Settlement ends $90M estate fight | Honolulu Star-Advertiser

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COURTESY THE DORCY LITIGATION TEAM
Laurence H. Dorcy, above left, sat in February aboard the Hawaiian Chieftain yacht he helped build and of which he later became the first owner. Petro T. Hoy, standing, is accused in court documents of posing as a man named "Henry Rice." Approximately eight weeks after this photo was taken, Dorcy lapsed into a coma in his Kula, Maui, home. He died in June.

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Both sides are claiming victory from an out-of-court settlement in a dispute over the estimated $90 million estate of one of Maui’s richest residents, Laurence H. Dorcy, known as "The Baron."

Terms of the settlement are being kept confidential.

"We’re very, very pleased with the settlement, and we’re very thankful to the citizens of Maui who provided evidence that led to the settlement," said Michael Rudy, one of the lawyers for Jeffrey Peterson, who until January 2011 was the personal representative for Dorcy’s estate.

Dorcy died on June 2 at Straub Clinic & Hospital on Oahu. He was 76.

Last year, before his death, Dorcy adopted Hans M. Kanuha, 42, and in a new will named Kanuha heir to his estate.

"From Hans’ standpoint (the settlement) is vindication that he was making sure that his adopted father’s wishes were going to take place," Kanuha’s lawyer, James Krueger, said Friday.

Peterson and representatives of charities and nonprofit groups that were to receive shares of Dorcy’s estate in his original will accused Kanuha, owner of a gas station and store in Kula, of duping and manipulating a frail and confused Dorcy into changing his will.

Accused along with Kanuha was Petro Hoy, who last May was indicted by a federal grand jury along with his wife, Leatrice Lehua Hoy, and three others on fraud and tax-related charges for allegedly selling fake Treasury bonds and bogus property titles to Maui homeowners behind on their mortgages.

Trial was scheduled for March 12 on Maui.

Krueger said the two sides reached a settlement Wednesday night.

Earlier in the day Maui’s Chief State Circuit Judge Shackley Raffetto made a finding "that the elements of undue influence have been established and therefore, the burden has shifted to prove there was no undue influence."

Krueger said Raffetto’s ruling had no influence on the reaching of the settlement.

"Absolutely not."

He said both sides had already submitted their proposed settlements to the court-appointed mediator.

Both sides agreed to keep the terms of the settlement confidential.

Krueger said Kanuha does not need to have the details made public to regain his reputation, which had been tarnished by rumors and accusations circulated in the community.

He said what was important was the fact that there was a settlement, that Kanuha stood up and got people to believe and represent him.

Rudy said Dorcy controlled a charitable trust established by his great-grandfather, railroad baron James Jerome Hill, founder of the Great Northern Railway, worth an estimated $70 million to $80 million.