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The Honolulu Advertiser
Posted on: Monday, September 1, 2003

ISLAND VOICES
Gas firm lawsuit just was not there

Richard T. Bissen Jr. is first deputy attorney general for the state of Hawai'i.
By Richard Bissen Jr.

Shortly after her inauguration, Gov. Linda Lingle instructed us to investigate allegations that had been leveled against ChevronTexaco several months earlier by two accounting professors. If we found credible evidence to support these claims, we were to follow through with a tentative decision made by the Cayetano administration to file a lawsuit.

We conducted this investigation in conjunction with Winston & Strawn, a national law firm that had signed an agreement with the Cayetano administration to sue for a contingent fee. The agreement also provided that the law firm would pay all costs of the litigation out of its own pocket.

Despite initial optimism that a favorable recovery could be obtained, after examining all the evidence, Winston & Strawn concluded that it would not put its name on a complaint, and would not participate in a lawsuit, even if paid on an hourly basis. According to the firm, the state did not have a viable claim against ChevronTexaco.

Michael Green, although designated as local counsel, played no role in the investigation of this matter.

In a commentary on Aug. 21, Sen. Ron Menor questioned our decision to not sue ChevronTexaco and, citing statements made by Mr. Green, said we tried to prevent communications between him and lawyers involved in the investigation. We do not know what transpired in conversations between Mr. Green and Sen. Menor. Nor do we know what was said between Winston & Strawn and Mr. Green. We do know, however, that Mr. Green was never instructed by anyone in the Department of the Attorney General to not communicate with Sen. Menor, and that Winston & Strawn was only cautioned to strictly maintain all confidential and privileged information as required by law.

Mr. Green did suggest in legislative hearings his belief that the state had a strong case against ChevronTexaco. Because Mr. Green did not personally participate in the investigation and lacks extensive background in complex tax matters, one can only conclude that his opinion, like that of Sen. Menor, rested solely upon the speculation of professors, rather than the law or the facts.