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Spring

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Spring / Summer 2014 Providing clients worldwide access to sophisticated legal advice and exceptional service.

Providing clients worldwide access to sophisticated legal advice and exceptional service.

to sophisticated legal advice and exceptional service.

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Inside this Issue: Assisting The Japanese Investor Immigration News-Overview of DACA Program Introducing Sara E.
Inside this
Issue:
Assisting The
Japanese Investor
Immigration
News-Overview
of DACA Program
Introducing
Sara E. Coes:
Cultural
Understanding
Family Law
Practice
Christopher J.I.
Leong Presents
His Art of
Persuasion at
Damon Key

Bridging the Gap

您考虑“降落”到夏威夷生活还是投资吗?

中国客户常见问题及解答

Answers to Frequently Asked Questions from Chinese Clients

Answers to Frequently Asked Questions from Chinese Clients By Sara E. Coes I recently moved to

By Sara E. Coes

I recently moved to Honolulu from Shanghai, China, and joined Damon Key as an attorney

in May. While in China, I worked as a business and transactional lawyer for over a decade.

In moving to Hawaii, Chinese friends and clients often ask me questions about moving here, investing here and doing business here. Below please find short answers to many of these

questions:

我是否有意愿投资移民到夏威夷?

Can I obtain a U.S. Green Card through investment?

美国的投资移民的签证叫《EB-5》 成功的申请者可以为自己 配偶和子女获得绿卡 但是 EB-5有多个要求和陷阱

Yes, many Chinese investors obtain Green Cards through the “EB-5” program. Nearly all EB-5

investors do this through $500,000 investments in regional center projects which must create 10 new jobs per investor for American workers. The investment is at risk and the source of funds must be proven as lawful. Candidates for EB-5 must have a net worth of at least $1 million or

a high annual income. Before choosing an EB-5 investment program, we recommend that you

consult with an attorney and do thorough due diligence on any investment to be sure it meets all EB-5 requirements.

还有其他办法拿到签证住夏威夷吗?

What are other ways I can get a visa to live in Hawaii?

除了EB-5项目 有几种其他的方式来生活和工作在夏威夷 比如为外国员工的H-1B及L-1签证

In addition to the EB-5 program, there are a few other ways to come live and work in Hawaii. One is the H-1B “specialty occupations” visa for people with college degrees to work for

American employers. Another is the L-1 visa which allows companies to send a foreign manager or executive to the U.S. to work. This may be relevant if a Chinese company were to purchase

a local company in Hawaii or if a Chinese company decided to set up a Hawaiian subsidiary.

Continued on page 2

Damon Key Leong Kupchak Hastert 1003 Bishop Street Suite 1600 Honolulu, Hawaii 96813 Telephone (808) 531-8031 Facsimile (808) 533-2242 Website www.hawaiilawyer.com

Continued from cover

怎么建立一个公司在夏威夷?

How do I start a company in Hawaii?

建立公司在夏威夷需要通过一个简单的政府备案来实现 注册成功之后 需要每年做年度申报即可持 续经营

Starting a company in Hawaii is achieved through a simple government filing. There are many forms of

business enterprises. Most investors choose either a corporation or limited liability company (“LLC”). Both types of companies will have required annual government filings. In Hawaii the business scope of a company

is everything that is allowed under the law. Certain types of businesses however require special permits or

specially licensed staff. In Hawaii these restrictions are adhered to and enforced, so it is best to know what licenses are required before embarking on a new business.

我可以在夏威夷买房地产吗?

Can I buy real property in Hawaii?

非美国公民在夏威夷购买房地产 拥有多少公寓或房子 都没有限制

Yes, there is no restriction on non-U.S. citizens buying real property in Hawaii or on how many apartments or houses can be owned. Some of the local banks in Hawaii offer mortgages to overseas investors. Hawaii has properties that are both leasehold and fee simple. If you purchase a fee simple property, this property will be yours in perpetuity.

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关于美国税 我需要了解哪些?

What do I need to know about U.S. taxes?

