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Golf teacher
wins suit against city,
gets $1 damages

By Debra Barayuga
Star-Bulletin

A U.S. District Court jury has found the city breached its contracts with a former concessionaire at four of its municipal golf courses.

But after deliberating 3-1/2 days, the jury awarded Terry Gorham only $1 in damages. And they also absolved city golf course Administrator David Mills of allegations he bribed Gorham in exchange.

Gorham returned to Oklahoma for a family emergency and was not present for the jury's verdict yesterday. His attorney, Steven Jacobson, said he will ask for a new trial on the damages.

The jury found that the city failed to give Gorham access to the courses to provide on-course golf lessons. Gorham contended the city's actions lost him an estimated net income of $4.1 to $4.5 million at the Makalena, Pali, Ala Wai and Ewa Villages courses.

The city conceded there were breaches on certain contracts but disputed the amount of damages, saying it should be lower and urged the jury to award Gorham only $1, said Deputy Corporation Counsel Wyeth Matsubara, noting they are "very relieved" over the outcome of the trial.

The city contends Gorham didn't even give it a try. The city had offered Gorham on-course times at Ala Wai before he filed suit to see if he could come through.

"We all wanted him to succeed," said Mills after the verdict.

But Jacobson said the city's offer was limited to the Ala Wai course, at the end of the day and during a 90-day period.

Providing on-course lessons was a new concept and whether it would have succeeded or not was questionable, said Deputy Corporation Counsel Randall Ishikawa.

"It's not clear whether there was such a market and what his underlying costs would be."

Honolulu's municipal courses are set up for fast play and on-course lessons don't fit into the city's goal to provide as much play or greatest access to the public, Ishikawa said.

Ala Wai is one of the highest-volume municipal courses in the world. Gorham's position was since it's so popular, the demand for play should equal demand for lessons, Ishikawa said.

After speaking with jury members who were split 6-to-3 in favor of the $1 in damages, Matsubara said jurors had concerns whether playing lessons would have been a viable program and whether Gorham could have made as much profit as he claimed.

Gorham held separate five-year contracts to run the driving range and pro shops at Makalena, Pali, and Ala Wai Golf Course and a two-year contract at Ewa Villages Golf Course, the earliest contract beginning in 1996.

The city terminated Gorham's contract at Ala Wai in July 1997 for failing to pay rent. Gorham claimed he turned over the remaining contracts to the city since he wasn't allowed access to the golf courses.

The jury denied the city's countersuit for three months of unpaid back rent at Ala Wai totaling $33,000. Gorham had disputed the back rent because he felt the city had breached his contract.

Mills said he felt vindicated that the jury did not believe the allegations of bribery brought against him by Gorham, saying "it's been a tough three years."

Gorham contended that Mills interfered with his contracts by not letting him on the course. Gorham alleged part of Mills' motivation was because he had refused to build a roof over a swimming pool at Mills' Kailua home or buy him a car, Matsubara said. Mills contends it never happened.

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City & County of Honolulu