U.S. Dept of Justice, David C. Farmer, Trustee vs. Harmon

(Formerly Mary Lou Woo vs. Harmon and James Nicholson vs. Harmon)

CV05-00030 DAE/KSC

United States District Court, District of Hawaii

Judges: David A. Ezra; Kevin S. Chang

—

HEARING ON MOTIONS FOR ABATEMENT, DAMAGES, ETC.

DATE: Non Hearing, per Theresa Lam, 2-12-7

JUDGE: David A. Ezra, per Theresa Lam, 2-12-7

—

DEFENDANT’S WITNESS

JAMES B. NICHOLSON

Office of the U.S. Trustee
c/o Steven Guttman, Esq., Kessner Duca Umebayashi Bain & Matsunaga
220 South King St., Floor 10
Honolulu, HI 96813

James B. Nicholson was appointed by the Office of U.S. Trustee as successor trustee in this case, which has been objected to by Defendant due to conflicts of interests and the appearance of bias.

From the Hawaii Labor Relations Board Annual Report 2007-2008:

Board Members

The Board is composed of three members, one of whom is representative of management, one who is representative of labor and the third member, the Chair, who represents the public. Each member is appointed by the governor and confirmed by the Senate for six-year terms. Because cumulative experience and continuity in office are essential to the proper administration of HRS Chapter 89, the two-term appointment limit in HRS § 26-34 is not applicable, and members can continue in office as long as efficiency is demonstrated. The Board is composed of the following:

JAMES B. NICHOLSON, Chair, appointed July 1, 2007; annual salary $90,285. Mr. Nicholson graduated from Saint Louis School in Honolulu, Hawaii and received his Bachelor of Arts from Michigan State University. He received his Juris Doctorate degree from the William S. Richardson School of Law and was admitted to the Hawaii State Bar in 1986. During his professional career he was a Union representative for the Kansas City Chiefs; Management negotiator for the Hawaii Employers Council; Production Manager for Weyerhaeuser Paper Company, represented the Teamsters Local 996 and State Organization of Police Officers in grievance arbitration cases, represented Hawaiian Electric Company in grievance arbitration cases and served as an arbitrator in public and private labor disputes....

Hawaii Labor Relations Board Annual Report 2007-2008

* * * * *

KARL ROVE & THORNS IN THE ROSE GARDEN

* * * * *

GOOGLING FOR JAMES B. NICHOLSON, ESQ.

* * * * *

GOOGLING FOR THE INDONESIAN CONNECTION

* * * * *

NEW DISCOVERY (06/27/09): James Nicholson’s undisclosed conflicts of interest with Barron Hilton, the Kansas City Chiefs, David Farmer, Ron Rewald, John Waihee, William S. Richardson, University of Hawaii, Hawaiian Electric Company, Constance Lau, Teamsters Local 996, Tony Rutledge, Francis Keala, Linda Lingle, Bob Awana, Eric Seitz, and other persons and entities related to this case:

Hawaii Labor Relations Board Annual Report 2007-2008

http://www.hecouncil.org/AboutHEC2/BOG

http://the.honoluluadvertiser.com/article/2004/Dec/26/ln/ln05p.html

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NEW DISCOVERY (03/30/09): Undisclosed conflicts of interest between Attorney General Alberto Gonzales, the United States Department of Justice, Office of the U.S. Trustee, Curtis Ching, Carol Muranaka, Guido Giacometti, Susan Tius, Sukamto Sia, Bank of Honolulu, Diane Plotts, Bob Awana, Linda Lingle, Citigroup, Robert Rubin, Bill Clinton, John Waihee, Ben Cayetano, Goldman Sachs, Colbert Matsumoto, Henry Peters, Matsuo Takabuki, Richard Wong, Jeff Stone, Oswald Stender, Gerard Jervis, Lokelani Lindsey, Nathan Aipa, Colleen Wong, Louanne Kam, John Candon, Clifford Laughton, Timothy Johns, Bishop Museum, Nainoa Thompson, Mark Polivka, Judge Eden Elizabeth Hifo (fka Bambi Weil), Judge Lloyd King, Judge Robert Faris, Judge David A. Ezra, Judge Barry Kurren, Mary Lou Woo, James B. Nicholson, David C. Farmer, Steven Guttman, etc.:

August 24, 2000

Executive Centre
units auctioned
for $4 mil

Ownership of the properties
could change during
another round of bids

By Peter Wagner, Star-Bulletin

A Nevada investor has outbid Citibank on 32 residential and two commercial units at Executive Centre, the downtown high rise that once belonged to Indonesian investor Sukamto Sia.

