Pedrina v. Chun

• Decision Date: 27 June 1995
• Docket Number: No. 89-00439 ACK.,89-00439 ACK.
• Citation: 906 F. Supp. 1377
• Parties: Raymond PEDRINA, et al., Plaintiffs, v. Han Kuk CHUN, et al., Defendants.
• Court: U.S. District Court — District of Hawaii

906 F. Supp. 1377

Raymond PEDRINA, et al., Plaintiffs, v. Han Kuk CHUN, et al., Defendants.

No. 89-00439 ACK.

United States District Court, D. Hawai`i.

June 27, 1995.

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Anthony P. Locricchio, Kailua, HI, for plaintiffs.

James Bickerton, William Ramos-Saunders, Honolulu, Hawaii, for William McCorriston.

Chang Mui Chang & Chock, T. Irving Chang, Allan S. Chock, Honolulu, Hawaii, for Robert Carter.

Richard D. Wurdeman, Rodney Veary, Alice M. Fent, Deputies Corporation Counsel, Honolulu, Hawaii, for defendants.

Alston, Hunt, Floyd & Ing, Honolulu, Hawaii, for Tetsuo Yasuda, Yasuo Yasuda, Eiman Yamamoto.

Davis & Levin, Stanley E. Levin, Honolulu, Hawaii, for Masanori Kobayashi and Yoshinori Hayashida.

Matsubara Lee & Kotake, Mervyn M. Kotake, Honolulu, Hawaii, for Hiroshi Kobayashi.

Fujiyama Duffy & Fujiyama, James Duffy, Jr., Nancy Ryan, Honolulu, Hawaii, for George Hong.

Gene Lum, Honolulu, Hawaii, pro se.

Fujiyama, Duffy & Fujiyama, Wallace S. Fujiyama, James E. Duffy, Jr., Ralph R. LaFountaine, Honolulu, Hawaii, co-counsel, for Frank F. Fasi.

Warren Price, Steven Michaels, Honolulu, Hawaii, for Paty, Aki, Waihee, State Defendants.

Eric Kim, Arnold Hobson, Jr., Honolulu, Hawaii, for Community Planning.

Thomas Lavigne, Kaneohe, HI, for Plaintiff.

Steven Nakashima, Robert Hackman, Goodsill Anderson Quinn & Stifel, Honolulu, Hawaii, for Ernest Souza.

Gilbert & Jeynes, Robert Carson Godbey, Honolulu, Hawaii.

Robert Carter, Kailua, HI.

Gene Kung Ho Lum, Tulsa, OK.

Jupiter Rex Uraniumumrhi, Kailua, HI.

ORDER GRANTING IN PART AND DENYING IN PART DEFENDANTS' MOTIONS FOR SUMMARY JUDGMENT AND GRANTING SUMMARY JUDGMENT FOR ALL DEFENDANTS

KAY, Chief Judge.

BACKGROUND

This action arises out of Defendant Y.Y. Valley Corporation's ("YYVC") attempt to relocate and evict Plaintiffs,¹ who were tenants at will on land purchased by YYVC. In 1986, Royal Hawaiian Country Club, Inc. ("RHCC"), a subsidiary of YYVC, applied for and was granted a Conditional Use Permit ("CUP") from the Director of the Department of Land Utilization ("DLU") of the City and County of Honolulu, allowing the corporation to develop a golf course and country club on the property. Approval of the CUP was granted on the condition that the agricultural tenants presently located within the project site be offered an opportunity to relocate to an adjacent area. In 1986, YYVC sought city approval of a relocation plan which provided tenants living on the proposed project site an opportunity to relocate to an adjacent area under 10 year leases. Tenants living on adjacent areas were likewise included in the plan, although they were not generally required to vacate their current premises. After the city granted its approval on or about June 13, 1986, the corporation presented the plan to the tenants. Some tenants accepted the offer; others did not, including all those who lived in the area which was to be developed. Tenants who did not accept the relocation offer were served notices to vacate the property and summary possession actions were brought against them.

Plaintiffs brought the current action against Defendants Han Kuk Chun, Tetsuo Yasuda, Masanori Kobayashi, Yoshinori Hayashida, Y.Y. Valley Corporation, Hiroshi Kobayashi, Eugene Lum, Norma Lum and former mayor Frank F. Fasi ("Defendants") under the Racketeering Influenced and Corrupt Organizations Act (RICO). 18 U.S.C. ?? 1961-68. In particular, Plaintiffs allege that Defendants violated ? 1962(c), prohibiting any person from conducting an enterprise through a pattern of racketeering activity and ? 1962(d), prohibiting any person from conspiring to violate any of the provisions of subsections (a), (b) and (c). To support their RICO claims, Plaintiffs alleged the following injuries:

a. loss of 10-year home/farm leases in Maunawili Valley which they are entitled to as third party beneficiaries of the Conditional Use Permit;

b. loss of 10-year home/farm leases in Maunawili Valley which they are entitled to as third party beneficiaries under an oral option contract;

c. injury to rights under the implied covenant of quiet enjoyment in that their intended use of the property was substantially interfered with in many ways, including not being able to make needed repairs;²

d. loss of crops and improvements which they are entitled to under a negative covenant in the deed through which YYVC obtained the property;³ e. the Wongs were robbed and their bull was shot;

f. certain Plaintiffs'⁴ interest in the property as adverse possessors was injured when they were evicted from the property.

