* * * FOR PUBLICATION * * *
IN THE SUPREME COURT OF THE STATE OF HAWAI‘I
--- o0o ---
OFFICE OF HAWAIIAN AFFAIRS,
ROWENA
AKANA, HAUNANI APOLIONA,
DANTE CARPENTER, DONALD CATALUNA, LINDA DELA CRUZ,
COLETTE MACHADO, BOYD P. MOSSMAN, OSWALD STENDER, and
JOHN WAIHEE, IV, in their official capacities as members
of the Board of Trustees
of the Office of Hawaiian Affairs,
PIA THOMAS ALULI, JONATHAN KAMAKAWIWOOLE OSORIO, CHARLES
KAAIAI, and KEOKI MAKA
KAMAKA KIILI, Plaintiffs-Appellants,
vs.
HOUSING AND COMMUNITY DEVELOPMENT CORPORATION OF
HAWAI‘I (HCDCH), ROBERT J. HALL, in his capacity as Acting
Executive Director of
HCDCH, CHARLES STED, Chair,
STEPHANIE AVEIRO, FRANCIS L. JUNG, CHARLES KING, LILLIAN B.
KOLLER, BETTY LOU
LARSON, THEODORE E. LIU, TRAVIS THOMPSON,
TAIAOPO, TUIMALEIALIIFANO, Members of
the Board of Directors of
HCDCH, State of Hawai‘i, and LINDA LINGLE, in her
capacity as
Governor, State of Hawai‘i, Defendants-Appellees.
NO. 25570
APPEAL FROM THE FIRST CIRCUIT
COURT
(CIV. NO. 94-4207)
JANUARY 31, 2008
MOON, C.J.,
LEVINSON, NAKAYAMA, AND ACOBA, JJ.;
AND CIRCUIT
JUDGE CHAN, IN PLACE OF DUFFY, J., RECUSED
OPINION OF
THE COURT BY MOON, C.J.
Two sets of plaintiffs-appellants -- (1) the Office of Hawaiian Affairs
(OHA) and its Board of Trustees [hereinafter,
collectively, the OHA plaintiffs] and (2) Pia Thomas Aluli, Jonathan
Kamakawiwoole Osorio, Charles Kaaiai, and Keoki
Maka Kamaka Kiili [hereinafter, collectively, the individual plaintiffs
and, together with the OHA plaintiffs, collectively,
the plaintiffs] appeal from the Circuit Court of the First Circuit's
January 31, 2003 final judgment, (1)
entered pursuant to
Hawai‘i Rules of Civil Procedure (HRCP) Rule 54(b) (2007). (2) Following a jury-waived trial, the
trial court found in favor
of defendants-appellees State of Hawai‘i (State), the Housing and
Community Development Corporation of Hawai‘i, and
the executive director and members of the board of directors of the
HCDCH, (3) as well as Linda Lingle, in
her capacity as
Governor of the State [hereinafter, collectively, the defendants] and
against the plaintiffs.
Briefly stated,
the instant action arises from the defendants' efforts in the mid-1990s
to transfer certain parcels of ceded
lands to private entrepreneurs for the purpose of residential
development. On August 11, 1995, the plaintiffs filed suit,
seeking an injunction against the defendants from selling or otherwise
transferring to third parties two specific parcels of
ceded lands located on the islands of Maui and Hawai‘i,
(4) as well as any ceded lands from the public lands trust.
Alternatively, the plaintiffs sought a declaration that the State was
not authorized to alienate ceded lands from the public
lands trust or, if the trial court ruled the State was so authorized, a
declaration that (2) such alienation would not limit the
claims of native Hawaiians to the ceded lands.
On December 5,
2002, the trial court ruled in favor of the defendants, concluding that
the plaintiffs' claims were barred by
the doctrines of: (1) sovereign immunity; (2) waiver and estoppel; and
(3) justiciability -- specifically, political question,
ripeness, and the mandate against advisory opinions. Nevertheless, the
trial court also concluded that the State had the
express authority to alienate ceded lands from the public lands trust.
An HRCP Rule 54(b) judgment was, thereafter,
entered on January 31, 2003, and the plaintiffs appealed.
On appeal, both
sets of plaintiffs challenge the aforementioned determinations made by
the trial court. Additionally, the
OHA plaintiffs assert that the trial court erred in making several
evidentiary rulings.
For the reasons
discussed infra, we
vacate the January 31, 2003 judgment and remand this case to the
circuit court with
instructions to issue an order granting the plaintiffs' request for an
injunction against the defendants from selling or
otherwise transferring to third parties (1) the parcel of ceded land on
Maui and (2) any ceded lands from the public lands
trust until the claims of the native Hawaiians to the ceded lands has
been resolved.
I.
BACKGROUND
A.
Historical
Background
The issues
presented in this case have their genesis in the historical events that
led to the overthrow of the Kingdom of
Hawai‘i, the surrender of 1.8 million acres of crown, government, and
public lands to the United States, the admission of
Hawai‘i as a state of the Union, and the creation of OHA and the public
lands trust. See Office of Hawaiian
Affairs v. State, 110 Hawai‘i 338, 340-42, 133 P.3d 767, 769-71
(2006)
[hereinafter, OHA II];
Office of Hawaiian Affairs v.
State, 96 Hawai‘i 388, 389-92, 31 P.3d 901, 902-05 (2001)
[hereinafter, OHA I];
Pele Defense Fund v. Paty,
73
Haw. 578, 585-87, 837 P.2d 1247, 1254-55 (1992); and Trs. of the Office of
Hawaiian Affairs v. Yamasaki, 69 Haw. 154, 159-65, 737 P.2d 446,
449-53 (1987),
cert. denied, 484 U.S.
898 (1987); see also Rice v. Cayetano, 528 U.S.
495, 501
(2000).
