Woo vs. Harmon - Witness Jeffrey Sia

James B. Nicholson, Trustee vs. Harmon

(Formerly Woo vs. Harmon)

CV05-00030 DAE KSC

U.S. District Court For the District of Hawaii

Judges: David A. Ezra; Kevin S. Chang

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HEARING ON MOTION FOR CONTEMPT OF COURT

DATE: January 16, 2007, 10:30 AM

(Hearing cancelled without notice)

JUDGE: Hon. David Ezra

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DEFENDANT’S WITNESS

JEFFREY H.K. SIA, Esq.

Ayabe Chong Nishimoto Sia & Nakamura
1001 Bishop Street
Ste. 2500, Pauahi Tower
Honolulu, HI 96813

Fax: 808-526-3491

E-mail: Jeff.Sia@excite.com

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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

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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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Defendant Harmon asserts that Jeffrey Sia conspired with other parties in this case in order to defraud, deceive and coerce him and his wife into signing an illegal “Settlement Agreement” (Exhibit A).

Defendant Harmon asserts that Jeffrey Sia falsely claimed to be the authorized attorney for P&C Insurance Company, Inc. (“P&C”) in Harmon’s RICO lawsuit (Exhibit B).

Due to the FACTS presented in these two exhibits, it is evident that Jeffrey Sia never had the proper authority to act on behalf of P&C, or its insurance carriers, in the settlement of Harmon’s RICO lawsui, and that the Settlement Agreement was obtained through fraud, deception, and for illegal purposes. Therefore, the Settlement Agreement was never a valid contract, and is unenforceable in any court of law.

Defendant Harmon also asserts that the legal actions taken against him were for the illegal purpose of obstructing justice in EQ2048 (the Attorney General’s lawsuit to remove the former Bishop Estate trustees), and in other criminal and civil actions occurring at the time - including actions against Milton Holt and Lokelani Lindsey. In fact, had I been able to testify in any proceedings that the state or federal governments brought against Lokelani Lindsey, my testimony, in several respects, would have been FAVORABLE TO LOKELANI LINDSEY.

However, since EQ2048 was settled without my ever being called as a witness, and since I was never called as a witness in any of Lokelani Lindsey’s proceedings, and since I was prohibited by Court Order from contacting Ms. Lindsey directly outside of my being subpoenaed, I was not aware of many facts involved in her case at that time - as she evidently was unaware of the facts in my case. Therefore, due to the fact that all records in EQ2048 were subsequently SEALED, neither of us had the opportunity to learn important facts regarding the alleged illegal activities that were going on at Kamehameha Schools/Bishop Estate which she and I were reporting independently to the Attorney General’s Office as well as to the Master, Colbert Matsumoto.

Due to the recent discovery of Lokelani Lindsey’s unsuccessful Motion to Remove Judge David Ezra from her case, I now believe that SHE DID NOT RECEIVE A FAIR HEARING in her case, and that she was unfairly convicted and sentenced to prison for the same reason that I am being persecuted and prosecuted in this case: SHE WAS ATTEMPTING TO PERFORM HER DUTIES AS A TRUSTEE OF THE ESTATE, AND IN ORDER TO DO SO IT WAS NECESSARY FOR HER TO EXPOSE WRONGFUL ACTIVITIES ON THE PART OF CERTAIN CO-TRUSTEES AND OFFICERS AND EMPLOYEES OF THE TRUST. (See “Request for Recusal of Judge David A. Ezra” filed in U.S. District Court, District of Nevada on October 17, 2003 (CR. S-01-318 DAE/RJJ and CR. S-00-00482 HG)

I FURTHER BELIEVE THAT JEFFREY SIA ILLEGALLY CONSPIRED WITH ATTORNEYS NATHAN AIPA, COLLEEN WONG, LOUANNE KAM, MATT TSUKAZAKI, ROBERT KATZ, SABRINA TOMA, KENNETH HIPP, SUSAN TIUS, MICHAEL TANOUE, ROY HUGHES, GREG DUNN, BRADLEY TAMM, AND ARNOLD PHILLIPS, AND WITH KSBE MASTERS COLBERT MATSUMOTO AND BENJAMIN MATSUBARA; AND WITH ATTORNEY GENERAL EARL ANZAI AND DEPUTY ATTORNEY GENERAL HUGH JONES, TO OBSTRUCT JUSTICE IN EQ2048 AND RELATED CASES – INCLUDING THE INSTANT CASE AND ALL UNDERLYING CASES INCLUDING THE “RICO” CASE AND THE SHAM ARBITRATION PROCEEDINGS.

