Justia Hawaii Supreme Court Opinion Summaries

Articles Posted in Civil Procedure
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The dispute centers on the extension of a grading and grubbing permit issued by the Director of the Department of Public Works, County of Maui, to Maui Lani Partners for excavation work at a residential development site containing ancestral Hawaiian burial sites. In March 2018, an unincorporated association and its members challenged the validity of the permit extension, alleging violations of state and county laws requiring consultation with the State Historic Preservation Division and arguing that the Director exceeded his authority in granting the extension without good cause.The Circuit Court of the Second Circuit granted motions to dismiss the complaint on all counts without prejudice, finding no regulatory or statutory authority requiring consultation with the State Historic Preservation Division for permit extensions and that the Director acted within his discretionary authority. The court denied the plaintiffs’ motion for summary judgment and later denied their HRCP Rule 60(b)(6) motion for reconsideration, concluding that the plaintiffs had not presented new law or argument. The plaintiffs appealed to the Intermediate Court of Appeals (ICA), which affirmed the circuit court’s denial of costs and the motion for reconsideration but held that the notice of appeal was untimely because the Rule 60(b) motion was not filed within ten days of judgment and thus did not toll the appeal deadline.The Supreme Court of Hawaiʻi reviewed the case and held that a motion for reconsideration filed under HRCP Rule 60(b) is a “tolling motion” under HRAP Rule 4(a)(3) if filed within a reasonable time and before the appeal deadline, thereby extending the time to file a notice of appeal. The court also held that the ICA did not err in affirming the circuit court’s denial of the Rule 60(b)(6) motion for reconsideration. The Supreme Court vacated the ICA’s judgment in part and remanded for further proceedings. View "Kakanilua v. Director of the Department of Public Works" on Justia Law

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A nonprofit organization sought access to confidential court records from child protective and adoption proceedings involving a young girl who died after being placed in foster care and later adopted. The girl was reported missing in 2021, and her death was confirmed in 2023. The records also contained information about her siblings. The siblings, through their counsel, did not object to disclosure as long as their identities were protected through redactions. The Department of Human Services and the adoptive father opposed disclosure, arguing that the records were confidential and that redactions would not sufficiently protect privacy.The Family Court of the First Circuit denied the request, reasoning that releasing redacted records would be misleading and would not serve the public interest in understanding the response of agencies and the court to child abuse and neglect. The court concluded that the records should remain sealed, citing concerns about the completeness and potential for misunderstanding of the redacted information.The Supreme Court of the State of Hawaiʻi reviewed the case and held that, under Hawaiʻi Revised Statutes §§ 587A-40 and 578-15, public access to confidential child protective and adoption records is permitted when a foster child is missing, has suffered a near fatality, been critically injured, or has died, provided that information about living siblings is redacted to protect their privacy. The court overruled prior precedent to the extent it limited disclosure to only those purposes that further the best interests of the child, clarifying that a “legitimate purpose” for disclosure can exist independently. The court ordered the release of the redacted records and provided guidance for future requests, affirming the family court’s authority to require agencies to prepare redacted versions for public access. View "Public First Law Center v. Viola" on Justia Law

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A group of neighbors opposed the development of a public sports park on a 65-acre parcel in Maui. The State Department of Land and Natural Resources (DLNR) sought and received a special use permit from the County of Maui Planning Commission to build the park. Several future members of the neighbors’ group, Maui Lani Neighbors, Inc. (MLN), received notice of the permit hearing, attended, and some testified, but none formally intervened in the proceedings. After the permit was granted, one future MLN member filed an administrative appeal but later dismissed it. MLN was then incorporated and filed a lawsuit in the Circuit Court of the Second Circuit, challenging the permit on zoning, environmental, constitutional, and procedural grounds.The Circuit Court of the Second Circuit dismissed most of MLN’s claims, holding that they should have been brought as an administrative appeal of the Planning Commission’s decision under Hawai‘i Revised Statutes (HRS) § 91-14, and that MLN failed to exhaust administrative remedies. The Intermediate Court of Appeals (ICA) affirmed, but with different reasoning on some points. The ICA held that the administrative process provided an exclusive remedy for most claims, but allowed that some environmental claims under HRS chapter 343 (the Hawai‘i Environmental Policy Act, or HEPA) could proceed in circuit court if they did not seek to invalidate the permit.The Supreme Court of Hawai‘i affirmed the ICA’s judgment in most respects, but clarified that MLN’s claims under HRS chapter 343 were not subject to the exhaustion doctrine and could be brought directly in circuit court. The court held that, except for HEPA claims, MLN was required to challenge the permit through an administrative appeal, and that the declaratory judgment statute (HRS § 632-1) did not provide an alternative route. The court remanded the case to the circuit court to consider the HEPA-based claims. View "Maui Lani Neighbors v. State" on Justia Law

