run for cover’ from...
Bishop Estate’s
legal army
David C. Farmer, Successor-Trustee vs. Harmon
(Formerly Woo vs. Harmon & Nicholson vs. Harmon)
U.S. District Court For the District of Hawaii
Judges: David A. Ezra; Kevin S. Chang
—
DEFENDANT’S WITNESS
Magistrate Judge for the Ninth District; judge in Sukamto Sia case; judge in Milton Holt case; Judge in the Hawaiian Airlines bankruptcy case Magistrate Judge in Defendant’s RICO case and for the Settlement Agreement; husband of witness Faye Kurren.
~ ~ ~
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."
NEW DISCOVERY (10-12-08): New discovery of facts providing clear evidence of undisclosed conflicts of interest involving Judge Barry Kurren, his wife, Faye Kurren, and a number of other entities in this case:
www.kycbs.net/Google-Barry-Kurren.htm
~ ~ ~
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
of
BERNICE P. BISHOP,
Deceased.
EQUITY NO. 2048 KSCC
~ ~ ~
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
~ ~ ~
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
See also:
www.kycbs.net/PC-PriceWaterhouse-8-9-94.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
~ ~ ~
NEW DISCOVERY (06-24-08):
Final Decree entered
Date: Tuesday, June 24, 2008 8:17 PM
From: "Steven Guttman" <sguttman@kdubm.com>
To: "Bobby Harmon" <bobby_n_harmon@yahoo.com>, "David Farmer" <farmerd001@hawaii.rr.com>, "Michael Mukasey" <AskDOJ@usdoj.gov>, "Kevin Chang" <sa@hid.uscourts.gov>, "Robert Faris" <hib@hib.uscourts.gov>, "Barry M. Kurren" <richlyn_young@hid.uscourts.gov>, "Carol K. Muranaka" <ustp.region15@usdoj.gov>, "J P Schmidt" <insurance@dcca.hawaii.gov>, "Janet Kamerman" <HONOLULU@FBI.GOV>, "Mark Bennett" <hawaiiag@hawaii.gov>, "Hugh Jones" <hugh.r.jones@hawaii.gov>, "Linda Lingle" <governor.lingle@hawaii.gov>
Cc:
"Mediation Center of The Pacific" <mcp@mediatehawaii.org>, "Sheryl Nicholson" <office@acluhawaii.org>, "Robert Bruce Graham" <bgraham@awlaw.com>, "James Wriston" <jwriston@awlaw.com>, "Andrew Winer" <winer@pacificlaw.com>, "James Cribley" <jcribley@caselombardi.com>, "Lawrence Goya" <hawaiiag@hawaii.gov>, "Pension Benefit Guaranty Association" <participant.pro@pbgc.gov>, "James B Nicholson" <jamesbnicholson@aol.com>, "Executive Office for U.S. Trustees" <ustrustee.program@usdoj.gov>, "Office of Inspector General US Dept of Justice" <oig.hotline@usdoj.gov>, "George Will" <georgewill@washpost.com>, "Haunani Apoliona" <info@oha.org>, "Leroy Colombe" <lcolombe@ckdbw.com>, "Scott Helman" <shelman@globe.com>, "Bob Nichols" <bob.bobnichols@gmail.com>, "Laura Thielen" <dlnr@hawaii.gov>, "Barry Taniguchi" <communications@hcf-hawaii.org>, "Paul Achitoff" <honoluluoffice@earthjustice.org>, "Laurie Bennett" <info@muckety.com>, "Dave Shapiro" <volcanicash@gmail.com>, "Gail Kim-Moe" <Gkim.moe@gmail.com>, "Marshall Chriswell" <mc@whistleblowers.org>, "Greg Palast" <palast@gregpalast.com>, "Dee Jay Mailer" <ksinfo@ksbe.edu>, "Laser Haas" <laserhaas@msn.com>, "Michael Moore" <mike@michaelmoore.com>, "Texas Observer" <editors@texasobserver.org>, "Brian W. Bisignani" <bbisignani@postschell.com>, "Aon