Bobby N. Harmon, CPCU, ARM
10951 Southgate Manor Drive, Apt. #4 Tel & Fax No. (502) 964-0694
Louisville, Kentucky 40229-1655
July 28, 2003
VIA fax only @ 808-540-4301
P&C Insurance Company, Inc.
c/o Jill Miura, Aon Insurance Managers
P.O. Box 201
Honolulu, HI 96810
RE: Mary Lou Woo, Trustee vs. Bobby N. Harmon
Demand for Arbitration - 74 166 00491 03 JUSC
Dear Ms. Miura:
On May 27, 2003, I tendered defense of the above claim to P&C Insurance Company, Inc., as provided for in the Indemnification Agreement afforded to me as a former officer of the company. I also asked that you have P&C’s Claims Administrator contact me as soon as possible for further details and a copy of the complaint. To date, I have not been contacted by P&C’s authorized Claims Administrator.
On May 28, 2003, I transmitted to you a copy of the American Arbitration Association’s letter dated May 27, 2003, noting that the Response Due Date to their letter was on or before June 6, 2003. I received no response from you or P&C’s Claims Administrator to this letter.
On June 16, 2003, I sent to you a second notice of tender which stated: “As the arbitration process is set to begin within the next few days, I again request that P&C’s Claims Administrator contact me as soon as possible for further details.”
In a letter dated June 20, 2003, Clyde Mark, President of P&C Insurance Company, Inc., wrote, in part:
“In response to your letter of May 27, 2003, P&C Insurance hereby rejects your tender of defense of the above entitled matter on the following grounds....
“Thus, if you continue to pursue this matter, P&C Insurance shall be entitled to indemnification from you and Mrs. Harmon for any and all damages and costs (including attorney’s fees) incurred in defense of any claim you bring “arising, arisen, growing out of, connected with of [sic] in any manner relating to the RELEASED CLAIMS. Any claim related to your employment as an officer or director of P&C Insurance is a RELEASED CLAIM.
“Accordingly, you are not entitled to coverage under any past or current insurance policy maintained by P&C Insurance. P&C Insurance hereby denies your tender of defense for the above-entitled arbitration P&C Insurance reserves all other objections and defenses to your tender of defense that have not be [sic] raised herein.”
On June 30, 2003, I responded to Mr. Mark, in part, as follows:
“Please allow me to point out that in my letter of May 27th, I only asked, ‘Please have the company’s Claims Administrator contact me as soon as possible for further details and a copy of the Complaint.’ I find it highly incredulous that P&C would reject a tender of defense without requesting further information or obtaining a copy of the Complaint....
“There are a number of discrepancies that I find in your rejection letter.
“First, you do not provide the names, or give policy numbers and policy periods, for those insurance companies on whose behalf you are denying coverages. Therefore, as mentioned previously, I must demand complete copies of ALL policies for which you [are] denying my tender of defense.
“Second, I question if you have been authorized by all the insurance companies which issued these ‘past or current’ policies to act on their behalf as Claims Administrator. I find it highly unusual for the President of an insurance company to personally deny coverages. In the case of P&C, I have first-hand knowledge that P&C contracts out its Claims Administration to an independent adjuster – which in the past has been John Mullen & Co. Could you please explain why this case is not being handled through an independent adjuster, and would you please forward me copies of any and all claims authorization documents from those insurance companies on whose behalf you have acted to reject my tender of defense.
“Third, as I stated in my letter of May 27, 2003, my tender of defense is based upon the Indemnification Agreement afforded by P&C to all officers and directors of the company. Therefore, your review of this tender should be based on the Indemnification Agreement in this contract with P&C – not the Indemnification Agreement contained in the Settlement Agreement. In order to further pursue this issue, I ask that you please review the indemnification provisions in the contract that I originally signed as president of P&C, and that you send me a complete, signed copy of this Agreement for my review in preparation for the Arbitration proceedings.”
Mr. Mark did not respond to this letter. Instead, I received a letter from Matt A. Tsukazaki, of the law corporation of TORKILDSON, KATZ, FONSECA, JAFFE, MOORE & HETHERINGTON, in which he stated, in part:
“We have received copies of your May 27 and June 30, 2003 letters addressed to P&C Insurance Co., Inc. Please be advised that you should direct all of your future inquiries of and concerning Kamehameha Schools or P&C Insurance to my attention, and you should copy Mr. Steven Guttman, counsel for the Trustee of your bankruptcy estate, Ms. Mary Lou Woo, on any correspondence you send to me.