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Several borrowers executed mortgage agreements with a lender, granting the lender a lien on their respective properties in Hawai‘i. Between 2008 and 2009, the borrowers defaulted on their mortgage loans, and the lender foreclosed on the properties through nonjudicial foreclosure sales. The lender was the winning bidder at each sale and subsequently conveyed the properties to third parties. In 2019, the borrowers filed suit, alleging wrongful foreclosure, unfair or deceptive acts and practices (UDAP), and sought quiet title and ejectment against the current titleholders. They requested both monetary damages and the return of title and possession of the properties.The Circuit Court of the Third Circuit granted summary judgment in favor of the lender and the titleholders. The court found that the borrowers could not establish compensatory damages because their outstanding mortgage debts at the time of foreclosure exceeded any damages they claimed, even when accounting for loss of use and other asserted losses. The court also determined that the borrowers’ quiet title and ejectment claims were barred by the statute of limitations and that the titleholders were bona fide purchasers. The borrowers appealed, and the Supreme Court of Hawai‘i accepted transfer of the case.The Supreme Court of Hawai‘i affirmed the circuit court’s summary judgment. The court held that, under its precedents, borrowers must establish compensatory damages after accounting for their mortgage debts to survive summary judgment on wrongful foreclosure and UDAP claims. Here, the borrowers’ debts exceeded their claimed damages. The court further held that claims for return of title and possession are subject to a six-year statute of limitations for wrongful foreclosure actions, which barred the borrowers’ claims. Additionally, the court concluded that the titleholders were bona fide purchasers, as the foreclosure affidavits did not provide constructive notice of any defects. View "McCullough v. Bank of America, N.A." on Justia Law

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A group of plaintiffs, including a medical practice, individual physicians, a medical society, and two patients, brought various claims against a health insurer, alleging that the insurer interfered with doctor-patient relationships, denied or delayed coverage for medical services, and caused significant harm to patients. The claims included tortious interference with contractual rights, unfair competition, RICO violations, and emotional distress, with specific factual allegations that the insurer’s actions led to worsened medical outcomes for the patients involved.The Circuit Court of the Third Circuit reviewed the insurer’s motion to compel arbitration based on arbitration clauses in provider agreements and member handbooks. Instead of determining whether the claims were subject to arbitration, the circuit court focused on the alleged unconscionability of the contracts as a whole, finding them to be contracts of adhesion and unconscionable, and denied the motion to compel arbitration. The court also denied summary judgment as to one patient’s claims and did not stay the medical society’s claims pending arbitration.The Supreme Court of the State of Hawaiʻi reviewed the case and held that the circuit court erred by not following the required analytical framework for arbitrability. The Supreme Court vacated the lower court’s order in part, holding that claims arising under the Participating Physician Agreement must be referred to arbitration because the agreement delegated the question of arbitrability to the arbitrator. Claims under the Medicare and QUEST Agreements were also subject to arbitration, as the arbitration clauses were not shown to be substantively unconscionable. However, the Court held that the claims of one patient and the physician as a patient were not subject to mandatory arbitration, and another patient’s claims were not subject to a grievance and appeals clause. The case was remanded for further proceedings consistent with these holdings. View "Frederick A. Nitta, M.D., Inc. v. Hawaii Medical Service Association." on Justia Law

