Hawaii Monitor: Haseko Calls Disclosure of PR Plan ‘Embarrassing’
But a judge rules against the development company that is being sued over its decision to build a lagoon instead of the marina homeowners expected.
Corporate public relations are almost ubiquitous in this day and age, but the industry and its corporate clients would apparently prefer we remain oblivious to their efforts to actively create public perceptions and, instead, simply accept their creative embellishments as unadorned 鈥渞eality,鈥 as if untouched by professional hands.
Back in September, I wrote a column describing the public relations plan put in place by Haseko as it managed the transformation of its 20-year old development, formerly known as the Ewa Marina, into the Hoakalei Resort. The point of the endeavor was to drop the former centerpiece, a private marina with slips for hundreds of boats, in favor of a less expensive, publicly-accessible recreational lagoon.
The column relied on insider documents, including reports, notes, plans, ghost-written newspaper columns, and internal emails between the company and its public relations consultants. The documents were among thousands that were turned over to attorneys representing unhappy Ewa homeowners who have brought a class-action lawsuit against Haseko over the sudden and dramatic change in direction.
The column drew an immediate response. Just five days after it was published, attorneys representing several related Haseko entities requested a court order prohibiting disclosure of documents produced through legal 鈥渄iscovery鈥 from being turned over to any third parties not related to the case. Meaning, of course, 鈥渟top letting reporters see our documents.鈥
The companies, represented by the law firm of Imanaka Asato LLLC, claimed their legal rights had already been compromised, and would be further trampled by a failure to block additional disclosures. The motion claimed a protective order was needed to protect the companies from 鈥渁nnoyance, embarrassment, oppression, or undue burden or expense.鈥
Haseko accused the plaintiffs鈥 lawyers of 鈥渇lagrantly disclosing sensitive information to an internet news source,鈥 and in the process 鈥渕isusing information,鈥 violating the companies鈥 鈥渃onstitutional right to privacy,鈥 and threatening their right to a fair trial by tainting potential jurors with published information prejudicial to Haseko鈥檚 case. They cited a single article 鈥 my column 鈥 as triggering this cascade of negative legal effects.
When Civil Beat then reported on this request for a protective order, Haseko added the article by editor Patti Epler to the short list of offending media.
In support of its claims, Haseko relied on , a case that had gone all the way to the U.S. Supreme Court in 1984. In its decision, the Supreme Court found that there was no First Amendment right to information gleaned in discovery, the legal process where parties in civil litigation gain court-supervised access to requested documents or obtain sworn statements from possible witnesses in order to 鈥渄iscover鈥 potential evidence.
The court upheld the imposition of a protective order as a means to limit disclosure of information that 鈥渋f publicly released could be damaging to reputation and privacy.鈥 All these considerations apply to the Haseko lawsuit documents, the company argued.
But lawyers for home buyers who thought they would eventually be living near and guaranteed access to an upscale private marina responded with a sharp attack of their own.
The plaintiffs鈥 lawyers argued Haseko was simply trying to have the court ignore its own extensive public relations program while squelching any disclosures contrary to the corporate PR line.
Attorneys for the homeowners鈥擬ichael Jay Green, William Shipley, Jr., Terry Revere, Malia Nickison-Beazley, and P. Kyle Smith 鈥 responded in an almost mocking tone. They dismissed the company鈥檚 privacy concerns by contrasting them to the company鈥檚 own alleged privacy violations, citing an internal corporate email directing a Haseko employee to send a 鈥渟py鈥 to observe a homeowners meeting where the case would be discussed. And they belittled the idea that revealing 鈥渢hat Haseko is trying to manipulate the public is somehow bad and needs to be prohibited via a prior restraint upon speech,鈥 countering that 鈥渢here is no 鈥榙on鈥檛-show-the-public-we-are-trying-to-manipulate-them鈥 privilege.鈥
More substantively, the plaintiffs鈥 lawyers argued Haseko was simply trying to have the court ignore its own extensive public relations program while squelching any disclosures contrary to the corporate PR line.
鈥淗aseko isn鈥檛 in a position to complain when it avails itself of the public forum through every means of communication possible, including paying huge fees for ads in the only daily newspaper left in town,鈥 they argued. 鈥淗aseko did not agree to turn off its giant PR/legal machine. It just wants a unilateral ability to influence the public uninfluenced by documents showing the truth.鈥
And that Seattle Times case that appeared to give a stamp of approval to such protective orders? The case provides 鈥渘o refuge for Haseko,鈥 according to the homeowners’ reply.