As predicate acts establishing "racketeering activity," Plaintiffs allege that various Defendants committed bribery, robbery, state and federal extortion and mail fraud, and/or aided and abetted or conspired in those activities.⁵ With regard to their bribery claims, Plaintiffs' allege that Defendant/Developers (i.e., Y.Y. Valley Corporation, Han Kuk Chun, Tetsuo Yasuda, Masanori Kobayashi and Yoshinori "Ken" Hayashida) and Defendant Hiroshi Kobayashi made and conspired to make bribes to Defendant Fasi and other politicians in the form of illegal campaign contributions. Most of these contributions were made in August and September of 1987 with one being made in June of 1988. Although these contributions were returned by Fasi's campaign organization in October of 1988, Plaintiffs contend that the contributions were given back to Fasi in the form of cash payments. In addition, Plaintiffs allege that on or about June 1, 1988, Defendant Han Kuk Chun made an offer of $5 million as a "gift" to the City and County of Honolulu through Defendant Fasi. According to Plaintiffs, these alleged bribes were intended to influence the actions of Defendant Fasi and other public officials concerning the issuance and enforcement of the CUP.

With regard to their mail fraud claims, Plaintiffs allege that Defendant/Developers (i.e., Y.Y. Valley Corporation, Han Kuk Chun, Tetsuo Yasuda, Masanori Kobayashi and Yoshinori "Ken" Hayashida) conspired to commit mail fraud in connection with a "bribery scheme," an "eviction scheme" and a "confiscatory relocation plan scheme." In particular, Plaintiffs assert that the campaign contributions discussed above constituted mail fraud because Defendants misrepresented that they were benign contributions when, according to Plaintiffs, Defendants knew the contributions were in fact illegal bribes. Plaintiffs also contend that a series of eviction notices, and letters in furtherance of the attempted evictions, constituted mail fraud because the mailings did not inform the Plaintiffs of their right to relocate and to remove improvements from the property. These evictions letters were sent in 1988 and 1987, after the CUP was granted but before Defendants offered Plaintiffs an opportunity to relocate. As to the "confiscatory relocation scheme," Plaintiffs claim that a series of letters between Defendants' and Plaintiffs' attorneys regarding the relocation plan constituted mail fraud because the mailings purported that the plan satisfied the CUP and that Plaintiffs had to surrender various rights in order to receive benefits under the CUP. These letters were sent in 1989, around the time the relocation plan was offered to Plaintiffs. Plaintiffs further allege that Defendant Fasi aided and abetted, and conspired to aid and abet, in the commission of mail fraud by accepting the campaign contributions and allowing the alleged eviction and confiscatory relocation schemes to happen.

Plaintiffs contend that the alleged mail fraud and certain other acts of Defendants constituted extortion under state and federal laws. In particular, Plaintiffs argue that the eviction notices and letters, combined with Defendants' prior violent eviction methods, served to extort Plaintiffs of their various property interests discussed above. On May 16, 1987, some of the Defendants allegedly shot the Wong's bull and forcibly removed their other livestock and equipment from the property on which the Wongs were operating a ranch. Defendants also allegedly destroyed the Wong's fences. Other Plaintiffs contend that YYVC's representative Robert Carter and some men "who looked like body guards" came to their homes and told them, in a threatening manner, that they would have to leave the property. These men also allegedly took Jupiterrex Uraniumrhi, a Plaintiff who is not a party to these current motions, to a secluded warehouse and attempted to force him to accept the relocation plan. The robbery allegations pertain to the 1987 shooting of the Wong's bull and theft of the Wong's other livestock and equipment.

On November 7, 1988, prior to filing the current action in federal court, most of the Plaintiffs⁶ ("State Court Plaintiffs") filed an action against Defendants Han Kuk Chun and YYVC in the Circuit Court of the First Circuit for the State of Hawaii. Like the current action, Plaintiffs' state court action arose out of Defendant YYVC's attempt to evict the tenants from the property. The allegations and resolution of this action will be discussed below in the section on former adjudication.

In June 1990, while the current action was pending in federal court, YYVC commenced 23 summary possession actions in the District Court for the First Circuit Court of the State of Hawaii against all of the Plaintiffs in this action except Huberto Dumadag and the Estate of Laurencia Canencia. On October 12, 1990, these actions were consolidated. The tenants named in the summary possession actions each filed an answer and six counterclaims. These counterclaims and their...