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A dispute arose between two companies, one a contractor and the other a developer, over a construction project in Maui. The disagreement was submitted to binding arbitration, resulting in an award in favor of the developer. The developer sought to confirm the award in the Circuit Court of the First Circuit, but the contractor challenged the award, alleging the arbitrator was evidently partial due to undisclosed relationships. The circuit court initially confirmed the award, but on appeal, the Supreme Court of Hawai‘i remanded the case for an evidentiary hearing on the partiality claim. After the hearing, the circuit court found evident partiality, denied confirmation, vacated the award, and ordered a rehearing before a new arbitrator.Following this, the contractor moved for taxation of costs incurred on appeal, which the circuit court granted. The developer sought to appeal the costs order, but the circuit court denied an interlocutory appeal. A new arbitration was held, again resulting in an award for the developer, which was confirmed in a new special proceeding with a final judgment entered. The developer then appealed the earlier costs order from the first special proceeding.The Intermediate Court of Appeals (ICA) dismissed the appeal as untimely, reasoning that the circuit court’s order vacating the first arbitration award and ordering a rehearing was an appealable final order under Hawai‘i Revised Statutes (HRS) § 658A-28(a)(3), making the subsequent costs order also immediately appealable.The Supreme Court of Hawai‘i reviewed the case and held that an order vacating an arbitration award and directing a rehearing is not an appealable order under HRS § 658A-28(a). The court clarified that such orders lack finality, regardless of whether the rehearing is full or partial, and reaffirmed the majority rule previously adopted in State of Hawaii Organization of Police Officers (SHOPO) v. County of Kauai. The Supreme Court vacated the ICA’s dismissal and remanded the case for entry of a final judgment, so the merits of the appeal could be addressed. View "Nordic PCL Construction, Inc. v. LPIHGC, LLC" on Justia Law

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Two brothers, Roland and Robert, ran an automotive business together under Guieb Inc. Their relationship deteriorated when Robert made decisions that Roland disagreed with, including using their company for his own benefit and allegedly stealing the trade name and most profitable shop for his personal companies. Roland sued Robert, alleging unfair and deceptive trade practices, unfair methods of competition, and deceptive trade practices under Hawaii Revised Statutes (HRS) §§ 480-2 and 481A-3. He also sought punitive damages for fraud, misrepresentation, nondisclosure, and breach of fiduciary duty.The Circuit Court of the First Circuit granted Robert’s motion for partial summary judgment (MPSJ) and dismissed Roland’s claims under count 12, finding no genuine issue of material fact. The court also granted Robert’s motion for judgment as a matter of law (JMOL) on punitive damages, preventing the jury from considering them. Additionally, the court ruled that brotherhood did not establish a fiduciary duty, granting Robert’s MPSJ on that issue as well.The Intermediate Court of Appeals (ICA) reversed the circuit court on three issues. It held that Roland’s unfair and deceptive trade practices claim should have gone to the jury, as there was evidence that Robert represented Guieb Inc. and Guieb Group as the same entity. The ICA also held that the jury should have considered punitive damages, given the evidence of Robert’s actions that could justify such damages. Lastly, the ICA found that brotherhood created a kinship fiduciary duty, which should have been considered by the jury.The Supreme Court of Hawaii agreed with the ICA that the jury should have considered Roland’s claims under count 12 and punitive damages. However, it disagreed that kinship created a fiduciary duty, affirming the circuit court’s MPSJ on that issue. The case was remanded for further proceedings consistent with the opinion. View "Guieb v. Guieb" on Justia Law

