Yamamoto reached the settlement agreement with NMS.

Following the settlement, Carter discharged the court’s previous order to show cause against Yamamoto and relieved NMS of its duties as substitute custodian for M/V Luta.

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

Carter found the settlement deal acceptable.

Tydingco-Gatewood issued the order to show cause against Yamamoto for failing to pay his outstanding balance of $130,000 in custodial fees no later than Feb. 14, 2017.

The vessel’s crew, Long Consulting, and Norton Lilly have complied with the court’s order by paying their shares of 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.

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.