Jerry and Patricia A. Dixon, et al - Page 268




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                    I will assume that you will take the position                     
               that you should not be paying interest on notes which                  
               produced deductions which you might not have used.                     
               While this, of course, would not go well with a bank or                
               Credit Union (they would charge you interest whether                   
               you use the deductions or not) I am willing to make                    
               adjustments to your advantage.  To get that underway I                 
               suggest that you tell us which of the deductions were                  
               claimed by you in 1983 and 1984.                                       
          *   *   *   *   *   *   *                                                   
               To keep the spirit of accommodation alive and to remove                
               all elements of dissatisfaction we are quite willing to                
               lean over into your direction.  It has troubled me                     
               considerably that of all people you would be displeased                
               with our services.                                                     
               On May 6, 1986, Mr. Thompson wrote to Mr. Kersting                     
          requesting a full accounting for his participation in the Bauspar           
          program.  Mr. Thompson informed Mr. Kersting that the property              
          subject to the Bauspar mortgage had been sold.  Mr. Thompson also           
          said that he was reminding Mr. Kersting that, upon his retirement           
          in 1982, he had asked to terminate his participation in the                 
          programs for which Mr. Kersting was now seeking interest payments           
          for leverage loans.                                                         
               Beginning in June 1986, Mr. Thompson stopped making the                
          $1,200 monthly deposits to Citizens Financial as required under             
          the Bauspar program.  At the same time, Mr. Thompson ignored                
          Mr. Kersting's written requests to explain his failure to make              
          the deposits.  Further, on June 23, 1986, at the suggestion of              
          Mr. Huestis, the Thompsons retained John A. Chanin (Mr. Chanin),            
          an attorney practicing in Honolulu, to assist them in their                 
          dispute with Mr. Kersting.  Mr. Chanin assigned the matter to his           
          associate, Keith Y. Yamada (Mr. Yamada).                                    

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