But with court confirmation and another round of bids possibly ahead, ownership of the property is yet to be determined.

Clifford Laughton, president of the Reno-based Nevada Holdings Ltd. and chief executive at Honolulu-based satellite company Columbia Communications Corp., yesterday made the winning bid of $4,000,100.

Laughton's bid topped a $4 million offer by Citibank N.A., the only other bidder at a foreclosure auction at the state courthouse yesterday.

The leasehold properties include 31 residential units, a penthouse, two commercial spaces occupied by Sprint Hawaii and Fujikami Florist and 65 parking stalls.

The heavily mortgaged 41-story building, at 1088 Bishop Street also includes a 120-room Aston hotel, retail outlets including Long's Drugs and Ross Dress For Less and nearly 300 residential units.

The entire property was appraised last year at $39.5 million.

Citibank, the major creditor in a foreclosure action against one of Sia's company's, MKS Executive Partners, took possession last month of most of the 41-story building in a complex bankruptcy deal in which Sia's estate will receive about $500,000.

Citibank affiliate EXCT L.P. took ownership of about 400 units on July 28.

Sia, currently in Chapter 7 bankruptcy liquidation, originally filed for Chapter 11 bankruptcy reorganization in November 1998.

While Citibank yesterday allowed itself to be outbid by $100, the sale is far from over. Under rules of the foreclosure, new bids may be entertained at confirmation but must be at least 5 percent above the auction price.

Foreclosure commissioner John Candon said at least three parties who were silent during yesterday's auction have asked when the confirmation hearing would be. No date has been set.

Laughton yesterday said he would likely honor existing leases at Executive Centre if he remains the high bidder. He said the units are a good investment because of depressed property values and a strong rental market in the downtown area.

While Executive Centre was once a key holding of Sia in Honolulu, the bankruptcy trustee was unable to liquidate the property for creditors because Sia held no equity in it.

His ownership in the building was through MKS Executive Partners, one of his numerous companies.

The 40-year-old businessman owes nearly $300 million to casinos, banks and creditors around the world.

www.archives.starbulletin.com/2000/08/24/business/story1.html

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NEW DISCOVERY (12-22-08): James B. Nicholson apparently has undisclosed business and professional relationships with William S. Richardson, a former Kamehameha Schools Trustee and officer for P&C Insurance Company and a defendant in my RICO lawsuit; and my witnesses Judge Patrick Yim, Tony Rutledge, Bob Awana, Ron Rewald, June Jones, Larry Mehau, and David Farmer, among others (see also http://www.kycbs.net/Doc-EQ2048-AG-Witnesses-5-19-0.pdf and http://www.kycbs.net/Claim-HI-DOL-Brief-11-6-98.htm ).

September 11, 2007

Former star athlete head
of Hawaii labor board

By Curtis Lum, Advertiser Staff Writer

JAMES B. NICHOLSON

Age: 58

Title: Chairman

Organization: Hawai'i Labor Relations Board

Born: Honolulu

High School: Saint Louis, 1968

College: Michigan State; William S. Richardson School of Law

Breakthrough job: Hawai'i Employers Council

Little-known fact: Not a natural blond. Has held the state basketball single-game scoring record (60 points) and scoring average (26.8) since 1966

Mentors: Al Fraga, Larry Cundiff, Judge Patrick Yim

Major challenge: Promoting cooperation between labor and management pursuant to the spirit and intent of HRS Chapter 89 in a forum that has been traditionally adversarial.

Q. How did you wind up as chairman of the Hawai'i Labor Relations Board?

A. My background had been as a union rep with the Kansas City Chiefs years ago when I was playing ball. I went to law school and took classes in labor, got out of law school and worked with the Hawai'i Employers Council as a management negotiator with Al Fraga. I moved from there to become a production manager at Weyerhaeuser Paper Co., and from there I worked for the joint labor management trust fund with the Carpenter's Union. I went on to private practice from there and represented the Teamsters in arbitration and became an arbitrator. This job requires all of that in order to fully understand the relationships between the parties and the collective bargaining process, the grievance process, what unfair labor practice is and what it isn't, and basically trying to promote labor-management cooperation.