Insurance Managers" <mike_coulter@agl.aon.com>, "William Burgess" <hwburgess@hawaii.rr.com>, "Brian E. Schatz" <teamschatz@gmail.com>, "Patricia Case" <pattycase@aol.com>, "Cheryl Nakamura" <CNakamura@rmhawaii.com>, "Bill Yuen" <billyuen@cymlaw.com>, "Randall W. Wulff" <rwulff@wqsadr.com>, "Karen Spiller" <karen.spiller@baesystems.com>, "Andrew Killgore" <akillgore@wrmea.com>, "Patrick Leahy" <senator_leahy@leahy.senate.gov>, "Pamela A. McCullough" <HONOLULU@FBI.GOV>, "James Duke Aiona" <ltgov@hawaii.gov>, "Ken Conklin" <ken_conklin@yahoo.com>, "William H. Donaldson" <enforcement@sec.gov>, "Ian Lind" <diary@ilind.net>, "Jim Terrack" <tnthawaii@aol.com>, "Andrew Walden" <hfpeditor@email.com>, "All Senators" <sens@Capitol.hawaii.gov>, "All Representatives" <reps@Capitol.hawaii.gov>, "Thomas Fitton" <info@judicialwatch.org>, "Stew Webb" <stewwebb@stewwebb.com>, "Judson Witham" <jurisnot@yahoo.com>, "J C Shannon" <Hapa1234@aol.com>, "Jeff Biener" <jeffandmary@ozarkopathy.org>, "V K Durham" <vkdtdht@pionet.net>, "Richard Grove" <Richard@8thEstate.com>, "Bradley Tamm" <btamm@hawaii.rr.com>, "Susan Tius" <STius@rmhawaii.com>, "Paul Alston" <palston@ahfi.com>, "John Goemans" <wip@kamuela.com>, "William K Slate" <Websitemail@adr.org>, "Lissa Andrews" <landrews@rmhawaii.com>, "John D. Finnegan" <info@chubb.com>, "Terry Mullen" <tmullen@johnmullen.com>, "Margery Bronster" <info@bchlaw.net>, "Michael N. Tanoue" <mtanoue@paclawgroup.com>, "Neil Ambercrombie" <Neil.Abercrombie@mail.house.gov>, "Lyn Flanigan Anzai" <lflanigan@hsba.org>, "Lorraine Inouye" <seninouye@Capitol.hawaii.gov>, "Samuel P. King" <leslie_sai@hid.uscourts.gov>, "Arthur Rath" <imua@spamarrest.com>, "Randall Roth" <rroth@hawaii.edu>, "Rick Daysog" <rdaysog@honoluluadvertiser.com>, "Jim Dooley" <jdooley@honoluluadvertiser.com>, "Robin Campaniano" <aigh001@aighawaii.com>, "Blossom Tong" <blossom.d.tong@marsh.com>, "Sammye Richardson" <sammyerichardson@yahoo.com>, "Daniel Hopsicker" <madcownews@gmail.com>, "Richard L Righter" <righterwmx@aol.com>, "Dirk Kempthorne" <webteam@ios.doi.gov>, "Jeffrey Sia" <Jeff.Sia@excite.com>, "Jim Babka" <downsizer-dispatch@downsizedc.org>, "Truth" <truth@grandecom.net>, "J. C. Jones" <JCJJONES@aol.com>, "Dane Field" <danefl@gucl.com>, "Jeffrey Watanabe" <jwatanabe@wik.com>
Message contains attachments
LT var 6-24-08.pdf (112KB)
Please see attachment
STEVEN GUTTMAN
Kessner Umebayashi Bain & Matsunaga
220 South King Street, Suite 1900
Honolulu, Hawaii 96813
Tel. 808.536-1900
~ ~ ~
NEW DISCOVERY (06-21-08): JUDGE KURREN WAS THE JUDGE WHO PERMITTED THE SALE OF THE HONOLULU STAR-BULLETIN FROM GANNETT PACIFIC CORPORATION TO DAVID BLACK, BLACK PRESS LTD AS ONLY QUALIFIED BIDDER, AS FILED BY THEN-ATTORNEY GENERAL EARL ANZAI:
Black confident
of buying Bulletin
The owner of Black Press
expects to resolve issues
in the next few weeks
The Canadian publisher selected as the sole qualified bidder for the Honolulu Star-Bulletin is confident that he can reach a definitive agreement to acquire the 118-year-old afternoon daily.
