COM 0634.002 1996-1998 - Laserfiche WebLink

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The Honorable James Y. Arakaki Page 2 January 22, 1998 As you know, our office was disqualified from providing legal services in both cases. In the Kovno case, Mr. Richard Wurdeman was a named defendant which created a conflict of interest. In the Silva case, our office received two (2) opinion letters disqualifying our office from representing the County. Our office was of the opinion that based on the record of the previous "Guy Paul" lawsuits, it was in the County's best interest to pursue him as an adverse party. The Office of the Disciplinary Counsel advised our office in two (2) separate letters that because of our office's representation in the prior "Guy Paul" cases in which the County indemnified and represented former Chief Guy Paul, the County could not take an adverse position against him. The County's legal obligations and anticipated costs in this and the next fiscal year creates a need for this supplemental appropriation. Our office is in the process of making the last payments to legal counsel in the Silva case. Based on allegations about over billing, our office has nearly completed a review of all bills for legal services by all attorneys in this case. The initial review of the billings indicates that negotiations will be held for reductions in fees and costs. For example, Mr. Brian DeLima has graciously volunteered to reduce his fees by $5,000. The police officers in the Silva case have now refiled their common law claims in the Third Circuit Court. The County was served with the complaint on January 14, 1998. The attorneys for all defendants anticipate filing a motion to dismiss the complaint for violating the applicable statute of limitations. This argument was raised in the federal district court, but the court chose not to rule on this particular issue. The work on this motion has already been done in substantial part. Based on some of the concerns raised by the Council and the Accounts Division, our office intends to proceed in a different manner concerning the anticipated costs of this case. All counsel for defendants have been requested to submit an estimated budget for litigating the Silva, case. The estimates will be based on two (2) different scenarios: (1) Full trial, which includes an abbreviated discovery schedule, since a substantial amount of discovery has already been conducted and preserved in the federal case; and (2) The cost of litigating the present case only on the motions and appeal. Additionally, the office will ask the Council to set higher ceilings concerning the amount appropriated for the individual attorneys. It should be noted that the United States District Court, will hear the County's motion for reimbursement of fees and costs on February 26, 1998 at 10:00 a.m.. The Office of the Corporation Counsel respecU~ully requests the Hawaii County Council to pass the supplemental budget request for $750,000 for Account No. 010-131-5131.10-115 Special Counsel & Settlements. The Office of Corporation Counsel is confident that either by motion or as a result of trial, there will be no liability on the part of the County. Moreover, the County's willingness to continue to fight this case will finally end a long string of settlements arising from former Chief Paul's administration.