Bobby N. Harmon, CPCU, ARM
Las Vegas, NV 89118
March 1, 2005
VIA facsimile @ (808) 523-6313
Robert K.U. Kihune, Trustee
J. Douglas Ing, Trustee
Constance H. Lau, Trustee
Diane J. Plotts, Trustee
C. Nainoa Thompson, Trustee
Dee Jay Mailer, CEO, Kamehameha Schools
567 South King Street, Suite 200
Honolulu, Hawaii 96813
RE: Settlement Proposals for Claims Against Trustees of Kamehameha Schools, Its Subsidiaries, and Its Employees.
Dear Trustees and Ms. Mailer:
This is with regard to a letter dated March 1, 2005 from Matt A. Tsukazaki, Esq., of Torkildson, Katz, Fonseca, Moore & Hetherington, in which he writes regarding my letter of February 7, 2005, which was addressed to your attention:
“As you know, my law firm represents Kamehameha Schools in all matters that involve your former employment with Kamehameha Schools and the entry and enforcement of the Settlement, Release and Indemnification Agreement (the “Agreement”) between you and Kamehameha Schools.
“In response to your letter dated February 7, 2005, you are again reminded that all issues, claims, causes of action, and allegations, relating to or arising out of your former employment with Kamehameha Schools and/or asserted in the various legal proceedings involving yourself and Kamehameha Schools, its former and present Trustees, officers and employees, have been released and are barred under the Agreement. No further response is necessary nor will be provided to your letter of February 7, 2005.
“Finally, you are again instructed not to communicate directly with Kamehameha Schools and/or any of its Trustees, officers or employees about this matter. All correspondence from you on this matter should be directed to my attention at the address above. Thank you for your anticipated cooperation.”
As you know, my letter of February 7, 2005, was an offer to negotiate an out-of-court settlement of NEW CLAIMS of fraud, racketeering, etc. which clearly were NOT released by the Settlement, Release and Indemnification Agreement to which Matt Tsukazaki refers. Consequently, I am hereby notifying you that I am, regretfully, unable to accept Mr. Tsukazaki’s improper rejection of my settlement offer on behalf of Kamehameha Schools and its insurance carriers.
There are, in addition, several other reasons why Matt Tsukazaki’s rejection of my offer to negotiate settlement of these NEW CLAIMS is improper:
► For over eight years, Torkildson, Katz, et al, has NEVER provided any evidence that they legally represented Kamehameha Schools and P&C Insurance Company in any of the lawsuits that they have handled, purportedly on behalf of the Trustees of Kamehameha Schools Bishop Estate, despite my many requests that an Attorney of Record letter be provided as evidence of their legal representation.
► Since Matt Tsukazaki and his law firm were named Defendants in my RICO lawsuit, which included as CO-DEFENDANTS the FORMER Trustees, along with your former general counsel, Nathan Aipa, and current employees Colleen Wong and Louanne Kam, the law firm of Torkildson, Katz, Fonseca, Moore & Hetherington has a clear CONFLICT OF INTEREST with respect to these NEW CLAIMS. As I have also filed separate claims against Matt Tsukazaki and his law firm regarding these same issues (FRAUD in the signatures on the Agreement, etc), this is further evidence of CONFLICTS OF INTEREST.
► Despite numerous requests, Torkildson, Katz has never produced any evidence that they had the required approval of KSBE’s insurance carriers, Federal Insurance Co. and XL, Inc., to negotiate the Settlement Agreement in my RICO case - which is another basis for my claims of fraud and racketeering against KSBE as well as Torkildson, Katz in these NEW CLAIMS.
► Matt Tsukazaki does not indicate in his letter of March 1, 2005, that any copies were sent to you, or to any insurance carrier. Included in my NEW CLAIMS against Kamehameha Schools, P&C Insurance Company, and Torkildson Katz, were statements made by Louanne Kam in the Arbitration Hearings that KS was NOT REPORTING my claims to your insurance carriers, and that she had the concurrence of the Board of Trustees to withhold the reporting of these claims.
Since, for the above stated reasons, I am not accepting Matt Tsukazaki’s letter of March 1, 2005, to be a valid rejection of my Settlement Proposal of February 7, 2005, I am hereby extending my offer, which is as follows:
To settle ALL OUTSTANDING CLAIMS against the Trustees of Kamehameha Schools, and all persons, both past and present, employed directly by Kamehameha Schools, and ALL SUBSIDIARIES, with the sole exception of P&C INSURANCE COMPANY, INC., I will accept the SUM OF $1.00 (ONE DOLLAR), subject to the following conditions:
1. That Kamehameha Schools, in accordance with applicable IRS regulations, issue to me for calendar year 2000, IRS Forms W-2 and 1099-R for the amount of settlement that I received in the referenced Bankruptcy case.
2. That Kamehameha Schools calculate, and add to my retirement plan account, the earnings that would have accrued in the plan account, had the required contributions to the plan been made in year 2000.
3. That each of the three Trustees of Kamehameha Schools who signed the global Settlement Agreement in the referenced case, provide an Affidavit attesting to the fact that the signature on the document was his or her signature.