David Black, owner of Victoria, B.C.-based Black Press Ltd., hopes to resolve several outstanding issues with the Star-Bulletin's owner, Liberty Newspapers Limited Partnership, and Gannett Co., the owner of the rival Honolulu Advertiser, during the next few weeks.
"I don't think there will be a problem," Black said yesterday in a telephone interview from Canada. "I think these issues are small enough and there's enough common sense that we can almost do it on the phone."
Yesterday, Federal Magistrate Barry Kurren selected Black Press as the only qualified bidder for the 63,500-circulation Star-Bulletin, in a major step toward preserving a second editorial voice in Honolulu.
The ruling -- which effectively rejected competing bids by Los Angeles-based Hadland Communications Inc. and a local group composed of former U.S. Rep. Cecil Heftel, Kauai developer Jeff Lindner and Kauai publishers Peter and Jane McClaran -- also directed Liberty and Gannett to negotiate transition issues and other unresolved matters with Black.
"The court is prepared to assist this process to resolve any disputed issues," according to Kurren's order, which also set an Oct. 27 deadline to negotiate a deal.
Kurren and U.S. District Judge Alan Kay have scheduled an Oct. 27 hearing to approve or terminate the deal....
http://starbulletin.com/2000/09/28/news/story2.html
~ ~ ~
NEW DISCOVERY (06-01-08):
OBITUARIES
Oscar Kurren, a former University of Hawai'i professor and community activist on behalf of the mentally ill and the aged, died Friday June 4, 2004. He was 82. In 1969, Kurren followed one of his Brandeis University professors to the University of Hawai'i. He was a professor for 27 years at UH before retiring in the early 1990s. "He was always a very driven, energetic, passionate guy, and that stands out in my mind about the way he pursued life," said his son, U.S. Magistrate Barry Kurren. "I often say that if anybody accuses me of having any compassion in my work it is due to him."
Oscar Kurren was born in Pittsburgh on July 24, 1921. He did his undergraduate work at the University of Pittsburgh, where he was part of the ROTC program and a member of the swim team. While a member of the Panther swim team, Kurren was considered for the U.S. Olympic Trials, his son said. After graduating he joined the Army and was a tank commander and an officer with the 10th Mountain Division throughout its Italian campaign during World War II.
After leaving the Army, he received his doctorate in social policy from Brandeis University. "He was really passionate about social policy, politics and justice. He was a true social worker," said his daughter, Beth Kurren Cox. "He was able to go through things (in life) and then find a kind of peace." Cox said her father believed in equity and did a lot of work to ensure that people got the services they needed. She said he was the most resilient man she ever knew, especially after he was twice widowed. "He lost two wives and then managed to find a wonderful girlfriend," she said.
Kurren was an active Rotarian, a member of Temple Emanu-El and an avid golfer and tennis player. Barry Kurren said that after his father retired from teaching, he took the same zest and drive for his former profession and poured it into golf and tennis.
In addition to his son and daughter, Kurren is survived by his longtime girlfriend Ethel Yamane, and two granddaughters, Amy and Laura. A memorial service will be held at Temple Emanu-El on June 16 at 10:30 a.m. In lieu of flowers, the family asks that donations be made to the Gaile Kurren Scholarship Fund, University of Hawai'i Foundation. [Adv June 8, 2004]
http://w2.byuh.edu/library/Obituaries/2004/K.htm
~ ~ ~
NEW DISCOVERY (05-31-08):
May 31, 2008
Aloha puts Mesa lawsuit
up for auction
Legal claims against Mesa another asset
being sold for creditors
By Rick Daysog, Advertiser Staff Writer
For sale: Aloha Airlines' lawsuit against go! airlines.
The trustee for bankrupt Aloha Airlines said yesterday that he will auction off Aloha's potentially lucrative legal claims against the owner of go!, Mesa Air Group Inc.
In April, Mesa agreed to pay $52.5 million to settle a similar suit by Hawaiian Airlines, which alleged that Mesa misused confidential information to launch go! airline.
