Big Island Toyota trial starts Monday

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Email John Burnett at jburnett@hawaiitribune-herald.com.

By JOHN BURNETT

Tribune-Herald staff writer

Jury selection begins Monday in a long-brewing civil trial between Big Island Toyota and one of its top former executives.

The lawsuit, filed in November 2006 by the auto dealership, accuses Victor D. Trevino Jr., its former chief operating officer, of stealing from the company, failing to file the company’s 2005 corporate tax return on time and leaving the company’s financial records in ruin as the company was undergoing an audit of its 2003 taxes. The suit seeks repayment of about $335,000 in addition to unspecified punitive and other damages.

A slew of pretrial motions was heard Wednesday by Hilo Circuit Judge Glenn Hara. One was a request for a change of venue to Honolulu by Trevino, who was present, as was defendant/counterclaimant Le Pomaski, the company’s former comptroller.

“I think the most significant argument in support of the court granting that is the … existence of Big Island Toyota, David De Luz Sr. Enterprises and the De Luz family is basically a longtime, well-respected business and family in Hilo and couple that with the press coverage, especially the extremely negative press coverage for Mr. Trevino would certainly justify granting of the motion …,” said Kris LaGuire, a Hilo attorney representing both Trevino and Pomaski.

Honolulu attorney Marion Reyes-Burke, one of three lawyers representing Big Island Toyota and the De Luz family, argued that the reputation of the company and family “has been well known since the beginning of the case.”

“If that, indeed, were a factor Mr. Trevino was concerned about, he should have asked to move venue … a month before the trial,” she said. “… With regard to the quote ‘extremely negative publicity’ he alleges … Mr. Trevino himself, right in the middle of this litigation, posted extremely inflammatory videos on YouTube and he gave … inflammatory statements.”

A YouTube video showed cattle carcasses that Trevino alleged were improperly disposed of by a grass-fed beef producing venture founded by De Luz and Trevino.

The judge denied the motion to move the trial.

The Mexico-born, Texas-bred Trevino worked for a Chicago-area tax advising company when he came to Hawaii to consult Big Island Toyota and its parent company, David S. De Luz Sr. Enterprises. After about a year-long courtship, De Luz lured Trevino away from the Chicago job and the pair teamed up for a variety of business ventures, including real estate and a cattle company near Honokaa.

The suit came after Trevino developed a reputation as a young protégé in the Hawaii’s business community, and months after Pacific Business News listed Trevino as one of its “Forty Under 40” for 2006, an honor for businesspeople younger than 40.

Among the allegations are that Trevino cut himself an unauthorized bonus check for $222,895.25 in April 2006, and that he kept two company laptop computers and took two tower computers from the company after resigning in October that year.

Trevino filed a countersuit against Big Island Toyota, which has since been dismissed, saying the De Luz lawsuit was a preemptive strike fired against an honest man who resigned from a dishonest company in disgust. It was revealed in court Wednesday that the counterclaim was “purchased” by De Luz for $60,000 in a bankruptcy case filed by Trevino in Texas in 2009.

The suit also accused Pomaski and an outside accountant of improperly issuing checks worth $112,000 to Inside Out Marketing LLC, a now-defunct company owned by former Big Island Toyota employee Stephanie Nakano. Pomaski has filed a counterclaim alleging defamation.

The suit is expected to take about five weeks.

Email John Burnett at jburnett@hawaiitribune-herald.com.