Defendant Harmon also asserts that these legal actions against him were acts of extreme “bad faith” and violations of “fair claims practices” on the part of Jeffrey Sia, Federal Insurance Company, XL Insurance Company, and other co-conspirators, because the same controversial insurance policies, and the same policy limits of insurance, applicable in EQ2048, also applied in the RICO lawsuit, as can be seen in the following:

http://starbulletin.com/98/09/11/news/removal.html

http://starbulletin.com/1999/08/05/news/index.html

http://www.the-catbird-seat.net/EQ2048-AG-Trustees-4-27-0.pdf

www.the-catbird-seat.net/EQ2048-XL-Miyagi-AG-5-26-0.pdf

http://starbulletin.com/2000/06/12/news/story1.html, and

http://starbulletin.com/2000/07/11/news/index.html

Jeffrey Sia is also expected to testify in this case as to the facts and circumstances of the settlement negotiations, and to provide evidence, if any exists, in the form of an Attorney of Record letter or similar document, that he was legally authorized to represent P&C Insurance Company, and letters from Federal Insurance Company and XL, Inc (Bermuda) that he had their approval to act on behalf of these insurance carriers in their defense in the RICO lawsuit.

Jeffrey Sia is also expected to testify regarding the failure of KSBE to withhold Social Security taxes from the Settlement Amount, as is required under applicable Social Security income tax laws, and the failure to have Defendant’s employer, Kamehameha Schools/Bishop Estate, issue to Harmon the required IRS Forms W-2 and 1099-R for year 2000.

Jeffrey Sia is also expected to testify as to the facts and circumstances regarding why neither Seabury & Smith (now Marsh Affinity Group Services), nor the St. Paul Travelers Insurance Co. responded to Harmon’s various Notices of Claims related to Sia’s professional errors and omissions as alleged above. He is expected to provide the names of the insurance brokers, and carriers, the Claims-Made Dates, Claims Numbers, and names of the authorized insurance adjusters for the RICO lawsuit, and each of the subsequent professional liability claims made against Jeffrey Sia and his law firm Ayabe, Chong, Nishimoto, Sia & Nakamura.

Sidney Ayabe of this same law firm is also a member of Merit Selection Panel for U.S. Magistrate Judge. (See: www.kycbs.net/Judge-Kurren-Reappointment.pdf)

Clients of the Ayabe, Chong, Nishimoto, Sia & Nakamura law firm include:

Representative Clients:

ACE USA; Acclamation Insurance Management Service; AIG Hawaii Insurance Company; American State Insurance Company; American Suzuki Motors Corp.; Argonaut Insurance Company; Associated Aviation Underwriters; Attorney Liability Protection; Caterpillar Inc.; Chase Manhattan Bank; Chicago Insurance; CHUBB Group of Insurance Companies; C.N.A. Insurance; Cooperative of American Physicians Mutual Protection; Constitution State Service; Costco Wholesale; Dai Tokyo Royal State Insurance; Daimler Chrysler Corporation; The Diamond Insurance; The Dow Chemical; Fairmont Specialty Group; Fireman's Fund Insurance Co.; GEICO; General Star Management Group; The Hartford Group; Hawaii Employer's Mutual Insurance; Hawaiian Insurance Group; Hilton Hotel Group; Kaiser Hospital Group; Kamehameha Schools - Bishop Estate; Kone Inc.; Liberty Mutual Insurance; Marriott Hotel Group; McDonald's Restaurants of Hawaii; Medical Insurance Exchange of California; The Queen's Medical Group; Safeco Insurance; Scottsdale Insurance Company; Sentry Insurance; Shand Morahan; Sompo Japan Insurance Co.; Specialized Claim Management Hawaii; St. Paul Travelers Group; Straub Clinic and Hospital; TIG Crum & Forster; United National Group; University of Hawaii; XL Design Professional.