“In response to your June 30, 2003 letter, please be advised that pursuant to the Settlement, Release and Indemnification Agreement dated April 24, 2000, you released and waived any and all rights you had or may have had arising out of or based upon your employment with Kamehameha Schools. You are not entitled to any coverage under any insurance policy or agreement, which may have been in effect at the time of your former employment with Kamehameha Schools or P&C Insurance. In addition, as to all insurance carriers with whom Kamehameha Schools and/or P&C Insurance. In addition, as to all insurance carriers with whom Kamehameha Schools and/or P&C Insurance may have held an insurance policy, you expressly released these carriers and their agents from any responsibility to you under any policy.
“Accordingly, based upon the clear and specific language of the Settlement Agreement, you are not entitled to any defense of any claim brought against you by the Trustee of your own bankruptcy estate from Kamehameha Schools or P&C Insurance. You are also not entitled to indemnification from Kamehameha Schools, P&C Insurance or their insurance carriers, for any damages or costs you may suffer or incur in the Trustee’s action against you.
“Finally, based on the foregoing, you are not entitled to the information or documents you have requested in your June 30th letter. If you continue to pursue this issue, as provided for under the Settlement Agreement, Kamehameha Schools will seek indemnification for any and all attorney’s fees and costs it incurs in responding to your groundless and frivolous claims and allegations.”
Mr. Tsukazaki sent a courtesy copy of this letter only to Steven Guttman. He does not indicate that a copy was sent to anyone at Kamehameha Schools or P&C Insurance Company. There is no indication of copies being sent to their insurance carriers that Mr. Tsukazaki claims to represent, and on whose behalf he is denying coverages. Also, no copy was sent to the American Arbitration Association. Finally, there is no indication that a copy was sent to your office or to P&C’s authorized, independent Claims Administrator.
On July 7, 2003, I responded to Matt Tsukazaki’s letter, in which I stated, “In order for me to honor this request, I will require that your first provide me with copies of Attorney of Record letters from both Kamehameha Schools and P&C Insurance Company, Inc. authorizing your previous representation in my RICO and wrongful termination cases as well as for the Arbitration matter at hand.”
I further advised Mr. Tsukazaki, “I will respond to the remainder of your letter of July 7th, once I have received evidence of these Attorney of Record letters.”
Since I have not received a response from Matt Tsukazaki to my July 7th letter, I am addressing the following requests to your office as P&C’s captive insurance company manager:
1. Please advise me of the name, address, and facsimile number of P&C’s current, independent Claims Administrator.
2. Provide the name, address, and facsimile number of the independent Claims Administrator that was responsible for the handling of my prior Wrongful Termination and RICO lawsuits.
3. Provide me a copy of P&C ’s Indemnification Agreement that indemnifies and holds harmless all officers and directors of P&C Insurance Company, which I signed upon becoming President of P&C.
4. Submit my Tender of Defense directly to P&C’s current, independent Claims Administrator, and provide me a copy of your transmittal letter to this administrator.
Your immediate response is requested.
Bobby N. Harmon
cc’s: Robert Kihune, Douglas Ing, Constance Lau, Diane Plotts, Nainoa Thompson,
Trustees of Kamehameha Schools (via fax only @ 808-523-6313)
Clyde Mark, Pres., P&C Insurance Co, Inc (via fax only @ 808-540-4301)
Justin Schuck, American Arbitration Association (via fax only @ 559-490-1919)
Steven Guttman, Atty for Mary Lou Woo (via fax only @ 808-529-7177)
Casimer Fidele, Tradewind Insurance Company (via fax only @ 808-521-7489)
Hawaii Atty. Gen. Mark Bennett (via fax only @ 808-586-1239)
Dr. Randy Roth, Office of the Governor (via fax only @ 808-586-0006)
J.P. Schmidt, Hawaii Insurance Commissioner (via fax only @ 808-586-2806)
Peter B. Clark, Deputy Chief, Fraud Section, U.S. Dept of Justice, Criminal Div.
(via fax only @ 202-514-7021)
Tai K. Lee, Special Agent, U.S. Dept of the Treasury (via fax @ 808-539-2810)
Janet Hughes, Internal Revenue Service (via fax only @ 303-844-3596)
IRS, Criminal Investigation Div, Tempe Office (via fax only @ 602-207-8010)
Billy Beaver, Pension & Welfare Benefit Admin. (via fax only @ 626-229-1098)
Miller & Chevalier (via fax only @ 202-628-0858)
Morgan, Lewis & Bockius, Attn: T.M. Kittredge, Esq. (via fax @ 215-963-5299)
This is a leaf from
Claims By Harmon
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The Catbird Seat