Laanui V Damien School
Laanui V Damien School
Laanui V Damien School
STATE OF HAWAII
COMPLAINT
Plaintiff ARNOLD LAANUI, JR. by and through his attorneys, hereby complains
a Hawaii Corporation dba DAMIEN MEMORIAL SCHOOL; JOHN DOES 1-10; JANE DOES
1. This Court has subject matter jurisdiction over the claims set forth in this
Complaint pursuant to Hawaii Revised Statutes (“HRS”) § 603-21.5 and has personal
jurisdiction over Defendants pursuant to HRS § 634-35. Venue is appropriate in the Circuit
PARTIES
business in the State of Hawaii, and its primary purpose is as private, Roman Catholic school for
children in grades 6 through 12. At all times relevant herein, Damien has continuously done
business at its principal place of business in the City and County of Honolulu, State of Hawaii.
4. JOHN DOES 1-10; JANE DOES 1-10; and DOE ENTITIES 1-10 are
individuals, corporations, partnerships, limited partnerships, joint ventures, and/or other entities
named hereunder fictitious names for the reason that their true identities are presently unknown
to Dr. Laanui, except that they are persons and/or entities who are subsidiaries, agents,
associates, masters, servants, employees and/or who were in some manner presently unknown to
Dr. Laanui engaged in activities alleged in the Complaint filed herein; and/or who are in some
manner responsible for the damages to Dr. Laanui; and/or who conducted some activity in a
negligent and/or intentional manner, which negligent and/or intentional conduct was a proximate
cause of the injuries or damages to Dr. Laanui; and/or who are in some manner related to
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Damien; and Dr. Laanui prays leave to insert herein their true names and capacities, activities,
and/or responsibilities when the same are ascertained. Dr. Laanui has conducted research
through third parties in order to identify the persons and/or entities liable for the damages to
Dr. Laanui complained of herein. Dr. Laanui has conducted independent research through a
third party to ascertain the corporate identities of Defendants. Dr. Laanui at this time is unable to
identify the names and identities of the persons and/or entities until Dr. Laanui proceeds with
discovery.
5. Dr. Laanui beings this action for equitable relief and monetary damages as
of Title IX; and reports of fraud and embezzlement by Damien football coaches in
6. The retaliation was known and tolerated by Damien and its Board of
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STATEMENT OF FACTS
college preparatory institution based on the tradition of the Irish Chrisian Brothers and their
corporate entity, The Congregation of Christian Brothers of Hawaii, Inc., with its principal place
including but not limited to the Rev. Gerald Funcheon (“Rev. Funcheon”), a priest who taught at
Damien in the early 1980’s and has admitted in a deposition that he had sexual contact with a
dozen or as many as 18 youth while he was a priest. Rev. Funcheon admitted to touching a
Hawaii youth in a sexual manner while the two were showering together in a cabin and took
nude photographs of boys. As a result of Rev. Funcheon’s sexual misconduct, various former
10. Defendant Damien was also sued by two former students who were
abused by Brother Robert Brouillette (“Brother Brouillette”) on the Damien campus in 1984 and
1986. Damien covered up tortuous sexual abuse by Brother Brouillette. As a result of Brother
Brouillette’s sexual misconduct, various former Damien students filed lawsuits against Damien.
Damien is aware of numerous cases of sexual abuse against former clergy/teachers and have
11. In 2013, the first year Damien became coeducational, a male student who
was on the wrestling team sexually abused a female student on the Damien campus which
prompted the female student to sue Damien. Damien resolved this lawsuit.
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12. Based on these lawsuits, other similar lawsuits 1, and the law, Damien has
a duty to guard against sexual abuse on campus and should have a heightened awareness for
13. On January 3, 2019, Damien fired its President Wes Reber Porter
(“Mr. Porter”), along with two volunteer leaders, after they resisted a request from the Christian
Brothers to set aside over a million dollars in potential costs to settle sex assault lawsuits
14. On January 8, 2019, Damien replaced Mr. Porter, who had only served as
Damien’s president for approximately 30 months, with Brother Brian M. Walsh (“Brother
15. In 2016, Brother Walsh signed a $1.9 million settlement with 21 student
victims who were abused at Bergen Catholic High School between 1963 and 1978, when Brother
16. In June 2020, Damien announced that Brother Walsh would not return as
president.
president until Dr. Kyle Ataby assumed the role of interim president at the end of June 2020.
