Keith A. Waibel, through attorney Robert T. Torres, filed a third party complaint against attorney David J. Lujan in the U.S. District Court for the NMI.
Waibel, who is residing in Morro Bay, California, is also demanding a jury trial, Torres said.
In 1998, Lujan and Junior’s guardian executed a retainer agreement to compensate the Guam lawyer for his work on all Junior’s matter concerning the Hillblom estate, the complaint said.
Barry Israel, a cross defendant, is an attorney who resides in California, and has conducted business in California in connection with the JLH Trust.
In 1997, after Junior was established as “pretermitted heir” of the late multimillionaire Larry L. Hillblom, Junior was entitled to 15 percent of his father’s $550 million estate, or approximately $90 million before taxes.
Prior to 1999, Waibel did not represent Junior or his interests in any capacity and did not participate in any negotiations or agreements relating to establishing or maintaining Junior’s share of the Hillblom estate, Torres said.
After Waibel was appointed as trustee, the complaint stated, “Lujan and Israel began to pursue their own agenda of self-enrichment to the detriment of the JLH Trust and its beneficiary, Junior.”
The complaint said Lujan and Israel “by the use of threats, coercion and intimidation maneuvered Waibel into a position where he had no choice but to accede to their demands or face economic ruin, and they then used their power over him to their full advantage.”
The complaint said Waibel acceded to the demands of Lujan and Israel was forced to sign the 1999 retainer to increase contingency fees to Lujan and Israel from 38 percent to 56 percent — all without Junior’s knowledge.
As a result of their demands, the complaint said Lujan and Israel obtained approximately $38 million in fees and costs from JLH trust, drastically reducing Junior’s portion of the multi-million dollar trust to approximately $12 million.
The Variety tried but failed to get comment from Lujan or Israel.
