Justia Hawaii Supreme Court Opinion Summaries

A dispute arose over the State of Hawai‘i Board of Land and Natural Resources’ (the Board) annual continuation of a revocable water permit issued to Kaua‘i Island Utility Cooperative (KIUC) for the diversion of water from state lands to power hydropower plants. The permit, first issued in 2003, was renewed yearly through 2022. In 2019, the diversion infrastructure was severely damaged, and KIUC ceased using the water for hydropower but continued to maintain the system. Petitioners, two organizations with members asserting native Hawaiian traditional and customary rights, requested contested case hearings in 2020 and 2021, arguing that the continued diversion and disrepair of the system harmed their rights and the environment. The Board denied these requests and continued the permit.Petitioners appealed to the Circuit Court of the First Circuit (Environmental Court), challenging the denial of contested case hearings, the permit’s continuation, and alleging violations of the Board’s public trust duties. While the appeal was pending, the permit expired at the end of 2022. The Environmental Court found that Petitioners had protected property interests under the Hawai‘i Constitution, that their due process rights were violated by the denial of contested case hearings, and that the Board’s failure to issue findings of fact and conclusions of law prevented meaningful review. The court vacated and reversed the Board’s 2021 and 2022 permit continuations.The Intermediate Court of Appeals (ICA) vacated the Environmental Court’s decision, holding that Petitioners had standing under the right to a clean and healthful environment, but that the case was moot and no exceptions applied. The ICA also found no due process violation and concluded the Environmental Court exceeded its jurisdiction in reviewing the merits of the permit continuations.The Supreme Court of Hawai‘i held that exceptions to mootness applied, Petitioners had standing based on injury to traditional and customary rights, and that contested case hearings were required to protect their due process rights. The court vacated the ICA’s judgment and remanded the case to the Board for further proceedings. View "Kia'i Wai o Wai'ale'ale v. Board of Land and Natural Resources" on Justia Law

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

A labor union filed two lawsuits in 2014 against two related private developers responsible for constructing the Ritz-Carlton Residences towers in Waikīkī, as well as against the City and County of Honolulu. The union challenged the adequacy of the separate final environmental assessments (FEAs) for each tower under Hawaiʻi’s environmental laws, alleging that the developers improperly segmented the environmental review process. The City was included as a defendant because its Department of Planning and Permitting accepted the FEAs and issued findings of no significant impact for both towers. The lawsuits were consolidated.The Circuit Court of the First Circuit granted summary judgment in favor of the developers and the City, finding the FEAs sufficient and no improper segmentation. The developers also argued that the case was moot because the projects had been completed and sold. The union appealed, and the Supreme Court of the State of Hawaiʻi accepted transfer of the appeal.The Supreme Court of the State of Hawaiʻi held that the cases were not moot, as effective relief could still be granted, and that the public interest exception to mootness applied. The court found that there had been improper segmentation of the environmental review under the double independent utility test. The court remanded the case to the circuit court to determine whether the FEAs were sufficient as a combined review and, if not, whether a new environmental assessment or impact statement was required. In the present opinion, the Supreme Court awarded the union $112,721.10 in attorneys’ fees and costs against the private developers only, under the private attorney general doctrine, but denied fees against the City. The court found the union was a prevailing party and that the litigation vindicated important public policy. View "Unite Here! Local 5 v. Pacrep 2 LLC" on Justia Law

A company had been diverting large amounts of water from streams in East Maui for over twenty years under a series of annually renewed, so-called “temporary” permits issued by the state’s Board of Land and Natural Resources (BLNR). Each year, the company applied to renew these permits, which allowed it to use state land and divert millions of gallons of water daily. In 2020, before BLNR voted to renew the permits for 2021, an environmental group timely requested a contested case hearing, arguing that new evidence and changed circumstances warranted further scrutiny. BLNR denied this request and proceeded to renew the permits, adding some new conditions.The environmental group appealed to the Environmental Court of the First Circuit, challenging both the denial of a contested case hearing and the permit renewals. The Environmental Court found that the group had a constitutionally protected right to a clean and healthful environment, as defined by state law, and that due process required a contested case hearing before the permits were renewed. The court vacated the permits but stayed its order to avoid disruption, temporarily modifying the permits to reduce the allowable water diversion. The court also awarded attorney fees and costs to the group.On appeal, the Intermediate Court of Appeals (ICA) held that the group’s protected interest was defined by some, but not all, relevant environmental laws, and that due process did not require a contested case hearing in this instance. The ICA further found that the Environmental Court lacked jurisdiction over the permit renewals and erred in modifying the permits and awarding attorney fees.The Supreme Court of Hawaiʻi reversed the ICA in relevant part. It held that the group’s constitutional right was defined by all cited environmental laws, including those governing coastal zone management. The court concluded that due process required a contested case hearing before the permits were renewed, and that the Environmental Court had jurisdiction to review both the denial of the hearing and the permit renewals. The Supreme Court also affirmed the Environmental Court’s authority to temporarily modify the permits and to award attorney fees and costs to the environmental group. View "Sierra Club v. Board of Land and Natural Resources" on Justia Law