As a condition of its admission
into the Union, the State of Hawai‘i agreed to hold certain lands granted to the
State by the United States in a public
land trust for five purposes[.] See Admission Act of March
18, 1959, Pub. L. No. 86-3, § 5, 73 Stat. 4, reprinted in, [Hawai‘i
Revised Statutes
(HRS), vol. 1 at § 5 of the Admissions Act].
OHA I, 96 Hawai‘i at 390,
31 P.3d at 903 (emphasis added). The aforementioned five purposes are
specifically delineated
in section 5(f) of the Admission Act, which provides in relevant part:
The lands granted to the State of Hawaii by
subsection (b) of this section and public lands retained by the United
States under subsections (c) and
(d) and later conveyed to the State under subsection (e), together with
the proceeds from the sale or other disposition of any such lands and
the
income therefrom, shall be held by said State as a public trust [(1)]
for the support of the public schools and [(2)] other public
educational
institutions, [(3)] for the betterment of the conditions of native
Hawaiians, as defined in the Hawaiian Homes Commission Act, 1920, as
amended,[ (5) (4)] for the
development of farm and home ownership on as widespread a basis as
possible for the making of public improvements, and
[(5)] for the provision of lands for public use. Such lands, proceeds, and income shall be
managed and disposed of for one or more of the foregoing
purposes in such manner as the constitution and laws of said State may
provide, and their use for any other object shall constitute a breach
of trust
for which suit may be brought by the United States.
(Emphasis added.) The management and administration of the ceded lands
subject to the section 5(f) trust, i.e., the public
lands trust, is vested in the Department of Land and Natural Resources
(DLNR), pursuant to HRS § 171-3 (Supp. 2006). See also Pele Defense Fund, 73 Haw.
at 586-87, 837 P.2d at 1254. ***
In 1978, the people of Hawai‘i clarified the
State's trust obligation to native Hawaiians during a Constitutional
Convention, as set forth in various
provisions of the Hawaii Constitution, including article XII, sections
4 through 6, . . . wherein OHA was created and charged with managing
proceeds derived from the ceded lands and designated for the benefit of
native Hawaiians. Additionally, article XVI, section 7 of the Hawai‘i
Constitution requires the State to enact legislation regarding its
trust obligations. Thus, in 1979, legislation was enacted that set
forth the purposes
of OHA and described the powers and duties of the
trustees. . . . 1979 Haw. Sess. L. Act 196,
§ 2 at 398-99, § 8 at 406 (codified at HRS chapter
10)[.] In 1980, the legislature amended HRS chapter 10 by adding HRS
§ 10-13.5, which provided that "twenty per cent of all funds
derived from
the public land trust shall be expended by OHA for the purposes of this
chapter." . . . 1980 Haw. Sess. L. Act 273, § 1 at 525[. (6)]
OHA II, 110 Hawai‘i at
340-41, 133 P.3d at 769-70 (citations, original brackets, and ellipsis
omitted) (emphasis in
original). (7)
Moreover, in 1993,
the year that marked the one-hundredth anniversary of the overthrow of
the Kingdom of Hawai‘i, both
houses of Congress passed the Joint Resolution to Acknowledge the
100th Anniversary of the January 17, 1893 Overthrow
of the Kingdom of Hawaii [hereinafter, the Apology Resolution],
which was signed into law by then-President Bill Clinton
on November 23, 1993 as Public Law No. 103-150, 107 Stat. 1510 (1993).
The Apology Resolution provides, in its
entirety, as follows:
Joint Resolution to acknowledge the 100th
anniversary of the January 17, 1893 overthrow of the Kingdom of Hawaii,
and to offer an apology to
[n]ative Hawaiians on behalf of the United States for the overthrow of
the Kingdom of Hawaii.
Whereas,
prior to the arrival of the first Europeans in 1778, the [n]ative
Hawaiian people lived in a highly organized self-sufficient, subsistent
social
system based on communal land tenure with a sophisticated language,
culture, and religion;
Whereas[,] a unified monarchical government
of the Hawaiian Islands was established in 1810 under Kamehameha I, the
first King of Hawaii;
Whereas,
from 1826 until 1893, the United States recognized the independence of
the Kingdom of Hawaii, extended full and complete diplomatic
recognition to the Hawaiian Government, and entered into treaties and
conventions with the Hawaiian monarchs to govern commerce and
navigation
in 1826, 1842, 1849, 1875, and 1887;
Whereas[,] the Congregational Church (now
known as the United Church of Christ), through its American Board of
Commissioners for Foreign
Missions, sponsored and sent more than 100 missionaries to the Kingdom
of Hawaii between 1820 and 1850;
Whereas, on January 14, 1893,
John L. Stevens (hereafter referred to in this Resolution as the
"United States Minister"), the United States Minister
assigned to the sovereign and independent Kingdom of Hawaii conspired
with a small group of non-Hawaiian residents of the Kingdom of Hawaii,
including citizens of the United States, to overthrow the indigenous
and lawful Government of Hawaii;
Whereas, in pursuance of the conspiracy to
overthrow the Government of Hawaii, the United States Minister and the
naval representatives of the
United States caused armed naval forces of the United States to invade
the sovereign Hawaiian nation on January 16, 1893, and to position
themselves near the Hawaiian Government buildings and the Iolani Palace
to intimidate Queen Liliuokalani and her Government;
Whereas,
on the afternoon of January 17, 1893, a Committee of Safety that
represented the American and European sugar planters, descendents of
missionaries, and financiers deposed the Hawaiian monarchy and
proclaimed the establishment of a Provisional Government;
Whereas[,] the United States Minister thereupon extended
diplomatic recognition to the Provisional Government that was formed by
the
conspirators without the consent of the [n]ative Hawaiian people or the
lawful Government of Hawaii and in violation of treaties between the
two
nations and of international law;
Whereas, soon thereafter, when informed of
the risk of bloodshed with resistance, Queen Liliuokalani issued the
following statement yielding her
authority to the United States Government rather than to the
Provisional Government:
I[,]
Liliuokalani, by the Grace of God and under the Constitution of the
Hawaiian Kingdom, Queen, do hereby solemnly protest against any and all
acts done against myself and the Constitutional Government of the
Hawaiian Kingdom by certain persons claiming to have established a
Provisional
Government of and for this Kingdom.