"A lawsuit is no different than a propeller," said James Wagner, attorney for Aloha's bankruptcy trustee Dane Field. "It's an asset and we're going to sell it."
Aloha, once the state's second largest airline, shut down its passenger service on March 31 and terminated 1,900 workers, in the largest mass layoff the state has ever seen.
The shutdown came 11 days after Aloha filed for bankruptcy for the second time in less than 3 1/2 years.
Aloha sued Mesa in federal court in January 2007, alleging that the Phoenix-based company misused confidential information to drive it out of business. The trial is scheduled for October.
The rights to the Aloha lawsuit will become one more asset to be sold to pay off Aloha's creditors. Wagner said he has "no concept" of what Aloha's legal claims would sell for.
Asset sales so far have included the $10.5 million sale of Aloha Cargo to Seattle-based Saltchuk Resources Inc. and the $2.05 million sale of Aloha's contract services division to Los Angeles-based Pacific Air Cargo.
Wagner said potential bidders for the lawsuit include Aloha's former financial backer, Yucaipa Co. Yucaipa, which is headed by California billionaire Ron Burkle, rescued Aloha during its first bankruptcy and is owed more than $100 million by the defunct carrier.
In court filings, Wagner said Yucaipa has agreed to use a portion of any recovery to create a hardship fund for laid-off employees.
GMAC Commercial Finance, Aloha's chief lender, also agreed to set aside 5 percent of any proceeds it receives from the sale of Aloha's assets to pay the airline's unsecured creditors.
Mesa also could bid on the rights to the suit, in what would result in a settlement of the lawsuit, Wagner said.
Wagner said potential bidders would have to front what could amount to several million dollars in legal bills to bring the case to trial. He noted that Aloha's expert witnesses alone have asked for a $250,000 retainer.
"It's very expensive litigation," Wagner said.
Also yesterday, U.S. District Judge David Ezra rejected a Mesa motion to dismiss the lawsuit and appointed Federal Magistrate Barry Kurren to oversee the case.
~ ~ ~
May 31, 2008
Aloha lawsuit for sale
By Dave Segal, Honolulu Star-Bulletin
Aloha Airlines, which has been on a fast track to liquidate its assets since filing for bankruptcy in mid-March, said in federal District Court yesterday that it plans to sell the legal claim in its 2006 lawsuit against go! parent Mesa Air Group Inc. to the highest bidder.
"A lawsuit is no different than a propeller," said James Wagner, an attorney for Aloha Chapter 7 trustee Dane Field. "It's an asset and we're going to sell it."
He said a motion would be filed Monday or Tuesday and an auction likely would be held the following week.
Wagner said the likeliest bidder would be Yucaipa Cos. LLC, which is Aloha's majority shareholder and second secured creditor behind Aloha's primary lender, GMAC Commercial Finance LLC. Wagner said Mesa also could be a possible bidder.
"As you can imagine, there's probably very few bidders for this asset," Wagner said.
A winning bid by Yucaipa, which is owed $106.7 million, would allow it to control the lawsuit, while a bid by Mesa would be, in essence, an out-of-court settlement. Aloha is suing Mesa for alleged predatory pricing that helped force Aloha out of business, as well as for allegedly misusing confidential information obtained during Aloha's first bankruptcy.
Last month, Mesa settled a suit with Hawaiian for $52.5 million over the misuse of confidential information.
However, Mesa General Counsel Brian Gillman said yesterday that "we haven't even considered bidding" on the Aloha lawsuit.
"We believe the case is without merit and we intend to vigorously defend the case in any proceeding," he said.
Wagner said that unless Mesa decides to settle, Wagner said Yucaipa likely would be the winning bidder. In that case, Aloha creditors would have to wait until the end of the lawsuit to share in any possible recovery.
GMAC, which initially was owed about $49 million, still is due about $34 million following the sales of Aloha's aviation contract services and cargo divisions. If there is additional money left after GMAC is made whole, then Yucaipa would be next in line for up to the $106.7 million it is owed.
Both GMAC and Yucaipa have said they would give 5 percent of any recovery to Aloha.
