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The Honolulu Advertiser
Posted on: Thursday, April 24, 2008

ADMISSIONS SUIT
Kamehameha wants $2 million returned

By Jim Dooley
Advertiser Staff Writer

Hawaii news photo - The Honolulu Advertiser

Paul Alston

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ABOUT THE CASE

June 2003: On behalf of an unnamed non-Hawaiian student, identified only as John Doe, attorneys John Goemans and Eric Grant file a civil-rights lawsuit disputing Kamehameha's admissions policy.

August 2003: A federal court orders Kamehameha Schools to enroll a non-Hawaiian boy, 12-year-old Brayden Mohica-Cummings, until a final verdict on the admissions policy is made.

November 2003: U.S. District Judge Alan Kay decides against John Doe, ruling that Kamehameha Schools can continue its Hawaiians-preference admissions policy because of its unique and historical circumstances.

November 2003: Trustees for Kamehameha Schools approve a settlement allowing a seventh-grade non-Hawaiian student to continue attending the private school until he graduates. In exchange, Grant and Goemans, the lawyers for Mohica-Cummings, agree to drop one of their two federal court challenges to the school's admissions policy. The two lawyers appeal Kay's John Doe ruling.

Aug. 2, 2005: By a 2-1 vote, a panel of the 9th U.S. Circuit Court of Appeals decides in favor of John Doe, ruling that Kamehameha's admissions policy constitutes unlawful racial discrimination and throwing the 120-year-old policy into limbo. A week later, the same three judges deny a request by John Doe to be admitted in the fall, pending an appeal by the school.

Aug. 6, 2005: About 20,000 Kamehameha students, alumni and other supporters rally on all major Hawaiian islands and the Mainland to show their support for the embattled school. At a major rally in Honolulu, thousands hear a string of fiery speeches before marching two miles to Mauna 'Ala, the Royal Mausoleum in Nu'uanu, where school founder Princess Bernice Pauahi Bishop is buried.

Feb. 22, 2006: The 9th Circuit grants Kamehameha's request for an en banc rehearing of its August 2-1 decision, essentially throwing out that decision pending a review by a larger panel of 15 judges.

Dec. 5, 2006: By an 8-7 vote, the full 9th U.S. Circuit Court of Appeals upholds Kamehameha Schools' longstanding policy aimed at only admitting students with Hawaiian blood.

March 2007: Doe's attorneys ask the U.S. Supreme Court to look at the legality of Kamehameha Schools' admissions policy.

May 14, 2007: Kamehameha Schools and Doe settle the lawsuit, which was pending before the U.S. Supreme Court.

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THE SCHOOLS

Kamehameha Schools, established under the 1884 will of Princess Bernice Pauahi Bishop, has assets of more than $9 billion and educates some 3,400 children of Hawaiian ancestry at campuses on O'ahu, Maui and the Big Island.

Another 30,000 students and adults were served through the schools' outreach programs and support of charter schools.

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Hawaii news photo - The Honolulu Advertiser

John Goemans

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Hawaii news photo - The Honolulu Advertiser

David Schulmeister

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Kamehameha Schools is trying to get back as much as $2 million of the $7 million it paid last year to settle a lawsuit that challenged its admissions policy favoring Hawaiian students, according to legal papers filed in federal court in California.

The papers are contained in new litigation filed after publication of an Advertiser news story in February that revealed that the settlement was $7 million.

The money was paid to a Big Island mother and child in return for their agreement to drop the lawsuit just before the U.S. Supreme Court was to decide whether it would hear an appeal of the case.

The plaintiffs, who have never been publicly identified and are known as Jane and John Doe, alleged in the California case that the schools "threatened" to publicly identify them if they did not place $2 million in an escrow account for possible return to the schools because terms of the confidential settlement had been revealed.

Ken Kuniyuki, a Hawai'i lawyer who now represents the pair, is alleging that David Schulmeister, an attorney for the schools, said that if the schools were forced to file suit over the issue, the names of the Does would become public.

Kuniyuki made the allegation in a sworn declaration filed this month in federal court in Sacramento, seeking a court order barring public identification of the plaintiffs.

Schools attorney Paul Alston denied that Schulmeister threatened to reveal the plaintiff's identities.

"Schulmeister told Kuniyuki that the (Kamehameha Schools/ Bishop Estate) believed the settlement agreement had been breached and that the estate was entitled to damages," Alston said in court papers filed April 14 in Sacramento.