A state agency issued a new revocable permit to a company for seed research operations on state-owned conservation land. The agency declared that an environmental assessment (EA) was not required, reasoning that the land’s use was not changing and that there would be minimal or no significant environmental impact. In making this determination, the agency relied on a 1982 finding of no significant impact (FONSI) that had been issued for sugar cane cultivation, not for seed research involving restricted use pesticides and genetically modified organisms. The agency did not analyze the potential environmental impacts of the new seed research activities.A group of plaintiffs challenged the agency’s exemption declaration in the Environmental Court of the Fifth Circuit, arguing that the agency failed to take a “hard look” at the environmental impacts and did not follow proper procedures under the Hawai‘i Environmental Policy Act (HEPA). The environmental court granted summary judgment in favor of the agency and the company, upholding the exemption. On appeal, the Intermediate Court of Appeals (ICA) found that there were genuine issues of material fact and gaps in the agency’s record, and remanded the case to the environmental court for further proceedings to reassess the exemption.The Supreme Court of the State of Hawai‘i reviewed the case and held that whether an agency has followed proper procedures or considered appropriate factors in declaring an EA exemption are questions of law reviewed de novo. The court concluded that the agency did not follow proper procedures or consider appropriate factors in its exemption declaration, as its record was insufficient and failed to address the environmental impacts of seed research operations. The court vacated the ICA’s judgment and the environmental court’s orders, and remanded the case with instructions that the agency must prepare an EA regarding the possible environmental impacts of the seed research use. View "Ke Kauhulu O Mn v. Board of Land and Natural Resources" on Justia Law

Michael and Elizabeth Dailey filed an appeal with the Environmental Court of the First Circuit in July 2022, challenging a 2022 decision by the Board of Land and Natural Resources (BLNR). The decision involved a seawall allegedly constructed within the conservation district. The BLNR raised jurisdictional issues, citing Act 48 of 2016, which mandates that such appeals be filed directly with the Supreme Court of Hawaii. The Daileys argued that their case involved shoreline setback issues under HRS Chapter 205A, which would allow the environmental court to have jurisdiction.The environmental court dismissed the appeal for lack of jurisdiction, stating it did not have the authority to transfer the case to the Supreme Court. The Intermediate Court of Appeals (ICA) affirmed this decision, agreeing that the appeal arose under HRS Chapter 183C and not HRS Chapter 205A Part III, and thus should have been filed directly with the Supreme Court.The Supreme Court of Hawaii reviewed the case and determined that the Daileys' appeal did not involve the HRS Chapter 205A shoreline setback exception. Therefore, the Supreme Court had exclusive appellate jurisdiction. The court also held that the environmental court had the inherent and statutory power to transfer the appeal to the Supreme Court. The Supreme Court ordered the environmental court to transfer the appeal nunc pro tunc to the date it was originally filed, allowing the appeal to proceed in the Supreme Court under the Hawaii Rules of Appellate Procedure. View "Dailey v. Department of Land and Natural Resources" on Justia Law

A labor union, representing hotel and restaurant employees, challenged the environmental assessments (FEAs) for two condominium hotel projects developed by PACREP LLC and PACREP 2 LLC in Waikiki, Honolulu. The union argued that the FEAs were insufficient under the Hawaii Environmental Policy Act (HEPA) because they failed to discuss the potential use of condo-hotel units as permanent residences and improperly segmented the environmental review process for the two projects.The Circuit Court of the First Circuit ruled in favor of PACREP, granting summary judgment on the grounds that the FEAs were sufficient and the cases were moot because the projects were completed. The court also denied the union's motions for summary judgment, which argued that the environmental review was improperly segmented and that the FEAs were insufficient.The Supreme Court of the State of Hawaii reviewed the case and held that the union's claims were not moot because effective relief in the form of proper environmental review could still be granted. The court also determined that the public interest exception to the mootness doctrine applied. The court found that the environmental review for the two projects was improperly segmented under the double independent utility test, as the development of the second project (2139) was a necessary precedent for the first project (2121).The Supreme Court vacated the circuit court's orders granting summary judgment in favor of PACREP and the City and denying the union's motions for summary judgment. The case was remanded to the circuit court to determine whether the FEAs for the two projects were sufficient in addressing the environmental effects as one combined project and, if not, whether a new environmental assessment or environmental impact statement was required. View "Unite Here! Local 5 v. Pacrep LLC" on Justia Law