Federal Judge David Ezra chastised both parties' attorneys yesterday for letting the case sit for two years with very little action. He said he wouldn't allow the case to sit around as "a bargaining chip."
"We're going to be on the fast track in this case and it's not going to be decided two years from today," Ezra said. "This is a case of some importance to the community, and it's also important to the Mesa shareholders."
The trial is scheduled for Oct. 28.
http://starbulletin.com/2008/05/31/business/story02.html
~ ~ ~
NEW DISCOVERY (05-02-08): Judge Barry Kurren’s undisclosed conflicting relationships with members of the Hawaii Judiciary Selection Commission:
April 20, 2000
Trust played role
in effort to fund
Ige campaign
Campaign laws could have
been violated and it could
have lost its tax-exempt status
By Rick Daysog, Star-Bulletin
Kamehameha Schools coordinated political donations from its outside lawyers to state Sen. Marshall Ige's campaign in what could be a violation of campaign spending laws.
Records subpoenaed by the attorney general's office show that the $6 billion charitable trust played a role in the 1994 campaign contributions to Ige from attorneys C. Michael Heihre and Cheryl Nakamura and the law firms of Ashford & Wriston, Dwyer Imanaka Schraff Kudo Meyer & Kudo and Ching Yuen & Morikawa.
The documents -- discovered last year in the office of former trust manager Namlyn Snow -- include binders containing detailed logs of the attorneys' contributions to the Ige campaign, as well as photocopies of canceled checks to pay for the contributions.
Each attorney or firm contributed $250, for a total of $1,250. All of the checks were received by the Ige campaign on Aug. 17, 1994, and were deposited together in the campaign's bank account on the following day, suggesting that the contributions were bundled by Bishop Estate representatives.
Trust attorneys familiar with the documents said it was clear that Snow, who died last year, had a part in obtaining the donations.
The lawyers added that the estate's interim board of trustees turned over the documents to the attorney general's office and is complying with the state's investigation.
On Monday, the Star-Bulletin reported that an investigation by the attorney general's office had found that the estate engaged in a massive attempt to influence legislation and direct tens of thousands of dollars to isle politicians during the tenure of previous board members Richard "Dickie" Wong, Henry Peters, Lokelani Lindsey, Gerard Jervis and Oswald Stender.
The findings of the attorney general's inquiry, along with documents relating to the law firms' contributions to the Ige campaign, were turned over to the state Campaign Spending Commission last week, which has opened a separate investigation of the trust.
Bob Watada, executive director of the state Campaign Spending Commission, also declined to discuss the law firms' contributions to Ige. But speaking generally, Watada said bundling of contributions could be seen as a campaign contribution made under a false name, which is illegal.
Federal law also bars tax-exempt trusts from making campaign contributions or taking part in a political election. Violations could lead to the loss of a charity's tax-exempt status.
The latest disclosure comes as Ige is facing misdemeanor charges for alleged campaign finance abuses. The charges stem from an alleged campaign laundering scheme involving Bishop Estate's architecture and engineering firms. Ige has pleaded not guilty, and a trial is scheduled for next month.
Birney Bervar, Ige's attorney, declined comment on the latest development involving his client's campaign finances.
Attorneys with the Ashford & Wriston and Dwyer Imanaka firms had no response, while Bill Yuen of the Ching Yuen firm said he could not recall the circumstances of the contributions.
Nakamura, who does civil litigation work for the trust at the law firm of Rush Moore Craven Sutton Morry & Beh, said she remembers purchasing the fund-raiser tickets and attending the event with her parents. Nakamura, who lives in Ige's district, added that she may have purchased the tickets with the assistance of Bishop Estate personnel.
Heihre, formerly known as C. Michael Hare, said his donation to Ige was a personal contribution on his own checking account. But Heihre, a partner in the Cades Schutte Fleming & Wright firm and former chairman of the state Judicial Selection Commission, said he could not recall if he discussed his contribution to Ige with Kamehameha Schools personnel.
