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
HENRY H. PETERS
c/o Kenneth Hipp, Esq., Marr Hipp Jones & Wang
1001 Bishop Street, Ste 1550
Honolulu, HI 96813
Henry H. Peters is a former Kamehameha Schools/Bishop Estate Trustee; Chairman of the Board, P&C Insurance Company; Defendant in EQ2048; Real Party in Interest in CV05-00030 - Mary Lou Woo, Trustee vs Harmon; Office of the United States Trustee vs. Harmon, James Nicholson, Trustee vs. Harmon and David C. Farmer, Trustee vs. Harmon.
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From Harmon’s RICO Lawsuit:
From Equity No. 2048, Petition of the Attorney General on Behalf of the Trust Beneficiaries to Remove and Surcharge Trustees:
“The Trustees have been unfaithful to the Will and the purpose of the Trust. They have failed to comply with clear directives of the Will. They have subordinated the sole purpose of the Trust to their personal gain. They have squandered Trust assets intended for education by their excessive compensation, and by imprudent and improper Trust management and investments. They have violated Hawaii statutes and court orders. They have engendered hostility between themselves and the Beneficiaries whose interests the Trustees were appointed to serve.
. . . Peters became lead trustee for asset management in 1993 and assumed responsibility for Trust investments and for due diligence on prospective investments.
Peters as lead trustee purposely withheld information on existing and potential investments from his co-Trustees, dismantled the Trust’s internal audit function, instructed staff employees to withhold information from the co-Trustees, and used his position to approve Trust payment of improper non-Trust expenditures.
. . . As to Peters, the effect of these violations has been that Trust assets have been mismanaged and misspent to the detriment of the Trust purpose.
. . . Trustees Peters, Wong, and Lindsey have violated their duty of loyalty to the Beneficiaries by using their positions as Trustees and by using Trust assets and opportunities to benefit themselves and their relatives and friends.
. . . In 1992, the Trust invested approximately $31 million in Mid Ocean, Ltd. (Mid Ocean), a Bermuda-based insurance company, and acquired 310,000 Mid Ocean Class A shares.
In 1993, when Matsuo Takabuki retired as a Trustee of the Trust, Peters succeeded to Takabuki’s seat as a director of Mid Ocean.
Peters served as a Mid Ocean director until early 1998.
Peters’ service as a Mid Ocean director fell within his duties as Trustee and was a Trust opportunity.
Peters used Trust personnel to prepare him for Mid Ocean directors’ meetings.
While a director of Mid Ocean, Peters received substantial director’s fees and received options to acquire 6,000 shares of Mid Ocean stock.
The Mid Ocean fees and stock options are assets that belong to the Trust and not to Peters individually.
Peters has enriched himself at the expense of the Beneficiaries by retaining the fees and stock options for his personal benefit.
(Note: Marsh & McLennan, and its subsidiary, Guy Carpenter, were major players in the creation and management of Mid-Ocean.)
. . . During his 1986, 1988, 1990, and 1992 political campaigns while a Trustee, Peters used Trust employees to photograph his and his supporters for his campaign materials, in violation of Trust restrictions on political activity by the Trust and its employees.
. . . The Trust presently qualifies as a charitable non-profit entity under the Internal Revenue Code and thus is exempt from federal, state, and local income and other taxes.
Maintaining the tax exempt status is critical to the Trust and its ability to serve its intended purpose.
The Trustees’ duty to protect the interests of the Beneficiaries includes zealously protecting the Trust’s tax-exempt status.
By taking excessive compensation and by using Trust assets for private inurement, the Trustees have imperiled the Trust’s tax-exempt status and hence the full effectuation of the Trust’s purpose.”
Beginning around March 1996, Harmon began questioning what appeared to be excessive premium charges being made by M&M for KSBE’s property insurance, and for the fees M&M was billing to P&C. He again raised the issue of his job transfer from KSBE to P&C.