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Plaintiff, Ann Gima, was employed by the City and County of Honolulu's Department of Budget and Fiscal Services (BFS) for over twenty years. After being promoted to Real Property Technical Officer (RPTO) in 2012, Gima alleged that her supervisor, Robert Magota, began verbally harassing her, leading to her diagnosis of major depressive disorder and anxiety disorder. Gima was placed on workers' compensation leave intermittently from 2014 to 2018. In November 2017, she requested a reasonable accommodation to work under a different supervisor, which was denied. Magota retired in December 2017, and Gima returned to work in February 2018 under a new supervisor, Steven Takara. Shortly after, she received a substandard performance evaluation and was demoted.Gima filed claims with the Hawai‘i Civil Rights Commission (HCRC) for disability discrimination and retaliation and subsequently filed a lawsuit in the Circuit Court of the First Circuit. The circuit court granted summary judgment in favor of the City, concluding that Gima failed to establish a prima facie case of disability discrimination or retaliation and that her request for an alternate supervisor was unreasonable as a matter of law.The Supreme Court of the State of Hawai‘i reviewed the case. The court held that Gima established a prima facie case of disability discrimination, as she demonstrated she had a disability, was qualified for her position, and was demoted because of her disability. The court found a genuine issue of material fact regarding whether the City’s reasons for her negative evaluation and demotion were pretextual. The court also held that Gima’s request for an alternate supervisor was not unreasonable as a matter of law and that there was a genuine issue of material fact as to whether the City could have assigned her a different supervisor.However, the court concluded that the City engaged in an interactive process to accommodate Gima by offering her a position in another department, which she declined after Magota retired. The court also found that Gima established a prima facie case of retaliation, as she engaged in protected activities, suffered adverse employment actions, and demonstrated a causal connection between the two. The court affirmed in part and vacated in part the circuit court’s order, remanding the case for further proceedings. View "Gima v. City and County of Honolulu" on Justia Law

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An employee, Delbert P. Costa, Jr., suffered a workplace injury on May 9, 2012, while employed by the County of Hawai'i, Department of Water Supply. Costa reported the injury, and the County filed an industrial injury claim, contesting compensability pending investigation. The County did not contest that temporary total disability (TTD) benefits would be due if the injury was compensable. The Director of the Department of Labor and Industrial Relations found the injury compensable on June 24, 2013, but the County did not appeal this decision or pay TTD benefits.Costa applied for a hearing to address the nonpayment of TTD benefits, and the Director issued a supplemental decision on April 25, 2014, awarding TTD benefits and imposing a 20% penalty for late payment. The County appealed to the Labor and Industrial Relations Appeals Board (LIRAB), which reversed the Director’s supplemental decision, finding no statutory basis for the penalty as the TTD benefits were not due before the Director’s decision on compensability.The Intermediate Court of Appeals (ICA) affirmed the LIRAB’s decision, although it noted errors in the LIRAB’s application of the evidentiary standard and its characterization of HRS § 386-92 as punitive. The ICA agreed with the LIRAB that the Director’s decision did not order TTD benefits and thus did not support the imposition of a penalty.The Supreme Court of the State of Hawai'i reviewed the case and held that a penalty under HRS § 386-92 is appropriate where an employer fails to make timely TTD benefit payments after a final decision on compensability. The Court vacated the ICA’s judgment and the LIRAB’s decision, remanding the case to the LIRAB to assess the penalty and determine attorneys’ fees and costs. View "Costa v. County of Hawai'i" on Justia Law

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Blossom Bell, a long-term public housing tenant, was held responsible for the criminal conduct of her guest, Daniel Lambert, who assaulted another tenant, Aaron George. Following the assault, Bell forbade Lambert from returning to her unit, and he never did. Despite this, the Oahu Eviction Board terminated Bell's rental agreement and evicted her.The Circuit Court of the First Circuit initially ruled that the Board applied the wrong legal authority and remanded the case for a new hearing. On remand, the parties agreed that the curability of Bell's violation would be governed by specific notification requirements in the rental agreement. The Board again ruled that Bell's violation was incurable and evicted her. Bell appealed, and the circuit court ruled that Bell had cured the violation by barring Lambert from the property, reversing the Board's eviction order and reinstating Bell's lease.The Supreme Court of the State of Hawai'i reviewed the case. The court held that the Board erred, abused its discretion, and acted arbitrarily and capriciously in evicting Bell. The court noted that the Board did not properly consider all relevant factors, such as the degree of crime in the housing project, the seriousness of the offending action, and the extent to which Bell took reasonable steps to mitigate the offending action. The court agreed with the circuit court that Bell's violation was curable and that she had cured it by permanently barring Lambert from the property. The Supreme Court affirmed the circuit court's final judgment reinstating Bell's lease. View "Bell v. Hawai'i Public Housing Authority" on Justia Law