HomeMy WebLinkAboutCOM 0047.001 2008-2010+`~ "••., Lincoln S.T. Ashida
`~-" ~` Co oration Counsel
William P. Kenoi ~ ~
Mayor .' Gerald Takase
.~,r ,.~~. Assistant Corporation
• ~'~~ '09 JRDbon~ei P 1 :17,Dti
COUNTY OF HAWAII
OFFICE OF THE CORPORATION COUNSEL
101 Aupuni Street, Suite 325 Hilo, Hawaii 96720-4262 (808) 961-8251 Fax (808) 961-8622
January 2, 2009
Sent via email and hard coav
Honorable Dominic Yagong
Chair, Committee on Finance
Hawaii County Council
333 Kilauea Ave., 2n0 Floor
Hilo, HI 96720
Dear Chairman Yagong and Finance Committee Members:
RE: Communication 47
It is an honor to appear before the Hawaii County Council Committee on
Finance seeking confirmation as Corporation Counsel for the County of Hawaii. This
letter provides information on our office philosophy as expressed in the enclosed
strategic plan and our goals and objectives for the future.
The whole is greater than the sum of all parts
This philosophy is not rhetoric, but has evolved into culture within our office. All
team members understand and appreciate how the value of their work when well done,
has exponential benefit for our office, County and clients.
When I began work with the County in 1987 as a Deputy Prosecuting Attorney,
there were 13 deputy prosecutors and 12 deputy corporation counsels in our County. In
December of 2000 when our office administration began service, the Prosecutors had
grown to 25 deputy prosecutors as compared to only 13 deputy corporation counsels.
Today there are 32 deputy prosecutors and still only 13 deputy corporation
counsels.' The Corporation Counsel has not grown in proportional number to our
criminal law brethren in the County. The growth of the Corporation Counsel has beeri
the recruitment and development of the best and the brightest; attorneys and staff with a
deep commitment to work together as a team, no matter what the status of our
resources.
Comm. Ng: T
Ref. To: L
Data provided by the Department of Human Resources, County of Hawaii. Ref
Hawaii County Is an Equal Opportunity Provider and Employer
Date~___ 2D.D~
Honorable Dominic Yagong
January 2, 2009
Page 2
At Corporation Counsel, I am grateful to be a part of the best office and team in
the County where capacity is not measured by the number of bodies in an office, but the
spirit, desire and commitment within those bodies, and the willingness to be part of a
team. Team members are very busy; make no mistake about that. But it is the attitude
and sensitivity with which they approach their work that allows us to create a bigger and
better whole.
What is "Preventive Lawyering?"
The County has over 2,300 employees who service an island population of over
170,000 citizens spread over 4,000 square miles. From transfer stations to roads and
highways to police and fire protection, our County is truly the "frontline" service provider
in our community.
Inevitably the dispensing of service does come with the risk of liability. Our office
recognizes this, and emphasizes "preventive lawyering." This is the diametrical
opposite of "reactive lawyering;" i.e., damage control when the mud has already hit the
fan. We recognize the very best preventive lawyering is accomplished by following this
basic recipe:
1. Establish, build and maintain the trust of your client.
2. Be there and listen to your client and understand his/her needs.
3. Help your client through training, training, and training.
Since 2000, our office has made training our County clients a top priority. We
accomplish this through direct in-service training provided by our attorneys, annual
training provided by our attorneys, and the coordination of external training by our
attorneys.
Our office maintains a database of all training provided or coordinated through
the Corporation Counsel since the beginning of our office administration, together with a
list of County officers and employees who have attended. Please contact me if you
would like to see these records, including the nature of the training provided.
The Corporation Counsel's Annual Statewide Municipal Attorneys Training
Conference will be entering its seventh year this summer. In a short period of time, this
training has become the premier training in fhe State of Nawai'i for government
attorneys, department heads, and management executives and staff. Additionally, staff
from the Office of the County Clerk and other legislative representatives throughout our
State have benefited from this trainin~ as well. Following the model developed by the
National College of District Attorneys, all faculty members whether from our State or
the mainland provide their service pro bono at an absolute cost of zero dollars to our
taxpayers.
' The National College of District Attorneys is the training arm of the National District Attorney's
Association.
Honorable Dominic Yagong
January 2, 2009
Page 3
Show me the money
News stories of the government, whether federal, state or county having to pay
large sums of money in court verdicts or settlements normally dominate media
headlines. As a reporter friend of mine once said, "That is news."
The County of Hawaii is no exception. We provide a wide variety of services to
our residents and we are dependent primarily upon real property tax revenues to fund
these services and programs. We cannot completely avoid those instances where a
mistake or accident has occurred and we will be responsible for paying damages.
Unfortunately, many of our fine County employees become the focus of the media's
attention when they are involved in an unfortunate incident and the County is liable as
the employer, and these are the stories that are our "news."
