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Monday, August 2, 1999


Kailua merchant’s
home eviction ordered

By Peter Wagner
Star-Bulletin

Tapa

A Circuit Court judge has authorized the eviction of Kailua businessman Norman F. Frank from his Maunawili Estates home.

The order, approved last week by Judge Gail Nakatani, came after Frank's residential landlord, the Hawaiian Association of Seventh-Day Adventists, sought enforcement of an agreement Frank signed in January to buy the house or move out.

Frank, president of Capital Resources International, has occupied the property, at 1333 Lopaka Place, since 1987. The church last year sought his eviction for nonpayment of rent since September of 1997. But the action was put on hold when Frank signed the settlement agreement.

The Jan. 29 agreement stipulated Frank would either purchase the property for $450,000 by April 15 or vacate. Instead, Frank on April 15 filed for personal bankruptcy -- a move that put creditors and lawsuits at bay pending outcome of the bankruptcy.

Following challenges, including state and federal tax authorities, Frank withdrew from the Chapter 13 bankruptcy in May. State tax officials determined Frank hasn't paid income taxes in Hawaii since 1985. The Internal Revenue Service found it had no record of tax filings by Frank since 1990.

Frank, who remains in the home, owes $48,000 in back rent, the church says.

Meanwhile, Frank's company, Capital Resources International, is facing eviction at Kailua Town Center for nonpayment of rent. The company in January -- about two weeks before Frank signed his home-buying agreement -- filed for Chapter 11 bankruptcy.

The bankruptcy protected Frank's company from creditors, including the Pacific Union Association of Seventh-Day Adventists, then owed $180,000 in back rent at Kailua Town Center. The Pacific Union Association, property manager for the church, subleased Kailua Town Center to Capital Resources last March.

Frank's attorney, Gary Dubin, last week filed a complaint in Circuit Court claiming the church caused the bankruptcy of Capital Resources, which in turn caused Frank to lose a mortgage deal on the Maunawili property.

According to Dubin, the church did not inform Capital Resources of the impending departure of key tenant Foodland Super Market before Capital Resources signed a long-term lease on the property last March. The resulting loss of income caused Capital Resources to file for bankruptcy, which caused Frank to lose mortgage financing, Dubin's complaint says.



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