Q. Your background seems to be more on the union side. Do people look at that and feel that you may be biased?

A. It seems like it's more union, and management's perception in a lot of cases is once you work for the union you're always union. The majority of us are born in blue-collar families. My dad was an adult corrections officer, my mom was a housekeeper in a hotel. I think all our roots are in labor. One of the reasons I was selected was I have been an arbitrator for over 10 years and you're only selected by mutual agreement between the parties. During this process with the HLRB you have three appointees. One represents labor, one represents management and the chair represents members of the public. That's the position I'm at. I feel that with my background that I've been groomed for this position.

Q. What's your approach to this job?

A. The board's mission is to promote harmonious and cooperative relationships between the employers, employees and employee organizations. The whole system is set up traditionally to be adversarial. We're working on changing the administrative rules for our organization to permit us to have more flexibility and give them opportunities to settle disputes on their own, create a vehicle so that if they so chose that they could go to mediation through the board at no expense to them using the federal mediators. We're able to work with the parties to do some of this right now. But it's not the way it's been done. I want to try and slow it down to give the parties some time to catch their breath, sit down and talk about it before the attorneys get into a battle. We've been successful in a couple of cases so far.

Q. Was it an adjustment to go from the private sector to the public sector?

A. It's sort of yes and no. It's a huge employer, but because we're quasi judicial, even though we fall under the Department of Labor, we're only under it for administrative and budgetary purposes. We don't answer to anyone so it's sort of like running your own business again. In that way it's not different, but at the same time you're a public employee and you have to abide by whatever rules that you're required to abide by. For myself, you're devoted full time to this position, which means you can't do any other work besides what you're doing here. I wanted this opportunity for quite some time and when it came up, this is what I wanted to do. It's another challenge and something to put some fire back into me again.

Q. Why did you want to pursue the job?

A. I've been in labor for a long time and I've seen what's happened. As an arbitrator, I've watched the parties and there are so many times that I felt that if only people would just sit down and have a meaningful discussion and try to work things out and try to find ways of resolving issues without having arbitrators decide things for them, I think the system would be better served. One of the things that we're responsible for here, and one of the things that I'm working on first, is to find qualified individuals to serve as arbitrators. So many of the arbitrators who are on the list now have no experience in collective bargaining negotiations, have never worked for unions, have no human resource background, and those are the kind of people that you need. You don't have to be an attorney to be an arbitrator. That's where I gained a lot of experience at the Hawai'i Employers Council where I did 30 to 40 negotiations on my own and sat in on a bunch more.

Q. Since you started, has there been anything that surprised you?

A. One of the things that I was surprised with was that, in reviewing annual reports and information concerning board activities in preparation for my interviews, in order to try and get this job, I found that over 40 percent of the board's decisions were overturned. That's bad. That's just not paying attention. You have to look at the courts. You can't just make decisions. You can't make decisions based on emotions. The perception of the public was that the board wasn't being fair. Something needed to be fixed. We have a really good board. Emory Springer is a former police officer on the Big Island. He was the Big Island SHOPO representative. He's just a breath of fresh air and he's all gung-ho to try to resolve disputes, bring the parties together and try to work things out. And I'm the same way. And then there's Sarah Hirakami who is just brilliant. We come up with ideas and she looks up the law and tells us whether we can do it or not or finds cases in support of our positions. We have a real nice balance.

Q. Are some cases more difficult than others to deal with?

A. The cases that I have problems with are cases that have been sitting around here without decisions being issued for over 10 years. Those are difficult. None of the board members was there at the time of the hearing and motions and whatever else happened. Now, if we were to rule in favor of the employers, in a lot of the cases there's a substantial amount of back pay and other issues that are involved that make it a real big mess. You want to be fair. What we're supposed to do is return it to the status quo, but how do you do that 10 years later?

Q. Do you see yourself fulfilling your six-year term?

A. Definitely. I like this place. The opportunity for me to make an impact on the state so far as labor relations is tremendous.

Q. When you leave the board, what do you hope to have accomplished?

A. I'd like to see management and labor walking down King Street holding hands, but that's not going to happen. But to reduce the number of cases that have to go to arbitration; to encourage the parties to include in their collective bargaining agreements provisions for mediation; to reduce the number of unfair labor practices that are filed with the board. At the same time, that number may increase because of the effectiveness of the board as a place to go to resolve problems. So it sort of cuts both ways. You may have more unfair labor practices because whenever there is a problem they may want to say, "Let's go over there and take care of it. That way at least we'll get to talk." That's what I'm hoping.

And (another goal) is to educate people about relationships and trust and get the state and counties to rely upon the people that they hire to advise them on labor relation issues and union issues. Often times that doesn't happen. And encourage them to foster relationships with one another that are meaningful.

