By Star-Bulletin Staff

Saturday, May 30, 1998

Will Estate move
HQ to mainland?

Bishop Estate trustees are
talking about a possible move

Would Bishop Estate move its headquarters to the mainland?

Bishop Estate spokesman Kekoa Paulsen confirmed that trustees have discussed moving to the mainland, but said the idea is only at the "talk-story stage." He stressed that no formal action has been taken in the boardroom.

The June issue of Honolulu magazine quoted Bishop Estate trustee Lokelani Lindsey as saying the estate was looking to relocate its offices to the mainland.

"We don't want to work in a place where we're not wanted," the magazine quoted Lindsey as saying.

Paulsen said there could be some cost savings in relocating, and the legal and regulatory environment could be more relaxed there than in Hawaii.

Attorney General Margery Bronster is investigating allegations of financial wrongdoing by individual trustees. Trustees also have been criticized by Kamehameha Schools students, alumni and parents, and by community leaders. The estate operates the Kamehameha Schools for children of Hawaiian ancestry.

Paulsen said the nonprofit trust would not move any of its educational programs to the mainland and would continue to maintain its local real estate operations and other investments in Hawaii.

"Right now it's just one of those mental-gymnastics things, a what-if question," Paulsen said. "The trustees are responsible for looking at what is in the best interest of the trust."


Judge orders Lindsey
to testify, give records

Attorneys for two rival Bishop Estate
trustees blame her for delays

Bishop Estate trustee Lokelani Lindsey must testify before attorneys for trustees Gerard Jervis and Oswald Stender between June 8-10, a state judge has ruled.

Circuit Judge Kevin Chang yesterday also ordered Lindsey to produce by Friday all nonprivileged documents that were requested by Stender and Jervis.

The dispute over Lindsey's deposition and the related documents is the latest in the ongoing legal battle between the estate's trustees.

Jervis and Stender in December petitioned the state courts for Lindsey's removal from the estate's five-member board, saying she breached her fiduciary duties and was unfit to serve.

Attorneys for Jervis and Stender said that Lindsey is delaying the legal proceedings, but Lindsey's attorney David Gierlach denied the charge. A trial has been set for November.

Crystal Rose, Stender's attorney, yesterday said Lindsey's deposition previously was scheduled for May 14 but was pushed back by Lindsey's attorneys, delaying the proceedings.

Many documents sought by Stender and Jervis have not been turned over either because they were claimed as privileged or had been turned over to the estate's attorneys, she added.

Of the 63 documents that were requested, Lindsey and her attorneys have not turned over 24, said Rose. The requests include:

Bullet Information about trips or travel vouchers paid for by Xerox Corp., which is a vendor to the estate. Last year, KITV News reported that Lindsey and several staffers received free travel from Xerox to the 1996 Olympics Games in Atlanta.

Bullet Any documents relating to public or private reprimands of Kamehameha Schools staffers, students or administrators by Lindsey.

Bullet Videos and lists of names of people who took part in a march in May 1997 to protest the management of Kamehameha Schools.

Bullet Records compiled by local private investigator Hilton Lui, who was hired by two of Lindsey's attorneys, William Harrison and Keith Matsuoka. Lui, an ex-FBI agent, told the Star-Bulletin in February that he discovered instances of wrongdoing by several Bishop Estate trustees.

Bullet Lindsey's personal files on fellow trustees Jervis, Stender, Richard Wong and Henry Peters.

Gierlach said Stender and Jervis were on a "fishing expedition." He said some of the documents requested by the two trustees are privileged and declined further comment.

Gierlach also noted that Lindsey's deposition had been pushed back only because he and his partner were new to the case.

Bishop Estate archive

Aquaculture survives,
minus 4 jobs

Some warn the $39 million industry
loses experience, economic ground

The state Legislature rescued the state Aquaculture Development Program from Gov. Ben Cayetano's proposed axing but abolished almost 40 percent of its staff.

The governor had recommended eliminating the program's operating funds and 10 of its 11 positions by Dec. 31.

Aquaculture officials and industry leaders say they're happy the program was saved but don't understand why four vital positions were eliminated. Even with funding cut in half in the last three years, "We managed to save the staff, our most valuable asset," said John S. Corbin, manager of the program in the state Department of Land and Natural Resources.

If Cayetano signs the bill, the program will be transferred to the state Agriculture Department with seven positions. The economic development, aquaculture and information specialists and clerk-typist positions were abolished.

Said C. Richard Fassler, the economic development specialist, "It is difficult to understand how this happened, given the enormous promise of our aquaculture industry, the very strong public support from all sectors of the state over the past four months and the governor's enthusiasm for marine biotechnology."

Guide dogs for blind can skip quarantine

It took a five-year legal battle, but when Patricia Blum -- who is legally blind -- travels to the mainland in two weeks, she won't have to leave her guide dog, Sultan, behind.

Blum was one of the plaintiffs in a class-action lawsuit on behalf of blind guide-dog users who challenged Hawaii's rabies quarantine laws as a violation of the Americans with Disabilities Act.

The lawsuit was settled out of court in January, and this week Gov. Ben Cayetano signed new rules that allow guide dogs into Hawaii without being confined in quarantine.

The new rules go into effect on June 6.

Blum will be the first person to take advantage of the new rules when she flies to San Francisco on June 13 to visit a new grandson.

The rules apply only to animals that are graduates of an approved guide-dog school.

The dogs must have an identifying microchip implanted and three blood tests for rabies and the rabies vaccine.

When they return, they then will be permitted to stay at a home or hotel approved by the state Department of Agriculture instead of being confined in the quarantine station.

By Rick Bernico, special to the Star-Bulletin
A crane toppled over on the H-1 freeway today, and
seconds later was hit by a car going in the
eastbound direction.

Crane topples on H-1, three injured

Three people were injured today when a Hawaiian Dredging Construction Co. crane carrying a heavy concrete block toppled over on the H-1 Freeway.

Police said the incident occured at about 9 a.m. in an eastbound lane near the the exit to Hickam Air Force Base.

A Nissan Sentra hit the crane's boom just seconds after it had fallen, police and witnesses said. Two people were pulled from the mangled car and taken to Queen's Hospital in guarded condition.

A sports utility vehicle rear-ended the car, injuring a third person who also was taken to the hospital.

"It's not too often you see a road accident with a piece of heavy equipment," said Sgt. Gordon Costa.

Kenneth Blair, 20, said he saw the crane topple.

"It was nothing I had ever imagined seeing," he said. "Slowly, the two legs came off the ground and then -- boom! -- it went straight down."

Blair said the driver of the crane jumped out, visibly shaken, and ran to the Sentra to help the injured couple.

Police said the incident is being classified as a motor vehicle accident.

The crane was working on construction of a so-called "zipper lane," in which a conveyer will create contra-flow lanes using a moveable concrete barrier.

Another crane was brought in to right the fallen one.

See expanded coverage in Saturday's Honolulu Star-Bulletin.
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