Bobby N. Harmon, CPCU, ARM
2920 Ala Ilima Street, #1103 Tel No. (808) 839-0654
Honolulu, Hawaii 96818
December 9, 2000
VIA Fax @ 524-4844
Mr. Bradley R. Tamm, Esq.
Pioneer Plaza, Suite 1500
900 Fort Street Mall
Honolulu, HI 96813
RE: In re Harmon; Ch. 7 BK Case No. 99-04339
Dear Mr. Tamm:
Thank you very much for your letter of December 4, 2000. The information that you provided regarding the foreclosure process was very clear and helpful.
I also understand your advice and caution regarding a possible “adversary” lawsuit because of bankruptcy fraud. We, too, would be very reluctant to bring an adversary action on our own at this time; however, I would like to share more of my thoughts about this with you.
First of all, we need to see Mr. Guttman’s response before making any decision. Mr. Guttman should be able to readily produce existing documents (not new, back-dated ones) showing that each of the attorneys were indeed authorized to act on behalf of the parties that they told the court they represented. If these documents are produced, then it would indicate that my suspicions were incorrect and further action probably would not be necessary.
On the other hand, if such documents do not exist, then I believe this would be a clear indication that fraud was involved and that some action should be taken. It legal action is needed, then the question becomes who should be the party to initiate such action. Being a layman I am not sure, but I would think that it would be the Bankruptcy Trustee’s responsibility as she, presumably, is charged with making certain that ALL parties are acting in good faith and that no fraud is committed.
If fraud has indeed been committed, then the creditors in this bankruptcy are also being defrauded and suffering monetary losses. If the Bankruptcy Trustee does not take action in a fraud situation, then it would appear that the creditors (especially Bank of America in this case) would also have cause for action. If this is correct, then it would seem that it would be more practical for all the creditors and debtors to file some sort of joint action, rather than our taking independent action. If this is true, then should we contact the creditors’ attorneys in this case, or would this be the responsibility of the Bankruptcy Trustee?
The way I understand the settlement agreement we did agree to settle all claims against all parties; however, my understanding is also that this would not apply to fraud and collusion committed by the attorneys in the legal process of mediating or arbitrating the claims. Please correct me if I’m wrong.
Again, our sincere thanks for all your help in this matter.
Very truly yours,
Bobby N. Harmon
encls.
cc: Arnold Phillips, Esq.; Roy Hughes, Esq.; John Goemans, Esq.
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