$300K more OK’d for firms defending in Kealohas’ suit

A City Council committee gave tentative approval Tuesday to pay out an additional $300,000 to three downtown law firms to represent the city Ethics Commission, its former executive director and former commission investigator in a suit filed by former Honolulu Police Chief Louis Kealoha.

The Council had already approved $300,000 in August for the three firms — Kobayashi, Sugita &Goda LLP; Chong, Nishimoto, Sia, Nakamura &Goya LLLP; and Cox Fricke LLP.

The Council’s Executive Matters and Legal Affairs Committee advanced resolutions seeking the funds at a Tuesday meeting after discussing the request, made by the city Corporation Counsel, in executive session. The full Council will need to give final approval.

The lawsuit — filed by Kealoha; his wife, city Deputy Prosecutor Katherine Kealoha; and their minor daughter — claims that the commission, through former Executive Director Chuck Totto and commission investigator Letha DeCaires, “conducted a series of unfounded, vindictive, unsubstantiated and illegal investigations” against the Kealohas that caused irreparable harm to them, the Honolulu Police Department and the City Prosecutor’s Office.

Council Chairman Ron Menor said after Tuesday’s meeting that the Corporation Counsel requested the additional funds — $100,000 per firm — due to the “complex and detailed nature” of the lawsuit. He said the lawyers have had to review a “voluminous” amount of documents and numerous claims filed by the Kealohas. He said the lawyers and Corporation Counsel did not indicate if they would need more funds in the future and that the case does not seem to be headed to trial anytime soon.

Menor said the Corporation Counsel cannot represent the city because of the conflict of interest posed by the Kealohas’ lawsuit.

“We expressed to them our concern that Corporation Counsel monitor the work and the billings to try to do whatever they can to contain costs,” Menor said. “Council members are concerned that we’ve been asked to increase the amount of attorneys’ fees. We’d like to see more of an effort to contain costs.”

Kealoha retired as chief effective March 1 after receiving a target letter from federal officials that he was being investigated. The investigation alleges corruption, conspiracy and other wrongdoing. Totto retired in June after several years of clashing with city Corporation Counsel Donna Leong and commission members appointed by Mayor Kirk Caldwell.

Leong declined comment Tuesday, citing pending litigation.