18. On July 1, 2022, Damien and Dr. Laanui entered into an employment
agreement that extended until June 30, 2025, where Dr. Laanui agreed to serve as the President
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Other clergy who were known to have sexually abused minors at Damien include: Brother Lawrence Robert
Christensen; Brother Bruce J. Cullerton; Brother Thomas Duffin; Brother Thomas Cuthbert Ford; Brother John Paul
Medvit; Father Lawrence M. Spellen; and Brother Douglas Zlatis.
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19. Dr. Laanui is a former educator (State of Hawaii Department of Education
District Education Specialist), Federal Bureau of Investigations (“FBI”) Special Agent, and a
20. As an FBI agent, Dr. Laanui solved crimes and served as a member of the
FBI SWAT, receiving Hawaii’s Top Cop award and teaching as an FBI advanced instructor and
21. When Dr. Laanui became President and CEO, Damien was in poor fiscal
health and Dr. Laanui made tough decisions to improve Damien’s financial wellbeing.
22. Auditors described the system Dr. Laanui inherited as having “significant
material weaknesses” regarding Damien’s internal controls. Prior to Dr. Laanui’s arrival,
Damien’s last audit occurred in the school year 2019-2020, where the auditors observed that
Damien was rife with significant material weaknesses and that Damien was unwilling to fully
23. Dr. Laanui also obtained a $2.1 million grant for Damien, which is the
24. During his tenure, Dr. Laanui witnessed several suspected violations of
law which he reported to the Damien Board and the Christian Brothers, including but not limited
to: group sex on campus involving a minor; fraud; violations of Title IX and Interscholastic
Director, informed Dr. Laanui that Anthony Tuitele (“Coach Tuitele”), the head football coach,
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attempted to conceal an on-campus sex incident involving minor students that occurred during a
Damien sanctioned football sleepover in October 2022. Five students (four football team
members and a female equipment manager) engaged in group sex during the sleepover on
Damien’s campus.
26. Dr. Laanui informed the Board that the conduct may be criminal because
the girl involved was a minor and incapable of consent. Dr. Laanui reported that Damien could
be in violation of the law because the lax supervision by Damien staff allowed for the sexual
27. Dr. Laanui reminded the Board that this situation was like the recent
sexual assault claims that were brought against St. Louis High School involving a minor female
and two former football players. Dr. Laanui explained that the female student may have
allegedly consented, but because she is a minor, she is not capable of consent and could change
the five students for violating Damien’s policy prohibiting sexual relations on campus.
discipline Coach Tuitele for failing to supervise the students and for covering up the event.
group sex involving minors, Dr. Laanui received backlash from certain members of the
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32. Dr. Laanui learned that despite being marketed as a fundraiser for Damien,
the proceeds or donations were not shared with Damien. Monies from the DAA golf tournament
and donations received by members of the DAA at a separate Damien sponsored golf tournament
33. In March 2023, during an audit and accreditation review, auditor Carleton
Williams of CW Associates, informed Dr. Laanui that the DAA was not properly registered with
the IRS or State of Hawaii as a non-profit organization; that monies from the fundraisers held by
the DAA were not flowing directly to Damien; that there was possible criminal liability for the
DAA’s failure to pay taxes; and that Damien may be liable for sanctioning the DAA’s
misrepresentations, including tax issues related to improper DAA scholarships earmarked for
Damien football players. Dr. Laanui was also informed by the accreditors that DAA was
threatened to terminate Dr. Laanui’s employment if Dr. Laanui refused to sign a contract
allowing the DAA to run the school’s lu’au fundraiser. Dr. Laanui advised Mr. Baptist that
Damien would run its own lu’au fundraiser, independent of the DAA.
35. In April 2023, Dr. Laanui reported the violations of tax laws and the
Dr. Laanui Reports Violations of Title IX, ILH Rules, and Damien Policies
36. In April 2023, Dr. Laanui discovered that Coach Tuitele attempted to
improperly divert monetary donations to Damien by funneling scholarships from the DAA to his
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37. Parents informed the Damien Business Office that they were not paying
their children’s tuition, because they were waiting to pay with money provided by Coach Tuitele
through the football program. An audit revealed that the DAA made tuition payments to football
players.
38. On April 26, 2023, Dr. Laanui complained to the Board and the Damien
Sponsor Council that Damien had an issue with a recruiting scheme perpetuated by Coach
Tuitele where prominent football players were allowed to play football at Damien in a pay-for-
play scheme that violated tax laws, Title IX of the Education Amendments of 1972 which
prohibit discrimination based on sex in education programs and activities that receive federal
financial assistance, ILH recruitment rules prohibiting pay-to-play activities, and Damien
Dr. Laanui, with his permission, that would be used as a voluntary, formative assessment. The
survey was designed to support Dr. Laanui’s improvement goals for Damien for his second year.
