Settlement talks in Hillbroom lawsuit continue

The parties in the lawsuit filed by Junior Larry Hillbroom against his former lawyer continue to talk about the terms of a possible settlement.

During a status conference hearing in the U.S. District Court for the NMI last week, the parties informed the court that settlement discussions between Hillbroom and his former attorney, David Lujan, will continue.

Hillbroom’s counsel, attorney Rachel Dimitruk, and Lujan told District Court for the NMI Chief Judge Ramona Manglona that a settlement has yet to be reached because they have not heard back from the mediator yet.

Hillbroom sued his former attorneys, Lujan and Barry Israel, on the grounds of legal malpractice, negligence, breach of fiduciary duty, fraud, and violations of Racketeer Influenced and Corrupt Organizations Act for alleged mismanagement of approximately $90 million that he inherited from his father, Larry Lee Hillblom, co-founder and former owner of DHL Worldwide Express.

Hillbroom also sued Keith Waibel, former trustee of his assets, for conspiracy.

He accused the three of conspiring to inflate their fees when Hillblom’s wealth was undergoing probate. He has already come to a settlement with Israel.

At last week’s status conference, Waibel, who represented himself, asked the court for a copy of the settlement agreement between Hillbroom and Israel from when Hillbroom agreed to dismiss Israel from the lawsuit after the two agreed to settle back in July. However, Israel’s attorney, Theodore Frank, and Dimitruk told the court that they are not allowed to disclose the settlement agreement.

Israel recently filed a motion for summary judgment for his cross-claims against Waibel for defamation.

Israel asked the court to enter a judgment against Waibel and issue an award of $1,442,877.67 and punitive damages in the amount of $400,000.

Manglona will hear Israel’s motion for summary judgment on Oct. 1 at 8:30am.

Manglona also reset the trial for Dec. 1 at 10am.

Israel and Lujan secured $90 million for Hillbroom from the Larry Lee Hillblom estate. However, Hillbroom sued his former lawyers and Waibel when he came of age because they allegedly committed extrinsic fraud on the Guam guardianship court by denying him a fair opportunity to challenge their 56% retainer.

Hillbroom, a Palauan, is one of the four DNA-proven children of Hillblom. His name is spelled differently from that of Hillblom.

The three other children are Jellian Cuartero, a Filipino; Mercedita Feliciano, a Filipino; and Nguyen Be Lory, a Vietnamese.

Hillblom died in a seaplane crash off Anatahan waters on a flight from Pagan Island to Saipan on May 21, 1995, leaving behind an estate worth approximately $550 million. The bodies of the pilot and a business partner were found, but Hillblom’s body was never recovered.