Judicial race heats up with allegations against Hardesty

Martin Griffith

Saturday, Aug. 22, 1998 | 10:33 a.m.

RENO, Nev. - A six-way judicial race for Washoe District Court is heating up with candidate Richard Hill criticizing rival Jim Hardesty's use of a sheriff's endorsement and handling of a client's trust fund.

Hardesty, the leading challenger to incumbent Judge Margaret Springgate, says he got a bum rap in the trust case.

"I was left holding the bag for the trustee not doing his job," the Reno lawyer said.

As for the ads, the Nevada Attorney General's office authorized Washoe County Sheriff Richard Kirkland to give his endorsement, in full uniform, Kirkland said.

The attacks have ignited some controversy in the typically low-key race.

Hill has highlighted the 1994 jury verdict requiring Hardesty to pay $335,270 to the trust's beneficiaries after finding he hadn't protected their interests.

"Jim was hired to protect some people. Rather than protect them, he ran interference for a trustee who stole the money," said Hill, a lawyer in Reno.

"People place trust in attorneys everyday. People are asked to place trust in a judge. I think the result in that case speaks directly to that issue," Hill said.

Other candidates in the race have declined to take up the issue.

"People in this community are sick of negative campaigns. I won't engage in it," said Springgate, who was appointed by Gov. Bob Miller to fill Mills Lane's unexpired term in April.

The other candidates are Jerry Polaha, Arnold Brock Jr. and Bill O'Mara.

The jury verdict was unique, said Hardesty, who has garnered more campaign contributions and key endorsements than the other candidates.

"I've never had a complaint against me other than that in 23 years of practicing law," he said. "I consider myself a very ethical and dedicated lawyer."

Hardesty oversaw the trust of Adele Trelease, who was diagnosed with cancer in 1982. Before her death in 1983, she designated her son and grandson as the trust's beneficiaries, and ex-husband Abraham Lichowsky of Southern California as its sole trustee.

But Lichowsky, who was unrelated to the beneficiaries, drained the trust by writing checks worth $335,270 to himself, according to court documents.

Hardesty, who was sued by the beneficiaries in 1989, initially assured their lawyers that the trust was safe and sound, but later acknowledged he didn't know the whereabouts of the money.

He also insisted he didn't know what Lichowsky did with the money. Lichowsky eventually declared bankruptcy.

Hardesty, whose clients include entertainer Wayne Newton and the Reno Gazette-Journal, said there was no law at the time requiring a trustee's lawyer to notify beneficiaries of the status of the trust, even if he had known.

But that changed in 1992 when the Nevada Supreme Court ruled against him, making Nevada one of the first states to impose the requirement.

"This is a ridiculous law and nine other states have rejected it," Hardesty said.

Since then, Hardesty has received a campaign contribution from the beneficiaries' lead trial attorney, Fred Atcheson of Reno.

"If he thought that case raised concerns about me being a judge, he wouldn't have done that," Hardesty said.

Another attorney for the beneficiaries, Mark Mausert of Reno, said the case shows Hardesty is unfit to be a judge.

"Hardesty lied to us and said the money in the trust was safe," Mausert said.

"He was supposed to be a referee, but he helped the trustee conceal the misappropriation of funds through delay and misrepresentation. His conduct should disqualify him from serving on the bench."

Hill also criticized the Kirkland TV ads which imply the sheriff's office backs Hardesty. The department doesn't endorse candidates.

"The ads use Kirkland in uniform, the jail and inmates. I think that's county property being used for a campaign," Hill said.

Kirkland said the Attorney General's office told him the ads were not illegal.

"If he (Hill) wants to be a judge, he ought to do better research," Kirkland said. "This facility's operations and inmate work crews are public access activities. Anyone can film them."

The top two vote getters in the Sept. 1 primary advance to the general election.