OUST vs. Harmon - Motion to Reconsider Order Overruling Objection to the Appointment of David C. Farmer as Trustee

BOBBY N. HARMON, CPCU, ARM

xxx .

Telephone : xxx

Email: bobby_n_harmon@yahoo.com

Website: http://www.kycbs.net

Defendant, Pro Se

UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF HAWAII

DAVID C. FARMER, Trustee ) CASE NO. 99-04339

)

Plaintiff, ) DEFENDANT BOBBY N. HARMON’S

) MOTION FOR RECONSIDERATION

vs. ) OF ORDER OVERRULING OBJECT-

) ION TO APPOINTMENT OF DAVID

BOBBY N. HARMON, ) C. FARMER AS SUCCESSOR

) TRUSTEE AND DENYING

Defendant ) ACCOMPANYING MOTIONS;

) MOTION FOR SANCTIONS AND

) DAMAGES; CERT. OF SERVICE

)

) Date of Hearing:

) Time of Hearing:

)

) Judge: Hon. Robert J. Faris

________________________________)

DEFENDANT BOBBY N. HARMON’S MOTION FOR RECONSIDERATION
OF ORDER OVERRULING OBJECTION TO APPOINTMENT OF DAVID C. FARMER
AS SUCCESSOR TRUSTEE AND DENYING ACCOMPANYING MOTIONS;
MOTION FOR SANCTIONS AND DAMAGES

COMES NOW Defendant BOBBY N. HARMON and submits the following Arguments and Motions:

I. ARGUMENT FOR MOTION TO RECONSIDER ORDER OVERRULING OBJECTION TO APPOINTMENT OF DAVID C. FARMER AS SUCCESSOR TRUSTEE

On August 14, 2007, Debtor Bobby Harmon filed an Objection to the Appointment of David C. Farmer as Successor Trustee, a Motion for Order to Disapprove [Mr. Farmer’s] Appointment, and a Motion for Pre-Hearing Settlement Conference (Docket No. 200). The court held a hearing on October 10, 2007, on the objection and accompanying motions. Debtor Harmon appeared by telephone for himself; Steven Guttman, Esq., appeared for Mr. Farmer, Esq., who also appeared; and Carol K. Muranaka, Esq., appeared for the Office of the United States Trustee.

For the reasons stated in open court, which included a statement by Judge Robert Faris that he had reviewed Defendant’s website, “The Catbird Seat”, and could see no conflicts of interest in Mr. Farmer’s appointment as Successor Trustee, and that he knew of no legal requirement that a Trustee is required to disclose information about his insurance carrier, Judge Faris “ORDERED THAT the Objection to the Appointment of David C. Farmer as Successor Trustee is OVERRULED and the Motion for Order to Disapprove [Mr. Farmer’s] Appointment and Motion for Pre-Hearing Settlement Conference are DENIED.”

By motion filed October 23, 2007 (Docket No. 212), Debtor Bobby N. Harmon sought reconsideration of this court’s October 15, 2007, order (Docket No. 207). By order dated October 24, 2007, Judge Robert J. Faris DENIED Debtor’s motion stating, “Mr. Harmon has presented no new facts or legal arguments that he could not have submitted originally or that would change the outcome.”

This instant Motion for Reconsideration of Judge Faris’ ORDER is being made due to the fact that, subsequent to the Hearing on October 23, 2007, NEW MATERIAL FACTS have been discovered, which provide additional evidence of undisclosed conflicts of interest for David C. Farmer (1), as well as for trustee attorney Steven Guttman, Esq. (2), and Judge Robert J. Faris (3). These newly discovered facts are as follows:

1. David Farmer has conflicting financial and professional relationships with Judge Robert Faris and Marsh & McLennan’s Mercer Consulting Services (4) in the Aloha Airlines (5) bankruptcy case. According to biographical information obtained through an internet search, David C. Farmer was an associate of the Ashford & Wriston law firm from 1998 to 2001. This occurred during the period of Defendant’s RICO lawsuit (6) and his bankruptcy proceedings. Marsh & McLennan (7) was a key defendant in Harmon’s RICO lawsuit, with allegations against their officers Rocco Sansone (8) , Peter Lowe (9), and others of fraud, racketeering, misrepresentation, illegal kick-backs, breach of contract, and other wrongful acts.

2. In August, 1999, Robert Bruce Graham (10) of the Ashford & Wriston law firm, filed a petition (11) for the salaries of the Interim Trustees, Robert Kihune (12), David Coon, Francis Keala (13), Constance Lau, (14) and Ronald Libkuman (15). In the same month, Robert Bruce Graham filed a Petition (16) on behalf of these same Interim Trustees to establish procedures for the selection of new trustees. Three of these interim trustees signed the Settlement Agreement without the contractually required authority or prior approval of Kamehameha Schools/Bishop Estate and P&C Insurance Company’s professional liability insurance carriers, Federal Insurance Company (17) and XL (Bermuda), Ltd. (18). These two insurance companies were defending the former Kamehameha Schools trustees in EQ2048 under their same directors and officers liability insurance policies, concurrent with the defense these same trustees against my RICO lawsuit.