The Honolulu Advertiser

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June 26, 2008

VIA Certified Mail,
Fax: 808-529-7177 &
E-mail: sguttman@kdubm.com

David C. Farmer, Esq.
Office of the United States Trustee
c/o Steven Guttman, Esq., Kessner Duca Umebayashi, et al.
220 S. King Street, Floor 10
Honolulu, HI 96813

Re: Notice of Professional Liability Claims Against:
David C. Farmer, James B. Nicholson and Steven Guttman

Dear Mr. Farmer and Mr. Guttman:

As I have not received a response from you, or from your professional liability insurance carriers, this is a follow-up to my letter dated February 26, 2008, in which I stated:

“This is a new Notice of Professional Liability Claims against Trustees David C. Farmer and James B. Nicholson and their attorney, Steven Guttman, Esq., of the law firm of Kessner Duca Umebayashi Bain & Matsunaga, for racketeering, insurance claims fraud, wire fraud, mail fraud, tax fraud, conspiracy to commit fraud, obstruction of justice, destruction of evidence, bad faith, violation of anti-SLAPP statutes, violation of First Amendment Rights, errors, omissions and other wrongful acts, in connection with Chapter 7 Case No. 99-04339 FJR, and CV05-00030 - David C. Farmer vs. Bobby N. Harmon.

“You will find additional information regarding this Notice of Professional Liability Claim at the following web sites:

http://www.kycbs.net

http://www.kycbs.net/Confessions.htm

http://www.kycbs.net/Whistler.htm

http://www.kycbs.net/Freedom-To-Sing.htm

http://www.kycbs.net/SLAPP.htm

http://www.kycbs.net/RICO-BH.htm

http://www.kycbs.net/CV05-00030-OUST-vs-Harmon.htm

http://www.kycbs.net/Claims-Branch-Commissioners.htm

http://www.kycbs.net/Claims-Branch-Kessner-Duca.htm

http://www.kycbs.net/CV05-00030-Witness-Farmer-David.htm

http://www.kycbs.net/CV05-00030-Witness-Nicholson-James.htm

http://www.kycbs.net/CV05-00030-Witness-Guttman-Steven.htm

http://www.kycbs.net/CV05-00030-Witness-Index.htm

http://www.kycbs.net/CV05-00030-Exhibits.htm

“I would also point out that Hawaii has a Mandatory Reporting requirement for suspected claims fraud, and immunity provisions which grant individuals immunity from prosecution relative to good faith reporting of suspected insurance fraud information. Also, please be advised that I have submitted a fraud report on February 26, 2008, to the National Association of Insurance Commissioners (NAIC Fraud ID: 9019048316) with an estimated amount of loss of $1,000,000.

“I respectfully ask that you have your Professional Liability insurance carrier(s), which you have repeatedly refused to identify, contact me immediately for further information.”

Therefore, I, again, respectfully request an immediate, good-faith response to this valid Notice of Claim, from either you or your insurance carrier(s) .

Very truly yours,

Bobby N. Harmon, CPCU, ARM

cc: Mark Bennett, Hawaii Attorney General
VIA Fax: (808) 586-1239 & Email: hawaiiag@hawaii.gov

Hugh Jones, Deputy Attorney General
Email: hugh.r.jones@hawaii.gov

Lawrence Reifurth, Director, Department of Commerce & Consumer Affairs
VIA Fax: (808) 586-2670

J.P. Schmidt, Hawaii Insurance Commissioner
VIA Fax: (808) 586-2806

James Cribley, Esq., President, P&C Insurance Co.
VIA Fax (808) 523-1888 & Email: jcribley@caselombardi.com

Matt Tsukazaki, Esq., Torkildson Katz Fonseca Moore & Hetherington
VIA facsimile @ (808) 523-6001, and Email: mat@torkildson.com

Rocco Sansone, V.P., Marsh & McLennan, Hawaii
VIA Fax (808) 585-3510

Warren Price, III, Esq., Price Okamoto Himeno & Lum
VIA Fax: 808-533-0549

Judge Robert J. Faris, c/o Michael B. Dowling, Clerk
VIA Fax: (808) 522-8120

Judges David A. Ezra, Kevin S.C. Chang, and Barry M. Kurren
c/o Sue Beitia, VIA Fax: (808) 541-1303

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NEW DISCOVERY (05-22-08):

May 22, 2008

House subpoenas Karl Rove

By LARA JAKES JORDAN, Associated Press

WASHINGTON - The House Judiciary Committee on Thursday subpoenaed former White House top political adviser Karl Rove to testify about whether the White House improperly meddled with the Justice Department.

