A former Hawaii County clerk who came under fire for her handling of the 2012 primary election was suspended from the practice of law for 150 days by the Hawaii Supreme Court.
According to the three-page order of suspension filed June 9, Hilo attorney Jamae Kawauchi admitted to withdrawing funds from a client trust account for her own personal use. The order stated Kawauchi “allowed the balance of the client trust account to fall below the level of funds to which clients had a claim,” didn’t promptly refund client money, didn’t use pre-printed deposit slips with client trust account information and misrepresented on an annual form filed with the Hawaii State Bar Association that she maintained client funds as specified with Hawaii Rules of Professional Conduct, when she did not.
The order said that, as an aggravating factor, Kawauchi, who was admitted to the Hawaii State Bar in 1999, stipulated “her conduct had a dishonest or selfish motive, and represents multiple violations” of the rules.
The Office of Disciplinary Counsel, which brought the action against Kawauchi, stipulated that prior to the matter, she “had a clean disciplinary record, made full and free disclosures, and displayed a cooperative attitude toward the proceedings.”
According to the disciplinary board’s report to the Supreme Court, Kawauchi accepted a $5,000 retainer from a client, who later terminated Kawauchi’s services and asked for a return of unearned fees on March 6, 2015. Kawauchi informed the client that billing for services as of that date was $460 and that she would return the retainer minus the amount billed. Kawauchi then withdrew for her personal use $3,000 in unearned fees from the client’s trust account three days later.
The report said Kawauchi “failed to promptly return … the unearned portion of a $5,000 retainer, until July 27, 2015. During that time period, and continuing into the investigation conducted by ODC, Kawauchi also committed a number of other ethical violations. Just prior to the commencement of formal disciplinary proceedings, (Kawauchi) and ODC entered into the Board’s voluntary settlement program, which ran in parallel to the formal disciplinary process.”
In addition to the suspension, which takes effect on July 8, Kawauchi was ordered to take and pass the Multi-State Professional Responsibility Exam, described on the National Conference of Bar Examiners website as a two-hour, 60 question multiple-choice test designed “to measure examinees’ knowledge and understanding of established standards related to the professional conduct of lawyers.” She is required to submit her results to the Supreme Court within a year.
Kawauchi was county clerk from 2010-12 and became a lightning rod for controversy during the 2012 elections. Her public confirmation of the firings of four elections workers: Pat Nakamoto, a longtime elections administrator; Glen Shikuma, warehouse manager; Shyla Ayau; and Elton Nakagawa, for the alleged misuse of a warehouse rented by the county for drinking parties and a private sign business, led to a defamation lawsuit by Nakamoto and Ayau against Kawauchi and former Council Chairman Dominic Yagong. The suit was dismissed in 3rd Circuit Court, with the dismissal upheld in March by the state’s Intermediate Court of Appeals.
Attorney Ted Hong said in March he’s preparing to appeal the case to the state Supreme Court.
Nakamoto was reinstated to her job after a union grievance hearing, but went on paid leave through the elections. Shikuma died of an aneurysm while undergoing union arbitration.
Disgruntled elections staffers failed to show up on primary election day. That election was marred by polls opening late in 13 precincts, incorrectly programmed cellphones, drivers delivering election materials to the wrong precincts and other issues. The state Elections Office moved to take over the county’s 2012 general election.
After the election, Stewart Maeda replaced Kawauchi as county clerk. Kawauchi also served briefly as a county deputy prosecutor before going into private practice.
Kawauchi didn’t return a phone call Wednesday morning seeking comment by press time.
Email John Burnett at jburnett@hawaiitribune-herald.com.