For the next several months, Plaintiff was subjected to threats, intimidation and various abuses from Aipa and Kam for questioning the excessive fees of M&M and his transfer to P&C. In a meeting in early 1996, with Aipa and Sansone, Harmon asked Aipa about the status of his transfer. Aipa’s response was that it wasn’t going to happen because “arms-length was no longer an issue,” (referring to previous legal opinions from Price Waterhouse that the IRS might revoke the Trust’s tax-exempt status if it did not maintain arms-length from its taxable subsidiaries).
On October 11, 1996, Harmon was called into a meeting with Peters and Aipa. At this meeting, Peters instructed Harmon that he was to report to Aipa on all matters relating to P&C. Peters also stated that he would hold Aipa responsible for all matters relating to P&C. He also informed Harmon that he could be replaced as President of P&C if he failed to follow Aipa’s directives.
On November 20, 1996, Peters made good with his threat and terminated Harmon’s appointment as President of P&C. No explanation was given for the termination.
Harmon was also terminated by Aipa from his position as Risk/Insurance & Safety Manager for KSBE, allegedly due to “differences in philosphy”.
Plaintiff Harmon alleges that a major reason for his terminations was his refusal to follow the directives of Henry Peters, Nathan Aipa and Louanne Kam for to pay M&M substantial fees for work that was not under contract and which was not justified.
These “sweetheart deals” with M&M, and the threats to Harmon that he could be terminated for failing to follow the directives of Peters, Aipa and Kam to “go along” with these improper deals, constitute conspiracy to defraud the beneficiaries of the Estate of Bernice Pauahi Bishop; racketeering; mail fraud; wire fraud; extortion; breach of fiduciary duties; and violations of the Interim Sanctions provisions of the IRS Code, as detailed in Plaintiff’s complaint.
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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
of
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
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
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NEW DISCOVERY (07-08-08): E-mail regarding witness Judge Susan Oki Mollway:
Check out James B. Nicholson, Trustee vs. Harmon - Witness Judge Susan Oki Mollway
Tuesday, July 8, 2008 4:43 PM
From: Mutant Ninja Cats
Re:
James B. Nicholson, Trustee vs. Harmon - Witness Judge Susan Oki Mollway
FYI: Susan Oki, Echi Oki, Dan Mollway, Airline Industry, SEC, and the Broken Trust Asian Pacific Bamboo Legacy in collusion with AIPAC Political influence in the powerful influential Defense Appropriation Committee members {Ted Stevens and Duke Cunnigham} under Hawaii U.S. Senator Daniel Inouye's leadership...... and the stealth Political, Economic, and Socialized intents for the pending AKAKA BILL in Congress, documented, again, under "A Confederacy of Dunces" {Forbes}.
Hey CB....this one is the ultimate "insiders" in Hawaii regulatory Government for the Broken Trust cabals linked to the Hawaii Legislature members including their own Federal Reps in Washington protecting their Hawaiian Hui "inside" investors from Southeast Asia to Wall Street:
I talked with the State Ethic's Commissioner / Director, Dan Mollway....Ms. Susan Oki's husband... about the BIG conflicts of interests involving our case against the State DLNR, The Ombudsman Office Director, The DCCA Rico "Investigations" with huge Political cover-ups involving the ANZAI's and the Hawaii Judicial system protecting their own regulatory local hui investors linked to the Bishop Estate Trustees.
Dan Mollway was involved with the "separate" Investigations involving the DLNR Bureau of Conveyance Public land records being ILLEGALLY manipulated and tampered for "Controlled Business" practices by the private sector {Title Guarantee Company employees with Realtors linked to Hoiku Consultant private computers being placed strategically in Public Office Government Buildings linked to the Hawaii Legislature members and the KSBE investments under Headmaster Colbert Matsumoto}.
He claimed that the State Ethics Department was still in the process of their own "separate" investigations {with vague public follow-ups since last year} while the State of Hawaii Attorney General's office conducted their own internal "investigations" in conjunction with a Third Investigations by the Hawaii Legislature members with their Union supported employees!
