Bobby N. Harmon, CPCU, ARM

Louisville, Kentucky 40229-1655

April 16, 2004

VIA fax only @ (559) 490-1919

Mr. Justin W. Schuck, Case Manager

Julie A. Schermerhorn, Supervisor

American Arbitration Association

6795 North Palm Avenue, 2^nd Ave.

Fresno, California 93704

RE: Mary Lou Woo, Trustee v. Bobby N. Harmon - Case No. 74 166 00491 03 JUSC

Dear Mr. Schuck and Ms. Schermerhorn:

This responds to Steven Guttman’s letter dated April 16, 2004, in which he states:

“In compliance with your communications of April 14 and 15, 2004, this letter responds to Mr. Harmon’s letters dated April 6, 12, 13 and 15, 2004.

“Mr. Harmon continues to send letters that fail to offer any legitimate evidence to support his contention that Ms. Neustadter should not serve as the arbitrator due to a conflict of interest. His letters, past and present, contain interesting information regarding various individuals, businesses and organizations which are active participants in Hawaii’s business, political and social scenes. However, there is nothing in his voluminous writings which raises the specter of a conflict of interest in Ms. Neustadter serving as the arbitrator in this proceeding. Mr. Harmon’s insistence that there is a connection between the dots is based solely on his flawed and tortured logic. Once again, we reiterate our position that the appointment of Ms. Neustadter was proper and that she should be reaffirmed as the arbitrator in this matter.

“As to Mr. Harmon’s letter of April 13, 2004, we reiterate that Matt Tsukazaki’s letter of March 8, 2004, sets forth in no uncertain terms the positions of his clients, P&C Insurance Company and the Kamehameha Schools, with respect to Mr. Harmon’s requests for insurance coverage. In light of the foregoing and the fact that Mr. Harmon’s share of the incident fees and costs have been advanced by the Trustee, there is no legitimate reason to further delay future conferences or this arbitration proceeding.”

In my letter of April 15, 2004, I stated that it was unfortunate that the information I had provided to date was not sufficient to convince Trustee Mary Lou Woo, and the American Arbitration Association, that Judith Neustadter Fuqua has relevant and multiple conflicts of interest in this case. I also stated that NEW information about Kamehameha’s vast political ties and matters related to Maui’s Planning and Land Use Committee is being revealed in the press almost daily.

To prove my point, here are a few of the most recent news items:

April 15, 2004

Maui council approves Makena rezoning request

by Timothy Hurley, Advertiser Maui County Bureau

WAILUKU, Maui - Makena Resort’s rezoning request won approval from a Maui County Council committee last night, the initial step in what could lead to construction of Maui’s first major resort development in more than 15 years.

Approval by the council’s Planning and Land Use Committee came on a 7-2 vote in the sixth week of deliberations, as extended period that generated 41 conditions designed to temper the impact of construction and address concerns regarding affordable housing, drinking water, beach access, roadways and parks.

Council Members Wayne Nishiki and Jo Anne Johnson voted against the application, saying they still have concerns about the effect on the Makena region....

Nishiki, committee chairman and an outspoken critic of the proposal, said he would reserve his comments for first reading before the council, though he did say he objected to conditions regarding affordable housing and water.

But Johnson offered an impassioned plea, saying a yes vote would indicate that the council was putting the needs of the rich, off-island home buyers above Maui residents.

Johnson said Maui, and Makena in particular, cannot support another resort of this size. She said she can see the island being overdeveloped in a way that occurred in the U.S. Virgin Islands, a place she used to live.

“Ultimately, this is another nail in the coffin in our No. 1 status as a tourist destination,” she said.

“Trust me, people have no idea what’s coming.”...

April, 2004

Seibu Railway Group having legal troubles in Japan

From Maui Tomorrow

Testimony from Sean Lester on
Seibu Corp for Makena Rezoning request

We have all heard by now of the shakeup at Seibu Headquarters. Roy Figueiroa was quoted in the Maui News on Sunday stating that he knew nothing more than what was on the internet, and that it had no bearing whatsoever on the Seibu/Makena project.

I can understand why Roy would say this. You have been dealing with Roy for years, and as you know, all decisions come from the Japanese Corporate headquarters, not from here in Hawaii.

11 people, including 3 Seibu board members have been arrested so far. And it’s still early in the investigation. Arrested, not just accused. For Japanese police to go to the headquarters of one of Japan’s largest corporations and arrest its board members is no small thing.

And who was arrested?

Seiichi Ikura, Senior Managing Director, Seibu Board of Directors

Norhiro Kanno, Head of Public Relations, Board Member

Masaru Kojimo, Head of the Real Estate Division, Board Member

Sadanori Kimura, a senior official of the Real Estate Division

These are not small time employees. They are executives of a corporation whose net assets are estimated at $250 Billion US dollars....

< END OF QUOTATION >

More information regarding these entities and campaign finance issues, and their connections with this case, can be found on the internet at the following addresses: www.the-catbird-seat.net/Paradise.htm ; www.the-catbird-seat.net/RICO-BH.htm ; www.the-catbird-seat.net/FBI.htm ; www.the-catbird-seat.net/Harmon-Trustees.htm ; www.the-catbird-seat.net/YAKUZA.htm ; www.the-catbird-seat.net/Developers.htm .

The Seibu Group has substantial financial ties with Kamehameha Schools and Maui real estate developer Everett Dowling, as does Marsh & McLennan, Inc., one of the Defendants in my Racketeer Influenced & Corrupt Organizations (RICO) lawsuit. The rezoning of property by the Maui County Council can mean hundreds of millions of dollars in the pockets of the developers, contractors, architects, engineers, lawyers, finance companies, real estate brokers, insurance companies and their agents, etc.

