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



Chief Executive Officer and General Counsel of Dawson Group Inc.; Of Counsel, Dwyer Schraff Meyer Grant & Green (formerly Dwyer Schraff Meyer Jossem & Bushnell).

Beadie Dawson was the attorney for Na Pua a Ke Ali'i Pauahi, an organization of more than 2,000 Kamehameha students, parents and alumni, and a witness, along with Defendant, in EQ2448 - the Attorney General’s lawsuit to remove the former Kamehameha Schools/Bishop Estate trustees.


Beadie Dawson
Dwyer Schraff Meyer Grant & Green
1800 Pioneer Plaza, 900 Fort Street Mall
Honolulu, HI 96813

Fax: 808-537-4667

This witness is expected to testify regarding her participation in the “Broken Trust” Forum held on July 5, 2006, as reported in Small Business News, and excerpted as follows:

'Broken Trust' Forum Calls for
Release of Corruption Documents

By Malia Zimmerman


The full story of the corruption that permeated Hawaii's $10 billion charitable trust, the Kamehameha Schools/Bishop Estate, to the highest levels of government in Hawaii, has never been told.

But the information that has become public is categorized by 60 Minutes as "The biggest story in Hawaii since Pearl Harbor;" by The New York Times as "A feudal empire so vast that it could never be assembled in the modern world;" and by Howard M. McCue III, the Chairman of the Charitable Planning Committee for the American College of Trust and Estate Counsel, as "The most significant legal dispute of our time ... a tale of unbridled ambition, infectious greed, and high drama ... ."

This saga, involving Bishop Estate trustees, state Supreme Court justices, a former governor and leaders in the Hawaii State Legislature, peaked in 1997.

However, nearly one decade later, critics say there has been no accountability for the many influential people who wrongfully took advantage of Princess Pauahi Bishop's charitable trust - a trust she established in 1884 to fund the education of Hawaiian children, not to fatten the pockets of politicians and trustees.

University of Hawaii Law Professor Randall Roth and U.S. Federal Judge Samuel King, co-authors of a newly published book, Broken Trust: Greed, Mismanagement and Political Manipulation at America's Largest Charitable Trust, documented the story of the trust from its inception 100 years ago through current times.

At a July 5 forum hosted by Small Business Hawaii, and moderated by Hawaii Reporter, Roth and King shared their thoughts on what led to the extensive problems at the Bishop Estate and what still needs to be done to ensure there is justice and accountability for past wrongdoings.

Joining them were four other prominent Hawaii citizens who played a major role in pushing for reforms including Hawaiian attorney Beadie Dawson, former Honolulu Star-Bulletin Managing Editor Dave Shapiro, former Campaign Spending Director Robert Watada and Congressman Ed Case....

Before the 90-minute panel wrapped up, the panelists shared some of the following insights from their experiences:

Congressman Case was a freshman state legislator in 1995 when he tried to make two major reforms related to the Bishop Estate - take the Supreme Court justices out of the trustee selection process and limit trustee compensation to what was “reasonable” - both of which made him forceful enemies within the legislative leadership, the court and the Bishop Estate.

“I got nailed pretty bad,” Case says of his first attempt in 1995.

The Hawaii Supreme Court justices admitted that they were split on whether they should be in the business of appointing trustees because of perception of cronyism and favoritism.

In 1997, Roth, King and three other well-respected Hawaiians signed their name to a compelling essay entitled “Broken Trust” that documented the power, influence and wrongdoing in the highest levels of the Bishop Estate and the Hawaii government.

Shapiro, then the managing editor of the Honolulu Star-Bulletin, published the oped, which rocked the very core of the Hawaiian, political and legal communities.

That was the final catalyst for all but one justice - Robert Klein (now an attorney/lobbyist for the Office of Hawaiian Affairs) - to voluntarily step aside from the duty.

Case’s bill to limit trustee compensation also passed, despite major obstacles. At the time, trustees were making more than $1 million a year.

The House, which had Bishop Estate-backed leadership, including House Speaker Joe Souki, and Reps. Terrance Tom and Calvin Say, agreed to a bill that would study the issue. But the Senate sides with Case in establishing compensation limits. In a highly unusual move, Case moved to suspend the rules and adopt the Senate version. Because of extensive pressure from the Hawaiian community, the media and the public, the House agreed to the bill by a vote of 50 to 1 with Rep. Say (who is presently the House Speaker) as the one dissenting vote.

Now, as a Congressman for the second district who is running for U.S. Senate against Sen. Daniel Akaka, Case has distinguished himself from his opponent on this issue. Akaka was sympathetic with the ousted trustees, while Case pushed for more accountability and less compensation. Today, Case says there are still “broken trusts” in Hawaii, which need to be addressed.