This again, is the same as a California PYRO MANIAC investigating his own blazing Wild Fire, while creating numerous distracted small fires around the BIG MAIN BON-FIRE, to attention away from his malicious and well calculated deeds!
The gas can {State of Hawaii DLNR Public Forgery Document Executive Order 3117 with a false Public misleading Official GAO Survey Map} with the match {The original suppressed DLNR Legal Access documents} and the remaining evidence with charred ruins {The Hawaiian Airline Pilot's family Bankruptcy proceedings implicating the KSBE and U.S. Trustees mishandling and suppressing the FRAUD} is all their for the "Investigators" conducted by the same Hawaii Buzzards and Vultures linked to the BROKEN TRUST Hawaii Legislature members, again, conducting their own Public Relation separate "investigations" for their Union memberships obtaining bribery gifts and favors {Oriental customs?}; The Hawaii State Ethics Director, linked to the Bamboo network Hawaii Judiciary system Huis with their own separate Public Relation damage control "investigations" to nowhere under the Hawaii AG's Office....promoting a Sovereign Hawaiian Bill, based on Illegal Political Constructive Fraud in Washington {1993 Simple Federal Apology Resolution to Hawaii by Senators Daniel Inouye and Akaka} while ignoring blatant Public Fraud and Political Corruption with OBSTRUCTION OF JUSTICE with HUGE CONFLICTS OF INTERESTS for: "SOCIAL EQUALITY AND POLITICAL JUSTICE FOR ALL" in Washington......
DOESN'T GET MUCH BETTER THAN THIS while Congress protects their own vested interests under the Political Department of Injustice cabals while helping spread American Democracy and American Values in the controversial Middle East and around the World!
Some interesting bit of side notes involving Ms. Susan Oki and her father....a former member of the famed 442 U.S. Military Regiment: My father, a former World War 11 Combat photographer in the South Pacific theatre, was married to a local Japanese during the War. He was a distant Political acquaintance and supporter for Jack Burns in Kailua, Oahu. They both belonged to the Kailua Lions Club and were both members of the private Lanikai Mid-Pacific Country Club....mostly all haole members after the War years.
My father was involved in a very fraudulent Hawaii land purchase and sale during the 1950s involving a corrupt Hawaii land surveyor and a fellow Irishman linked to the Hawaii Judges family members. After he relocated to San Francisco in the early 1960s, he retained a Hawaii attorney whom I believe was none other than Echi Oki.....from Honolulu, linked to the famed 442 Hawaii Military Brigade members whom he always supported due to the persecution of the local Hawaii Japanese community after Pearl Harbor.
Echi Oki, again, had close political links vis-a-vis their Military Service to Dan Inouye and their tight knit Hawaii 442 hui cabals.....prior and after the 1954 Hawaii Legislature Revolution. My father lost the Court case, despite the SELLER testifying in favor of my fathers allegations...... with huge conflicts of interests since the Judge was related to the Hawaii Judge {Taveras}.
Another side Note with the Airline Industry: I was personally involved with the earlier Bankruptcy proceedings with Frontier Airlines in Denver {1986} which later involved Drexel Burnham Wall Street investors linked to Frank Lorenzo and Carl Ichan in New York. Like Mr. Rodney Stich, the FAA investigator making allegations against United Airlines in Denver, I was singled out with several others for exposing blatant FAA rules and blatant Public Safety violations involving massive fraud and corruption benefiting short-cutting - Airline cost saving procedures...comprising massive Public Safety cover-ups and FAA regulatory with damage control omitted issues involving the new non-unionized, young and ignorant work force.
This all began with the across the board firings for the FAA Air Traffic Controllers soon after the Reagan - Bush Sr Tenure came into Office in 1981. The massive Airline De-regulations in Washington vis-a-vis Wall Stree profiteers, {i.e. - Michael Milken, Marc Rich, Ivan Boesky} during the roaring unregulated 1980s which became famous with the Movies: WALL STREET {Michael Douglas} and "BARBARIANS AT THE GATE".
