The attorney for Bishop Estate says
By Gregg K. Kakesako
the idea is 'unwarranted and inappropriate'
Star-BulletinBishop Estate attorney Nathan Aipa today described the latest action by its critics, who called for the attorney general to place the estate in receivership, as "wholly unwarranted and inappropriate." However, Attorney General Margery Bronster says she is still concerned that she isn't getting enough information from Bishop Estate.
Bronster added that she doesn't know whether it is appropriate at this time to ask the probate court to place Bishop Estate into receivership, taking the operations of the $10 billion, private charitable trust out of the hands of its current five-member board of trustees.
Aipa said the actions by the authors of the "Broken Trust" critical essay "illustrate the contradiction between what they say and what they do. If they are truly interested in the best interest of Kamehameha Schools/Bishop Estate, they would likewise want to ensure that KSBE's operations continue until there are factual conclusions reached and positive solutions proposed."
"Placing KSBE in receivership is the latest abrogation of Pauahi's will which this group is proposing. The sanctity of her will and institution of the Board of Trustees should not be influenced by the whims of individuals or groups who chose to pander to public opinion."
The Bishop Estate trust was created in 1884 by the will of Princess Pauahi Bishop to fund the education of Hawaiian children.
Bronster said she appreciates "people sharing their ideas with me and we are looking at a lot of different issues. Whether or not it is appropriate at this time to request a receiver is something I want to sit down and look at."
Bronster said she is still concerned that Bishop Estate attorneys aren't willing to provide information that is crucial to her investigation. She was referring to actions by Bishop Estate attorneys last week in court seeking a protective order to protect its internal records from the public and the media. A hearing on the estate's motion is set for Oct. 2.
She said she doesn't know if the attorneys "are working for the best interests of the estate or best interests of individual trustees. Clearly, trustees cannot use trust assets to benefit themselves. One of the most fundamental responsibilities of a trustee is that they should be looking after the interest of the estate itself."
However, Aipa, in a written statement, maintained that Bishop Estate "has made every effort to cooperate" with Bronster's investigation. Estate attorneys in the past have maintained that all they want from Bronster is her assurance that none of the documents they turn over will become public.
Today, Aipa charged that it has been Bronster who has been "reckless" in her conduct by insisting on issuing subpoenas for estate records and refusing an estate offer to certain records.
By conducting her inquiry according to court-endorsed guidelines, "the attorney general can have instant and complete access to KSBE records."
"She (Bronster) can proceed in a fashion which would minimize disruptions to our education and business operations. Instead she has acted recklessly and in doing so, breached her responsibilities as 'parens patriae' to act in the best interest of KSBE."
Aipa said that "media accounts and allegations are not facts and should not be the basis for legal actions. KSBE is involved in fact-finding and is currently before the courts in serious attempts to resolve issues in dispute in an objective and fair fashion."
The estate wants to keep from the media and public employee information, such as Social Security numbers; appraisals of estate property; contracts with other companies, and studies.
Last month Gov. Ben Cayetano asked Bronster to investigate the way the five Bishop Estate trustees have managed the 110-year-old institution.
Bishop Estate Archive
The text of the response
of Bishop Estate’s attorneyHere is the complete statement from Nathan Aipa,
general counsel for Kamehameha Schools/Bishop Estate,
in response to a call for a receiver to immediately
take over the affairs of the Estate.
The action being proposed is wholly unwarranted and inappropriate.KSBE has made every effort to cooperate with the attorney general's inquiry. We have offered her immediate access to our records here at the estate. She has repeatedly refused this offer.
While we have been accused of prolonging this process, it was the attorney general who chose not to contact the estate for several weeks, the attorney general who insisted on issuing subpoenas and the attorney general who has been reckless in her conduct.
By conducting her inquiry according to court-endorsed guidelines already in place, the attorney general can have instant and complete access to KSBE records. She can proceed in a fashion which would minimize disruptions to our educational and business operations. Instead, she has acted recklessly and in doing so, breached her responsibilities as parens patriae to act in the best interest of KSBE.
Media accounts and allegations are not facts and should not be the basis for legal actions. KSBE is involved in fact finding and is currently before the court in serious, genuine attempts to resolve issues in dispute in an objective and fair fashion.
The latest actions by the Roth group also illustrate the contradiction between what they say and what they do.
If they are truly interested in the best interest of KSBE, they would likewise want to ensure that KSBE's operations continue until there are factual conclusions reached and positive solutions proposed.
Placing KSBE in receivership is the latest abrogation of Pauahi's will which this group is proposing. The sanctity of her will and the institution of the Board of Trustees should not be influenced by the whims of individuals or groups who chose to pander to public opinion.
Bishop Estate Archive
