In re: Atherton Richards Trust of September 19, 1972

CourtHawaii Intermediate Court of Appeals
DecidedFebruary 18, 2026
DocketCAAP-23-0000273
StatusPublished

This text of In re: Atherton Richards Trust of September 19, 1972 (In re: Atherton Richards Trust of September 19, 1972) is published on Counsel Stack Legal Research, covering Hawaii Intermediate Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re: Atherton Richards Trust of September 19, 1972, (hawapp 2026).

Opinion

NOT FOR PUBLICATION IN WEST'S HAWAI‘I REPORTS AND PACIFIC REPORTER

Electronically Filed Intermediate Court of Appeals CAAP-XX-XXXXXXX 18-FEB-2026 09:35 AM Dkt. 99 SO

NOS. CAAP-XX-XXXXXXX, CAAP-XX-XXXXXXX, and CAAP-XX-XXXXXXX

IN THE INTERMEDIATE COURT OF APPEALS

OF THE STATE OF HAWAIʻI

CAAP-XX-XXXXXXX IN THE MATTER OF THE ATHERTON RICHARDS TRUST OF SEPTEMBER 19, 1972,

APPEAL FROM THE CIRCUIT COURT OF THE FIRST CIRCUIT (CASE NOS. 1TR141000145 and 1TR181000071)

and

CAAP-XX-XXXXXXX HERBERT M. RICHARDS, III, and PATRICIA K. RICHARDS (aka PATRICIA RICHARDS GILES) Claimants-Appellees, v. RIKI MAY AMANO, Respondent-Appellant, and JOHN RICHARDS and PAMELA KETCHUM, Respondents-Appellees

APPEAL FROM THE CIRCUIT COURT OF THE FIRST CIRCUIT (CASE NO. 1CSP-XX-XXXXXXX)

CAAP-XX-XXXXXXX IN THE MATTER OF THE ATHERTON RICHARDS TRUST OF SEPTEMBER 19, 1972,

APPEAL FROM THE CIRCUIT COURT OF THE FIRST CIRCUIT (CASE NOS. 1TR141000145 and 1TR181000071) NOT FOR PUBLICATION IN WEST'S HAWAI‘I REPORTS AND PACIFIC REPORTER

SUMMARY DISPOSITION ORDER (By: Nakasone, Chief Judge, McCullen and Guidry, JJ.)

These consolidated appeals arise out of the wind up of

the Atherton Richards Trust (Trust). The Trust's primary asset

is Kahua Ranch, Ltd. (Ranch). The four sibling beneficiaries

are Petitioner/Respondent/Claimant-Appellant/Appellee Herbert M.

Richards, III (Herbert), Respondent/Petitioner/Claimant-

Appellant/Appellee Patricia K. Richards (Patricia), Respondent-

Appellee John A. Richards (John), and Respondent-Appellee Pamela

Richards Ketchum (Pamela) (collectively, the beneficiaries).

The beneficiaries have a contentious relationship.

The beneficiaries retained Successor Trustee/

Petitioner/Respondent-Appellee/Appellant Riki May Amano (Amano).

In the "First Term Sheet for Agreement and Plan of

Reorganization" (First Term Sheet), the beneficiaries agreed

that Amano would reorganize the Trust assets into two separate

corporations, and then distribute the stock of the separate

corporations to the shareholders free of capital gains taxes on

the assets. Pursuant to this agreement, the Ranch would

essentially be divided into two separate ranches, with ownership

of one ranch to be conveyed to Herbert and Patricia, and

ownership of the other ranch to be conveyed to John and Pamela.

Amano obtained a Private Letter Ruling from the Internal Revenue

Service (IRS) regarding I.R.C. § 355 (West), approving the

2 NOT FOR PUBLICATION IN WEST'S HAWAI‘I REPORTS AND PACIFIC REPORTER

proposed corporate division as part of the anticipated Trust

division.

It appears that the wind up of the Trust is not yet

complete. The beneficiaries disagree on various issues, and,

pursuant to the terms of the First Term Sheet, must resolve such

disputes through binding arbitration.

