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Arrested supply ship to be sold

The National Maritime Services Inc., the court-appointed custodian for the arrested "Luta", has asked District Court for the NMI to enforce its previous order of requiring the parties to pay NMS $124,878.93 before the vessel was released. Investor Takahisa Yamamoto should pay NMS $101,223. The crewmembers, for their part, should pay $7,058.77; Long Consulting $11,531.06; and Norton Lilly, $5,065. In October, Yamamoto sued Luta Mermaid, the registered owner of the "Luta", and Lt. Gov. Victor Hocog for fraud, breach of contract and unjust enrichment. Joining the lawsuit as intervenors were the vessel’s former crewmembers, Long Consulting and Norton Lilly who were all seeking payment from the "Luta". The court order stated that all parties in the lawsuit are responsible to share in paying the custodian, in proportion to the value of their claims from the time of the vessel’s arrest. NMS has in good faith provided substitute vessel custodian services that the court ordered for October, November, December, and January. NMS has been transparent and forthright as to the related expenses by twice filing detailed invoices of its expenses with the request for payment all of which, he added, are undisputed. Despite the court’s order and despite now having complete access to NMS’s contract terms and NMS fees and costs, not one party has provided any sort of objection to any particular fee or cost incurred or estimated by NMS. Not one party has objected to the court’s proposed apportionment schedule — in response to NMS’s second payment request, they instead provided general objections without providing any evidence as to the alleged unreasonableness, the lawyer added. The other parties have attempted to settle with each other without apparently allowing for (except apparently for the crewmembers) any sort of offset in order to ensure NMS was paid for their share of its services before the vessel is released. Designated Judge Frances M. Tydingco-Gatewood said the vessel will be sold for a minimum of $550,000 on Feb. 8, 2017 at 10 a.m.

Another lawsuit against Luta owner

ThE Long Consulting LLC, through its counsel Daniel Guidotti of Marianas Pacific Law LLC, has filed a verified complaint in intervention in federal court against the Luta Mermaid LLC, the operator and owner of the "Luta". According to the complaint, in 2015, Luta Mermaid through Abelina Mendiola approached Long Consulting or LCL regarding a loan for funds sufficient to bring the "Luta" from its dock in Louisiana into active service in the CNMI. In her capacity, Abelina Mendiola, as president of Luta Mermaid, signed a loan agreement whereby LCL agreed to loan $300,000 to Luta Mermaid in exchange for the vessel as collateral plus other promises. In addition to the loan agreement, Abelina signed a security agreement which pledged the vessel as security for the loan agreement. A true and correct copy of the loan agreement and security agreement was attached to the complaint as Exhibits A and B. LCL recorded the security agreement in the CNMI on Nov. 17, 2015 as File No. 15-0248, and filed the security agreement as a preferred mortgage with the United States Coast Guard National Vessel Documentation center on Nov 18, 2015. The National Vessel Documentation Center notified LCL that it had accepted the security agreement for filing as a “preferred mortgage” on June 21, 2016. On Nov 4, 2015, Luta Mermaid gave a promissory note in favor of LCL in “the principal amount of $300,000 together with interest on the unpaid principal balance” at a rate of 10 percent per year. The complaint said Abelina herself, on Nov. 4, 2015, in her capacity as attorney-in-fact for Deron Mendiola, and Fidel Mendiola, signed a guaranty of secured indebtedness through which Abelina, Deron and Fidel unconditionally guaranteed full payment of the sums due under the note and performance of Luta Mermaid’s obligation under the loan agreement, the security agreement and other agreements that Luta Mermaid made with LCL in connection with the $300,000 loan. LCL disbursed $300,000 to Luta Mermaid in accordance with the loan agreement and the note, and on information and belief, Luta Mermaid used the loan proceeds to fund the vessel’s operating expenses from its dock in Louisiana to the CNMI. Luta Mermaid operated the vessel in the Pacific Ocean, specifically in the waters around Saipan, Tinian, and Rota until the U.S. Marshals Service seized the vessel on Oct 25, 2016 after the Mendiolas’ Japanese partner sued them and Lt. Gov. Victor Hocog for fraud, breach of contract and unjust enrichment. Takahisa Yamamoto said the co-defendants owe him $3.4 million. Last week, crew members of the "Luta" sued Luta Mermaid over unpaid salaries and wages. Read more: http://www.mvariety.com/cnmi/cnmi-news/local/90721-another-lawsuit-against-mv-luta-owner

Marshals seize M/V Luta

he U.S. Marshals Service seized yesterday afternoon the controversial cargo ship M/V Luta after Japanese investor Takahisa Yamamoto filed a lawsuit in federal court against Lt. Gov. Victor Hocog and some owners of the ship for allegedly refusing to pay back the $3.4 million he put up for the vessel. Three deputy marshals, accompanied by Yamamoto counsel George Lloyd Hasselback, boarded a small boat to serve the arrest order on a crewman of M/V Luta, which was anchored in the channel near Smiling Cove Marina and Port of Saipan. After Yamamoto filed the lawsuit yesterday, U.S. District Court for the NMI Chief Judge Ramona V. Manglona directed the U.S. Marshals Service to “arrest” the 146.5-by-38-foot 237 gross ton M/V Luta. Manglona also commanded the U.S. Marshal Service to “arrest” the ship’s engines, furniture, tackle, appurtenances, and other necessaries. Aside from Hocog, Yamamoto is also suing M/V Luta, Luta Mermaid LLC, Abelina T. Mendiola, Deron T. Mendiola, Fidel S. Mendiola III, Fidel Mendiola Jr., and Robert Toelkes. http://www.saipantribune.com/index.php/marshals-seize-mv-luta/