Bobby N. Harmon, CPCU, ARM



August 23, 2003


VIA fax only @ (559) 490-1919


Ms. Julie A. Shermerhorn, Supervisor

Mr. Justin W. Schuck, Case Manager

American Arbitration Association

6795 North Palm Avenue, 2nd Floor

Fresno, California 93704


RE:   Mary Lou Woo, Trustee v. Bobby N. Harmon

         Case No. 74 166 00491 03 JUSC


Dear Ms. Shermerhorn and Mr. Schuck:

 

This letter is to provide new, factual information to support my previous objections to Judith Neustadter being appointed as the arbitrator in this case.


According to newspaper reports, the judge in the Hale O Kaula case involving Ms. Neustadter and the Maui Planning Commission that I described in my August 5th letter, is U.S. District Judge Samuel King. Judge King was one of the authors of the article, Broken Trust, which appeared in the Honolulu Star-Bulletin and played a major role in to ouster of the former Kamehameha Schools/Bishop Estate Trustees.


A report regarding the legal work of Kamehameha Schools’ outside law firms, prepared by Special Master Robert Richards. According to an article in the May 20, 2000, edition of the Honolulu Star-Bulletin:

 

“Richards singled out Cades Schutte’s work as “the most troubling” and urged the probate court to order the disgorgement of $880,000 of the $1.3 million that it earned between 1998 and 1999.

 

“Richards said the firm spent considerable trust funds researching the free-speech limitations of senior U.S. District Judge Samuel King, an outspoken critic of the trust, and looked into possible remedies against Bobby Harmon, the former head of the estate’s insurance subsidiary, in an apparent attempt to silence criticism....”


On May 28, 2002, I wrote a letter to Dr. Hamilton McCubbin, CEO of Kamehameha Schools, in which I commented on this article, a courtesy copy of which was sent to Mary Lou Woo, Trustee, c/o Mr. Steven Guttman, Esq. A copy of this letter is enclosed for your information.


I would ask that you please take note of Disputed Issue No. 5 in the Claimant’s Demand for Arbitration, which reads:

 

“Whether Harmon’s letter writing campaign constituted a breached of the covenant of good faith and fair dealing and, if so, whether he should be enjoined from writing such letters to the Trustee, her counsel, the parties to the Agreement and their employees, representatives and others.”


My letter of May 28, 2002 is, no doubt, one of the letters in my “letter writing campaign” that Trustee Woo and Mr. Guttman are demanding that I be enjoined from writing. Although I had not intended to argue this issue until the arbitration proceedings were underway, I believe that this information is of immediate importance as it relates to Ms. Neustadter’s appointment as arbitrator in this case.


It should now be clear to everyone, including Trustee Woo and Mr. Guttman, that Judith Neustadter has a conflict-of-interest and should be disqualified as the arbitrator in this case. To prevent further delays in these proceedings, I would again suggest that Mr. Daniel Bent be considered as a replacement for Ms. Neustadter.


Sincerely,




Bobby N. Harmon


enclosure

 

cc’s: Mary Lou Woo, Trustee, (via fax @ 808-529-7177)

 

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

 

         Terry Mullen, CEO/President, John Mullen & Co. (via fax @ 808-531-0053)

 

         Casimer Fidele, Island Insurance Co. (via fax @ 808-539-9738)

 

         Attorney General Mark Bennet (via fax @ 808-586-1239)

 

         Dr. Randy Roth, Office of the Governor (via fax @ 808-586-0006)

 

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

 

         Ralph F. Boyd, Jr., et al., U.S. Dept. of Justice (via fax @ 202-514-1116)