Episcopal Press and News

Diocese of Hawaii Sues Former Chancellor Over Retirement Home Project

Episcopal News Service. December 19, 1996 [96-1658A]

(ENS) The diocesan council of the Episcopal Diocese of Hawaii has voted to file suit against the diocese's former chancellor and his former law firm over a failed retirement home project that left the diocese burdened with a $4 million loan debt. Michael Porter, formerly of the law firm of Cades, Shutte, Fleming and Wright, served as the diocese's chancellor and also represented Episcopal Homes of Hawaii, a non-profit organization established in 1989 to develop the $150 million "lifetime care" retirement complex in Waialae-Kahala, a section of Honolulu. A statement from the council in the October issue of the diocesan paper notes that "the decision to file suit (against Porter) is taken with heavy heart by many," but was regarded as necessary in order to meet the "fiduciary responsibility of the council." Earlier this year, the diocese decided not to pursue a suit against its former bishop, Bishop Donald P. Hart, and the Hart's former executive officer, the Rev. Peter Van Home. Hart resigned following the project's collapse. The council's statement also notes that the action against Porter "should not be construed as a total solution to the debt owed to First Hawaiian Bank and expenses incurred as a result of the loan guarantee." Paying off the remaining debt "will require all in the diocese and our friends to seek creative solutions," according to the statement.