Hawaiian attorney and advocate Dawson says the Bishop Estate controversy was significant for the Hawaiian people because it is the first time they began to use their voices and their numbers to take a stand politically.

The tremendous power was evident when Kamehameha Schools alumni, students, faculty and supporters marched in 1997 from the Capitol to the Bishop Estate headquarters, demanding reforms, including the removal of trustee Lokelani Lindsey, who was micromanaging the school in a highly destructive manner.

A great deal of the information Roth and co-author Judge King used to write the Broken Trust was given to them by Watada, the director at the time of the state Campaign Spending Commission.

But Roth says there are still between 1 million and 2 million more documents sealed by the courts that he wants to review and catalogue and believes should be made public.

He hopes trustees will some day be held accountable for their mismanagement. But that is unlikely: they did not pay legal fees for the most part, they took millions of dollars for themselves, they paid off political cronies with trust funds, and held what Roth calls a "world record for breaches of trust."

Roth and King maintain the Broken Trust saga is not over, and neither are the problems for Kamehameha Schools if further safeguards and reforms are not implemented....


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About the UH Foundation

Board of Trustees

The Board of Trustees is a dynamic, committed team of volunteer leaders who have joined us as we strive to reach our Centennial Campaign goal to raise $250 million to help UH fulfill their commitment to our students, our community, and our world.

Executive Committee

C. Scott Wo, Chair
Beadie K. Dawson**, Vice Chair
John T. Komeiji**
, Vice Chair
Jeffrey D. Lau
, Treasurer
Robert P. Hiam**, Secretary
Frank Boas
, Planned Gifts Chair
Larry R. Fuller
, Community Colleges Chair
Howard H. Karr**
, Development Chair
Faye W. Kurren**, Board Development and Governance Chair
Harry A. Saunders, III
, Real Estate Chair
Barry M. Weinman
, Investment Chair
Donna Vuchinich*
, UH Foundation President and Chief Executive Officer
David McClain*
, UH System President
UH Board of Regents Chair

UH Foundation Staff:

William King, Chief Financial Officer
Kathryn Nelson, Vice President for Development
Shandra Hastings, Executive Assistant to the President

Audit Committee

Robert P. Hiam, Committee Chair
Mark H. Fukunaga

Howard H. Karr
Mary E. Sellers
UH Foundation Staff: William King, Chief Financial Officer

Board Development and Governance Committee

Faye W. Kurren, Committee Chair
Beadie K. Dawson

Frank Boas
Louise K.Y. Ing
John T. Komeiji
Jeffrey D. Lau
Carol Ai May

UH Foundation Staff:

Donna Vuchinich, President

Community Colleges

Larry R. Fuller, Committee Chair
Dennis M. Esaki**

Mark H. Fukunaga
Howard H. Karr
Carol Ai May
Myles S. Shibata
Ronald I. Taketa**
UH Foundation Staff: Donna Vuchinich, President

Development Committee

Howard H. Karr, Committee Chair
Clinton L. Arnoldus

J. Kuhio Asam**
Bruce A. Coppa
Mary E. Sellers
Lance K. Wilhelm
UH Foundation Staff: Kathryn Nelson, Vice President for Development

Estate and Gift Planning Committee

Frank Boas, Committee Chair
Beadie K. Dawson

Dorvin D. Leis
Gerald A. Sumida
Dr. Yi-Chuan Ching*
Sharon Weiner* **

UH Foundation Staff:

Lani Starkey, Director of Estate and Gift Planning

Investment Committee

Barry M. Weinman, Committee Chair
Beadie K. Dawson
Mark H. Fukunaga
Robert P. Hiam
Stuart T.K. Ho
Paul S. Honda
Joseph J. Kim
James P. Lally
C. Scott Wo

UH Foundation Staff:

William King, Chief Financial Officer

Real Estate Committee

Harry A. Saunders, III, Committee Chair
Stanford S. Carr
Dennis M. Esaki
Myles S. Shibata
Artie Wilson**

UH Foundation Staff:

William King, Chief Financial Officer

* Ex-Officio Member
** UH Alumnus


* * * * *

NEW DISCOVERY (11-30-08):


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NEW DISCOVERY (10-29-08): New facts providing more evidence of undisclosed conflicts of interests between Judge Barry Kurren and his wife, Faye Kurren, Paul Alston, Rick Daysog, Eric Grant, John Goemans and other entities involved in this case:

October 29, 2008

Judge orders names be made
public in Hawaii school suit

BY RICK DAYSOG, Advertiser Staff Writer

The identities of four unnamed, non-Hawaiian students challenging Kamehameha Schools' admission policy must be made public in 10 days, a federal judge ruled yesterday.