如果您居住、投资、拿到美国绿卡或护照 会需要有每年报税的要求

If you become a U.S. citizen or Green Card holder, you will need to file U.S. taxes annually and declare your

worldwide income to the United States Internal Revenue Service (“IRS”). You will also be required to give information to the IRS about your bank accounts and investments outside the U.S. There are serious penalties for failing to do so. If you remain a non-resident of the U.S., you will still be required to file U.S. and Hawaii taxes for any income you earn in Hawaii. Moreover, any company you establish in Hawaii will have annual U.S. tax filing obligations.

还有其他建议关于搬到夏威夷居住或投资?

Any other advice about a move to or investment in Hawaii?

符合法律规定和合同条款是最重要的 应确保任何承诺是书面的 签好合同之前 要确保您明白合同内容的 意思 以保护您的利益

While Hawaii is built on relationships, similar to China, compliance with the law and contract terms is paramount. When you come to Hawaii, make sure any promises or requirements you agree with a counterparty are put into

a signed document; make sure you understand any obligations, risks and liabilities you are undertaking. Do not be afraid to ask questions.

For more information on this article, please call Sara ( 孔珊茹 ) at 531-8031 ext 611, email her at sec@hawaiilawyer.com or scan the code with your smartphone.

sec@hawaiilawyer.com or scan the code with your smartphone. Damon Key Leong Kupchak Hastert • 1003 Bishop

Damon Key Leong Kupchak Hastert 1003 Bishop Street Suite 1600 Honolulu, Hawaii 96813 Telephone (808) 531-8031 Facsimile (808) 533-2242 Website www.hawaiilawyer.com

Assisting The Japanese Investor

D amon Key has assisted foreign investors in establishing their businesses in Hawaii for many years. When the investors are from a non-English speaking country, the maze

of U.S. global change laws and procedures are extra challenging. Being able to commu- nicate the differences in their native tongue and understanding their business culture have been strong points when we problem-solve for clients.

have been strong points when we problem-solve for clients. By Christine A. Kubota There are a

By Christine A. Kubota

There are a few basics that I share with clients and potential clients about investing in Hawaii. Simple but often forgotten are: (1) read and understand what you are signing; (2) look at the big picture and the long-term effects - what is good for operations may be bad for immigration and what may be good for immigration may be bad for tax planning; (3) if you don’t know ask; (4) promises made should be in writing; (5) what is your role and the consultant’s role - who pays for what; and (6) confirm the value of the asset you are purchasing.

The basic questions that we ask are the same as what we would ask any entrepreneur. Who is the investor? What is the purpose? Long term or short term? Are there immigration issues? How many employees will you need? Location and target market? Insurance and tax issues? What are your thoughts on estate planning? The only difference is that for each step the foreign investor is surrounded by unfamiliar concepts. Often the investor will be so happy to be in Hawaii they will believe what is presented without confirmation and get into trouble. We caution them about the litigious environment and that justice is expensive. The more precautions you take at the beginning of your journey, the easier your journey will become.

デーモン・キーは、長年、外国投資者がハワイでのビジネスを

設立する為の支援をして参りました。投資者が非英語圏出身の

場合、米国の法律と手続きの迷路は付加的挑戦になります。

私共はクライアントの為の問題解決とし、彼らの母国語でその違

いを通じ合い、並びに彼らのビジネス文化を理解する事を私共の

強みとしてきております。

私がクライアント及び将来的なクライアントとハワイにおける 投資につきまして分かち合う幾つかの基本事項があります。簡単 ですが, 度々忘れられている事とし; 1. 貴方が署名をしている書 類の読解; 2. 広視野で考え、長期影響を考える- 操作上良い事 でありながら移民上は悪い事であるかもしれない; 3. もし知ら ない場合は質問をする; 4. 約束は書面上で行う; 5. 何が貴方 の役割でコンサルタントの役割であるか - 誰がどの支払いをする か; 及び 6. 貴方が購入する資産価値の確認、などです。

私共が基本的に質問する事項は、どの起業家にも尋ねる事項 と同じです。誰が投資家であるか? その目的は何であるか? 長 期又は短期であるか? 移民問題は存在するか? 必要従業員数 は?場所及び目標市場は? 保険や税金問題は? 貴方の遺産計 画に対する考えは?外国投資家が踏む各ステップの単なる違い は、馴染みの無い概念に囲まれている点です。しばし投資家はハ ワイにいる事で非常に幸福になり、彼らに提示された事を確認せ ずに信じ、問題に巻き込まれます。私共は、彼らに訴訟好きな環 境及び正義は高価である事実につき忠告致しております。貴方 が行路の始めに用心をすればする程、その先の貴方の行路は楽 になります。

