Hiroyuki Saito sued UMDA and four John Does for breach of contract in federal court on Nov. 17, 2010.
Saito’s two-year contract with UMDA expired on March 29, 2009, UMDA said.
“The contract upon which he sues…expired by its own terms prior to any of the events he alleges as breaches, and was never renewed in writing, as required by its own terms and by the Statute of Frauds in order for any such renewal to be valid. His complain thus fails to state a claim and must be dismissed,” UMDA lawyers Robert T. Torres and Joseph E. Horey stated in their motion to dismiss.
UMDA denied that it breached any agreement with Saito.
In a statement, UMDA chief executive officer David Wickline said “UMDA looks forward to responding and maintains that the facts and the law are on the side of UMDA. As a regional company, UMDA continues to maintain its efforts to improve our region economically and to keep the best qualified personnel who are committed to that vision. Unfortunately, Saito was no longer within that vision and his departure was necessary and justified. UMDA looks forward to presentation of its position at the appropriate time, in court and in the public forum, without reservation.”
Saito, through his lawyer Mark Scoggins, is asking for injunctive relief ordering UMDA to arbitrate this dispute in accordance with the terms of their contract, reasonable attorney’s fees and costs, damages and other relief.
Last December, a visiting federal court judge ordered the case unsealed after another visiting judge granted Saito’s motion to seal the case due to a “confidentiality requirement.”
UMDA was founded in 1966 on Saipan and has been involved in a wide range of businesses, including airlines, cable systems, shipping, and resort properties. UMDA’s shareholders include the government or governmental entities of the CNMI, Palau, Federated States of Micronesia, and thousands of individual Micronesians and their families.
In December 2007, UMDA announced the purchase from JAL Group of a 313-room luxury hotel on Saipan, now called Palms Resort Saipan.
In August the hotel announced its closure for renovations.


