THE federal court has ordered Imperial Pacific International LLC, and its parent company, IPI Holdings Ltd., to respond to the lawsuit of the U.S. Department of Justice-Aviation, Space & Admiralty Litigation regarding the removal costs of the yacht Grand Mariana by Sept. 7.
IPI and IPI Holdings were served at their offices in Saipan.
“If you fail to respond, judgment by default will be entered against you for the relief demanded in the complaint,” said Magistrate Judge Heather Kennedy of the District Court for the NMI in her summons.
The complaint pertains to the Grand Mariana’s removal costs incurred in responding to the potential threat of oil spill after Typhoon Yutu made landfall in the Northern Marianas in Oct. 2018.
USDOJ-civil and torts division attorney Frank Anders filed an appearance representing the federal government on Friday.
The lawsuit seeks to recover $1,391,917.18 from the owners of the yacht for the “Grand Mariana incident and removal action” costs.
USDOJ named Pride Keen Ltd., Imperial Pacific International LLC, and IPI Holdings as defendants in the complaint. They were sued for liability under the Oil Pollution Act of 1990 as registered owners of the Grand Mariana.
The lawsuit stated that during a port assessment in October 2018, Coast Guard Marine Safety Detachment or MSD Saipan found that the Grand Mariana was not ready to depart port in advance of Typhoon Yutu.
As a result, MSD Saipan issued a Notice of Federal Interest or NOFI to Pride Keen, advising it of the Grand Mariana’s substantial threat to discharge oil into the Saipan harbor, and of Pride Keen’s responsibilities and financial liability in the event of an oil spill from the vessel.
Sector Guam required all vessels greater than or equal to 200 gross tons to depart port or to have obtained written authorization from the Coast Guard or Captain of the Port or COTP to remain in port under a Port Heavy Weather Condition or PHWC.
Under PHWC Zulu, gale force winds (39-54 mph/34^7 knots) from a tropical or hurricane/typhoon force storm were predicted to make landfall at the port within 12 hours.
Upon setting PHWC ZULU by Sector Guam, all ports and marinas would be closed and all cargo/bunkering operations within the port must stop.
According to the complaint, the Grand Mariana failed to depart port and failed to request a waiver to remain in port.
As a result, Sector Guam issued an administrative order to Pride Keen which required the removal of all fuel from the yacht’s fuel tanks, engines, fuel lines, and any other potential sources onboard that may have oil products in them in advance of the impending typhoon and prior to shifting to the designated mooring.
But Pride Keen failed to comply with the administrative order, the complaint stated.
On Oct. 24, 2018, the Grand Mariana was moved to a mooring within Tanapag Harbor, but due to the deteriorating weather, it was deemed unsafe for divers to properly moor the vessel as desired.
“As a result, the vessel was anchored within the lagoon with two anchors set out to attempt to secure her position. In the early hours of October 25, Typhoon Yutu made landfall. The Grand Mariana broke loose of her moorings and ran hard aground approximately 170 meters off the beach of American Memorial National Park, and in the Tanapag Harbor, said waters constituting navigable waters of the United States. At the time of the grounding, the Grand Mariana contained approximately 15,500 gallons of fuel,” the complaint stated.
The U.S. government, by and through the Field Operations Service Center, contracted with various entities, including but not necessarily limited to, Global Diving and Salvage Inc., to respond to the Grand Mariana incident and removal action, the complaint added.
It stated that the U.S. government paid these entities for the removal costs incurred in responding to the substantial threat of discharge of oil.
On April 14, 2020, the National Pollution Funds Center sent “Notice of Potential Liability Letters” to Pride Keen, IPI Holdings, and IPI CNMI, advising them that the USCG considered them responsible parties.
The National Pollution Funds Center demanded reimbursement for all the outstanding removal costs and damage owed by the defendants, and on May 10, 2020, sent all defendants an invoice for $1,391,917.18.
Despite this demand, defendants have failed and refused to reimburse the costs and damages for which they are liable, the complaint said.
In July 2019, Variety reported that the U.S. Coast Guard directed the owners of the Grand Mariana to salvage the yacht that had been aground near Micro Beach since Typhoon Yutu.
The USCG cited the yacht for being a pollution hazard, saying it would ensure that “the owners are being responsible to remove oil spill and do any cleanup.”
The Grand Mariana is a yacht owned by Imperial Pacific International.