AIPAC'S Norman Brownstein, based in Downtown Denver, vis-a-vis my former Brownstein political mole "girlfriend" , New York attorney Lisa Holstein, was responsible for helping Lorenzo with the Texas Continental Airline gang members to get out of their Prime gate and exclusive lounge commitments, including a faulty Automated Baggage system, involving more massive fraud and cover-ups at the new Denver International Airport were allowed to quietly relocate back to their Houston based "Texas Air Corp" headquarters.
In 1993, Clinton denied Frank Lorenzo, with his New York Attorney wife with Chase Manhattan Bank, as well as their Texas Air Corps - Colorado Resort land investors in Aspen & Vail {Phillip Winn Group}, to continue manipulating the SEC within the confines of the "insiders" under the lucrative "De-Regulated Airline Industry" mergers using Union Pension plans for lucrative leveraged acquisitions....compromising Public Safety and FAA violations with massive cover-ups in Washington.
Again, like former FAA investigator, Rodney Stich, doing his job, I became another Politcial liability, which is the former "inside" Dept of Justice / CIA lawyer, Norman Phillip Brownstein's expertise specialized job as Mr. Fix It at DIA; Protecting SEC Billionaire Fugitive's such as Marc Rich and HUD Director Phil Winn, while sheltering Drug Traffic cabals with Florida's Jack Devoe...for helping AIPAC's Political "cause" in Washington DC into vested SECURITY interests in the secular Middle East.....of course....always using OPM: The defrauded & obliviouos American Public Tax Payers left holding the bag on Wall Street to Main Street.
Brownstein's young, former single AIPAC New York mole attorney, Ms. Lisa Holstein, like others linked to AIPAC and David Steiner, as well as former CIA - U.S. federal prosecutor - Hawaii Public Safety Director, John Peyton, are reported deceased in New York and remote Africa?
The Rocky Mountain High - SILVERADO DNC Political Convention in Denver, Colorado, moving the Public cost over-run to a larger media exposure event with INVESCO Stadium {Bronco Pro Football Stadium...who are clients of NORM BROWNSTEIN, JACK HYATT, AND STEVE FARBER, now joined by former GOP Denver University CABALS - former Colorado RNC Chairman, Commercial Real Estate Investor and Resigned Department of Veterans Affair Director - James "De Oppressor Libre" Nicholson, linked to former Colorado RNC Chair, for convicted Swiss Ambassador - HUD Director - Phil Winn {DU Professor} with former DU Secretary of Interior Gale {CREA} Norton, as well as the latest new GOP University of Colorado connections to former U.S. Senator / UC President Hank Brown....involved in the "E Pluribus Unum" Wall Street article related to: THE 1993 Simple FEDERAL APOLOGY RESOLUTION TO HAWAII under Clinton with Political Constructive FRAUD and Public cover-up intents for the future Public subsidized AKAKA BILL in Congress....pending in Washington since 2000, after the U.S. Supreme Court decision over ruling the Hawaii Political Judicial system hidden under the Political Ninth District Circuit Court of Appeals, involving 'RICE V. CAYETANO' {Office of Hawaiian Affairs}.
Hope this "inside" information and insights can help you!
- little ninja cats with nonprofit coconut crab club
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NEW DISCOVERY (05-10-08): David Farmer’s undisclosed connections with AIPAC and “Bush’s Brain”, Karl Rove:
From: little ninja cats
Date: Sat, 10 May 2008 01:26:40 EDT
Subject: Check out The Raw Story | Official probing Rove now under investigation himself
To: sf.nancy@mail.house.gov, senator@akaka.senate.gov, ustrustee.program@usdoj.gov, admin@ehawaii.gov, jurisnot@yahoo.com, bobby_n_harmon@yahoo.com, hwburgess@hawaii.rr.com, Ken_Conklin@yahoo.com, rroth@hawaii.edu}
The Raw Story | Official probing Rove now under investigation himself
"While Rove Fiddled; The Bush was Burning"? or........White men who can't dance?
ck out:
Dismissed U.S. Attorney's Carole Lam {California} and Frederick Black {South Pacific}.
