Justia Hawaii Supreme Court Opinion Summaries

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

The case revolves around attorney fees in a dispute involving the Board of Land and Natural Resources (BLNR), State of Hawaii, and the Sierra Club. In 2022, the BLNR approved permits allowing Alexander & Baldwin, Inc. and East Maui Irrigation Company, LLC to divert water from East Maui streams. The Sierra Club appealed this decision, arguing that the BLNR unlawfully denied its request for a contested case hearing. The environmental court modified the permits and capped the amount of water that could be diverted. The BLNR then petitioned the Supreme Court of the State of Hawaii, alleging that the environmental court's decision resulted in a water shortage that hindered firefighting efforts during a wildfire.The environmental court had previously sided with the Sierra Club, ruling that the BLNR should have held a contested case hearing. The court also invoked Hawaii Revised Statutes (HRS) § 604A-2(b) and HRS § 91-14(g) to modify the permits, and cited public trust doctrine principles to support the cap on water diversion. The court decided not to void the permits entirely to avoid potential chaos and threats to the reliable availability of necessary water.The Supreme Court of the State of Hawaii held that a state-initiated original proceeding is not protected by sovereign immunity, and thus, the state may be liable for reasonable attorney fees spent opposing a frivolous petition for extraordinary relief. The court concluded that the Sierra Club is entitled to attorney fees, as the BLNR's petition was found to be frivolous and made in bad faith. The court rejected the BLNR's invocation of sovereign immunity, stating that the state waives its sovereign immunity when it initiates an original action. View "Board of Land and Natural Resources v. Crabtree" on Justia Law

The Supreme Court affirmed the orders of the circuit court denying Defendants' motions to dismiss for lack of jurisdiction and for failure to state a claim in this action brought by the City and County of Honolulu and the Honolulu Board of Water Supply (collectively, Plaintiffs) against a number of oil and gas producers (collectively, Defendants), holding that there was no error.Plaintiffs sued Defendants alleging public nuisance, private nuisance, strict liability failure to warn, negligent failure to warn, and trespass. Specifically, Plaintiffs alleged that Defendants engaged in a deceptive promotion campaign and misled the public about the dangers and environmental impact of using their fossil fuel products. Defendants filed a motion to dismiss, arguing, among other things, that Plaintiffs' claims were preempted by the Clean Air Act (CAA). The Supreme Court denied the motions, holding (1) Defendants were subject to specific jurisdiction in Hawai'i; (2) the CAA displaced federal common law governing interstate pollution damages suit, and following displacement, federal common law did and does not preempt state law; and (3) the CAA did not preempt Plaintiffs' claims. View "City & County of Honolulu v. Sunoco LP" on Justia Law

In this case challenging the constitutionality of administrative rules governing access to Mauna Kea's summit under Haw. Const. art XII, 7, the Supreme Court answered questions reserved by the Circuit Court of the Third Circuit by holding (1) in a challenge to the constitutionality of administrative rules based on a violation of Haw. Const. art. XII, 7, the burden of proof does not shift to the government agency defendant and instead remains with the challenging party; and (2) the framework set forth in Ka Pa'akai O Ka'Aina v. Land Use Comm'n, 7 P.3d 1068 (Haw. 2000), applies to challenges to the constitutionality of an administrative rule based on an alleged violation of article XII, section 7, in addition to contested case hearings. View "Flores-Case 'Ohana v. University of Haw." on Justia Law

The Supreme Court vacated the environmental court's orders granting partial summary judgment and the ensuing order entering final judgment in favor of the Department of Water, County of Kaua'i (KDOW) in this transfer case addressing the required scope of environmental review under the Hawai'i Environmental Police Act (HEPA) and its administrative rules, holding that KDOW must prepare a new environmental assessment (EA) that complies with HEPA and its administrative rules.KDOW proposed to install an eighteen-inch-diamter water transmission in the Lihu'e area (relief line) that would run 9,000 feet in length and connect to existing KDOW water lines on each end. Pursuant to HEPA, KDOW published a final environmental assessment (FEA) for the relief line and made a finding of no significant impact. Plaintiff challenged the FEA in the environmental court, and the court granted summary judgment for KDOW. The Supreme Court vacated the decision below, holding that KDOW did not properly analyze the impact of water withdrawals facilitated by the relief line and may have improperly segmented the relief line from planned development projects and a water treatment facility project. View "Kia’i Wai O Wai’Ale’Ale v. Dep't of Water, County of Kaua'i" on Justia Law

The Supreme Court held that the authority of the Board of Land and Natural Resources (BLNR) to issue revocable permits is subject to the environmental review requirements of the Hawai'i Environmental Policy Act (HEPA), Haw. Rev. Stat. ch. 343.At issue was the water rights for 33,000 acres of land in the Ko'olau Forest Reserve and Hanawi Natural Area Reserve. In 2000, the BLNR approved the issuance of four revocable water permits to Alexander & Baldwin, Inc. (A&B) and East Maui Irrigation Co., Ltd. (EMI). The BLNR subsequently continued the permits. Petitioners brought this action alleging that the renewal of the revocable permits required the preparation of an environmental assessment pursuant to the HEPA. The circuit court granted summary judgment for Petitioners, concluding that the continuation decision was not a HEPA action but that the revocable permits were invalid because they exceeded the BLNR's authority under Haw. Rev. Stat. 171-55. The Supreme Court remanded the case, holding (1) the revocable permits were not authorized under section 171-55; and (2) the circuit court erred in holding that there was no "action" within the meaning of Haw. Rev. Stat. 343-5(a) and that HEPA's environmental review process was thus inapplicable. View "Carmichael v. Board of Land & Natural Resources" on Justia Law

The Supreme Court affirmed the judgment of the circuit court denying Keep the North Shore Country's (KNSC) appeal from the decision of the Board of Land and Natural Resources approving Applicant's habitat conservation plan and authorizing Applicant to take fewer than two and a half Hawaiian hoary bats per year, holding that there was no error.To operate a proposed wind farm, Applicant was required to obtain an incidental take license as part of a habitat conservation plan approved by the Board. KNSC opposed the application citing the wind farm's potential impact on the ope'ape'a, the Hawaiian hoary bat. The Board approved the plan and authorized Applicant to take up to fifty-one ope'ape'a over the course twenty-one years. The Supreme Court affirmed, holding (1) the circuit court properly applied the clear error standard in reviewing KNSC's challenges based on mixed questions of law and fact; (2) substantial evidence supported the Board's conclusions; and (3) there was no other error in the Board's proceedings. View "Keep the North Shore Country v. Board of Land & Natural Resources" on Justia Law

In this litigation concerning the future of Mauna Kea, the Supreme Court reversed the order of the circuit court granting in part and denying in part KAHEA: The Hawaiian Environmental Alliance's motion to quash a subpoena with respect to subpoena request numbers five and eight and affirmed the judgment in all other respects, holding that the two subpoena requests were unreasonable.In 2019, the State Attorney General issued a subpoena duces tecum to First Hawaiian Bank commanding the bank to produce eighteen categories of records from KAHEA's accounts. KAHEA moved to quash the subpoena, claiming it was retaliatory harassment brought on by KAHEA's opposition to the construction of an astronomical observatory on Mauna Kea. The circuit court disallowed fifty percent of the subpoena requests. KAHEA appealed, arguing that the entire subpoena should have been quashed. The Supreme Court held (1) the Attorney General's investigatory powers validated the subpoena; (2) KAHEA's First Amendment freedom of speech and retaliation claims failed; and (3) two subpoena requests were unreasonable. View "In re Investigation of KAHEA" on Justia Law