Accusations of politics influencing decisions at the department led to last year's resignation of former Attorney General Alberto Gonzales.

The subpoena issued Thursday orders Rove to testify before the House panel on July 10. He is expected to face questions about the White House's role in firing nine U.S. attorneys in 2006 and the prosecution of former Gov. Don Siegelman of Alabama, a Democrat.

House Judiciary Chairman John Conyers had negotiated with Rove's attorneys for more than a year over whether the former top aide to President Bush would testify voluntarily.

"It is unfortunate that Mr. Rove has failed to cooperate with our requests," Conyers, D-Mich., said in a statement. "Although he does not seem the least bit hesitant to discuss these very issues weekly on cable television and in the print news media, Mr. Rove and his attorney have apparently concluded that a public hearing room would not be appropriate."

"Unfortunately, I have no choice today but to compel his testimony on these very important matters," Conyers said.

Neither Rove nor his attorney, Robert Luskin, could be immediately reached for comment.

http://news.yahoo.com/s/ap/20080522/ap_on_go_co/rove_subpoena

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NEW DISCOVERY (04-11-08): Trustee James B. Nicholson failed to disclose that he was the court-appointed bankruptcy trustee for Defendant’s witness, Peter Savio, even though he was asked specifically if he had any business, professional, personal or political relationships with Mr. Savio:

August, 2003

Hawaii’s Top 250 Companies:

New To The List: Whoa, Savio!

Hawaiian Island Homes' debut is marked by acrimony

By Kelli Abe Trifonovitch, Hawaii Business Magazine

Any interview that focuses on Peter Savio's new company, Hawaiian Island Homes Ltd., will soon focus on another Top 250 company, Central Pacific Bank. Says Savio: "They're malicious. They're vicious. I am going to become a stockholder in Central Pacific Bank. I am going to reform that institution. Their mistake was they stomped me. They didn't kill me. I'm coming back. I'm going to have fun with them."

Go back to the year 2001. Savio Inc., a holding company for eight real estate sales and development companies, was No. 56 on the Top 250, with $134.6 million in 2000 gross sales. But in 2001, Savio Inc. filed for Chapter 7 liquidation, and Peter Savio and his wife filed for personal bankruptcy protection. Savio says he was forced into the bankruptcies because CPB gave him just five days to move from his second-floor offices at 931 University Ave. Savio says he had been in a workout plan with a number of lenders after he started experiencing cash-flow problems in the mid-1990s. But CPB forced his hand.

"The only way to stop them was, I had to file for personal bankruptcy. So to save my employees and everything else, I filed for personal bankruptcy - one of the most difficult decisions I've ever had to make. But I was really pissed at Central Pacific Bank for doing that," he says.

"It was tough," he adds. "Basically I lost everything. Lost my house. Lost everything. Had to basically come back from nothing."

Today, Savio is more than back. His real estate company, Hawaiian Island Homes Ltd., lists 2002 gross sales of $177 million. Its office is downstairs in the same building that Savio Inc.'s once was. And the company is No. 27, ahead of CPB Inc. (No. 49), something Savio will rejoice to read. Savio says, "I've decided that my goal is to beat them in the Top 250. … just so we can say, 'Nannynannybooboo!'"

That's not all. "My short-term and my long-term goal is to reform Central Pacific Bank," Savio says. "I think I'm going to buy the bank."

Ann Takiguchi, Central Pacific Financial's communications officer, says, "We made every effort to work with Mr. Savio, and it is unfortunate that he is blaming us for his situation. Out of respect for our customers' privacy, we have no further comment. As a matter of bank policy, we don't comment on the affairs of our customers."

Bankruptcy court filings show that Central Pacific Bank claimed that Savio Inc. owed it about $1.5 million when Savio filed for bankruptcy in 2001. The Internal Revenue Service and Pitney Bowes Credit Corp. also listed claims of about $2,000 each.

The court-appointed trustee for Savio Inc.'s bankruptcy case, attorney Jim Nicholson, says the only unencumbered asset of the estate, a unit in the Diamond Head Beach apartment building, was sold for $375,000 in June 2003.

