Opinion ID: 2584287
Heading Depth: 3
Heading Rank: 3

Heading: Keith Kiuchi's Role

Text: Kiuchi acted as Fong's attorney in the sale of Batle's stock in CEI to the Ohs. Kiuchi's role as Fong's attorney was disclosed to the Ohs both orally and in writing in the Stock Purchase Agreement: The parties acknowledge that the law firm of Kiuchi & Nakamoto represents Connie Yon Fong and has previously represented the Seller and the Seller's corporation. In this transaction, however, the law firm of Kiuchi & Nakamoto represents only Connie Yon Fong and its only other duty will be to act as escrow and to draft documents. Seller and Buyer both acknowledge that they have the right to retain separate counsel to represent them and that the law firm of Kiuchi & Nakamoto does not represent them in this transaction. While the Stock Purchase Agreement provided that certain payments be received by Kiuchi as escrow, the undisputed evidence is that Kiuchi received no money to hold in escrow as payments were made and received by the parties directly. Kiuchi's role was limited to drafting the transaction documents and facilitating their execution and exchange. Kiuchi testified in his deposition as to his understanding of the meaning of escrow: Escrow in a transaction such as this normally would be that escrow drafts the documents. Escrow may or may not handle the money. But it is not escrow as we know it with a real estate transaction. Whenever I have referred to escrow, it's simply to draft documents. It's to act really to make sure that all documents are signed, that the parties have signed them. In some cases, it may or may not involve handling money. In this case, because of certain circumstances, it did not involve us handling money. The Ohs did not give any instructions to Kiuchi in connection with the manner in which the documents should be drafted or the money exchanged. After Batle's arrest for illegal cigarette sales, Kiuchi contacted Deputy Attorney General Earl Hoke on Batle's behalf  at the request of both Fong and Batle  apparently seeking information regarding whether Batle would be charged with a crime. Kiuchi's conversations with Mr. Hoke led Kiuchi to believe that Batle would not be charged with any crime. According to Kiuchi, he did not tell the Ohs about the cigarette sales of Batle, because based on [his] knowledge, [he] believe[d] Celia Batle wasn't going to be charged with any crime. Kiuchi further stated in his deposition: I mean, what was disclosed was the sale [Batle] made to a minor and she was going to be responsible for that. So I think at that point if we had any idea she was going to be charged or had been charged, we would have disclosed that. Batle was charged with a violation of HRS § 245-37(a)(2) on January 31, 2002, seven months after the sale of CEI to the Ohs. While Kiuchi attended several meetings between the parties in April and May 2001, in which the transaction was discussed, he did not make any representations regarding the financial value of the business, nor did the Ohs make any such inquiry of him.