Ezra urges authorities
to take action against the firm,
calling its federal prison site challenge
'a sham piece of paper'

By Star-Bulletin staff

A U.S. district judge has slammed into Perfect Title Co., calling its challenge of a land conveyance for a federal detention center in Honolulu "utterly and completely without merit."

"It constitutes nothing more than a sham piece of paper," Judge David Ezra said yesterday before approving the release of $9 million to pay for the condemnation of four acres of state land near Honolulu Airport.

Perfect Title had claimed an interest in the property, broadly basing its assertion on 19th century Hawaiian Kingdom law, which it contends still is in effect.

But the judge -- using words like "reckless" and "ludicrous" -- said the issue has nothing to do with Hawaiian sovereignty, and that the company's arguments already have been ruled invalid by him, as well as state judges.

In his strongly stated oral ruling, Ezra urged authorities to take action against the company.

Perfect Title has been saying current land titles are no good, and has filed reports with the state Bureau of Conveyances that have cast clouds on the ownership of hundreds of parcels and prompted some homeowners to stop paying their mortgages.

The company charges about $1,500 for each title search.

Ezra said the people who "fall prey to these schemes" are the elderly and others who cannot afford lawyers, and that "there simply is no excuse for this to go on."

"I don't like to see the people of Hawaii victimized, and that's what's happening here," he said.

The state attorney general's office last week said it has started an investigation to see if the firm has violated any criminal statutes.

The company was not present at yesterday's hearing.

Perfect Title President Donald Lewis later denied victimizing anyone, and said his firm's claim to the detention facility land is valid based on his standing as a "native tenant."

"I believe everybody's upset because there's a lot of truth in it," he said. "It's called, 'Where there's smoke, there's fire.'"

Lewis said he will continue the title searches, adding his company actually is losing money doing them.

The lawyer for Title Guaranty Escrow Services Inc. said he has been waiting for more than a year and a half to hear a judge speak like Ezra.

"I hope that it will lead some people that are paying this $1,500 to think twice and realize that they're being ripped off, and they'll stop paying," said Title Guaranty attorney John Jubinsky.

"I think if they stop paying, a lot of this stuff will completely go away."

U.S. Attorney Steven Alm issued a statement praising Ezra, and saying he looked forward to the facility's construction on a parcel bounded by Elliott Street and Aokea Place.

"It is a good result for everyone concerned," he said.

Design of the $100 million, 677-bed center is ongoing, said U.S. Marshal Anne Kent.

She said construction optimistically would begin by the middle of next year and be finished in 2-1/2 years.

The facility will house people awaiting trial, sentencing or having other business in federal court.