40. Contrary to the official informal survey Ms. Gunderson approved, a false
Google survey was circulated to the Damien community, which misrepresented that it was an
authentic Board action. This false survey sullied the reputation of Damien, and more
41. Ron Malalis, a board member who is also President of the DAA,
42. Dr. Laanui reported this false Google survey to Ms. Gunderson and that
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43. Dr. Laanui reported this misconduct to the Sponsor Council members
Brother Lawrence T. Murphy (“Brother Murphy”), Brother Michael Segvich, Brother Edward
Brink, and Deacon Michael Weaver and stressed that it was criminal behavior. Dr. Laanui
reiterated the following suspected illegal activities: (a) ongoing Title IX violations regarding
improper “scholarships” for football players; (b) violation of ILH policy for using pay-to-play
scholarships for football players; (c) criminal culpability by the DAA and Damien, where the
DAA falsely claimed to be tax exempt and failed to pay taxes; and (d) misrepresentation and
44. Before Dr. Laanui could expound on his complaints of illegal activity, the
Sponsor Council members ended the meeting and advised Dr. Laanui that they were
uncomfortable with these issues which should be resolved “with the Board.”
45. In December 2023, Dr. Laanui discovered that Coach Tuitele and the
financial fraud by giving themselves a “bonus” for winning the 2023 football season.
46. Coaches Tuitele and Dalmacio submitted a $6,000 invoice for a football
banquet, but there was no intent by either Coach to have the banquet; instead, they were going to
pocket the money. Mr. Sueoka and Coach Tuitele admitted to Dr. Laanui that the monies for the
47. Dr. Laanui reported this misconduct and the results of his investigation to
the Board’s Executive Committee and members of the Board’s Executive Committee agreed
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48. On Wednesday, December 13, 2023, Dr. Laanui, with approval from the
terminating the coaches, which resulted in numerous protests by Damien Alumni, community
50. On January 23, 2024, Brother Lawrence T. Murphy and Brother Michael
Segvich, members of the Christian Brothers serving as Chair of the Congregation and Sponsor
51. During this meeting, Dr. Laanui complained about waste, fraud,
embezzlement, and abuse occurring at Damien. He also reiterated that the Coaches had to be
52. Instead of supporting Dr. Laanui, Brother Tom Murphy and Brother Ed
Segvich suggested that he take some time off and consider if he wishes to continue at Damien.
53. On January 26, 2024, Damien hired ALTRES to conduct a review of the
54. ALTRES concluded that the decision to remove the Coaches was prudent
Given the high profile of the coaches within the school and their
visibility in the broader community, along with the timing of the
terminations, the school was faced with a very difficult decision:
Terminate the coaches based on behavior/action that were in
direct conflict with the school’s policies, philosophy, and
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Catholic moral standards, or sweep it under the rug and allow
a culture of dishonesty and lack of remorse/accountability to
continue.
56. Following the termination of the Coaches, Damien retained the services of
the Office of Educational Services (“OES”) to conduct a professional review of Dr. Laanui on
57. On February 6, 2024, the OES concluded its review and met with
Dr. Laanui and Board Chair Betsey Gunderson. OES noted the controversy regarding the
football program and commended Dr. Laanui in certain areas (implementing financial best
practices, improving Damien’s financial well-being and greatly improving Damien’s much
59. The OES review team unanimously stated that these relationships are
repairable. Notably, the OES report does not include any recommendation for termination of
suspected violations of law and policy, Brother Murphy and Board Vice Chair Wally Marciel
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61. Brother Murphy said he would advise the community that Dr. Laanui had
resigned and that Damien pursued another direction and change of leadership. Brother Murphy
told Dr. Laanui that his separation was premised on a survey given to the parents and teachers.
62. Brother Murphy did not raise any “for cause” reasons for Dr. Laanui’s
63. Brother Murphy also presented Dr. Laanui with a Severance Agreement,
which among other things, provided for the continuance of Dr. Laanui’s salary and benefits until
64. The Severance Agreement did not mention any “for cause” reasons for
65. On Friday, February 16, 2024, at 7:27 pm Principal Pua Higa (“Dr. Higa”)
informed Dr. Laanui that she was investigating the Coaches’ misconduct. Dr. Higa informed
Dr. Laanui that she wanted to interview him by Wednesday, February 21, 2024.
66. Dr. Laanui thought this was strange because ALTRES and the Board
Executive Committee approved the decision to terminate Coach Tuitele and Coach Dalmacio.