Amano filed her October 2022 "Petition for Approval of

(1) Final Accounts from January 1, 2022 Through September 30,

2022, (2) Authorization to File a Supplemental Accounting

Through Date of Discharge Without Further Court Hearing[,] (3)

Payment of Trustee's Termination Fee, (4) Payment of Attorneys'

Fees and Costs, (5) Issuance of an Order Compelling

Beneficiaries to Fund Trust or Alternatively for Authorization

to Sell Trust Assets and/or Distribute Trust Assets[,] and (6)

Discharge and Release of Trustee" (Approval Petition), with the

Circuit Court of the First Circuit in case no. 1TR141000145

(probate court). 1 The Approval Petition sought, inter alia,

$1,095,727.23 in trustee compensation for Amano's thirty-three

months of trustee work, and $646,276.70 in attorneys' fees and

costs for work done to wind up the Trust and for participating

in the various arbitrations. 2

1 The Honorable R. Mark Browning presided.

2 Amano also requested to be discharged from her role as Successor Trustee; Amano withdrew this request.

3 NOT FOR PUBLICATION IN WEST'S HAWAI‘I REPORTS AND PACIFIC REPORTER

On December 28, 2022, the day before the probate court

heard the Approval Petition, Herbert and Patricia filed

"Beneficiaries [Patricia] and [Herbert's] Petition for Surcharge

Against Trustee [Amano]" (Surcharge Petition), alleging that

Amano breached her trust duties. The Surcharge Petition

claimed, among other things, that Amano committed IRS

malfeasance, engaged in conflicts of interest, breached her

fiduciary duties, and failed to maintain Trust assets. The

Surcharge Petition sought, inter alia, damages, attorneys' fees,

and costs against Amano.

In March 2023, the probate court filed its "Order

Granting in Part and Denying in Part [Approval Petition], Filed

October 24, 2022" (Approval Order) and "Judgment on [Approval

Order]" (Approval Judgment) in case no. 1TR141000145. Relevant

here, the Approval Order granted Amano's requested trustee

compensation and partially granted her attorneys' fees and

costs. 3 In so doing, the probate court determined that it was

3 The Approval Order stated, in relevant part,

3. [Amano's] compensation as Successor Trustee for services rendered during the accounting period of January 1, 2020 through September 31 [sic], 2022 is approved.

. . . .

b. The [probate court] determines that the rate of $750 per hour for compensation as Successor Trustee pursuant to the Stipulation and Order Appointing [Amano] as Successor Trustee of the [Trust], filed on August 27, 2018, is binding on all parties.

4 NOT FOR PUBLICATION IN WEST'S HAWAI‘I REPORTS AND PACIFIC REPORTER

"not necessary to wait for the outcome of the pending Surcharge

Petition(s)" because "[i]f the [probate court] subsequently

determine[d] that it is appropriate to surcharge [Amano] for

actions taken as Successor Trustee, [Amano] may be ordered to

return any improper compensation back to the Trust." Herbert

and Patricia appealed from the Approval Order and Approval

Judgment, creating CAAP-XX-XXXXXXX.

The probate court separately addressed the Surcharge

Petition. In a March 2023 minute order, the probate court: (1)

found the Surcharge Petition to be a contested matter and

retained the matter under Hawaiʻi Probate Rules (HPR) Rule 20;

(2) ordered the arbitration of Counts 1 (IRS Malfeasance), 3

(Delay of Trust Wind Up Based on Partiality Against Herbert and

Patricia and Desire to Increase Amano's Own Fees), 4 (Creating

Tax Liability), 5 (Failure to Return Funds Ordered by

Arbitrator), and 21 (Breach of the First Term Sheet); and (3)

denied Herbert and Patricia's remaining claims without

prejudice. The probate court stayed the probate proceedings

until the resolution of arbitration on the above claims.

In August 2023, the arbitrator entered its "Final

Decision and Award on Arbitration Demands 5 and 6" 4 (Arbitration

Award). The Arbitration Award found, inter alia, that Amano

4 Arbitration Demand 6 concerned the five claims referred for arbitration by the probate court.

5 NOT FOR PUBLICATION IN WEST'S HAWAI‘I REPORTS AND PACIFIC REPORTER

breached her trust duties, and that John and Pamela violated

their duty of good faith and fair dealing. The arbitrator

ordered Amano to reimburse the Trust $321,912.60, and John and

Pamela to pay Herbert and Patricia $263,286.48 in damages.

Herbert and Patricia filed a "Motion to Confirm [the]

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In re: Atherton Richards Trust of September 19, 1972, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-atherton-richards-trust-of-september-19-1972-hawapp-2026.