In a 22-page order, U.S. Magistrate Judge Barry Kurren said the public, as in other civil rights cases, has "a strong interest in knowing who is using the courts to vindicate their rights."

"The severity of the threatened harm and the reasonableness of plaintiffs' fears do not weigh in favor of anonymity," Kurren wrote. "At most, plaintiffs are vulnerable children who have a reasonable fear of social ostracization."

Kamehameha Schools spokeswoman Ann Botticelli said the schools appreciated the ruling, saying, "Judge Kurren obviously deliberated carefully on the matter."

David Rosen, one of the attorneys representing the students, declined comment yesterday.

Rosen and California attorney Eric Grant previously argued that the disclosure of the students' identities would expose them to public humiliation and retaliation.

Parents of the students who are simply known as Jacob, Janet, Karl and Lisa Doe have said in court papers that they may drop the lawsuit if the children are not allowed to pursue their lawsuit anonymously.

The Does, who are not of Hawaiian ancestry, applied for admission to Kamehameha in the 2008-09 school year, but were rejected.

Kurren's ruling came after a 1 1/2-hour, closed-door hearing on Oct. 21.

By issuing a 10-day stay to his ruling, he allowed the students and their parents to consider whether to continue pursuing the action.

The stay also allows the Does' attorneys to appeal the ruling to U.S. District Judge Michael Seabright, who is assigned to the case.

Founded by the 1884 will of Princess Bernice Pauahi Bishop, Kamehameha Schools is a charitable trust that educates children of native Hawaiian ancestry. The estate is the state's largest private landowner and is one of the nation's wealthiest trusts, with assets of more than $9 billion.

Lawyers cite threats

In their court filings, Rosen and Grant cited anonymous threats posted on the Internet and hostile remarks attached to the comments sections of local news stories about the admissions controversy.

Grant and Rosen have noted that the threats were serious enough to prompt U.S. Attorney Ed Kubo in 2003 to issue a warning against anyone looking to harm another non-Hawaiian student, Brayden Mohica-Cummings, who was admitted to the school under a settlement agreement.

Kurren, however, ruled that Grant and Rosen didn't provide evidence of "any threat of physical or economic harm" against the Does.

Botticelli, the Kamehameha Schools spokeswoman, added that the trust's leadership "would never take any action that puts a child in danger."

"We would never engage in or condone any racial threats or actions, and we know our community wouldn't either," she said.

Adrian Kamali'i, a 2000 Kamehameha Schools graduate and president of the student-parent group Na Pua a Ke Ali'i Pauahi, said Kurren's ruling "levels the playing field."

Allowing the students and parents to pursue the lawsuit anonymously takes away any accountability and hides from the public "who is doing what and why," added Jan Dill, a 1961 graduate.

"I think it's tremendous that the judge has demanded transparency in a process that affects thousand of native Hawaiian children," Dill said. "People who take actions like this should stand up and take responsibility rather than hide behind confidentiality."

School hails ruling

Attorneys for the trust Paul Alston and former Stanford University Law School Dean Kathleen Sullivan said anonymity has allowed the students' lawyers to portray their clients in a sympathetic light, but gave the trust no means to say whether that portrayal is accurate.

They also noted that in the previous lawsuit challenging the school's admission policy, Grant's co-counsel John Goemans abused his client's anonymity by leaking the details of a confidential settlement.

In that suit, a separate John Doe sought to overturn the trust's Hawaiian-preference admission policy. The policy was upheld by the full 9th U.S. Circuit Court of Appeals and was headed to U.S. Supreme Court before it was settled.

The trust was able to save its admissions policy but ended up paying the student $7 million.

Beadie Dawson, a native Hawaiian attorney and former lawyer for Na Pua, said that given the stakes involved, she expects the Does to appeal Kurren's decision.

"They are looking for another damages settlement, a free hand-out," she said. "Giving them anonymity encourages others to file what I consider to be frivolous lawsuits."

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Beadie Dawson is also expected to testify regarding her legal views on whether Judge Kevin Chang should have sealed the records in EQ2048. These are some of the records that Defendant has asked to be subpoenaed in the instant case (See: Documents To Be Subpoenaed)

As an attorney and advocate, Beadie Dawson is also expected to testify regarding the Defendant’s First Amendment Rights of Freedom of Speech and Freedom of Religion.

Internet References: