The jury in the state civil case that pitted the wife of Honolulu Police Chief Louis Kealoha against her grandmother and uncle sided with Katherine Kealoha on Thursday, awarding her $658,787 in damages.
Jurors deliberated less than a day before awarding Kealoha, a deputy city prosecutor, $248,787 to pay her lawyers, $200,000 for mental anguish and $210,000 in punitive damages. The $200,000 in general damages is 10 times the amount Kealoha had asked of the jury.
Florence Puana, 95, had sued her granddaughter over money from a reverse mortgage Kealoha arranged on the grandmother’s Maunalani Heights home. The uncle, Gerard Puana, sued Kealoha over $70,000 he claimed he gave his niece to invest and for safekeeping.
Kealoha countersued, claiming that her uncle and grandmother conspired to make false allegations to discredit her.
In siding with Kealoha, the jurors unanimously found that the uncle made intentional misrepresentations and abused the legal process. They assessed all of the damages against him.
The jury also found that the grandmother did not prove that a confidential or fiduciary relationship existed between her and her granddaughter, and that Kealoha had not improperly spent reverse mortgage money from a joint account with the grandmother.
Some of those expenditures included $23,976 Kealoha spent on the inauguration breakfast for her husband and thousands of dollars in lease payments for her Mercedes-Benz automobile, which she later turned in for a Maserati sports car.
Kealoha testified that the money she spent from the joint account on her own expenses was reimbursement for money her grandmother asked her to spend for the purchase of a condominium for her uncle.
Based on the jury verdict, Circuit Judge Virgina Crandall entered judgment in favor of Kealoha, who is free to collect on it.
The uncle serves as Florence Puana’s primary caregiver and has no other job. He testified that he collects $2,036 per month in disability payments. He owns the one-bedroom condominium in Salt Lake that was purchased in 2009 with some of the money from his mother’s reverse mortgage.
The case is also having an impact on Kealoha’s husband.
Louis Kealoha was called as a government witness in a federal criminal case charging Gerard Puana with stealing his mailbox.
He caused a mistrial when he testified about Puana’s criminal history. Federal prosecutors later dropped the case and referred the matter to the FBI.
That led a state lawmaker to suggest that Kealoha needs help running the Honolulu Police Department.
Gerard Puana’s lawyer accused the Kealohas of falsely identifying Puana as the mailbox thief to discredit him in the civil case, and accused Chief Kealoha of intentionally causing the mistrial to prevent a not guilty verdict from negatively affecting his wife’s position in the civil case.
The lawyer’s allegations of police misconduct during HPD’s investigation of the mailbox theft and a subsequent burglary report by the Kealohas prompted the FBI investigation.
The Honolulu Ethics Commission is also investigating the allegations.