That I yield to the superior force of the
United States of America whose Minister Plenipotentiary, His Excellency
John L. Stevens, has caused
United States troops to be landed at Honolulu and declared that he
would support the Provisional Government.
Now to avoid any collision of
armed forces, and perhaps the loss of life, I do this under protest and
impelled by said force yield my
authority until
such time as the Government of the United States shall, upon facts
being presented to it, undo the action of its representatives and
reinstate
me in the authority which I claim as the Constitutional Sovereign of
the Hawaiian Islands.
Done at Honolulu this 17th day
of
January, A.D. 1893.;
Whereas, without the active support and
intervention by the United States diplomatic and military
representatives, the insurrection against the
Government of Queen Liliuokalani would have failed for lack of popular
support and insufficient arms;
Whereas[,]
on February 1, 1893, the United States Minister raised the American
flag and proclaimed Hawaii to be a protectorate of the United
States;
Whereas, the report of a Presidentially
established investigation conducted by former Congressman James Blount
into the events surrounding the
insurrection and overthrow of January 17, 1893, concluded that the
United States diplomatic and military representatives had abused their
authority
and were responsible for the change in government;
Whereas, as a result of this
investigation, the United States Minister to Hawaii was recalled from
his diplomatic post and the military commander of
the United States armed forces stationed in Hawaii was disciplined and
forced to resign his commission;
Whereas, in a message to Congress on December
18, 1893, President Grover Cleveland
reported fully and accurately on the illegal acts of the
conspirators, described such acts as an "act of war, committed
with the participation of a diplomatic representative of the United
States and without
authority of Congress", and acknowledged that by such acts the
government of a peaceful and friendly people was overthrown;
Whereas[,] President Cleveland
further concluded that a
"substantial wrong has thus been done which a due regard for our
national character as well
as the rights of the injured people requires we should endeavor to
repair" and called for the restoration of the Hawaiian monarchy;
Whereas[,] the Provisional Government
protested President Cleveland's call for the restoration of the
monarchy and continued to hold state power
and pursue annexation to the United States;
Whereas[,]
the Provisional Government successfully lobbied the Committee on
Foreign Relations of the Senate (hereafter referred to in this
Resolution as the "Committee") to conduct a new investigation into the
events surrounding the overthrow of the monarchy;
Whereas[,] the Committee and its chairman,
Senator John Morgan, conducted hearings in Washington, D.C., from
December 27, 1893, through
February 26, 1894, in which members of the Provisional Government
justified and condoned the actions of the United States Minister and
recommended annexation of Hawaii;
Whereas,
although the Provisional Government was able to obscure the role of the
United States in the illegal overthrow of the Hawaiian monarchy,
it was unable to rally the support from two-thirds of the Senate needed
to ratify a treaty of annexation;
Whereas, on July 4, 1894, the Provisional
Government declared itself to be the Republic of Hawaii;
Whereas,
on January 24, 1895, while imprisoned in Iolani Palace, Queen
Liliuokalani was forced by representatives of the Republic of Hawaii to
officially abdicate her throne;
Whereas, in the 1896 United States
Presidential election, William McKinley replaced Grover Cleveland;
Whereas,
on July 7, 1898, as a consequence of the Spanish-American War,
President McKinley signed the Newlands Joint Resolution that provided
for the annexation of Hawaii;
Whereas, through the Newlands Resolution, the
self-declared Republic of Hawaii ceded sovereignty over the Hawaiian
Islands to the United States;
Whereas,
the Republic of Hawaii also ceded
1,800,000 acres of crown, government and public lands of the Kingdom of
Hawaii, without the
consent of or compensation to
the [n]ative Hawaiian people of Hawaii or their sovereign government;[ (8)]
Whereas[,] the Congress, through the Newlands
Resolution, ratified the cession, annexed Hawaii as part of the United
States, and vested title to the
lands in Hawaii in the United States;
Whereas[,]
the Newlands Resolution also specified that treaties existing between
Hawaii and foreign nations were to immediately cease and be
replaced by United States treaties with such nations;
Whereas[,] the Newlands Resolution effected
the transaction between the Republic of Hawaii and the United States
Government;
Whereas[,] the indigenous Hawaiian people
never directly relinquished their claims to their inherent sovereignty
as a people or over their national
lands to the United States, either through their monarchy or through a
plebiscite or referendum;
Whereas, on April 30, 1900, President
McKinley signed the Organic Act that provided a government for the
territory of Hawaii and defined the
political structure and powers of the newly established Territorial
Government and its relationship with the United States;
Whereas,
on August 21, 1959, Hawaii became the 50th State of the United States;
Whereas[,] the health and well-being of the
[n]ative Hawaiian people is intrinsically tied to their deep feelings
and attachment to the land;
Whereas[,]
the long-range economic and social changes in Hawaii over the
nineteenth and early twentieth centuries have been devastating to the
population and to the health and well-being of the Hawaiian people; ***
Whereas[,] the
[n]ative Hawaiian people are determined to preserve, develop and
transmit to future generations their ancestral territory, and their
cultural identity in accordance with their own spiritual and
traditional beliefs, customs, practices, language, and social
institutions;
Whereas, in order to promote
racial harmony and cultural understanding, the Legislature of the State
of Hawaii has determined that the year 1993
should serve Hawaii as a year of special reflection on the rights and
dignities of the [n]ative Hawaiians in the Hawaiian and the American
societies;
