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Monday, April 10, 2000

Stender claim against
A.G. gets green light

By Rick Daysog


Former Kamehameha Schools trustee Oswald Stender can pursue legal claims against the attorney general's office, under a ruling by a state judge.

Probate Judge Kevin Chang on Friday denied a motion to dismiss Stender's counterclaim which alleges that the attorney general's office neglected its duty to protect the interests of the $6 billion charitable trust.

Chang denied the dismissal request on procedural grounds, saying the state filed affidavits and exhibits that were outside the scope of their request.

The ruling was made without prejudice, meaning that the attorney general's office can file a new dismissal request, which Deputy Attorney General Hugh Jones said the state is considering.

The state previously alleged that Stender did not do enough to prevent breaches of trust by the former trustees of Kamehameha Schools, and has sued Stender and former $1 million-a-year board members Richard "Dickie" Wong, Henry Peters, Lokelani Lindsey and Gerard Jervis for surcharges.

Stender has alleged that the attorney general's office, which serves as the legal guardian for charitable trusts in Hawaii, failed to prevent alleged breaches of trust by the former trustees prior to 1997.

Stender said he asked the office to investigate the former trustees back in 1992 and 1995, but the state failed to take action.

The surcharge lawsuit is set for a September trial.

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