私共のゴールは、私共のクライアントがハワイでの生活に可能

な限りスムーズに移行するお手伝いをする事ですが、私共は、彼ら

に多くの作業が関わっている事実も忠告しております。デーモン・

キーは、これらの言語と文化の壁を彼らの夢実現の為に支援可能

な私共の能力に誇りを持っております。

It is our goal to assist our clients to transition into Hawaii life as smoothly as possible but we also remind them that there is a lot of work involved. Damon Key takes pride in our ability to help those with language and cultural barriers realize their dreams.

with language and cultural barriers realize their dreams. For more information on this article, please call
with language and cultural barriers realize their dreams. For more information on this article, please call

For more information on this article, please call Christine A. Kubota 久保田クリステイーン at 531-8031, ext 613, email her at cak@hawaiilawyer.com or scan the code with your smartphone.

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Damon Key Leong Kupchak Hastert 1003 Bishop Street Suite 1600 Honolulu, Hawaii 96813 Telephone (808) 531-8031 Facsimile (808) 533-2242 Website www.hawaiilawyer.com

Immigration News - Overview of DACA Program

Immigration News - Overview of DACA Program By Clare M. Hanusz W hile comprehensive immigration reform

By Clare M. Hanusz

W hile comprehensive immigration reform remains elusive, two years ago President Barack Obama announced an important new program that provides temporary relief

for certain people who came to the United States as children and lack lawful immigration status. The “Deferred Action for Childhood Arrivals” program, or “DACA,” is open to those who were born after 6/16/1981, came to the U.S. under the age of 16 and were less than 31

years old on 6/15/2012. Additionally, to qualify for DACA an individual must show a period of continuous residency in the U.S., meet specific educational and/or military service requirements, and have not been convicted of certain crimes or pose a threat to national security or public safety. A DACA grant provides two years of temporary relief from the fear of deportation and eligibility for work authorization.

Since DACA was created, the United States Citizenship and Immigration Services (“USCIS”) has approved approximately 550,000 applications from young undocumented immigrants. The two-year anniversary of DACA comes in August 2014, when early DACA grantees will need to begin applying for renewals. In Hawaii, almost 300 people have applied for DACA, and more than 220 of those applications have been approved. While the largest groups of applicants nationwide have come from Latin America, a significant number of young people from South Korea and the Philippines have also benefitted from the program. We believe there are many more living “in the shadows” who would benefit from DACA. Fear, shame, isolation and lack of information are the likely factors that keep people from coming forward for advice.

As with any application with USCIS, there might be risks involved, and it’s best to have professional assistance to evaluate those risks. Lawyers in Damon Key’s Immigration Practice Group are happy to provide a free consulta-

4 tion to see if you or a loved one may be eligible for DACA.

Aunque la reforma comprensiva de la inmigración sigue elusiva, hace dos años el Presidente Barack Obama anunció un nuevo programa importante que provee una solución temporal para ciertas personas que llegaron a los Estados Unidos como niños y faltan estatus legal de inmigrante. El programa “Acción aplazado de llegadas infantiles” (Deferred Action for Childhood Arrivals), conocido como DACA, está abierto a los que nacieron después del 16/6/1981, llegaron a los EEUU debajo de la edad de 16 años y tenían menos de 31 años el 15/6/2012. Adicionalmente, para calificar para DACA un individuo debe mostrar un período de residencia continua en los EEUU, cumplir con requisitos específicos educacionales o de servicio militar, y no haber sido condenado de ciertos crímenes o de posar una amenaza a la segurudad nacional o al público. Una beca DACA provee dos años de libertad contra el miedo de estar deportado y dos años de elegibilidad para autorización de trabajar.