HATCH ACT and the 1978 Hawaii Constitutional Convention:
a} Congressional Defense Appropriation Committee members, previous Bureau of Indian Affair Chairman, Veterans Affair Committees, Intelligence Committees, Special Counsels {Iran - Contra / Central America International Committees} Bishop, Baldwin, REWALD, Dillingham & Wong, for Hawaii U.S. Senator - Daniel Inouye - Defense Chairman linked to: hidden Public Pork Barrel proceeds for the lavish Hokulia Canoe for Hawaiians only programs / Women Abuse Shelters for Two Political Hawaii Legislature members involved in 1992 U.S. Senate race allegations for Sexual Harassment allegations / Private Defense Contractor Brent Wilkes - Hawaii ADSC Company fronts - Lavish Hawaiian Private Vacations - Luxury Private Accommodations - Hawaiian "Entertainment" linked to Asian Pacific Advisory Council Politicians {Prince Hotels} - AIPAC Lobbyist for Akaka Bill; {Dismissed U.S. Attorney - Frederick Black, Political Appointee under former CIA Director / Vice-President / President George H. Bush linked to former U.S. Federal Prosecutors John Peyton - Kenneth Starr in collusion with former Hawaii District Judges {deceased}: Martin Pence, Harold Fong, & California District Judge: Brian Tamahana}.
b} Alaska U.S. Senator - Ted Stevens linked to hidden Public Pork Barrel projects {Bridge To Nowhere} with family member to self serving Alaska Contractors - Home remodeling projects as well as lobbying ANWAR Bill under the Department of Interior {CREA} with members with the Defense Appropriation Committee Political links to members of Congressional Committees {I.E. - Veterans Committee Chairman - Daniel Akaka, sponsor for the stealth Akaka Bill with no Public voice or vote in Hawaii, Obstruction of Justice in the South Pacific {Jack Abramoff - Tom Delay} and the Broken Trust legacy in Hawaii, in political exchanges for continued political support for a Case of War in Iraq and the ANWAR Bill.
c} California Congressman - Duke "Dukestar" Cunningham: Defense Appropriation Committee member - Veterans Affair Committees linked to lavish Political briberies with Private Defense Contractors and CIA agents linked to Iraq War Appropriations in Washington DC, Southern California, and Hawaii lavish vacations - "Entertainment" with obstruction of justice linked to political Dismissed U.S. Attorney Carole Lam, linked to Political dismissed U.S. Attorney Frederick Black in the South Pacific involving Jack Abramoff {AIPAC} linked to Grover Norquist and Tom Delay {CNP - PNAC}.
Aloha Mai Mo. Aloha Aku: Do the Disavowed Facts matter for Special Counsel Scott Bloch with Karl Rove under Alberto Gonzales and the Broken Trust Legacy in Washington DC?
catbirds - south pac
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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 8, 2008
Kamehameha Schools settled
lawsuit for $7M
By Jim Dooley, Advertiser Staff Writer
Kamehameha Schools paid $7 million to settle a lawsuit filed by an anonymous student who claimed the schools' Hawaiians-first admissions policy violates civil rights laws, according to an attorney involved in the case.
Terms of the confidential settlement have been a closely guarded secret since it was signed in May just before the U.S. Supreme Court was to decide whether to hear the case.
The settlement ended a four-year effort by a non-Hawaiian teenager, known only as John Doe, to enter the Kamehameha Schools system.
Attorney John Goemans — who planned the legal action, found the plaintiff and brought the case to Sacramento private attorney Eric Grant to litigate — revealed the amount of the settlement in an exclusive interview with The Advertiser.
"The amount of the settlement is important public information that should be disclosed by a charitable institution that receives tax-exempt status from the Internal Revenue Service," Goemans said in a telephone interview.
The lawsuit challenging the schools' admissions policy was the first case of its kind to reach the doors of the U.S. Supreme Court and stirred enormous controversy in Hawai'i.
