Woo vs. Harmon - Witness Edwina Clarke

David C. Farmer, Successor-Trustee vs. Harmon

(Formerly Woo vs. Harmon & Nicholson vs. Harmon)

CV05-00030 DAE KSC

U.S. District Court For the District of Hawaii

Judges: David A. Ezra; Kevin S. Chang

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DEFENDANT’S WITNESS

EDWINA CLARKE

Treasurer, Kamehameha Schools; former President, P&C Insurance Company, Inc.

Kamehameha Schools
567 S. King Street
Honolulu, HI 96813

This witness is expected to testify regarding the facts and circumstances regarding the Defendant’s “Whistle-blower” and RICO lawsuits and the resultant Settlement Agreement, and regarding all subsequent “Claims Made” against Kamehameha Schools, its subsidiaries, and their officers, directors and independent contractors. In particular, this witness is expected to provide the following facts regarding each of these lawsuits and claims made: Name of insurance carrier, date claim made, policy number, policy period, and the name and address of insurance adjuster assigned to each claim.

This witness is also expected to testify as to the reasons why P&C Insurance Company did not provide a proper legal response to Defendant’s tender of defense in this case as well as various notice of claims submitted over the past several years.

Edwina Clarke is also expected to produce the following documents related to the Settlement Agreement and this case: A complete, signed copy of the Settlement Agreement, including Exhibit 5; a copy of the “fully signed side letter” between Federal Insurance Company and unnamed parties described in Steven Guttman’s letter dated 06/02/00, addressed to Arnold Phillips; Attorney of Record letters to the attorneys engaged by P&C Insurance Company in each of these claims, and copies of letters from Federal Insurance Co., and other carriers, consenting to the use of these attorneys in each specific case.

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EDWINA CLARKE PHOTO GALLERY

http://www.midweek.com/content/paina/image_full/11650/

http://www.midweek.com/content/paina/image_full/10606/

http://www.midweek.com/content/paina/image_full/2026

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NEW UPDATE (09-07-08):

EARL I. ANZAI
Attorney General of Hawaii

DOROTHY D. SELLERS
HUGH R. JONES
Deputy Attorneys General
425 Queen Street
Honolulu, Hawaii 96813

Attorneys for the Beneficiaries

IN THE CIRCUIT COURT OF THE FIRST CIRCUIT

STATE OF HAWAII

In the Matter of the Estate

BERNICE P. BISHOP,

Deceased.

EQUITY NO. 2048 KSCC

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REPORT OF ATTORNEY GENERAL CONCERNING MAY 7, 1999 ORDER

The May 7, 1999 order regarding orders to show cause requires the former trustees immediately to resign offices and directorships in the trust’s subsidiary and affiliated organizations... P&C Insurance Company, Inc., is a captive insurance company, the sole stock holder which is Pauahi Holdings Inc.

The Attorney General respectfully invites the court’s attention to the annual report publicly filed on March 28, 2000 by P&C (Ex. 1). The annual report lists Henry H. Peters as a director. The Attorney General is unable to determine whether the listing is incorrect; or whether Peters remains a director in violation of court order. The Attorney General’s several inquiries of the trust concerning this matter remain unanswered despite the passage of three months (Ex. 2).

DATED: Honolulu, Hawaii, May 5, 2000

Respectfully submitted,

<s> DOROTHY SELLERS
Deputy Attorney General

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DECLARATION OF DOROTHY SELLERS

DOROTHY SELLERS hereby states:

1. I am a deputy attorney general, and I am familiar with the case records and files in Hawaii First Circuit Court Equity No. 2048 going back to approximately August 1997.

2. I have personal knowledge of the facts contained in this declaration and am competent to testify to them.

3. Exhibit 1 is a true and correct copy of the annual report of P&C Insurance Company for the year ending Dec. 31, 1999, filed in late March 2000.

4, Exhibit 2 is a true and correct letter of my February 15, 2000 letter to counsel for the trust asking for verification that Henry Peters had resigned from P&C and the effective date of the resignation. I have never received a response to that letter.

5. On March 13, 2000, deputy attorney general Hugh Jones wrote trustee Libkuman (with a copy to general counsel Colleen Wong) about a number of matters. The final two paragraphs of that letter are:

Finally, we also requested some time ago copies of Henry Peters’ letters of resignation from directorships and ex officio positions, and specifically from P&C Insurance Company. Although the resignation letters of the other trustees were filed with the Court, Peters’ were not.