Whereas[,] the Eighteenth General Synod of
the United Church of Christ in recognition of the denomination's
historical complicity in the illegal
overthrow of the Kingdom of Hawaii in 1893 directed the Office of the
President of the United Church of Christ to offer a public apology to
the
[n]ative Hawaiian people and to initiate the process of reconciliation
between the United Church of Christ and the [n]ative Hawaiians; and
Whereas[,] it is proper and timely for the
Congress on the occasion of the impending one hundredth
anniversary of the event, to
acknowledge the
historic significance of the illegal overthrow of the Kingdom of
Hawaii, to express deep regret to the [n]ative Hawaiian people, and to
support the
reconciliation efforts of the State of Hawaii and the United Church of
Christ with [n]ative Hawaiians: Now, therefore, be it
Resolved by the Senate and House of
Representatives of the United State of American in Congress assembled,
SECTION
1. ACKNOWLEDGEMENT AND APOLOGY.
The Congress --
(1) on the occasion of the 100th
anniversary of the illegal overthrow of the Kingdom of Hawaii on
January 17, 1893, acknowledges
the historical
significance of this event which resulted in the suppression of the
inherent sovereignty of the [n]ative Hawaiian people;
(2) recognizes and commends the efforts of
reconciliation initiated by the State of Hawaii and the United Church
of Christ with [n]ative Hawaiians;
(3) apologizes to [n]ative Hawaiians
on behalf of the people of the United States for the overthrow of the Kingdom
of Hawaii on January 17, 1893
with the participation of agents and citizens of the United States, and
the deprivation of the
rights of [n]ative Hawaiians to self-determination;
(4) expresses its commitment to acknowledge
the ramifications of the overthrow of the Kingdom of Hawaii, in
order to provide a proper
foundation for reconciliation
between the United States and the [n]ative Hawaiian people; and
(5) urges the President of the
United States to also acknowledge the ramifications of the overthrow of
the Kingdom of Hawaii and to support
reconciliation efforts between the United States and the [n]ative
Hawaiian people.
SEC[TION] 2. DEFINITIONS.
As used in this Joint
Resolution, the term "[n]ative Hawaiian" means any individual who is a
descendent of the aboriginal people who, prior to
1778, occupied and exercised sovereignty in the area that now
constitutes the State of Hawaii.
SEC[TION] 3. DISCLAIMER.
Nothing in this Joint Resolution
is intended to serve as a settlement of any claims against the United
States.
Approved November 23, 1993.
Apology Resolution, Pub. L. No. 103-150, 107 Stat. 1510 (emphases
added) (internal quotation marks omitted).
B.
Factual
Background
In 1987, the
legislature, in an effort to remedy the problem of the "critical
shortage of safe and sanitary housing units which
are affordable to lower income residents of the State[,]" established
the Housing Finance and Development Corporation
(HFDC) (9) via its enactment of HRS
chapter 201E. 1987 Haw. Sess. L. Act 337, § 15 at 1045; HRS
§§ 201E-1 and -3
(1993). HFDC was authorized to, inter alia, develop
fee
simple or leasehold property, construct dwelling units thereon,
including condominiums, planned units, and cluster developments, and
sell, lease,
or rent or cause to be leased or rented, at the lowest possible price
to qualified residents, nonprofit organizations, or government
agencies, with an
eligible developer or in its own behalf, either:
(1) Fully completed
dwelling units with the appropriate interest in the land on which the
dwelling unit is located; or
(2) Units which are
substantially complete and habitable with the appropriate interest in
the land on which the dwelling unit is located; or
(3) The land with site
improvements (other than the dwelling unit) either partially or fully
developed.
HRS § 201E-201(a) (1993). Consequently, that same year, 1987,
the HFDC began to examine areas in the State that had a
"critical shortage of housing" and selected two potential sites --
(1) Leiali‘i in West Maui and (2) La‘i‘opua in North
Kona, (10) both of which were comprised
of ceded lands (11) -- for the
development of housing projects.
After conducting
feasability studies of the potential sites, the HFDC filed a petition
with the Land Use Commission (LUC)
in December 1989, seeking to reclassify the Leiali‘i parcel from
agricultural to urban use. At a public hearing on April 10,
1990, OHA, through its Land and Natural Resources Officer, gave oral
testimony recommending conditional approval of
the petition. On May 18, 1990, the LUC granted the petition,
reclassifying the property for urban use. Thereafter, HFDC
began a residential housing development project for the parcel. As the
"Master Developer" for the Leiali‘i project, HFDC
was responsible for providing the major infrastructure, i.e., roadways, lighting
poles, and sewer hook-ups, needed for the
residential development. HFDC contracted with a private developer to
build the houses.
In 1992, the
legislature enacted Act 318 (codified as HRS § 10-13.6
(1993)) that set forth a formula to compensate OHA
for the "villages of Leialii, Maui and villages of La‘i‘opua, Hawai‘i"
that were to be conveyed from DLNR to HFDC. HRS § 10-13.6(e)
(Supp. 2007); see also 1992 Haw. Sess. L. Act
318, § 10 at 1016-17. According to Act 318's formula,
OHA was to be compensated twenty per cent of the fair market value of
the subject lands. HRS § 10-13.6(a). As a result,
OHA and DLNR each retained an appraiser to determine the fair market
value of the Leiali‘i parcel.
In November 1993,
Congress adopted the Apology Resolution, quoted fully supra and discussed more
fully infra, wherein
it expressly recognized, inter
alia, that:
(1) the overthrow of the Kingdom of Hawai‘i was illegal; (2) the
taking of crown,
government, and public lands of the Kingdom was without consent or
compensation; and (3) "the indigenous Hawaiian
people never directly relinquished their claims . . . over
their national lands to the United States." Apology Resolution,
Pub. L. No. 103-150, 107 Stat. 1510. Congress also formally and
publicly apologized to native Hawaiians on behalf of the
United States for the overthrow and the deprivation of native
Hawaiians' rights to self-determination. Id. Thereafter and
as a result of the adoption of the Apology Resolution, OHA demanded,
based on the advice of attorney William Meheula,
that a disclaimer be included as a part of any acceptance of funds from
the sale so as to preserve any native Hawaiian
claims to ownership of the ceded lands, of which the Leiali‘i parcel
was
a part.