Gross sales for Savio's other new company, Hawaiian Island Development, were not reported for this year's Top 250, so one thing is for sure: Next year, he'll be back. Says Savio: "We're going to set up a new holding company called, 'I Hate CPB.' No, my attorney said I couldn't do that. I have a warped sense of humor, OK? But anyway, the new holding company is going to be Ohia Holdings."

Knowing Savio, there is marked symbolism in that choice. After all, the Ohia tree can be found growing in the middle of old lava flows.

Hawaii Business, August, 2003

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NEW DISCOVERY (02-09-08): Kamehameha Schools made a “confidential” settlement agreement with the plaintiff in the John Doe vs. Kamehameha Schools case, which my former attorney, John Goemans, Esq., says, according to what he has learned from the IRS, violates the rules for a non-profit charitable trust:

February 9, 2008

$7M

An attorney involved in a challenge to Kamehameha Schools' Hawaiians-only policy reveals the amount of a settlement

By Ken Kobayashi, Honolulu Star-Bulletin

Kamehameha Schools made the first move to settle a legal challenge to their admissions policy giving preference to native Hawaiians and later agreed to pay $7 million, a lawyer involved in the case said yesterday.

John Goemans, an attorney for an unnamed non-native Hawaiian student who filed a lawsuit contesting the policy, said the charitable trust offered for the first time to talk about an out-of-court settlement last May, just days before the U.S. Supreme Court was to decide whether to hear the case.

Goemans, a former Big Island attorney recuperating in Florida from heart surgery, and Sacramento, Calif., lawyer Eric Grant, the lead attorney, represented the unnamed student and his mother.

"They (the schools) approached Eric and said we wanted to settle and we have to settle by Friday morning," when it was believed the high court was to make a decision about accepting the case, Goemans said.

He said it appeared the high court would accept their appeal of an 8-7 decision by the 9th U.S. Circuit Court of Appeals that upheld the policy.

"They (the schools) were worried about losing in the Supreme Court," Goemans said.

Goemans said he did not know how Grant and the Kamehameha Schools arrived at the $7 million figure.

The hotly disputed federal civil rights lawsuit caused a firestorm of controversy among Kamehameha Schools supporters who believed the challenge struck at the more than century-old admissions policy and the heart of the charitable trust's mission to educate children of Hawaiian ancestry.

The confidential settlement was announced on May 14. Those connected with the case repeatedly refused to disclose the terms.

Goemans said he was disclosing the amount because he said he recently learned from Internal Revenue Service officials that Kamehameha Schools, a tax-exempt charitable trust, cannot keep the figure confidential.

"Because exempt organizations operate in the public good, you got to report all your expenses with particularity, and you cannot keep information relative to those expenses confidential," he said. "It's in the public interest to have full disclosure."

Ann Botticelli, Kamehameha Schools spokeswoman, said yesterday the settlement contained a confidentiality clause.

"We intend to honor the terms, and we will not be discussing the settlement or John Goemans' assertions," she said.

Grant said yesterday he had no comment.

Kamehameha Schools, a multibillion-dollar charitable trust and the state's largest private landowner, was established under the 1883 will of Princess Bernice Pauahi Bishop. It educates more than 6,700 students at its flagship campus at Kapalama Heights, two other campuses on Maui and the Big Island, and 31 preschools throughout the state.

Senior U.S. District Judge Alan Kay upheld the school's Hawaiians-first policy, but a panel of the appeals court in San Francisco ruled 2-1 that the practice violated federal civil rights laws. That decision triggered statewide protests and marches by school supporters.

Later, a larger appeals court panel voted 8-7 to uphold the policy.

It was an appeal by Grant of that 8-7 ruling that was on the doorsteps of the U.S. Supreme Court when the settlement was announced.

At the time, school officials indicated that the settlement calling for the dismissal of the lawsuit leaves intact the appeals court's 8-7 decision upholding the admissions policy.

But the dismissal does not guarantee that another lawsuit might surface and make its way to the high court, although it would first have to go through the federal trial and appeals courts, where the 8-7 ruling would be considered to be binding on the issue. But even if those who file the new lawsuit lose on those two levels, they could still ask the high court to review the case.

Honolulu attorney David Rosen said he has plaintiffs for a lawsuit to challenge the admissions policy. He said the settlement does not affect his case. Rosen said he expects the suit will be filed this year.

Goemans said Grant received 40 percent, or $2.8 million of the $7 million. Goemans said he is preparing to file his own lawsuit seeking to recover a "reasonable percentage" of the $7 million for his work in the case.

Goemans said he found the unnamed student and arranged for Grant to be the attorney for the student and his mother.