67. On Saturday, February 17, 2024, at 1:13pm, Dr. Higa advised that she
wanted to conclude her investigation by Tuesday, February, 20, 2024. Dr. Higa further advised
that “If I do not hear back from you by tomorrow (Sunday) at 4pm, I will assume that you will
68. At the time of these emails, Dr. Laanui was at the hospital supporting his
father-in-law who was undergoing an amputation and February 19, 2024 was President’s Day.
69. On February 20, 2024, Dr. Laanui informed Ms. Higa that he would get
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70. Ms. Higa never spoke with Dr. Laanui again.
71. On February 24, 2024, there was a press release noting that Damien
72. On March 7, 2024, almost a month after Dr. Laanui was wrongfully
terminated in retaliation for reporting suspected violations of law and policy, Brother Murphy
sent a letter to Dr. Laanui informing him that he was terminated “for cause” and that he would
not be entitled to the severance promised to him and memorialized in his employment contract.
CAUSES OF ACTION
73. Dr. Laanui realleges and incorporates by reference the allegations of each
Dr. Laanui because he reported to his employer, violations or suspected violations of a law or
rule adopted pursuant to laws of the State of Hawaii, the City and County of Honolulu, and/or
discriminating against Dr. Laanui regarding the terms, conditions, and privileges of his
76. Defendant’s conduct also runs afoul of its core values espousing the
message of the Gospel of Jesus Christ, and, specifically, demonstrates a lack of integrity,
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77. Any excuses proffered by Defendant for disparate, discriminatory, and/or
retaliatory treatment of Dr. Laanui are pretextual attempts to justify Defendant’s adverse
has suffered damages for injury or loss, including wage loss, general damages, and attorneys’
fees. Dr. Laanui is entitled to the statutory remedies under the Hawaii Whistleblower Protection
Act.
79. Dr. Laanui realleges and incorporates by reference the allegations of each
public policy as set forth in Parnar v. Americana Hotels, Inc., 65 Haw. 370, 652 P.2d 625
(1982).
81. Dr. Laanui reasonably believed that Defendant, through the actions of its
employees and affiliates, like the DAA, was in violation of the law when he complained to the
82. Defendant, its employees and agents, wrongfully terminated Dr. Laanui
from his employment because he reported violations to his employer and his supervisors who
Dr. Laanui in violation of public policy, Dr. Laanui suffered indignities, anguish, pain, emotional
distress, fear, humiliation, damage to his reputation and career, and other damages in amounts to
be proven at trial.
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84. In performing all the acts and omissions described above, Defendant,
individually or through its employees and/or agents, acted intentionally, willfully, wantonly,
oppressively, or with gross negligence. Defendant is therefore liable to Dr. Laanui for punitive
retained attorneys to prosecute this action. Dr. Laanui is therefore entitled to an award of
reasonable attorneys’ fees and litigation expenses incurred in bringing this lawsuit.
86. Dr. Laanui repeats and realleges the allegations contained in the preceding
87. Dr. Laanui had a contract with Damien, which required Damien to
88. The contract requires Damien to pay Dr. Laanui the equivalent of the
remaining months of his annual salary otherwise payable under the contract from the date of
89. Dr. Laanui received his last paycheck on February 22, 2024, two weeks
90. Damien breached the contract by failing to pay Dr. Laanui the
compensation he is owed.
92. Some or all of the acts and omissions set forth above were done by
individuals and entities who were acting within the course and scope of their employment and/or
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actual and/or apparent agency relationship with Damien, and Damien is vicariously liable for the
WHEREFORE, Plaintiff prays for Judgment against the Defendants jointly and
severally, as follows:
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IN THE CIRCUIT COURT OF THE FIRST CIRCUIT
STATE OF HAWAII
COMES NOW, Plaintiff ARNOLD LAANUI, JR., by and through his counsel
undersigned, and hereby demands trial by jury of all issues so triable herein.
THIS SUMMONS SHALL NOT BE PERSONALLY DELIVERED BETWEEN 10:00 P.M. AND 6:00 A.M. ON
PREMISES NOT OPEN TO THE GENERAL PUBLIC, UNLESS A JUDGE OF THE ABOVE-ENTITLED
COURT PERMITS, IN WRITING ON THIS SUMMONS, PERSONAL DELIVERY DURING THOSE HOURS.
A FAILURE TO OBEY THIS SUMMONS MAY RESULT IN AN ENTRYOF DEFAULT AND DEFAULT
JUDGMENT AGAINST THE DISOBEYING PERSON OR PARTY.