The mission of~our office in risk management is to work towards "zero liability" as
the goal, while still actively providing services in our community. We embark upon this
mission through the training of our clients.as described above. Another significant part
of this work involves the identification of those claims made against the County that are
frivolous or exorbitant. We do this through providing the County the best legal service
and making our clients feel they would not want to "hire" anyone else, even if they had a
choice. It is part of a gradually shifting paradigm of recognition that the very best
attorneys are those who represent and defend our County. These are your lawyers,
and we are proud and eager to serve you.
In 2005, the total amount in claims paid out by the County was $28,217.90.3 In
2006, total claims paid were $172,230.38. In 2007, total claims paid were $219,479.06.
For 2008, claims paid so far total $77,774.80. The increase in the settlement of claims
in 2006 and 2007 represent an effort to negotiate prompt and fair resolutions to those
cases that would otherwise blossom into a lawsuit. The speedy resolution of
meritorious claims not only justly compensates the claimant, but avoids attorney fees
and costs and other expenses related to protracted litigation.
However what should be "news" within our County that does not get reported in
our media is the success of our collections that offset the monies paid out in claims. In
2007 total monies collected by the Corporation Counsel was $793,965.82. For 2008
collections are already at $2,513,810.30. These monies will be deposited directly into
the County General Fund (or to the Department of Water Supply for those collections
related to delinquent water service). This is expressed graphically in the following table.
' This figure represents total claims paid of $45,929.43, less $17,711.53 in claims collected by the
County. Similarly, figures for 2006, 2007 and 2008 are net totals.
Honorable Dominic Yagong
January 2, 2009
Page 4
zs ..... _.... ._.. _ _ ...
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2005
2006
®Claims paid (in hundreds of
thousands)
=Collections (in hundreds of
thousands)
For major litigation cases, in 2007 a total of $1,943,816.98 was determined
payable by the County in settlements or court verdicts. This represented 10 cases
where lawsuits had been filed in the years 2002, 2004, 2005, 2006 and 2007. The
major case resolved during 2007 was Eleanor Quiocho v. County of Nawai'i, a tort case
from 2002 alleging the County was negligent when ahigh-speed police chase caused
the death of a single mother at an intersection in Hilo ($1.5 million).
However in 2007 a total of 15 major lawsuits filed in years 1998, 1999, 2002,
2003, 2004, 2005, 2006 and 2007 were dismissed without any payment by the County.
The total monetary damages claimed (and the County's potential financial exposure) in
these cases was in excess of $267 million.°
In 2008, a total of $6,142,300.00 was determined payable by the County in
settlements or court verdicts. This represented 9 cases where lawsuits had been filed
in the years 2002, 2003, 2004, 2007 and 2008. Major cases resolved during this year
were Shannon Caceres v: Albert Pacheco, a wrongful death case from 2002 wherein a
former police officer shot and killed his estranged wife with his police handgun
($700,000}; Mark De Reus v. County of Hawaii, a motor vehicle accident case where a
Department of Environmental Management employee rear-ended a vehicle causing a
multi-car collision and personal injury ($3.4 million); and Emory Springer v. County of
Hawaii, a 2002 lawsuit brought under the Fair Labor Standards Act, alleging the County
of Hawaii had failed to properly calculate and pay overtime benefits to its union
employees ($6.1 million).5
However in 2008, a total of 11 major lawsuits filed in years 2002, 2003, 2004,
2005, 2006, 2007 and 2008 were dismissed without any payment of money by the
° Of the $267 million In claimed damages for cases resolved in 2007, a demand of $264 million was made
by the Hokuli a property owners in their lawsuit filed against the County. The County successfully
obtained a voluntary dismissal of the case by the Court without any monetary payment required of the
County.
s The De Reus and Springer cases involved structured settlements wherein the total amount was payable
over time. For De Reus, payments are to be made in four installments. For Springer, payments are to be
made in five installments. This is why these figures represent amounts "determined payable" by the
County, since the actual payment by the County during the year was far less.
2007 2008 (through
November)'
Honorable Dominic Yagong
January 2, 2009
Page 5
County. Many of these cases never progressed to the pretrial stage where damages
were stated or otherwise pled, due to successful court motions filed by Corporation
Counsel attorneys. Based on conservative estimates, the total monetary damages
claimed (and the County's potential financial exposure) in these cases was in the
vicinity of $17.5 million.
The above information is expressed graphically in the table below. We have also
included information for 2005 and 2006 for comparison purposes.
®Damages claimed (in hundred
thousands)
=: Damages paid (in hundreds of
thousands)
2005
2008
Thank you for allowing our office to serve you
For the future, we have challenged each of our employees to look within
themselves and look at innovative ways our office may improve our service to our
clients. We recognize "We are never there," and complacency becomes the enemy of
progress and ultimately client satisfaction.
There is no greater labor than service. It is an honor and privilege to work in
County government and to serve the residents of our island home. We look forward in
working together with our Council and atl of our County clients for the benefit of our
community:
Very truly yours,
LINCO~SHIDA
Corporation Counsel
Encl.
c: All Council Members (w/ encl.)
LF: WRK 08-3138 1-2-09 Letter to CounciULSAmr
2006 2007
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