Desde que se creó DACA, los Servicios de Ciudadanía e Inmigración de los EEUU (United States Citizenship and Immigration Services) (“USCIS”) ha aprobado aproximadamente 550.000 solicitudes de jóvenes inmigrantes sin documentos. El segundo aniversario de DACA llega en agosto de 2014, cuando los primeros becarios de DACA tendrán que comenzar a solicitar renovaciones. En Hawai‘i, casi 300 personas han solicitado DACA, y de ellos más de 220 han sido aprobados. Mientras que los grupos más grandes en todo el país han llegado de América Latina, un número importante de jóvenes de Korea del Sur y de las Filipinas también han disfrutado del programa. Creemos que hay muchos más viviendo “en las sombras” que disfrutarían de DACA. El miedo, la vergüenza, el aislamiento y la falta de información son probablemente los factores que bloquean que la gente se presente para consejos.

que bloquean que la gente se presente para consejos. Tanto como cualquier solicitud al USCIS, puede

Tanto como cualquier solicitud al USCIS, puede que haya riesgos, y es mejor tener ayuda profesional para evaluar tales riesgos. Los abogados de Damon Key Immigration Practice Group (Grupo de práctica de inmigración Damon Key) estarán encantados proveerles una consulta gratuita para ver si Usted o sus seres queridos pueden ser elegibles para DACA.

Usted o sus seres queridos pueden ser elegibles para DACA. For more information on this article,

For more information on this article, please call Clare at 531-8031 ext 617, email her at cmh@hawaiilawyer.com or scan the code with your smartphone.

Damon Key Leong Kupchak Hastert 1003 Bishop Street Suite 1600 Honolulu, Hawaii 96813 Telephone (808) 531-8031 Facsimile (808) 533-2242 Website www.hawaiilawyer.com

Introducing Sara E. Coes:

Cultural Understanding

Introducing Sara E. Coes: Cultural Understanding I n May 2014, Damon Key welcomed Sara E. Coes

I

n May 2014, Damon Key welcomed Sara E. Coes to the firm. An accomplished lawyer with strong negotiation and contract skills, she practices in the areas of

business and commercial law, real estate and estate planning. Sara has over a decade of legal experience in business and transactional matters in Asia and the United States. She is fluent in Mandarin Chinese and her unique skills benefit both Chinese-speaking clients seeking legal services in Hawaii and clients who are negotiating with Chinese nationals.

“With her comprehensive understanding of the Chinese business culture and her past success in helping to forge transactions between businesses in the U.S. and Asia, Sara is a valuable addition to our team,” said Michael

Yoshida of Damon Key. “Sara, along with all our skilled bilingual attorneys,

is able to help bridge cultural and linguistic gaps that sometimes exist

when our clients pursue foreign business plans and transactions.”

A native New Yorker, Sara earned her bachelor’s degree in economics/

political science, magna cum laude, from Columbia University. She then spent a year teaching English in China before entering Columbia University School of Law. While pursuing her law degree, she spent two summers at international law firms in China. Sara admits that, by this time, she had caught “the China bug.”

In 2000, with J.D. in hand, Sara set her sights on launching a legal

career in Asia. However, understanding the importance of receiving good

legal training prior to arriving there, she first joined the New York office of international law firm Freshfields Bruckhaus Deringer as an attorney. Three years later, Sara transferred to the firm’s Shanghai office where she was promptly assigned a $500 million deal. Thanks to her solid training in New York, she was ready for the challenge and her career in Asia was successfully launched. While at the firm, Sara focused on mergers and acquisitions, foreign direct investment, project finance and structured finance transactions.

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Sara went on to work for Honeywell International, Inc., in its Asia Pacific headquarters, most recently serving as a General Counsel. In this capacity, she oversaw legal support for Honeywell Aerospace’s Asia Pacific Integrated Supply Chain, which included fourteen Asia Pacific sites and all sourcing activities in the region.

A few of Sara’s key accomplishments include supporting the negotiation and set up of joint ventures that will

supply systems for the COMAC C919 aircraft, standardizing contract forms and review processes to reduce risk and increase efficiency, and leading initiatives to train and educate employees in the areas of critical business knowledge protection and overall integrity and compliance.

After more than a decade living and working in Asia, Sara and her husband, Xiaojun Dong of China, decided

it was time for their family to leave Shanghai. They agreed that Hawaii would be a good fit for themselves, their three daughters and their dog. True to her strategic nature, Sara then took the necessary steps to make that happen. She passed the Hawaii Bar Exam, networked and then joined Damon Key.