The City and County of Honolulu and the County of Maui sued several fossil fuel companies, including Aloha Petroleum, Ltd., for climate change-related harms. Aloha sought a defense in these suits from two insurance companies, National Union Fire Insurance Company of Pittsburgh, PA, and American Home Assurance Company, both subsidiaries of American Insurance Group (AIG). The insurance companies had issued several commercial general liability (CGL) insurance policies to Aloha’s parent company. The case revolves around whether these policies obligate AIG to defend Aloha in the counties’ lawsuits.The United States District Court for the District of Hawai‘i reviewed the case and certified two questions to the Supreme Court of the State of Hawai‘i. The first question asked whether an “accident” includes an insured’s reckless conduct. The second question asked whether greenhouse gases (GHGs) are “pollutants” as defined in the policies’ pollution exclusions. The District Court noted that the counties’ lawsuits allege Aloha acted recklessly by emitting GHGs and misleading the public about the dangers of these emissions.The Supreme Court of the State of Hawai‘i answered both certified questions. The court held that an “accident” includes reckless conduct, aligning with its precedent in Tri-S Corp. v. Western World Ins. Co., which held that recklessness may be an “occurrence.” The court clarified that an “accident” includes conduct where harm was not intended or practically certain. The court also held that GHGs are “pollutants” under the insurance policies’ pollution exclusion clause, as they are “gaseous” “contaminants” that cause “property damage” when released into the atmosphere. The court concluded that the pollution exclusion bars coverage for emitting or misleading the public about emitting GHGs. View "Aloha Petroleum, LTD. v. National Union Fire Insurance Company of Pittsburgh, PA." on Justia Law

The case involves the environmental review of commercial aquarium fishing permits in Hawai‘i. In 2017, the Hawai‘i Supreme Court ruled that the permitting process for commercial aquarium collection must undergo environmental review under the Hawai‘i Environmental Policy Act (HEPA). Following this ruling, the Environmental Court voided all existing permits and enjoined the Department of Land and Natural Resources (DLNR) from issuing new permits without completing HEPA review. The Pet Industry Joint Advisory Council (PIJAC) then prepared an Environmental Impact Statement (EIS) to continue commercial aquarium fishing in the West Hawai‘i Reef Fishery Management Area (WHRFMA).The Board of Land and Natural Resources (BLNR) initially rejected the EIS, citing fourteen reasons. PIJAC revised the EIS and, after a public comment period, submitted it again. BLNR's vote on the revised EIS resulted in a 3-3 tie, leading to the EIS being "deemed accepted" by operation of law. Plaintiffs sued BLNR in the Environmental Court for the First Circuit, seeking declaratory and injunctive relief. The court ruled against the plaintiffs, finding that the EIS adequately disclosed facts for the agency to make an informed decision. Plaintiffs appealed, and the State cross-appealed the denial of its motion to dismiss.The Hawai‘i Supreme Court held that the State is a proper defendant in the case and should defend the EIS. The court also determined that the "rule of reason" should be used in conjunction with HEPA’s content requirements to evaluate an EIS. The court found that the EIS was legally sufficient as it met HEPA’s content requirements and provided enough information for BLNR to make an informed decision. Consequently, the court affirmed the Environmental Court’s denial of the State’s motion to dismiss and its grant of summary judgment for PIJAC. View "Kaupiko v. Board of Land and Natural Resources" on Justia Law

This case involves a dispute over water use permits and instream flow standards in the Nā Wai ‘Ehā region of Maui, Hawaii. The region includes the Waihe‘e River, Waiehu Stream, Wailuku River, and Waikapū Stream. Various parties, including MMK Maui, LP, Hui o Nā Wai ‘Ehā, the Maui Tomorrow Foundation, the Office of Hawaiian Affairs, Mahi Pono, LLC, and Wailuku Water Company, LLC, appealed from the Commission on Water Resource Management's decision regarding water use permits and instream flow standards.The Commission had designated Nā Wai ‘Ehā as a Surface Water Management Area, requiring existing and new water users to file surface water use permit applications. Over 140 applicants filed applications, including MMK, which operates two golf courses in the area, and Mahi Pono, which engages in agricultural operations on former sugar plantation lands.In 2016, the last remaining sugar plantation on Maui announced its closure. In response, the Hui/MTF filed a petition with the Commission to amend Nā Wai ‘Ehā’s Interim Instream Flow Standards. The Commission consolidated the permit and flow standards proceedings. In 2021, the Commission issued a decision amending the flow standards and granting various applicants surface water use permits.The parties appealed the Commission's decision to the Supreme Court of the State of Hawaii. The Supreme Court vacated the Commission’s decision and order with respect to the instream flow standards and the delegation of the Commission’s public trust duties, and remanded for further proceedings. The court affirmed the decision and order in all other respects. View "In re Surface Water Use Permit Applications" on Justia Law