In that case, the leader of a religious group, the Aquarian Foundation, sued the newspaper and others for defamation and invasion of privacy. During the course of the lawsuit, the court ordered the group to disclose a list of its members and information that would support its claim that the newspaper reporting had cut its membership and income. But it then blocked further disclosure of the information after affadavits were submitted by individual members, citing incidents of threats, harassment, and reprisals against those associated with the group, and arguing they would be similarly targeted if publicly identified.
鈥淲e鈥檙e just asking that when we turn things over in discovery, that they don鈥檛 become fodder for some smear article.鈥 鈥斅燡eanine Cornwell, attorney representing Haseko
Haseko, however, has not alleged that the Civil Beat articles were in any way false or defamatory, nor that there had been anything like threats or intimidation against any individuals involved. So the case, which in Haseko鈥檚 telling had seemed relevant, really misses the point of the current case, the opposing brief argued.
Finally, they argued that to obtain a protective order, Haseko would have to identify individual documents and the specific harm each could reasonably be expected to create. Haseko failed to do either, and therefore simply hadn鈥檛 made their own legal case for protection.
The two sides argued their positions in a hearing held by telephone conference before retired Judge Victoria Marks, the court-appointed discovery master in the case, on Oct. 27.
Jeanine Cornwell, representing Haseko, said the company isn鈥檛 attempting to limit discovery or make documents difficult for the plaintiffs to obtain.
鈥淲e鈥檙e just asking that when we turn things over in discovery, that they don鈥檛 become fodder for some smear article,鈥 she said, according to a transcript of the hearing. 鈥淭hat is where the good cause is shown, in saying that our good faith effort, we have produced tens of thousands of documents and we鈥檙e asking that they not be put into published articles that are on the internet and in newspapers.鈥
Marks asked a question. In the Seattle Times case, she noted that the defamation lawsuit claimed the stories were 鈥渇ictitious and untruthful.鈥
鈥淏ut what鈥檚 the harm to Haseko? The harm is the negative light?鈥 鈥擩udge Victoria Marks
鈥淭here鈥檚 nothing like that here, right?鈥
Cornwell referred back to the original Civil Beat column. 鈥淭hat is a very negative article saying very defamatory things about鈥攏ot defamatory, but saying very negative things about Haseko. And even though Haseko is a corporation, Haseko is too entitled not to be embarrassed or harassed by the Plaintiffs.鈥
鈥淏ut what鈥檚 the harm to Haseko?鈥 Marks asked. 鈥淭he harm is the negative light?鈥
鈥淭hat it鈥檚 embarrassing and annoying to have the articles come out where they鈥檙e using information that we gave them and misconstruing the facts and taking things out of context to show Haseko in a negative light,鈥 Cornwell replied. 鈥淚t鈥檚 embarrassing. It鈥檚 annoying to Haseko, when Haseko hasn鈥檛 done anything like that.鈥
As to Haseko鈥檚 claim it would be hard to find a jury that hadn鈥檛 seen the 鈥渘egative鈥 articles about the company, Marks commented based on her years of experience.
鈥淚f you can find a fair jury with murder cases that have had massive publication, I think you ought to be able to find a fair jury in a civil case,鈥 Marks said.
In an oral ruling made at the end of the hearing, Marks indicated that she was denying Haseko鈥檚 plea for protection.
鈥淚 don鈥檛 think there鈥檚 been an adequate showing of specific prejudice or harm, that basically what is alleged is that, so far, two articles have put Haseko in a negative light. And I don鈥檛 think that鈥檚 an adequate showing.鈥
In a six-page decision that followed, Marks noted that even if Haseko managed to identify some specific harm, which it hadn鈥檛 yet done, she would then have to balance that against the public benefits of disclosure, including the public鈥檚 interest in seeing various and potentially conflicting viewpoints. The implication was that Haseko would be unlikely to come out ahead in the balancing of interests.
The window for Haseko to appeal Marks鈥 decision ended last week. So for now, at least, Haseko will have to live with the bitter experience of being unable to control 100 percent of what is said publicly about the company and its Hoakalei Resort, formerly known as the Ewa Marina.
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About the Author
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Ian Lind is an award-winning investigative reporter and columnist who has been blogging daily for more than 20 years. He has also worked as a newsletter publisher, public interest advocate and lobbyist for Common Cause in 贬补飞补颈驶颈, peace educator, and legislative staffer. Lind is a lifelong resident of the islands. Opinions are the author's own and do not necessarily reflect Civil Beat's views.