"I put the whole thing together," Goemans said. "But for me there would not have been a $7 million payment."

The student never was admitted to Kamehameha Schools because his case was pending. He has since graduated from high school and had been attending college, Grant said last year.

http://starbulletin.com/2008/02/09/news/story02.html

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February 9, 2008

Amount of settlement
raises critical concern

By Robert Shikina, rshikina@starbulletin.com

Supporters and critics expressed surprise yesterday at the $7 million Kamehameha Schools paid a student to settle a lawsuit disputing its Hawaiians-first admission policy.

One Kamehameha Schools alumnus says disclosure of the settlement with the anonymous, non-Hawaiian student will prompt questions among Hawaiians.

"I'm not happy with $7 million," said Kamehameha Schools alumnus Jan E. Hanohano Dill. "Unfortunately, that's a lot of money, and it's going to create a lot of questions in the Hawaiian community whether it was right or wrong and to continue."

Dill, also a board member of Na Pua a Ke Ali'i Pauahi, a nonprofit group whose members include students, parents, and alumni of Kamehameha Schools, said he continues to support the school's decision.

"I don't know the details, and I think that's something that has to be cleared," he said. "You settle because you want to avoid costs that would be incurred as you go forward."

He added, "I have to believe that they understood that this was something good for the Hawaiian people. ... It will be clear as things unfold whether that was true."

Dill, who is also president of the nonprofit Partners in Development Foundation, said the admissions policy must eventually be addressed and that the settlement avoids this case but does not stop other cases.

Marion Joy, former vice president of Na Pua, called the settlement a "misuse of trust funds."

"The trust is continually going to be challenged," she said. "This is not going to be the last. ... As far as settling for the particular lawsuit, it's not in the best interests of the beneficiaries (of the 1883 will of Princess Bernice Pauahi Bishop)."

Kamehameha Schools declined comment.

Honolulu attorney David Rosen, who has sought potential clients to sue Kamehameha over its admissions policy after the settlement, sent out a statement yesterday that said the $7 million settlement was used to "buy off this case."

He added that the trustees should open a campus on the Leeward Coast of Oahu and possibly Molokai where increased educational opportunities are needed.

H. William Burgess, a retired attorney and founder of Aloha for All, a group opposed to Hawaiian sovereignty, said the settlement raises questions about the proper use of the trust funds.

"Normally, trustees, if they're doubtful about doing something, they ask the court to give them instructions," he said. "Yet in this case, the biggest charitable trust, probably in the nation, instead of welcoming the opportunity to get the highest court in the land to settle it, they pay $7 million to leave it open. And it is very much open."

http://starbulletin.com/2008/02/09/news/story03.html

* * *

From The Catbird Seat website:

The Wise Old Owl asks: How much of the settlement amount came from Kamehameha’s insurance companies, and how much came from the trust funds? How much did Kamehameha Schools (and/or their insurance company) spend for defense costs in this case before they decided to settle? Who is their insurance company? Their insurance broker? Who actually signed the Settlement Agreement?

http://www.kycbs.net/Bishop7.htm

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September 11, 2007

Former star athlete head of Hawaii labor board

By Curtis Lum, Advertiser Staff Writer

Q. How did you wind up as chairman of the Hawai'i Labor Relations Board?

I went on to private practice from there and represented the Teamsters in arbitration and became an arbitrator. This job requires all of that in order to fully understand the relationships between the parties and the collective bargaining process, the grievance process, what unfair labor practice is and what it isn't, and basically trying to promote labor-management cooperation.

Q. Your background seems to be more on the union side. Do people look at that and feel that you may be biased?

Q. What's your approach to this job?

Q. Was it an adjustment to go from the private sector to the public sector?

Q. Why did you want to pursue the job?

Q. Since you started, has there been anything that surprised you?

Q. Are some cases more difficult than others to deal with?

Q. Do you see yourself fulfilling your six-year term?

A. Definitely. I like this place. The opportunity for me to make an impact on the state so far as labor relations is tremendous.

Q. When you leave the board, what do you hope to have accomplished?

Reach Curtis Lum at culum@honoluluadvertiser.com.

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James Nicholson is also bankruptcy trustee in Robin Harry and Yvonne Tavares, Case No. 04-03035, ADV: 1006090036, James B. Nicholson vs Arthur Charles McGuire - the attorney for which is Susan Tius, who was also the attorney for Kamehameha Schools in Defendant’s case, creating a direct conflict of interest.