Please respond to these requests before March 31, 2000. Thank you.

I DECLARE UNDER PENALTY OF PERJURY THAT THE FOREGOING IS TRUE AND CORRECT.

DATED: Honolulu, Hawaii, May 5, 2000

www.kycbs.net/Doc-EQ2048-PC-Peters-5-5-0.pdf

www.kycbs.net/PC-Arms-Length-Guide-10-1-94.pdf

www.kycbs.net/Doc-EQ2048-Mediation-Order-3-9-0.pdf

www.kycbs.net/KSBE-INTERROGATORIES.htm

www.kycbs.net/RICO-In-Paradise.htm

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NEW DISCOVERY (11-17-08): From the following news article, it appears that Edwina Clarke was concurrently the Treasurer of Kamehameha Schools, as well as the president of its for-profit subsidiary, P&C Insurance, Inc., while Douglas Ing, Constance Lau and Diane Plotts were trustees – which, if true, would would be a breach of the IRS’s arms-length requirements, as well as constituting a real conflict of interest in the instant case.

March 11, 2004

Trust plans $9M
in HECO office repairs

The utility leases the downtown
space from Kamehameha Schools

By Rick Daysog, Star-Bulletin

Kamehameha Schools plans to spend $9 million to renovate Hawaiian Electric Co.'s downtown headquarters.

Under the terms of a proposed 20-year lease, Kamehameha Schools will spend $5 million over the next year to upgrade the historic Richards Street building, people familiar with the negotiations said.

The $6 billion charitable trust -- which owns the 40,000-square-foot structure and the land beneath it -- will add $2 million in tenant improvements in the next several years and another $2 million in the 11th year of the lease.

The deal underscores the interlocking relationships between the two organizations, but Kamehameha Schools officials said that trustees who also hold positions at HECO and its affiliated companies are playing no role in the lease negotiations.

Kamehameha Schools trustee Constance Lau heads HECO's sister company American Savings Bank, and trustee Diane Plotts is a director of HECO's parent Hawaiian Electric Industries Inc.

A third Kamehameha Schools trustee, attorney Douglas Ing, is a partner in the Watanabe Ing Kawashima & Komeiji law firm, which represents HECO on regulatory matters.

Kamehameha Schools' internal policies require board approval on all construction projects valued at $1 million or more. But people familiar with the deal said the HECO lease has not yet gone to Kamehameha Schools' board for review.

Under the Probate Court-mandated conflict-of-interest policy for the estate, trustees Ing, Lau and Plotts may have to recuse themselves if the lease goes to the board, leaving the five-member board without a quorum, people familiar with the trust said. The estate's board will then have to petition the Probate Court for instructions on handling the matter.

HECO, which has occupied the Richards Street offices since 1927, said its current lease will expire in November.

Lynne Unemori, HECO's director of corporate communications, said HEI's board played no role in the negotiations. One person familiar with the talks said Lau, Ing and Plotts were not involved in any of HEI's discussions on the matter.

Unemori declined to discuss the specific terms of the lease, saying the deal is not final. But she said the proposed deal makes business sense for both the estate and HECO.

People familiar with the negotiations said HECO's rent payments, currently set at $650,000 a year, will increase to $775,000 a year during the first five years of the lease. That annual rent will increase every five years to about $1.3 million during the final five-year period covered by the lease.

During the next 20 years, Kamehameha Schools stands to receive about $18 million in rent payments, or double the amount in planned tenant improvements.

HECO said its building requires significant repairs to its ventilation system and elevators. The building also requires major construction to comply with federal guidelines of the Americans with Disabilities Act, according to one person familiar with the discussions.

Unemori said HECO has looked at other downtown sites for possible relocation.

Kamehameha Schools' links to HEI are not limited to the boardroom.

HEI Chief Executive Robert Clarke's wife, Edwina, is Kamehameha Schools' treasurer, and HEI Chief Financial Officer Eric Yeaman previously served as Kamehameha Schools' chief financial officer.

HEI board member Oswald Stender is a former Kamehameha Schools trustee, while Ing's law partner Jeffrey Watanabe is an HEI director. Watanabe also is a board member of Oahu Publications Inc., the parent company of the Honolulu Star-Bulletin.