The Edward C. Olson Trust has until November to serve legal documents to a pair of business partners the trust is suing over two Banyan Drive development projects.
Last September, the Olson Trust filed a lawsuit against Ed Bushor and Stewart Miller, respectively the CEO and president of Tower Development Inc., which is a partner in WHR LLC, the corporate entity that owns the Grand Naniloa Hotel in Hilo.
The lawsuit alleges that Bushor and Miller violated the terms of its agreement with Olson/Naniloa LLC — the other partner in WHR LLC — by submitting to the Department of Land and Natural Resources a pair of development proposals for the defunct Uncle Billy’s Hilo Bay Hotel and the former Country Club Condominium Hotel on Banyan Drive.
The agreement between Tower and Olson/Naniloa forbade Tower from acquiring any properties — specifically hotel properties — that could compete with the Grand Naniloa.
A letter sent in September to Bushor and Miller on behalf of Olson/Naniloa alleged that Olson Trust President Ed Olson directly told the two to not pursue the redevelopment projects, and thought the matter was a “dead issue” until Tower submitted the proposals the DLNR.
The letter also accused Tower of using WHR’s assets to enhance Tower’s bids for the projects without the knowledge of other WHR members.
“The entire situation is outrageous, for it reflects a blatant and inexcusable disregard for your fiduciary duties toward the members of WHR,” the letter read.
Little has happened with the suit since it was filed, however. According to court documents, Olson/Naniloa attempted to serve Bushor and Miller the complaint in November, but was unable to do so.
According to email correspondence submitted to the court, a process server attempted to serve Bushor and Miller at the Grand Naniloa but was told to “buzz off” and ultimately concluded that the two were not there.
“In simply glancing at the first few paragraphs of this complaint I have the feeling that they may not be exactly willing to cooperate,” noted the process server.
The server then proposed to hire an investigator to search for the defendants on the mainland, to which Olson/Naniloa agreed.
With the complaint still yet to be served, Paul Alston, a lawyer for Olson/Naniloa, filed last Wednesday a motion to extend the deadline to serve it until the end of June. On Monday, a Third Circuit Court judge granted that motion and added an extra five months, giving Olson/Naniloa until Nov. 23 to serve Bushor and Miller.
However, even though the defendants have not been formally served, Alston claimed in his motion that both sides of the dispute have “engaged … and are represented by counsel in ongoing settlement negotiations.” But, without any signed settlement agreement, Olson/Naniloa is keeping the option to litigate the dispute open.
Alston did not respond to requests for comment, and a DLNR representative stated the department does not comment on ongoing litigation.
Email Michael Brestovansky at mbrestovansky@hawaiitribune-herald.com.