Abigail Kawananakoa’s wife among 4 seeking conservatorship

The wife of Abigail Kawananakoa is among four individuals being considered for appointment as conservator overseeing the personal finances of the 93-year-old Campbell Estate heiress.

Probate Judge R. Mark Browning on Tuesday issued an order setting up a process to vet the candidates.

The effort follows a ruling three months ago in which an Oahu Circuit Court judge determined that Kawananakoa, heiress of a $215 million estate, is mentally unfit to handle her own financial affairs and in need of a conservator to oversee her finances outside the trust.

In his order in March, Judge James Ashford said he found evidence that Kawananakoa’s property is being “inappropriately wasted and dissipated” and will continue to be so unless it is managed by a conservator.

Among other things, a conservator would help Kawananakoa deal with her struggling horse breeding operations in Waimanalo and California and would take care of her unfiled gift tax returns.

Kawananakoa’s financial status has been clouded since she suffered a stroke in 2017 that sent her to the hospital and prompted her attorney, James Wright, to take control of her estate as trustee under terms previously spelled out if she became incapacitated.

Kawananakoa’s longtime partner — now her spouse — challenged the move in court, but Browning ruled in 2018 that Kawananakoa was incapable of making complex changes to the trust or of revoking her trust or even firing and replacing its trustee.

Although Browning appointed First Hawaiian Bank to serve as trustee and removed Wright, both of those actions remain on hold due to the ongoing litigation.

During Tuesday’s hearing, attorneys for the Kawananakoas said that the heiress still wants a measure of control over her money and therefore the conservator should be given limited oversight.

Her attorney, Bruce Voss, said his client still wants some control over her life and the things most important to her.

Voss said Kawananakoa is frustrated and angered by how long the litigation has lasted and how much the case has cost her.

“She is alive and well, and if anyone would ever listen to her, she is sick and tired of this,” he said.

Voss said Kawananakoa is a proud and smart woman who is not cognitively impaired.

“She’s made decisions, and she’s made decisions throughout this case, I can tell you that,” he said.

But attorneys for Wright and the Abigail KK Kawananakoa Foundation said the conservator should be independent and neutral and have unlimited powers to do what is best for her.

It’s especially important, said foundation attorney Regan Iwao, because, as judge Ashford pointed out, Kawananakoa’s estate is currently being “wasted and dissipated.”

“Nothing should be reserved to the current regime who is controlling her assets,” Iwao said.

In his order, Browning said the power of the trustee would indeed be unlimited. But he also noted that, under the law, the conservator exercises authority only as required by the limitations of the protected person and, “to the extent possible, shall encourage the person to participate in decisions, act in the person’s own behalf, and develop or regain the ability to manage the person’s estate and business affairs.”

Browning assigned James Kawachika, court-appointed kokua kanawai — independent investigator or helper — to interview the four candidates and report back by June 30. The parties will then have 10 days to respond, and a further hearing is scheduled for July 21.

In addition to Veronica Gail Worth Kawananakoa, those nominated by the various parties to serve as conservator are retired Hawaiian Electric executive Robbie Alm, Honolulu businessman Stacey Wong and James Gomez, a certified public accountant from Honolulu.

Before the hearing ended, Browning, as he’s done in the past, scolded the attorneys for failing to reach a compromise despite numerous mediation attempts.

“Clearly, there are paths to resolve this matter that you need to explore,” Browning said. “Get together and come up with reasonable compromises. We’ve come this far. There’s not much further to go.”

Browning said he’s worried about the toll the court battle is having on the 93-year-old Abigail Kawananakoa.

“End the litigation, listen to Ms. Kawananakoa, preserve her legacy, let her go on in the latter part of her life without the stress, without the pressure, without the frustration this litigation is causing her,” he said.

Voss and Michael Rudy, the attorney for Veronica Gail Worth Kawananakoa, asked the judge to step into the mediation and take charge. They said they doubted there would be any resolution without Browning leading the effort.

“This is one of the toughest cases I’ve ever had, and I’ve had a billion dollars’ worth of trust cases in the last 15 years,” Rudy said. “This is very difficult, but without your honor’s participation, with the consent of everybody here, it’s just so difficult.”

Browning said he would consider it but only with the consent of all the parties.

Another issue still left to be decided in the case is whether First Hawaiian Bank will take over as trustee from Wright. Browning said that issue has become more difficult because the bank has become one of Abigail Kawananakoa’s creditors.