Each of the law firms that contributed to the Ige campaign has billed the trust tens of thousands of dollars each year for legal work. Last year, the estate paid the Cades Schutte firm about $1.8 million.
http://starbulletin.com/2000/04/20/news/index.html
~ ~ ~
From the Broken Trust essay:
... Since 1987, the year in which the trustees were forced to make public the amount of their fees, they have received in excess of $40 million. Fees paid over the past three years have averaged $900,000 per trustee, per year.
The distracting thing about this piece of the mosaic is that people made responsible for preserving $5 to $10 billion of wealth, and carrying out an educational mission that is as important as it is unique, arguably ought to be highly paid.
We think the more important issue is the credentials of the specific individuals who are being paid these large sums of money. Given the estate's ability to pay big-league compensation, one would expect to find an array of phenomenally talented trustees. Yet somehow, with the exception of Oswald Stender, the Bishop Estate trustees simply don't measure up to the job.
Trustee selection
Many people are under the impression that the justices of Hawaii's Supreme Court are legally obligated to select Bishop Estate trustees because that's what the princess put into her will. Not so. Clearly, they don't have to do it. The justices acknowledged as much in 1989 when they refused the request of a woman named Sadie Smith to pick the trustees of her charitable trust.
Acknowledging the obvious impropriety of making trustee selections in their official capacity, the justices tell us they are acting as individuals when they select Bishop Estate trustees. This is a distinction without meaning. To be blunt, it's a dodge.
The reality is that Bishop Estate trustees are selected by five individuals who through no coincidence are also justices of the state Supreme Court. The further reality is that these same five individuals are virtually certain to be called upon to decide cases involving the trustees they select (the estate has been before the Supreme Court at least 18 times in the last 13 years). At a minimum, this creates the appearance of a conflict.
Some people wonder why the justices would stretch logic and judicial ethics to the breaking point just to do something they clearly don't have to do, and then do it poorly.
Can we be blamed for questioning the justices' collective judgment in other areas? After all, if the justices exercise questionable judgment in their individual capacity when selecting trustees, why shouldn't we expect equally questionable decisions in their official capacity? Worse, if selection of trustees is influenced by politics (as we believe it is), why shouldn't the public assume that judicial decisions are equally political?
It is imperative that the Supreme Court enjoy the trust and respect of the entire community. According to Democratic Rep. Ed Case, "The Supreme Court's trustee appointment role has the real potential of undermining and perverting our judicial system, starting with the judicial selection process. Getting out of the Bishop Estate trustee selection business is the single biggest thing the court could do to enhance the court's standing with the public." We agree.
Because that's what the will says
More than 100 years have passed since Mrs. Bishop's death, and if she were here today, she unquestionably would decide some things differently. For example, the princess named five men, who happened to be haole, as the initial trustees of her trust. Does that mean she wanted all future trustees to be of that same make up? Of course not.
In fact, the justices and trustees have themselves occasionally ignored the language of the will -- perhaps with good cause. For example, the will says the schools should be primarily vocational, and only secondarily college preparatory. That's changed. The will also specifically expresses a desire that the schools benefit orphans and others in indigent circumstances, and makes no mention of admissions based on academic ability. Again, the will's instructions have been modified to deal with the demands of the time.
The will specifically provides that the trustees must be "persons of the Protestant religion," and no court case has said that such a requirement is invalid. Yet the current justices of Hawaii's Supreme Court, acting as individuals and not as a court, have indicated that they will ignore the will in this respect when selecting new trustees.
Taking refuge in the literal words of the will is more of an excuse than a reason.
Judicial Selection Commission
To understand why each member of the court would insist upon doing something that we consider unethical, it helps to consider the circumstances of their own selection.
The Judicial Selection Commission is an attempt to take politics out of the selection of judges and justices. A "reform" idea out of the 1978 Constitutional Convention, the commission is a bipartisan group that reviews potential applicants and submits a list to the governor for selection. Previously, the governor alone nominated judges.
One of the most powerful duties of the commission is to decide -- by itself -- whether any judge, or justice, will be retained for another term of 10 years.
We believe that most of the people who served on the commission over the years have been public spirited, well intentioned and capable. But no process, no matter how well designed, will work properly when individuals are determined to manipulate it. For instance, we believe that during the period John Waihee was governor it was common for him to confer ahead of time with several commission members who then would strive to get a predetermined name on each list.