In October 1994,
HFDC declined to honor OHA's requested disclaimer because "to do so
would place a cloud on [the]
title, rendering title insurance unavailable to buyers in the Leali‘i
[sic] project." Thereafter, on November 4, 1994, "DLNR
transferred about 500 acres of ceded lands" at Leiali‘i to HFDC for the
consideration of $1.00. HFDC transmitted to OHA
a check in the amount of $5,573,604.40 as OHA's entitlement in
accordance with Act 318. Based on advice from then-OHA counsel Earl
Anzai that the Apology Resolution created a cloud on the title of the
ceded lands, OHA refused to
accept the check. The plaintiffs thereafter filed suit in November 1994.
Subsequent to the
filing of the plaintiffs' lawsuit, the HFDC made a policy decision to
stop work on the project. By that
time, all of the roadways, utilities, lighting poles, and sewer hookups
had been completed, including some landscaping
work. As of December 1994, HFDC estimated it had already invested $31
million into the Leiali‘i project.
C. Procedural
History
1.
The
Complaint and Pretrial Motions
On August 11,
1995, the plaintiffs filed an amended complaint (First Amended
Complaint), seeking injunctive and,
alternatively, declaratory relief. (12)
The plaintiffs requested: (1) an injunction against all sales
of ceded lands (Count I);
(2) an injunction to specifically bar the sale of the Leiali‘i
parcel (Count II); and, alternatively, (3) a declaratory judgment
that "(a) any conveyance to a third-party violates the Hawai‘i State
Constitution and the Admission Act, and/or (b) any sale
of ceded lands does not directly or indirectly release or limit claims
of [n]ative Hawaiians to those lands" (Count III).
(13) The plaintiffs alleged that they would suffer
irreparable harm if the defendants were allowed to transfer ceded lands
to
third-parties inasmuch as "alienation of the land to a third-party
would erode the ceded lands trust and the entitlements of
the native Hawaiian people." In other words, the
plaintiffs alleged that an injunction was proper because, in light of
the
Apology Resolution, any transfer of ceded lands by the State to
third-parties would amount to a breach of trust inasmuch as
such transfers would be "without regard for the claims of Hawaiians to
those lands" to whom the State, as trustee, owes a
fiduciary duty.
2. The
Trial and the Trial Court's Written Decision
A jury-waived
trial commenced on November 19, 2001. At trial, the plaintiffs adduced
evidence regarding the events that
surrounded the transfer of the Leialii parcel, the importance of the
land to the native Hawaiians, analogies to Native
American property rights, and the developing body of international law
that favors the rights of indigenous people to
traditional lands. The defendants primarily adduced evidence that the
State was authorized to alienate ceded lands from the
public lands trust. Additionally, the defendants argued that the
plaintiffs were collaterally estopped "from even arguing
that the State does not have the power to sell [the ceded lands]" based
on the unpublished decision in Trustees of the Office
of Hawaiian Affairs v. Board of Land and Natural Resources, No.
19774 (Haw. Mar. 12, 1998) (mem.) [hereinafter, Ewa
Marina], (14) wherein this court
held that the State, as ceded lands trustee, did not breach its duties
by granting a dredge
permit for submerged lands to a private party, discussed more fully infra.
On December 5,
2002, the trial court issued a 105-page written decision, entitled
"Opinion of the Court" [hereinafter, the
written decision]. As discussed more fully infra, the trial court
ruled that, although Ewa
Marina did not collaterally estop
the plaintiffs from bringing their claims, such claims were barred by
the doctrines of: (1) sovereign immunity; (2) waiver
and estoppel; and (3) justiciability -- specifically, political
question, ripeness, and the mandate against advisory opinions.
Notwithstanding the above rulings, the trial court also concluded that
the State had the express authority to alienate ceded
lands from the public lands trust.
On December 13,
2002, the plaintiffs filed a motion for HRCP Rule 54(b) certification
or, in the alternative, for leave to
file an interlocutory appeal, which was granted. The trial court, on
January 31, 2003, filed its HRCP Rule 54(b) judgment
in favor of the defendants. Both sets of plaintiffs separately filed
timely notices of appeal on February 3, 2003.
II.
STANDARDS
OF REVIEW
A.
Findings
of Fact
The [trial court's findings of fact] are
reviewed on appeal under the "clearly erroneous" standard. A [finding
of fact] is clearly erroneous when (1)
the record lacks substantial evidence to support the finding, or (2)
despite substantial evidence in support of the finding, the appellate
court is
nonetheless left with a definite and firm conviction that a mistake has
been made. Substantial evidence is credible evidence which is of
sufficient
quality and probative value to enable a person of reasonable caution to
support a conclusion.
Estate of Klink ex rel. Klink v.
State, 113 Hawai‘i 332, 351, 152 P.3d 504, 523 (2007)
(citations,
internal quotation marks,
original brackets, and ellipses omitted) (format altered).
B.
Conclusions
of Law
This court reviews the [trial court's
conclusions of law] de novo.
A [conclusion of law] is not binding upon an appellate court and is
freely
reviewable for its correctness. Moreover, a [conclusion of law] that is
supported by the [trial court's finding of facts] and that reflects an
application
of the correct rule of law will not be overturned.
Hui Kakoo Aina Hoopulapula v.
Bd.
of Land & Natural Res., 112 Hawai‘i 28, 38, 143 P.3d 1230,
1240 (2006) (citations,
internal quotation marks, and original brackets omitted).
III.
DISCUSSION
As previously
stated, the plaintiffs seek to enjoin the defendants from selling or
otherwise transferring the Leiali‘i parcel to
third parties and selling or otherwise transferring to third parties
any of the ceded lands in general until a determination of
the native Hawaiians' claims to the ceded lands is made. Alternatively,
the plaintiffs seek a declaration that the State is not
authorized to alienate ceded lands from the public lands trust or, if
the trial court ruled that the State is so authorized, a
declaration that such alienation would not limit the claims of native
Hawaiians to the ceded lands. At the heart of the
plaintiffs' claims, before the trial court and on appeal, is the
Apology Resolution. The plaintiffs essentially believe that the
title to the ceded lands is clouded as a result of the Apology
Resolution's recognition that the native Hawaiian people never
relinquished their claims over their ancestral territory and that,
therefore, the defendants have a "fiduciary obligation to
protect the corpus of the [p]ublic [l]ands [t]rust until an appropriate
settlement is reached between native Hawaiians and
the State."