"He further explained that a public lawsuit could make it difficult for the Does' anonymity to be preserved" and suggested that the $2 million be held in escrow while the parties discussed resolution of the dispute short of a lawsuit, according to Alston.

Alston stressed on Tuesday that Kamehameha Schools has not filed a lawsuit or taken any action that would publicly identify the Does.

"Kamehameha Schools is closely scrutinizing how to proceed," he said.

Tuesday night and yesterday, the Kamehameha Schools board of trustees and Chief Executive Dee Jay Mailer sent a mass e-mail to parents and alumni notifying them of the new legal skirmishing in California and alerting them that The Advertiser was preparing a story on the subject.

"A breach of confidentiality has occurred, and an investigation into the line of responsibility is in process. Legal action as appropriate shall follow," the trustees' e-mail said.

"It is aggravating to be drawn into this complicated and unsavory infighting," the trustees' message continued. "However, we will not allow this latest legal maneuver to distract us from our mission."

'FEAR FOR OUR SAFETY'

Jane and John Doe filed legal papers in Sacramento federal court denying any role in the release of the settlement figure by John Goemans, an attorney who used to represent them but who now is involved in a dispute over compensation for his services in the case.

Their attorney, Kuniyuki, also asked the federal court to issue a restraining order against all parties in the case preventing any attempts to disclose the identities of Jane and John Doe.

He attached an April 2 sworn statement from Jane Doe that said, "both John Doe and I fear for our safety if our identities are made public."

She noted that more than 1,550 reader comments were posted on the Advertiser's Web site following the February story that disclosed the settlement amount.

"Many of them are extremely critical of us. Some include threats of violence against us," she said.

"I have lived in Hawai'i for many years. The negative comments and threats posted to the Honolulu Advertiser's February 8, 2008 article are entirely consistent with my experience with many local residents regarding the admissions policy of the Kamehameha Schools."

If their identities become public, she said, "we are prepared to move and go into hiding."

Last week, following a hearing before U.S. District Judge Frank Damrell Jr., all parties in the federal court case stipulated that they would not disclose the true identities of the Does.

Goemans told The Advertiser in February that he believed the settlement amount should be a matter of public record, given Kamehameha Schools' status as the wealthiest and most influential nonprofit institution in Hawai'i.

ATTORNEY'S TROUBLES

In a separate civil case now pending in Sacramento state court, Goemans was sentenced earlier this month to serve eight days in jail and fined $4,000 for violating a court order to keep the settlement amount secret.

Goemans, 73, now living in Florida with his sister, said by telephone, "I have zero money, I have serious health issues, and now I've been ordered to serve an eight-day jail sentence in California in the middle of May. I don't know what's going to happen."

The California state case was filed against Goemans by Eric Grant, a Sacramento attorney who litigated the Does' lawsuit from the time it was first filed in Hawai'i in 2003 through its settlement in May 2007.

Under the terms of the settlement agreement, Grant was entitled to 40 percent of the $7 million total, or $2.8 million.

He sued Goemans in Superior Court in Sacramento last year to try to settle the outstanding question of how much Goemans should be compensated.

Goemans conceived the civil rights lawsuit against the schools, found the plaintiffs on the Big Island and brought them together with Grant.

Goemans said the only money he has received was a $20,000 loan from Jane Doe but believes he is entitled to as much as 25 percent of the total settlement, or $1.75 million.

According to documents filed in the California state case, Grant became concerned early this year that Goemans intended to reveal the amount of the legal settlement and on Feb. 5 obtained a court order against Goemans blocking any such disclosures.

Three days later, The Advertiser published a news story based on Goemans' statements about the settlement amount.

Goemans said in a sworn statement filed with the California court March 17 that he is "not medically or mentally 100 percent" and had no memory of being informed of the Feb. 5 court order.

"I want to emphasize to the court that it was not my intent to deliberately and knowingly violate the court's order," the statement said.

But he reiterated his belief that Kamehameha Schools, as a tax-exempt organization, should not and cannot keep the terms of the settlement confidential.

After the settlement terms were made public, Grant filed a new federal lawsuit March 28 in Sacramento against Kamehameha Schools and his own clients, Jane and John Doe, asking the court for a ruling that he was not responsible for the disclosure and has no financial liability because of it.

Grant and an attorney who represents him did not return telephone requests for comment.

Alston filed a lengthy legal memo in the case last week questioning the Sacramento court's jurisdiction in the matter since the Does and the schools are in Hawai'i.

Reach Jim Dooley at jdooley@honoluluadvertiser.com.