Mr. Nicholson played college football with Michigan State University, and was a professional football player with the Kansas City Chiefs, 1974-1979, and a teammate of Arnold Morgado.

(Note: Mr. Nicholson was originally believed to be related to James B. Nicholson of Michigan, a “Bush Pioneer,” president and CEO of PVS Chemicals, and a current member and past chairman of the boards of the Wayne County Airport Authority, Detroit Public Television, The McGregor Fund, the Michigan Chapter of the Nature Conservancy and the YMCA of Metropolitan Detroit. However, Mr. Nicholson has stated in a Declaration signed on June 28, 2006, (www.kycbs.net/Nicholson-Dec-6-28-6.pdf ), that he “has no knowledge whatsoever of the alleged Michigan businessman who has the same name as Declarant.”)

Defendant has also discovered that James Nicholson is a friend of Rockne Freitas, who is another witness in EQ2048 and well as CV05-00030. (See Star-Bulletin edition of August 8, 2006: http://starbulletin.com/2006/08/08/sports/simpson.html)

This is yet another instance of failure to disclose a material conflict of interest, and one which leads to another daisy chain of connected parties involved in EQ2048, my RICO lawsuit, CV05-00030, the Arbitration, and the instant case - starting with my witness, Rockne Freitas and extending to former Trustee Mary Lou Woo, deceased, and to the Honorable Judge Robert Faris.

Even newer, Defendant has just discovered that CIA agent, Ron Rewald, had also been signed by the Kansas City Chiefs, and that he was denied his constitutional rights to a fair trial by judges in the Ninth Circuit.

On January 16, 2007, Defendant accidently discovered that James B. Nicholson was the bankruptcy trustee for Halekua Development Corporation, which gives clear evidence that James B. Nicholson has material undisclosed conflicts of interests in this case and should never have been appointed as Successor Trustee. For this evidence, I refer you to the following article :

April 26, 2003

Royal Kunia developer
files for bankruptcy

Horita's Halekua Development Corp.
owes the city $220,335

By Tim Ruel, Honolulu Star-Bulletin

A Herbert Horita company that is developing Royal Kunia on Oahu sought Chapter 11 bankruptcy protection yesterday, owing between $50 million and $100 million in estimated debt.

One of Halekua Development Corp.'s larger creditors is the city, which is owed $220,335.

"This action is needed to buy time for the company," said company spokesman Jim Boersema. Halekua expects to emerge from bankruptcy within 120 days, clear off its debt and move forward with the development of Royal Kunia II, a 2,000-home subdivision in Waipahu, Boersema said. He declined to provide further details.

Halekua's assets are worth less than $50,000, according to the bankruptcy filing.

According to the bankruptcy petition, Halekua's five biggest unsecured creditors are:

>> Ayers Corp., owed $1.4 million.

>> Park Engineering, $702,082.

>> Larry Mehau's Hawaii Protective Association, $415,126.

>> AFW, $350,000.

>> Stubenberg & Durrett, attorneys, $276,515.

Other creditors are a unit of the Harry & Jeanette Weinberg Foundation, the now-defunct Oahu Construction Co. and former City Councilman Jon Yoshimura.

Another Horita company, Royal Kunia Apartments Inc., declared bankruptcy in 1999 and sold off three townhome projects on 27 acres for $30 million.

Horita was the original developer of the Ko Olina Resort and Marina in Leeward Oahu, envisioning a string of hotels, condominiums and golf courses, but plans fizzled when Japanese backers withdrew funding in the late 1980s.

Halekua owes a total of $5 million to its 20 largest unsecured creditors.

Steven Guttman, Halekua's bankruptcy attorney, could not be reached for comment yesterday.

Because of Halekua's bankruptcy filing, the state Land Use Commission postponed a hearing in which Halekua was to argue why it should be allowed to keep 503 acres of undeveloped former agriculture land in Waikele classified as urban district.

As a condition of the rezoning, Halekua was to have developed infrastructure for an agricultural park and conveyed that park to the state by December of 1999. Since the developer had failed to comply with that requirement, the state Office of Planning had petitioned to have the land revert to an agriculture classification.

www.kycbs.net/Royal-Kunia.htm

(In connection with Halekua, also see Witnesses James Duffy, Judge Robert Faris, Jeff Stone, Henry Peters, Kevin Showe, Richard Wong, etc. Also, see “The Grand (and dirty) Ko Olina“ and Dirty Money, Dirty Politics and Bishop Estate - Part V” Exhibits.)