Specifically, the
plaintiffs argue that the trial court erred in concluding that: (1) the
doctrine of sovereign immunity barred
consideration of the plaintiffs' claims; (2) the defenses of waiver and
estoppel barred the plaintiffs' requests for injunctive
and declaratory relief with respect to the sale of the Leiali‘i parcel;
(3) the State's transfer of the Leiali‘i parcel did not
breach -- and any future transfer of ceded lands would not
breach -- the State's fiduciary duties as trustee of the
public
lands trust of which the ceded lands are a part; and (4) the
doctrine of political question barred the plaintiffs' requests for
injunctive and declaratory relief. Additionally, the OHA plaintiffs
assert that the trial court erred in: (1) determining that
their claim for injunctive relief with regard to the future sale of
ceded lands in general was barred by the ripeness doctrine;
and (2) making several evidentiary rulings.
Preliminarily, we
believe it appropriate to first examine the language of the Apology
Resolution inasmuch as the plaintiffs'
current claim for injunctive relief is, as more fully described infra, based largely upon
the Apology Resolution, which the
defendants believe is inapplicable. We also believe it appropriate to
examine related state legislation enacted around the
same time that Congress adopted the Apology Resolution. In our view,
this preliminary examination is critical to an
understanding of the plaintiffs' claim for injunctive relief.
A.
The
Apology Resolution and Related
State Legislation
The plaintiffs'
claims for injunctive relief and, alternatively, for declaratory
relief, are based on their belief that the
"recognition in[, inter
alia, the Apology
Resolution] of the illegality of the transfer of lands and the ongoing
reconciliation
and negotiation process dramatically reinforces the State's fiduciary
obligation to protect the corpus of the [p]ublic [l]ands
[t]rust until an appropriate settlement is reached." Specifically, the
OHA plaintiffs argue that the "Congressional
recognition of illegality, and its accompanying call for a
'reconciliation' through a process now underway, has changed the
legal landscape and restructured the rights and obligations of the
State." The OHA plaintiffs further assert that
the failure of the Apology Resolution to
complete the process of settling [n]ative Hawaiian claims does not
undercut its significance in recognizing
the bases for [the plaintiffs'] claims. . . . As the [trial
c]ourt explained, the Apology Resolution "confirms the factual
foundation for the claims that
previously had been asserted."
(Emphasis added.)
Additionally, the OHA plaintiffs maintain that the "Apology Resolution
by itself does not require the
State to turn over the lands to the [n]ative Hawaiian people, but it
puts the State on notice that it must carefully preserve
these lands so that a subsequent transfer can take place when the
political branches reach an appropriate resolution of this
dispute."
The defendants
admit that the Apology Resolution "posits that the overthrow was
illegal and that the [c]eded [l]ands were
transferred without compensation." However, relying on the disclaimer
language contained therein, the defendants assert
that "nothing in the Apology Resolution serves as a settlement of
claims." Additionally, the defendants maintain that the
Apology Resolution's "historical statements provide no guideline as to
what remedy, if any, is appropriate."
The trial court,
in analyzing the effect of the Apology Resolution on the plaintiffs'
claims, stated:
The Apology Resolution apologizes for the
overthrow of the Kingdom of Hawai‘i on January 17, 1893, with the
participation of agents and citizens
of the United States, and for the deprivation of the inherent rights of
native Hawaiians to self-determination and sovereignty. It also
supports,
recognizes, and commends reconciliation efforts of the State of Hawai‘i
with native Hawaiians. Congress concluded in this
enactment of the
Apology Resolution, which is binding upon this court,
that the overthrow of the Kingdom of Hawa‘ii was in violation of
treaties between the
Kingdom and the United States and of international law, that it could
not have been accomplished without the assistance of U.S. agents, and
that the
subsequent "cession" of these lands to the United States in 1898 was
"without the consent of or compensation to the [n]ative Hawaiian
people of Hawaii or their sovereign government[.]
. . . .
Congress also expressed its commitment to
acknowledge the ramifications of the overthrow of the Kingdom of
Hawai‘i
in order to provide a proper
foundation for reconciliation between the United States and the
[n]ative Hawaiian [p]eople, and urged the President of the United
States to also
acknowledge the ramifications and to support reconciliation efforts.
"result in any
changes in existing lawAlthough,
by its terms, the 1993 Apology Resolution does not itself "serve as a
settlement of any claims against the United States," or," [S.
Rep. No. 103-123 (1993) at 35,] or
itself create a claim, right, or cause of action, [Rice
v. Cayetano, 941 F. Supp.
1529, 1546 n.24 (D. Haw. 1996), rev'd on other grounds, 528
U.S. 495 (2000),] it confirms the
factual foundation
for claims that
previously had
been asserted.
(Emphases added.)
(Footnotes omitted.)
As previously
stated, the Apology Resolution was adopted by both the House and the
Senate, signed by then-President
Clinton on November 23, 1993, and designated as Public Law No. 103-150.
Generally, when a joint resolution -- such as
the one at issue in this case -- has emerged from legislative
deliberations and proceedings, it is treated as law. Ann Arbor
R. Co. v. United States, 281 U.S. 658, 666 (1930). Consequently,
the rules applicable to statutory interpretation are also
applicable to the Apology Resolution. Norman J. Singer, Statutes and Statutory Construction
§ 29:8 (6th ed. 2002); 82
C.J.S. Statutes
§ 306 (2007).
It is well-settled
that,
[w]hen construing a statute, our foremost
obligation is to ascertain and give effect to the intention of the
legislature, which is to be obtained
primarily from the language contained in the statute itself. And we
must read statutory language in the context of the entire statute and
construe it in
a manner consistent with its purpose.
