Friday, August 27, 1999

Judge denies
Lindsey’s petition
to dismiss

The A.G.'s office now can pursue
millions of dollars in penalties

Rick Daysog


The state attorney general's office can pursue millions of dollars in penalties against former Bishop Estate trustee Lokelani Lindsey under a ruling by state judge today.

Probate Judge Kevin Chang rejected a petition by Lindsey seeking to dismiss the state's suit to remove and surcharge Lindsey for alleged breaches uncovered during its two-year investigation of the Bishop Estate.

Lindsey's lawyer, David Gierlach, said the state erred in not raising issues relating to the potential surcharges against Lindsey during the five-month trial before Circuit Judge Bambi Weil that resulted in Lindsey's permanent removal from her $1 million-a-year post.

Gierlach argued that Lindsey should not be retried for issues raised the removal trial. That trial was initiated by a suit filed by then-trustees Oswald Stender and Gerard Jervis.

Daniel Morris, deputy attorney general, said the state is seeking "tens of millions of dollars" in surcharges against the former trustees of the Bishop Estate for taking excessive compensation, making "ill-advised" investments and for fees to its attorneys and outside consultants.

Dismissing the state's claims against Lindsey would deprive the beneficiaries of the Bishop Estate of potential claims not raised in the Lindsey removal trial, Morris said.

The state's claims against Lindsey are among several surcharges she potentially faces. Attorneys for Stender and Jervis are seeking payment for their legal fees relating to the Lindsey removal trial, and the attorney general's office has asked the court to dock Lindsey for the legal charges.

The Internal Revenue Service, after a four-year audit of the Bishop Estate, also may seek individual claims against Lindsey.

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