3. Ashford & Wriston was one of the law firms FIRED by the Kamehameha Schools’ interim trustees as a result of an investigation by special master Robert Richards (19), as detailed in the “Richards’ Report” (20). An article regarding this controversy was reported by Rick Daysog in the May 20, 2000, edition of the Honolulu Star-Bulletin, as follows:

~ ~ ~

May 20, 2000

Kamehameha
fires law firms

A special master's report
says much legal work served
board members' interests,
not the trust's

By Rick Daysog, Star-Bulletin

Kamehameha Schools has terminated several of its law firms, one day after a court-appointed special master issued a scathing report on their roles in the three-year trust controversy.

In a brief statement yesterday, the estate's interim board and Chief Executive Officer Hamilton McCubbin (21) said they would immediately discontinue the firms' services pending the completion of an internal investigation.

The estate said it would decide what action, if any, it would take against the firms once its inquiry is completed.

"The report of the special master ... raises question about the propriety of services rendered by some of these advisors," the estate said.

The charitable trust did not identify which firms were terminated, but one, Cades Schutte Fleming & Wright (22), confirmed its suspension. At least one other firm, Ashford & Wriston, also was terminated, a person close to the trust said. Partners at the Ashford firm did not return calls.

In a report filed in Circuit Court on Thursday, court-appointed special master Robert Richards said several of the estate's outside attorneys assisted in a "Herculean effort" to circumvent disclosure to the attorney general's investigation and took part in a "destroy the opposition" effort by former majority trustees Henry Peters (23), Richard "Dickie" Wong (24), and Lokelani Lindsey (25).

The Richards study, which examined legal work by 12 of the estate's outside firms in the 1998-1999 period, also recommended that the probate court surcharge the former trustees for nearly $5 million in fees, saying much of the law firms' work served the interests of the board members and not the trust.

Richards singled out Cades Schutte's work as "the most troubling" and urged the probate court to order the disgorgement of $880,000 of the $1.3 million that it earned between 1998 and 1999.

Richards said the firm spent considerable trust funds researching the free-speech limitations of senior U.S. District Judge Samuel King (26) an outspoken critic of the trust, and looked into possible remedies against Bobby Harmon (27), the former head of the estate's insurance subsidiary, in an apparent attempt to silence criticism....

Meanwhile, the attorney general's office (28) applauded the estate's decision to suspend some of their outside firms in light of the disclosures in Richards' report.

"This is a prudent course of action," said Deputy Attorney General Hugh Jones (29).

"The attorney general strongly supports the announcement by the estate's chief executive officer."

http://starbulletin.com/2000/05/20/news/

Bishop Estate Archive

~ ~ ~

Defendant asserts that the foregoing documents provide further evidence that the United States Trustee Program has not only failed to provide proper relief to an honest debtor, but that certain Trustees for the Office of the United States Trustees (OUST), their attorneys, Defendant’s own attorneys, and various judges in this case have fraudulently abused the bankruptcy system (30) for personal financial gain.

II. MOTION TO RECONSIDER ORDER OVERRULING OBJECTION TO APPOINTMENT OF DAVID C. FARMER AS SUCCESSOR TRUSTEE, AND DENYING ACCOMPANYING MOTIONS.

Based upon the newly discovered facts and arguments presented herein, Defendant motions this Court to reconsider its Order Overruling Defendant’s Objection to the Appointment of David C. Farmer as Successor Trustee, and Denying Accompanying Motions.

III. MOTION FOR SANCTIONS AND DAMAGES.

In the event that Plaintiff and Defendant are unable to negotiate a fair and reasonable settlement of this complex, costly and long-running case, Defendant hereby motions that the Court sanction Curtis Ching, Gayle Lau, Carol Muranaka, Mary Lou Woo, James B. Nicholson, David C. Farmer, Steven Guttman, Gregory Dunn, Bradley Tamm, Roy Hughes, and Arnold Phillips for misconduct and contempt of court, and that Defendant be awarded Damages under 11 U.S.C. § 329 (31) for misconduct by attorneys, and against the United States Department of Justice (32) under Hawaii Revised Statutes Vol. 13, Chap. 634F (33) for violation of Hawaii’s anti-SLAPP statute.

DATED: Springfield, Kentucky, November 5, 2007

_____________________________

BOBBY NORRIS HARMON,

Defendant

Internet References:

1. http://www.kycbs.net/CV05-00030-Witness-Farmer-David.htm

2. http://www.kycbs.net/CV05-00030-Witness-Guttman-Steven.htm

3. http://www.kycbs.net/CV05-00030-Witness-Faris-Robert.htm

4. http://www.kycbs.net/MM-Mercer.htm

5. http://www.kycbs.net/Aloha-Air.htm

6. http://www.kycbs.net/RICO-BH.htm

7. http://www.kycbs.net/MarshBirds.htm