Coon v. City & County of
Honolulu, 98 Hawai‘i 233, 245, 47 P.3d 348, 360 (2002) (emphasis
added) (citation omitted). Additionally, "the legislature is presumed
not to intend an absurd result, and legislation will be construed to
avoid, if
possible, inconsistency, contradiction, and illogicality." Keliipuleole v. Wilson, 85
Hawai‘i 217, 222, 941 P.2d 300, 305
(1997) (internal brackets and citations omitted). In other words, "a
rational, sensible and practicable interpretation of a
statute is preferred to one which is unreasonable or impracticable[.]" Id. at 221-22, 941 P.2d at
304-05 (internal brackets
and citation omitted). Moreover,
[i]t is a cardinal rule of statutory
construction that courts are bound, if rational and practicable, to
give effect to all parts of a statute, and that no
clause, sentence, or word shall be construed as superfluous, void, or
insignificant if a construction can be legitimately found which will
give force to
and preserve all the words of the statute.
Camara v. Agsalud, 67 Haw.
212, 215-16, 685 P.2d 794, 797 (1984) (citations omitted).
As previously
quoted, the Apology Resolution states in relevant part:
Whereas[,] the
Republic of Hawaii also ceded 1,800,000 acres of crown, government and
public lands of the Kingdom of Hawaii, without the
consent of or compensation to
the [n]ative Hawaiian people of Hawaii or their sovereign government;
. . . ;
Whereas[,] the
indigenous Hawaiian people never directly relinquished their claims to
their inherent sovereignty as a people or over their national
lands to the United States, either
through their monarchy or through a plebiscite or referendum;
. . . ;
Whereas[,] the health and well-being of the
[n]ative Hawaiian people is intrinsically tied to their deep feelings
and attachment to the land;
. . . ;
[and]
Whereas[,] the
[n]ative Hawaiian people are determined to preserve, develop and transmit
to future generations their ancestral territory,
and
their cultural identity in accordance with their own spiritual and
traditional beliefs, customs, practices, language, and social
institutions[.]
Apology
Resolution, Pub. L. No. 103-150, 107 Stat. 1510 (emphases added). Based
on a plain reading of the above
passages, we believe Congress has clearly recognized that the native
Hawaiian people have unrelinquished claims over the
ceded lands, which were taken without consent or compensation and which
the native Hawaiian people are determined to
preserve, develop, and transmit to future generations. Equally clear is
Congress's "express[ed] . . . commitment to
acknowledge the ramifications of the overthrow of the Kingdom of
Hawaii, in order to provide
a proper foundation for
reconciliation between the United States and the [n]ative
Hawaiian people." Id.
We agree with the OHA plaintiffs that the
"Apology Resolution by itself does not require the State to turn over
the [ceded] lands to the [n]ative Hawaiian people[.]" In our view, the
Apology Resolution acknowledges only that unrelinquished claims exist
and plainly contemplates future
reconciliation with the United States and the State with regard to
those claims.
The defendants
place great reliance on the Apology Resolution's disclaimer that
"[n]othing in [the resolution] is intended
to serve as a settlement of any claims against the United States."
Apology Resolution, Pub. L. No. 103-150, 107 Stat.
1510. In so doing, they essentially maintain that the plaintiffs are
precluded from using the language contained therein to
establish or support a claim for the return of the ceded lands. When
reading the disclaimer language -- as we must -- "in
the context of the entire [Apology Resolution] and constru[ing] it in a
manner consistent with its purpose," Coon, 98
Hawai‘i at 245, 47 P.3d at 360, the disclaimer provision dictates only
that the Apology Resolution itself does not constitute
a settlement of any of the unrelinquished claims to the ceded lands; in
other words, it does not bestow upon native
Hawaiians any ownership
interest in the ceded lands. As we have stated, the Apology
Resolution recognizes, inter
alia, that
native Hawaiians (1) never "directly relinquished their claims to
. . . their national lands to the United States" and (2) "are
determined to preserve, develop and transmit to future generations
their ancestral territory." If we were to determine, as the
defendants appear to urge, that the disclaimer bars the plaintiffs from
relying upon the Apology Resolution -- a public law -- in pursuing what
the resolution clearly recognizes -- their unrelinquished claims to the
ceded lands, -- we would be
violating one of the cardinal rules of statutory construction, namely,
that this court is bound "to give effect to all parts of a
statute" so that "no clause, sentence, or word shall be construed as
superfluous, void, or insignificant." Camara, 67 Haw. at
215, 685 P.2d at 797. Subscribing to the defendants' reading of the
disclaimer would render superfluous the Apology
Resolution's acknowledgment of the plaintiffs' unrelinquished claims to
the ceded lands. In fact, given the Apology
Resolution's clear contemplation of future reconciliation, i.e., settlement, it is not
surprising that Congress would include
the aforementioned disclaimer after having clearly acknowledged the
illegality of the overthrow, the existence of the native
Hawaiians' unrelinquished claims to the ceded lands, their deep
feelings and attachment to those lands, and their
determination to pursue their claims. Clearly, the Apology Resolution
is not per se a settlement
of claims, but serves as the
foundation (or
starting point) for reconciliation, including the future settlement of
the plaintiffs' unrelinquished claims.
Such
interpretation is supported by the October 23, 2000 report, issued by
the United States Departments of Interior and
Justice (the Departments), entitled "From Mauka to Makai: The River of
Justice Must Flow Freely." (15) As
indicated by
the trial court, the principal recommendation of the report states:
It is evident from the documentation,
statements, and views received during the reconciliation process
undertaken by [the Departments] pursuant to
[the Apology Resolution], that [n]ative Hawaiian people continue to
maintain a distinct community and certain governmental structures and
they
desire to increase their control over their own affairs and
institutions. As [a] matter of justice and
equity, this report recommends that [n]ative
Hawaiian people should have self-determination over their own affairs
within the framework of [f]ederal law, as do Native American
tribes. For
generations, the United States has recognized the rights and promoted
the welfare of [n]ative Hawaiians as an indigenous people within our
nation
through legislation, administrative action, and policy statements. To
safeguard and enhance [n]ative Hawaiian self-determination over their
lands,
cultural resources, and internal affairs, the Departments believe
Congress should enact further legislation to clarify [n]ative
Hawaiians' political
status and to create a framework for recognizing a
government-to-government relationship with a representative [n]ative
Hawaiian governing body.
