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News

Leadership battle culminates in suit

By HARRY EAGAR, Staff Writer
POSTED: July 22, 2005

Article Photos


KAHULUI – Binhi at Ani, the Filipino community association, has been split over a leadership election. A group of 16 members – including one of the founders, members and three current directors – has sued the current leadership, seeking to have a recent board election set aside.

Lance Collins, attorney for the 16 plaintiffs, said Thursday that the election June 29 violated both state laws and Binhi at Ani’s bylaws.

According to the complaint filed this week in 2nd Circuit Court, the election for 2005-06 officers was scheduled for the annual meeting June 11.

But, the suit alleges, it was discovered that the voter list was incomplete and inaccurate.

Binhi at Ani’s incorporation papers allow for different classes of electors, including officers, member organizations of the Filipino Community Council and contributors. Larger contributors get more votes.

According to the suit, the dispute June 11 halted the election, and the rest of the meeting was adjourned.

The election was rescheduled for June 30.

In the interval, members met with John Wayne Enriques, the 2004-05 president and a former member of the Maui County Council, and Antonio Ramil, the lawyer representing the nonprofit corporation.

According to the lawsuit, on June 28, a board meeting, held on four hours’ notice, approved a new voter list and additional nominations for director.

According to Collins, the state incorporation law allows organizations some flexibility, if they build it into their bylaws. Otherwise, a set of default requirements is legally applicable, including secret ballots and due notice (two weeks) for an election. He says the Binhi at Ani bylaws, adopted in 1985, do not take advantage of exceptions, so the state rules apply.

The 16 allege that notice was insufficient, ballots were not secret and that there were other irregularities.

They say the election notices were mailed June 24 for a vote five days hence.

On July 6 and 7, Elizabeth Ayson and Lawrence Pascua, two of the plaintiffs, wrote letters demanding corrective action, and on July 8 the 16 wrote a letter alleging violations of state law.

Ayson’s letter said the lack of a proper board could prevent certification of expenditures, which in turn might prevent payment of a $350,000 grant for the group’s community center.

On July 11, Ramil wrote Ayson to say that he felt the elections had been “reasonably fairly conducted” and that there was no provision for setting them aside.

He began his letter by writing, “I am the first to say that there are areas in the management of Binhi at Ani that need improvement.”

On Thursday, Ramil said he had nothing to add to what was in his letter.

On July 14, the two sides met with retired Circuit Court Judge Artemio Baxa as an informal mediator.

Nothing came of this.

The plaintiffs allege:

The different classes of nominators and electors, established by how much money they contributed, were not established in the articles of incorporation and are therefore invalid.

That the board limited or changed who is a member in good standing without a fair procedure.

Lack of timely notice.

Lack of secret ballots.

The board refused to allow some members access to voter lists, while others got access and used it to campaign for votes.

As a remedy, the plaintiffs ask the court to appoint a receiver pending new elections and that the defendants be prohibited from serving on the board for four years.

The suit also asks for attorney fees and expenses and for the defendant directors to be required to pay actual and exemplary damages to the corporation.

Besides Enriques, the defendants are Mario Arruiza, vice president; Agrifina Cabebe, a founder and current recording secretary; Eleanor Aquinde, auditor; Rafael Acoba, director; Essie Arruiza, director; Felipa Barroga Jr., director; Richard Caldito Sr., director; Cresencio Yagin, director; and Norma Barroga, immediate past president and ex officio director.

The plaintiffs are directors Carmelo Patoc, Arthur Latayada and Frederick Nava; members Cirilo Sinfuego Jr., Jose Segui, Pablo Piano, Gregory Peros, Pascua, Romeo Paet Sr., Rudy Paa, Fred Manuel, Reynaldo Fernandez, Ayson, founding member Virgilio Agcolicol; Elynor Ericta, who was corresponding secretary in 2004-05; and Violeta Neric-Nyberg, treasurer until she resigned under protest in March.

Collins described the plaintiffs as all active members of Binhi at Ani, many of them members of the Binhi at Ani Task Force.

Enriques could not be reached for comment. One of the plaintiffs and a founder of the group, Agcolicol, said he did not want to comment.

Harry Eagar can be reached at heagar@mauinews.com.

 
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