In the words of someone who served on the commission during those years, "If a few members decided ahead of time to do their best to get a particular name on a list, they probably were able to do that. No one is so naive as to think there isn't a certain amount of horse trading going on."
According to a prominent Democratic politician, "The commission always seemed to have at least a few people whose first and foremost allegiance was to Governor Waihee. With people like Warren Price, Tom Enomoto, Michael Hare and Gerry Jervis on the commission, it was easy to get one particular name on a list. The thing, though, is that it already had been determined who was going to get the appointment."
This was the era when the commission put 36-year-old Sharon Himeno on a list for the Supreme Court, from which she was selected by Governor Waihee. It bothered some people that Himeno was Attorney General Warren Price's wife and that she wasn't considered an exceptional lawyer.
But the bigger concern for many was an allegation of a serious ethical lapse in connection with a family corporation's apparent $3 million profit on a back-to-back purchase/sale of a mainland golf course involving Himeno's client, the state Employees' Retirement System. Her nomination to the state's highest court seemed to be based on the fact that she and Price had directed their good friend John Waihee's gubernatorial campaign.
When Judge Walter Heen was interviewed as an applicant for the Hawaii Supreme Court, he was asked by Hare "what kind of person" he might select as Bishop Estate trustee, if he ever had the opportunity to do so. According to David Fairbanks, a current member of the commission, such a question, if asked, would have been "totally improper."
That this question was asked of a candidate for the Supreme Court, by a member of the Judicial Selection Commission, illustrates how the trustee-selection power of justices played a significant role (with respect to some members of the commission) in the consideration of candidates for the state's highest court.
Hare's law firm has been paid more than $10 million in legal fees by the Bishop Estate since 1992. It's an excellent firm, but we find it hard to believe that's the reason it was selected by the trustees.
http://starbulletin.com/specials/bishop/story2.html
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October 20, 1997
‘Most people would
run for cover’ from...
Bishop Estate’s
legal army
The estate employs a host
of well-connected, top attorneys
By Rick Daysog, Star-Bulletin
When it comes to its legal armament, few can match the arsenal that Kamehameha Schools/Bishop Estate can bring to the courtroom.
The $10 billion charitable trust -- the state's largest private landowner -- employs an army of well-connected attorneys that includes a former governor, two former state attorneys general and the former chairman of Hawaii's Republican Party.
The estate's outside legal team also lists House Judiciary Chairman Terrance Tom and Bill McCorriston, a former assistant U.S. attorney who has represented former Mayor Frank Fasi and was on the city Charter Commission.
"With this kind of legal cannon pointed at you, most people would run for cover," said Beadie Dawson, attorney for Na Pua a Ke Ali'i Pauahi, which has criticized trustees' management of Kamehameha Schools.
"They've (hired) every good litigation attorney in town."
The estate maintains that it hires attorneys for their expertise. Waihee and Tom were hired because they are good attorneys and not because of their political ties, the estate said.
McCorriston, who is representing the estate in Attorney General Margery Bronster's investigation of the trust, added that the trust is like any major corporation that hires lawyers to represent its diverse legal interests.
For instance, for leasehold and litigation matters, the estate relies on Mike Hare and the Cades Schutte Fleming & Wright law firm. The Verner Liipfert firm conducts much of its Washington, D.C., lobbying, while McCorriston's firm, McCorriston Miho Miller Mukai, has done mostly land-use work, McCorriston said.
Bishop Estate trustee Gerard Jervis considered joining the McCorriston Miho firm several months ago as an outside counsel. But Jervis said he decided against the move because of his heavy workload with the estate.
Jervis denied any conflict since he didn't join the firm.
Jon Miho, one of the firm's founders and a friend of Jervis', added that if Jervis had joined McCorriston Miho, it would have made it more difficult for the firm to do work for the estate.
Jervis also shares close political ties with Washington, D.C.-based Verner Liipfert through its local partner Waihee. Jervis served on the Judicial Selection Commission during the Waihee years.
Verner Liipfert -- whose mainland offices lists former U.S Treasury Secretary Lloyd Bentsen, former Republican presidential candidate Robert Dole and former