Critics of the settlement pointed out that additional legal challenges could still be mounted against the admissions policy, and news of the $7 million that the schools paid could increase the chances of new lawsuits.
Local attorney David Rosen, who made news last year by actively seeking plaintiffs for a new challenge to the admissions policy, said yesterday he is preparing a suit against Kamehameha Schools.
Kamehameha Schools, previously known as Bishop Estate, is a nonprofit organization with assets of $7.7 billion.
Grant, appearing yesterday at a University of Hawai'i law school symposium on the lawsuit, known as John Doe vs. Kamehameha Schools, declined to discuss the settlement when told that Goemans had disclosed the $7 million figure.
Kamehameha Schools' lead attorney in the lawsuit, Kathleen Sullivan, a former dean of the Stanford University law school, also declined comment.
"Terms of the settlement are inviolate," said Sullivan, also a participant at the UH symposium yesterday.
Ann Botticelli, spokeswoman for the Kamehameha Schools board of trustees, also declined to comment on Goemans' statements or the size of the settlement.
The settlement says that anyone who discloses its contents is subject to a $2 million penalty, but Goemans said he was not a party to the agreement and never signed it.
Goemans, who is recovering from heart surgery, said yesterday that he was opposed to the $7 million settlement but that "it was the client's decision" to accept it.
PART OF TAX RECORD
Goemans said an attorney representing Grant breached the confidentiality clause by mailing a copy of the agreement to Goemans last year.
Goemans added that Kamehameha Schools must disclose details of the settlement on its 2007 tax return, which is due to be filed later this year, and on annual financial reports the charity is required to file with the state attorney general's office and with the state court.
Tax returns of nonprofit institutions such as Kamehameha Schools are public records under federal law. The institution's annual financial accountings — which date to its founding by Princess Bernice Pauahi Bishop in 1888 — are also open to the public.
Kamehameha operates three campuses — its flagship at Kapalama Heights on O'ahu, one on Maui and another on the Big Island — for the benefit of children of Hawaiian ancestry.
The institution plays a central role in Hawai'i society, in part because of its financial clout and in part because of its mission to educate children of Hawaiian ancestry. It is also the state's largest private landowner.
There are about 70,000 school-age children with Hawaiian blood, and 5,400 students were enrolled at Kamehameha's various schools last year. Kamehameha served 30,000 other children and adults through outreach programs and through its support of charter schools.
TO SUPREME COURT
Hawai'i federal Judge Alan Kay initially dismissed the John Doe lawsuit in November 2003, upholding the schools' argument that the admissions policy helped address cultural and socio-economic disadvantages that have beset many Hawaiians since the 1893 overthrow of the Hawaiian monarchy.
The plaintiffs appealed that decision to the 9th U.S. Circuit Court of Appeals, which overturned it in a three-judge decision in 2005. That ruling prompted protest rallies, prayer vigils and other gatherings around the state in support of the schools.
Lawyers for Kamehameha Schools then asked that all members of the appellate court review the matter and the full court reversed the three-judge panel's decision by an 8-7 vote in December 2006.
Grant then petitioned the U.S. Supreme Court to hear the case, and last May, on the eve of the high court announcement on whether it would take the case, the matter was settled out of court.
"We didn't think that there was a strong possibility (of losing) but that risk is always out there," J. Douglas Ing, chairman of the Kamehameha board of trustees, said in announcing the settlement in 2007. "There are no guarantees and there certainly were no guarantees from our lawyers that we would win the case."
Grant, the attorney for John Doe, said after the case was settled, "Obviously, a settlement is not exactly what either side wanted. But it is something both sides eventually came to terms on."
SPATS OVER FEES
Goemans is involved in a continuing dispute with John Doe, whose identity has never been revealed, and with Grant over how much money Goemans should receive for his part in the case.
Grant received 40 percent of the overall settlement — $2.8 million — although he had to sue the plaintiff and the plaintiff's mother in federal court in Sacramento last year to collect the money, according to Goemans and federal court records.