4. That Kamehameha Schools provide an Affidavit providing the following claims information regarding my original wrongful termination lawsuit, the RICO lawsuit, and all subsequent claims that I have made against Kamehameha Schools, and its subsidiaries, that are to be considered for release under this proposed Settlement Agreement:
a. The name and mailing address of the Insurance Carrier for each of these claims; their Policy Number; Policy Period; Claim Number; Date Claim Made; and the name and address of their assigned Claims Administrator.
b. True copies of Attorney of Record letters, or similar contracts, from Kamehameha Schools to its outside attorneys for each of the claims that are to be released under this proposed Settlement Agreement.
c. True copies of all letters or documents from your Insurance Carriers indicating their consent to the use of Kamehameha Schools’ contracted outside attorneys for each of these claims.
Furthermore, as time is precious and further attempts on the part of Louanne Kam and Torkildson, Katz, Fonseca, Moore & Hetherington to wrongfully delay the settlement of these NEW CLAIMS are anticipated, I am also including herein the following two alternate Settlement Proposals:
ALTERNATE PROPOSAL “A”: To settle ALL OUTSTANDING CLAIMS against the TRUSTEES OF KAMEHAMEHA SCHOOLS; ALL SUBSIDIARIES, INCLUDING P&C INSURANCE COMPANY, INC., and all persons, both past and present, employed directly by Kamehameha Schools and its subsidiaries; and any and all INSURANCE CARRIERS for these entities, I will accept THE SUM OF FIVE HUNDRED THOUSAND DOLLARS ($500,000).
ALTERNATE PROPOSAL “B”: To settle ALL OUTSTANDING CLAIMS against the TRUSTEES OF KAMEHAMEHA SCHOOLS, and all persons, both past and present, employed directly by Kamehameha Schools, and any and all of its subsidiaries, including P&C INSURANCE COMPANY, INC.; and all independent contractors, including ATTORNEYS contracted by Kamehameha Schools and P&C Insurance Company; and any and all INSURANCE CARRIERS for these entities and their employees and attorneys, I will accept THE SUM OF SEVEN HUNDRED FIFTY THOUSAND DOLLARS ($750,000).
Any of the terms and conditions that I have outlined in my original proposed settlement offer, as well as in these alternate proposals, are still negotiable – provided that I be notified before March 15, 2005 that Kamehameha Schools and P&C Insurance Company, and their insurance carriers, are willing to enter into negotiations to try to resolve these long-outstanding claims in a reasonable and cost-effective manner.
Additional background information regarding many of the various claims that I have made against Kamehameha Schools, its subsidiaries, and Torkildson, Katz, Fonseca, Moore & Hetherington, can be found at the following internet addresses:
www.the-catbird-seat.net/Claims-By-Harmon.htm
www.the-catbird-seat.net/Claims-Branch-Kamehameha.htm
www.the-catbird-seat.net/Claims-Branch-P-C.htm
www.the-catbird-seat.net/Claims-Branch-Torkildson-Katz.htm
Please feel free to contact me if you have any questions. Thank you very much for your kind consideration in this matter.
Very truly yours,
Bobby N. Harmon, CPCU, ARM
cc: Michael G. Cherkasky, President and CEO
Marsh & McLennan Companies, Inc.
(via fax @ 212-345-4838)
John D. Finnegan, President and CEO, The Chubb Corporation
(via fax @ 908-903-2027 and Email: info@chubb.com)
Mr. Mike Coulter, Deputy Managing Director, Aon Insurance Managers
(via fax @ 808-540-4301 and Email: mike_coulter@agl.aon.com)
Board of Directors, P&C Insurance Co., Inc. (via fax @ 808-523-6313)
Matt A. Tsukazaki, Esq., Torkildson Katz Fonseca...
(via fax @ 808-523-6001 and Email: mat@torkildson.com)
William K. Slate II, President/CEO, American Arbitration Association
(via fax @ 212-716-5905 and Email: Websitemail@adr.org)
Mark Appel, Senior Vice President, International Centre for Dispute Resolution
(via e-mail: AppelM@adr.org)
James B. Farris, Senior Case Manager, American Arbitration Association
(via fax @ 559-490-1919 and e-mail: Farrisj@adr.org)
Mary Lou Woo, c/o Steven Guttman, Kessner Duca Umebayashi, et al.
(via fax @ 808-529-7177 and e-mail: sguttman@kdubm.com)
Mark Bennett, Attorney General, State of Hawaii
(via fax @ 808-586-1239 and e-mail: hawaiiag@hawaii.gov )
Governor Linda Lingle, State of Hawaii (via fax @ 808-586-0006)
Hugh Jones, Deputy Attorney General (via fax @ 808-586-1477)
J.P. Schmidt, Hawaii Insurance Commissioner (via fax @ 808-586-2806)
Janet Hughes, Internal Revenue Service (via fax @ 303-844-3596)
Billy Beaver, Pension & Welfare Benefit Admin. (via fax @ 626-229-1098)
Lyn Flanigan Anzai, Hawaii State Bar Association (via e-mail: lanzai@hsba.org)
Susan Tius, Esq., c/o Rush Moore Craven... (via fax @ 808-521-0597)
Trustees Jervis, Lindsey, Peters, Stender, and Wong, c/o Kenneth Hipp, Esq., Marr Hipp Jones & Pepper (via fax @ 808-536-6700)
Sidney K. Ayabe, Esq., Ayabe Chong Nishimoto Sia & Nakamura
(via fax @ 808-526-3491)