A murder defendant is suing the estate of Brian De Lima, claiming the late Hilo attorney used his position to steal money from the defendant’s bank account and from a trust set up for him.
The civil suit was filed Tuesday in Hilo Circuit Court by Stacy Merrill, a California resident and first cousin of Robert Dean Merrill. Stacy Merrill is acting as Robert Merrill’s “attorney-in-fact” in the lawsuit, and as a member of the Robert Dean Merrill Trust.
Also named as a defendant in the civil complaint is Blaise De Lima, De Lima’s older daughter and heir.
The suit seeks unspecified monetary damages from De Lima’s estate.
De Lima died on Feb. 8, 2022, at 66. His wife, Paige, died June 6, 2022, at 60. The De Limas’ younger daughter is a special-needs individual and not named in the lawsuit.
De Lima was the first defense attorney hired by Robert Merrill, 64, who was charged with second-degree murder for the May Day 2020 bludgeoning death of his 82-year-old mother, Betty Jean Merrill, whose body was found in her bedroom of the Hawaiian Paradise Park home she and her son shared. Police described the murder weapon as “resembling a Native American stone ax.”
The lawsuit, among its claims, alleges breach of contract, breach of fiduciary duty, malpractice, negligence and conversion, which means theft.
It’s the first litigation against De Lima’s estate, although there have been several creditor claims, according to court records.
The complaint says Robert Merrill “suffers from various mental health issues,” and the trust was set up on Dec. 1, 2017. Robert Merrill designated his mother, Betty Jean, as his general power of attorney, and cousin Stacy Merrill as successor power of attorney, according to the suit. Stacy Merrill assumed power of attorney for Robert Merrill upon the death of Betty Jean Merrill.
According to the complaint, after Robert Merrill’s arrest, Stacy Merrill informed De Lima “that I was attorney-in-fact under the original (power of attorney) for Robert and I would arrange payment of his retainer.”
The lawsuit states De Lima quoted a retainer of $65,000 to take the case through trial and $10,000 for trial expenses such as expert witnesses. With COVID-19 restrictions in place at the time, Stacy Merrill claims De Lima “told me that he thought it best for him to prepare a limited, narrow power of attorney designating himself, allowing him to access Robert’s First Hawaiian Bank funds only for a one-time draw of his retainer fee.”
The suit claims De Lima “misappropriated more than $90,000 from Robert’s personal bank account and the Robert Merrill Trust.”
The complaint alleges that “De Lima’s attorney-client agreement with Robert does not conform with Hawaii law and that Mr. De Lima did not earn more than approximately $9,000 for attorney services.”
That figure was reached, according to the lawsuit, by Robert Merrill’s current defense attorney, William Harrison, who reviewed the previous actions of the case and estimated 25.5 billable hours. At De Lima’s fee of $350 per hour plus 4.7% general excise tax, the total was $9,235.60.
According to the suit, the hearings handled by De Lima’s associate, Jeremy Butterfield, should have been billed at a lower rate than those by De Lima, as Butterfield had less experience.
The filing also claims Robert Merrill’s ex-wife was a paralegal for De Lima’s brother-in-law and former law partner, Bob Crudele, and that De Lima and Merrill’s ex-wife “took valuables of an unknown value from Robert’s home.”
Stacy Merrill also alleges that on May 5, 2020, “unbeknownst to me” De Lima secretly had Robert Merrill sign a power of attorney designating De Lima as Merrill’s legal representative “to handle all matters.”
“Contrary to our discussions, Mr. De Lima’s (power of attorney) was not narrow and limited upon review,” the suit states.
The lawsuit also alleges that a letter from De Lima dated May 4, 2020, contained a clause calling $50,000 of the retainer a “flat fee … which shall be considered earned at the time of the first pretrial conference.” Stacy Merrill claims De Lima didn’t mention the $50,000 “flat fee” upon being hired.
The suit states that after De Lima’s death, Stacy Merrill requested De Lima’s billing statements and an accounting from Crudele of what had been billed and received from Robert Merrill.
Crudele, according to the complaint, sent an email Oct. 19, 2022, claiming there had been a pretrial conference on Aug. 24, 2020, in the murder case, so the $50,000 became due on that date. The suit states Crudele told Stacy Merrill that $93,244.16 had been received and another $19,174.20 was owed to De Lima’s estate.
Harrison’s review of the case, according to the litigation, didn’t find record of a pretrial conference.
With a pending mental examination, “at no time was Robert’s case ready to hold a pretrial conference in De Lima’s lifetime,” the suit states.
Robert Merrill, who has since been found fit to stand trial and legally responsible for his actions at the time of his mother’s death, has a court date scheduled for Oct. 3. It’s unclear from court records, however, what the purpose of the hearing is.
He remains in custody at Hawaii Community Correctional Center in lieu of $1 million bail.
Email John Burnett at jburnett@hawaiitribune-herald.com.