While Sara found the large business environment fascinating and rewarding, she looks forward to returning to work at a firm. “Working in a firm is more entrepreneurial in nature and I’ll be helping people versus helping stock prices – that’s attractive to me,” said Sara. She also looks forward to becoming involved in a variety of Hawaii-based community and professional organizations.

Damon Key Leong Kupchak Hastert 1003 Bishop Street Suite 1600 Honolulu, Hawaii 96813 Telephone (808) 531-8031 Facsimile (808) 533-2242 Website www.hawaiilawyer.com

Family Law Practice

I recently presented a short overview of some of the practical aspects of family law in Hawaii in an effort to address common questions which occur well before people

decide that they have an issue which they should discuss with a family law attorney. I present these short summaries for your information and to stimulate your thoughtful consideration.

information and to stimulate your thoughtful consideration. By Judith A. Schevtchuk Creating Families with Children:

By Judith A. Schevtchuk

Creating Families with Children: Children are born with married or unmarried parents and the law still retains many special and often seemingly archaic rules for the children of unmarried parents. Hawaii law now allows consenting unmarried biological parents to legally establish the paternity of their newborn at the hospital provided the mother is not legally married to anyone else on the date of birth. Where she has a living and undivorced spouse somewhere in the world, special procedures are required in order for the newborn’s biological father to establish his father-child relationship. This comes as a shock to many men who are ready, willing and

6 able to assume their parental duties but find they cannot be legally recognized as their newborn’s father until the birth mother’s husband is judicially determined NOT to be the baby’s biological father. This is known as “disestablishing paternity.” Where birth mother is not interested in cooperating with her new baby’s father to establish his relationship to her newborn, the issues become more factually and legally complex.

Pro Se Divorces and Afterward: With the populari- ty of online legal advice, the proliferation of “forms” websites (including those of the Hawaii Judiciary at www.courts.state.hi.us), and the cost of legal services, many people are filing their own divorce paperwork and not hiring attorneys. This may be completely reasonable for couples where there are no joint debts or assets and no children, however a substantial portion of my practice is “fixing” situations after the divorce is final where the parties “forgot” to address issues such as: claiming the dependent tax exemption; paying for college; paying for visitation transportation expenses when both parents do not remain on Oahu; unexpected and uninsured health care expenses; “jointly” making decisions and many others.

I typically provide new divorce clients with a “laundry list” of the issues they need to discuss if at all possible with their soon-to-be-ex-partner. They are frequently shocked by the research and “homework” and negotiation which will be needed to address all of the issues in a cooperative manner. The typical Uncontested Divorce Action (which does not require a court appearance), is now taking at least 90 days from the date of delivery to the Oahu Family Court until the Divorce Decree is filed and the couple’s divorce is “final.” Departing Oahu (or scheduling a new wedding!), based upon a “quick turn-around” and “automatic approval” is not recommended. When the Family Court judges determine that the proposed settlement is not “fair and equitable” or there are other questions or irregularities, the case is scheduled for a hearing and both parties must physically appear at the Kapolei Family Court.

CONCLUSION All of the above issues are a regular part of my family law practice.

above issues are a regular part of my family law practice. If you or someone you

If you or someone you know would like a confidential consultation to discuss these or similar issues, please call my Legal Assistant, Leah Corpuz at (808) 531-8031 ext 645, or email me at jas@hawaiilawyer.com or scan the code with your smartphone.

jas@hawaiilawyer.com or scan the code with your smartphone. Damon Key Leong Kupchak Hastert • 1003 Bishop

Damon Key Leong Kupchak Hastert 1003 Bishop Street Suite 1600 Honolulu, Hawaii 96813 Telephone (808) 531-8031 Facsimile (808) 533-2242 Website www.hawaiilawyer.com

Christopher J.I. Leong Presents His Art of Persuasion at Damon Key

C hristopher J.I. Leong’s long-held passion for speech and debate has led him to the legal career he enjoys today as a new associate at Damon Key Leong

career he enjoys today as a new associate at Damon Key Leong Kupchak Hastert. Christopher, who
career he enjoys today as a new associate at Damon Key Leong Kupchak Hastert. Christopher, who

Kupchak Hastert. Christopher, who graduated cum laude from the William S. Richardson School of Law, practices in the firm’s Litigation and Alternative Dispute Resolution Practice Group.