That collection lawsuit was filed in June after Kamehameha had paid the $7 million settlement. The dispute over the payment of Grant's fee was settled and dismissed in September.
Goemans said he asked John Doe and Jane Doe for 25 percent of the total settlement — $1.75 million — but has not yet received a response.
Grant filed a separate lawsuit against Goemans in California state court last year regarding how much compensation Goemans is owed for his part in the case.
That suit is still pending, although Goemans said he believes it is groundless and will be dismissed.
Grant yesterday declined comment on the collection lawsuit he filed in Sacramento against his own clients or the related action he filed against Goemans.
Goemans said he has received $20,000 in compensation to date from John Doe and his mother and is contemplating filing a new legal action of his own against them.
http://www.kycbs.net/EXHIBIT-Dooley-HA-2-8-8.htm
February 9, 2008
School's $7M deal
raises ire, eyebrows
By Jim Dooley, Advertiser Staff Writer
Yesterday's disclosure of the $7 million payment made by Kamehameha Schools to settle a civil rights lawsuit prompted questions and anger from individuals on both sides of the schools' controversial admissions policy that gives preference to students of Native Hawaiian ancestry.
"It does seem like a lot of money. It sure would be if it was in my pocket," said University of Hawai'i law school professor Jon Van Dyke, who served as a legal consultant to Kamehameha in the lawsuit.
Van Dyke said yesterday he wasn't part of the settlement discussions and still believes the payment led to the right outcome for the school.
The settlement was signed in May just before the U.S. Supreme Court was scheduled to announce whether it would hear an appeal of the case. Terms of the settlement had been kept confidential until this week. John Goemans, an attorney for the plaintiff in the case, revealed the $7 million figure to The Advertiser.
The settlement meant that an earlier 8-7 vote by the 9th U.S. Circuit Court of Appeals in favor of Kamehameha's admissions policy is still the prevailing law.
H. William Burgess, a local attorney who filed legal papers with the U.S. Supreme Court supporting the plaintiff in the case, said yesterday, "Wow. The settlement was much larger than I thought."
Burgess said he still believes the case should have been heard by the Supreme Court so that legal questions surrounding the school's Hawaiians-first admissions policy were settled.
"I actually think the trustees of the Kamehameha Schools have a legal duty, when there's a legitimate legal question about what they're doing, to seek a resolution of the issue," Burgess said.
News of the $7 million payment provoked more than 500 online postings to The Advertiser that variously criticized school officials who approved the payment and the lawyers and the client who received the money.
Beatrice "Beadie" Dawson, a native Hawaiian attorney who is active in Kamehameha Schools affairs, said yesterday the settlement itself and now news of the $7 million amount "are like an open invitation for more lawsuits."
"I was very dismayed by news of the settlement last year and I was very surprised by the size of it today," Dawson said.
Hawai'i attorney David Rosen, who last year announced plans to file another legal challenge to the school's admission policy, confirmed this week that the lawsuit is taking shape but has not been filed.
He issued a news release yesterday reacting to the settlement amount that said, "The people of Hawai'i should be outraged that the trustees of Kamehameha Schools place a higher value on discriminating rather than educating."
Goemans, the lawyer who publicly revealed the $7 million figure, said he believes the settlement should be a matter of public record given Kamehameha Schools' status as a tax-exempt charitable institution.
Goemans helped bring the civil rights lawsuit against Kamehameha in 2003 on behalf of a non-Hawaiian student denied admission to the high school. The student and the student's mother, who live on the Big Island, have never been identified except as John Doe and Jane Doe.
Goemans also said the settlement is subject to review by the Internal Revenue Service and by the state attorney general's office, which oversees Kamehameha Schools' annual financial accountings filed with state Probate Court.
Attorney General Mark Bennett could not be reached for comment yesterday.
David Fairbanks, a Honolulu lawyer serving as the appointed "master" who must review Kamehameha's financial fillings for the Probate Court, did not respond to a telephone message for comment yesterday.
http://www.kycbs.net/EXHIBIT-Dooley-HA-2-9-8.htm
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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