Take, as just one example, the law firm of Hisaka Stone Goto Yoshida Cosgrove & Ching. In their website they list as clients: Aetna, Alexander & Baldwin, Allstate Insurance Co., Argonaut, Associations of Apartment Owners of Banyan Harbor, Associations of Kiahuna Plantation, Bank of America, Bank of Hawaii, Central Pacific Bank, Chubb Insurance Group, CIGNA, Citibank, N.A., Citicorp USA, Inc., City Bank, Commercial Union, CNA, Dearborn Claims Management Company, DPIC, Duty Free Shoppers Limited, Employers’ Reinsurance Company, Grove Farm, Inc., Hawaiian Electric Company, Hyatt Hotels, INA, INSPRO, Island Title Corporation, Kaiser Foundation Health Plan, Inc., Kauai Cable Vision, Liberty Mutual Insurance Company, Lloyds of London, Marriot Hotels, National Interstate Insurance Company, Nova Group, Inc., Orient Corporation, Pan Pacific Construction, Inc., Pennzoil Products Company, Poipu Kai Association, Princeville Corporation, Queen’s Healthcare Systems, Reliance Insurance Company, Sheraton Hotels, Sun Seibu, Inc., Severud & Associates, Shand, Morahan, Inc., Tokio Marine and Fire Insurance Company, U.S. Gypsum Company, Utica Mutual, Wilcox Hospital, and Wimberly Allison Tong & Goo Architects, Inc.

They state in their website: “Our attorneys are also in the list of approved outside counsel for the State of Hawaii, County of Kauai, County of Maui, County of Hawaii, and the City and County of Honolulu.”

“Members of our firm are frequently called upon to speak as guest lecturers and to serve on various panels, both public and private, as mediators, arbitrators and commission members.”

As one example of Hisaka Stone’s representation, I quote the following from the September 5, 2003, Meeting Agenda of the Council of the County of Maui:

2. COMMITTEE REPORTS

ADOPTION of resolution authorizing the employment of special counsel Hisaka Stone Goto Yoshida Cosgrove & Ching to represent Howard Fukushima, David Goode, Karlynn Kawahara and Michele Yoshimura in County of Maui v. Holland, Civil No. 01-1-9642 (3); in the matter of Appeals 01-0001 through 01-0006 before the Maui Planning Commission relating to the Montana Beach Condominium project in Paia; and in Holland et al. v. Apana, et al., Case No CV03-000296, DAE/KSC, with an hourly rate not to exceed $200 and a total compensation not the exceed $15,000...

It is impractical to attempt to describe the relationships between the clients of this firm and the parties to the Settlement Agreement which is at issue in this arbitration, but those entities that I have shown in bold print all have definite connections. One connection that might not be evident is that of Shand, Morahan, Inc. Shand, Morahan is the underwriting manager for The Evanston Insurance Company, and is owned by the Markel Corporation.

This company is a major broker for Professional Liability Insurance, including Lawyer’s Professional, Medical Malpractice, and Employment Practices Liability, and at one time handled the Employment Practices Liability coverages for Kamehameha Schools. Since many of the parties connected with these proceedings – including Judith Neustader Fuqua, Steven Guttman, Mary Lou Woo, Jeffrey Sia, Susan Tius, Kenneth Hipp, Matt Tsukazaki, Robert Katz, Kamehameha Schools and P&C Insurance Company, Inc. – have not disclosed the name of their insurance broker or carrier, Shand Morahan may still be the provider of professional liability insurance for Ms. Neustader and one or more of the named entities.

Due to the new information described above, I again ask that Judith Neustadter be disqualified as arbitrator in this case, and that Daniel Bent be appointed as her neutral replacement. However, in case the information that I have provided in these many letters is still not sufficient to convince Trustee Mary Lou Woo and Steven Guttman that this raises the specter of a conflict of interest in Ms. Neustadter serving as arbitrator in this proceeding, then I hereby request to add the following to Respondent’s List of Witnesses in order to provide further evidence:

Wayne Nishiki and Jo Anne Johnson, Members, Maui County Council.

Roy Figueiroa, General Manager, Seibu/Makena project.

George Ariyoshi, former Governor of Hawaii, Counsel at the law firm of Watanabe, Ing & Kawashima, President of Prince Resorts Hawaii.

Ray Fuqua, Owner, Hana & Kipahulu Land Company.

Dee Jay Mailer, CEO, Kamehameha Schools.

Alika Thompson, Lobbyist, Kamehameha Schools.

Paul Cathcart, Land Manager, Kamehameha Schools.

Response to Mr. Guttman’s comments regarding my requests for insurance coverage as related to Matt Tsukazaki’s letter of March 8, 2004, and a revised Respondent’s Witness List and Summary of Testimonies will follow under separate cover.

Sincerely yours,

Bobby N. Harmon

cc: Mary Lou Woo, Trustee, c/o Steven Guttman, Esq. (via fax @ 808-529-7177)

Dee Jay Mailer, CEO, Kamehameha Schools (via fax @ 808-523-6313)

Casimer Fidele, Island Insurance Co. (via fax @ 808-275-8726)

Governor Linda Lingle, State of Hawaii (via fax @ 808-586-0006)

J.P. Schmidt, Hawaii Insurance Commissioner (via fax @ 808-586-2806)

Hugh Jones, Deputy Attorney General (via fax @ 808-586-1477)

Janet S. Hughes, Manager, IRS (via fax @ 303-844-3596)

Peter B. Clark, U.S. Dept of Justice, Criminal Div. (via fax @ 202-514-7021)

Tai K. Lee, Special Agent, U.S. Dept of the Treasury (via fax @ 808-539-2810)

Hawaii State Ethics Commission (via fax @ 808-587-0470)