“We are pleased to welcome Christopher to the firm where we know he will deliver first-rate litigation and dispute resolution services to our clients,” said Michael Yoshida of Damon Key. “He is a skilled attorney with a zeal for success inside and outside of the courtroom.”

Prior to joining the firm, Christopher served as law clerk to Associate Justice Paula A. Nakayama of the Hawaii Supreme Court. Previous to earning his legal degree, he spent two years in Japan as an assistant language teacher on the Japan Exchange and Teaching (JET) Program.

While in law school, Christopher served as Co-Editor-in-Chief of the University of Hawaii Law Review and received three CALI Excellence for the Future Awards.

He received his bachelor’s degree in Foreign Languages, magna cum laude, from Lewis & Clark College. While pursuing his undergraduate degree, he studied abroad in China and Japan.

Christopher currently volunteers with the Hawaii Speech League where he serves as a judge at high school speech and debate tournaments. He first sharpened his skills in the art of persuasion as a member of the debate team at Iolani School. His knack for public speaking and presentations, combined with a passion for extensive reading, writing and research, served as a natural bridge to the legal profession.

Christopher is a member of the JET Program Alumni Association of Hawaii. He has many Asian-inspired interests and is a long-time auto enthusiast, attending the Tokyo Motor Show three times in recent years.

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Rail is Coming and We’re Ready.
Rail is Coming and We’re Ready.

The rail project is generating legal issues in eminent domain, construction and procurement, and environmental law. For half a century, Damon Key Leong Kupchak Hastert has been at the forefront of providing creative solutions and being forceful advocates in all these areas. The firm represents a number of property owners along the route whose parcels have been designated for acquisition for the project.

For more information about how the Honolulu rail project may impact your property, home, or business, and how Damon Key’s eminent domain lawyers can assist, please call Robert H. Thomas or Mark M. Murakami at (808) 531-8031, or visit us at www.hawaiilawyer.com.

at (808) 531-8031, or visit us at www.hawaiilawyer.com. Find out more about rail issues by visiting

Find out more about rail issues by visiting hawaiilawyer.com/rail, or use your smartphone toscan the code.

Damon Key Leong Kupchak Hastert 1003 Bishop Street Suite 1600 Honolulu, Hawaii 96813 Telephone (808) 531-8031 Facsimile (808) 533-2242 Website www.hawaiilawyer.com

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MATERIAL

Legal Alert is published periodically by Damon Key Leong Kupchak Hastert to inform clients of legal matters of general interest. It is not intended to provide legal advice or opinion.

Attorneys

in

the

News

Sara E. Coes spoke in June at the Hawaii Society of Enrolled Agents. Her topic was an overview of the main steps and legal documents involved in buying or selling a private company.

Clare M. Hanusz has been elected Hawaii Chapter Chair for the American Immigration Lawyers Association (AILA). As Chapter Chair, she will also sit on the AILA Board of Governors.

Robert H. Thomas has been appointed as the Planning Co-Chair for the American Law Institute-CLE’s annual national conference on Condemnation Law, “Eminent Domain and Land Valuation Litigation.” Now in its 32nd year, the ALI-CLE conference brings together the country’s top eminent domain lawyers and appraisers for three days of expert programming. Thomas has been on the faculty for a number of years, and joins Joseph Waldo of Norfolk, Virginia as co-Chairs of the conference.

Thomas recently presented an article he co- authored with Damon Key attorney Matthew T. Evans ”Recent Developments in Regulatory Takings” at the Spring meeting of the American Bar Association’s Section of State and Local Government Law in Asheville, North Carolina. The article is slated for publication later this year in The Urban Lawyer.

Hawaii Business Magazine reported on Damon Key’s legal blogs in its April 2014 edition. “Hawaii-Focused Legal Blogs,” is about the

four blogs the firm’s lawyers write and publish, HawaiiOceanLaw.com (Mark M. Murakami), HawaiiConstructionLaw.com (Anna H. Oshiro), InsuranceLawHawaii.com (Tred R. Eyerly), and InverseCondemnation.com (Robert H. Thomas). Visit http://www.hawaiibusiness.com/Hawaii-

Business/April-2014/Hawaii-Focused-Legal-

Blogs/ for the story.