(Format altered.)
(Emphases added.)
The above
interpretation is also supported by related state legislation enacted
at around or subsequent to the adoption of the
Apology Resolution -- specifically, Acts 354, 359, 329, and 340. Act
354, entitled "A Bill for an Act Relating to Hawaiian
Sovereignty," stated in pertinent part that:
On January 16, 1893, John L. Stevens,
American minister in Hawai‘i and friend of those supporting the
annexation of Hawai‘i to the United States,
ordered the United States marines to invade Honolulu under the pretext
of protecting American citizens and their property. Stevens thereafter
recognized a new provisional government even before Queen Liliuokalani
surrendered. The actions by the annexationists were condemned by
President Cleveland's special envoy and the President himself. When
President Cleveland refused to submit a treaty of annexation to the
Senate, the
new provisional government established the Republic of Hawai‘i which
lasted until annexation in 1898. Sixty-one years later, Hawai‘i became
a
state.
Until the provisional government was
recognized by John L. Stevens, the Kingdom of Hawai‘i was recognized as
an independent nation by the
United States, France, and Great Britain. Many native Hawaiians and
others view the overthrow of 1893 and subsequent actions by the United
States, such as supporting establishment of the provisional government
and later the Republic of Hawai‘i, the designation of the crown and
government lands as public lands, annexation, and the ceding of the
public lands to the federal government without the consent of native
Hawaiians,
as illegal. Because the actions taken by the
United States were viewed as illegal and done without the consent of
native Hawaiians, many native
Hawaiians feel there is a valid legal claim for reparations. Many
native Hawaiians believe that the lands taken without their consent
should be
returned and if not, monetary reparations made, and that they
should have the right to sovereignty, or the right to
self-determination and self-government as do other native American
peoples.
The
legislature has also acknowledged that the actions by the United States
were illegal and immoral, and pledges its continued support to the
native
Hawaiian community by taking steps to promote the restoration of the
rights and dignity of native Hawaiians.
1993 Haw. Sess. L.
Act 354, § 1 at 999-1000 (emphases added). In Act 359, also
entitled "A Bill for an Act Relating to
Hawaiian Sovereignty," the legislature made findings similar to those
expressed in the Apology Resolution. 1993 Haw.
Sess. L. Act 359, §§ 1-2 at 1009-11. The stated purpose
of Act 359 was to "facilitate the efforts of native Hawaiians to be
governed by an indigenous sovereign nation of their own choosing." 1993
Haw. Sess. L. Act 359, § 2 at 1010. The
legislature established the Hawaiian Sovereignty Advisory Commission
"to advise the legislature in carrying out the
purposes of [the] Act." Id.,
§ 4 at 1011. In enacting Acts 354 and 359, the legislature
recognized that "the indigenous
people of Hawai‘i were denied . . . their lands,"
1993 Haw. Sess. L. Act 359, § 1(9) at 1010, and contemplated
further
action by the legislature to "to tak[e] steps to promote the
restoration of the rights and dignity of native Hawaiians." 1993
Haw. Sess. L. Act 354, § 1 at 1000.
In 1997, the
legislature enacted Act 329. 1997 Haw. Sess. L. Act 329, § 1
at 956-58. Act 329, which attempted to clarify
"the proper management and disposition of the lands subject to the
public land[s] trust and the proceeds and income
therefrom, and to effectuate article XII, section 6 of the Hawai‘i
Constitution," stated that:
The legislature finds that the events of
history relating to Hawai‘i and [n]ative Hawaiians, including those set
forth in [the Apology Resolution]
continue to contribute today to a deep sense of injustice among many
[n]ative Hawaiians and others. The legislature recognizes that
the lasting
reconciliation so desired by all people of Hawai‘i is possible only if
it fairly acknowledges the past while moving into Hawaii's future.
The legislature further finds that over the
last few decades, the people of Hawai‘i through
amendments to their state constitution, the acts of their
legislature, and other means, have moved substantially toward this
permanent reconciliation. Foremost among these achievements have
been the
creation of the [O]ffice of Hawaiian [A]ffairs and the allocation by
legislative action to the [O]ffice of Hawaiian [A]ffairs of substantial
funds out of
a portion of the public land[s] trust established by section 5(f) of
the Admission Act. The overriding purpose of this Act is to continue
this
momentum, through further executive and legislative action in
conjunction with the people of Hawai‘i, toward
a comprehensive, just, and lasting
resolution.
1997 Haw. Sess. L.
Act 329, § 1 at 956 (emphases added).
Additionally, we
observe that, in 1993, the legislature found that "the island of
Kahoolawe[ (16)] is of significant
cultural
and historic importance to the native people of Hawai‘i," 1992 Haw.
Sess. L. Act 340, § 1 at 803, and dictated that:
Upon .
. . return [of Kahoolawe] to the State, the resources and waters of
Kahoolawe shall be held in trust as part of the public lands trust;
provided that the State shall transfer management and control of the
island and its waters to the sovereign native Hawaiian entity upon its
recognition by the United States and the State of Hawai‘i.
Id. at § 2
at 806
(codified as HRS chapter 6K).
It is well-settled
that native Hawaiian beneficiaries of the ceded lands trust have a
"right to bring suit under the Hawai‘i
Constitution to prospectively enjoin the State from violating the terms
of the ceded lands trust." Pele
Defense Fund, 73
Haw. at 601, 837 P.2d at 1262. Moreover, we have previously indicated
in an analogous case dealing with the Hawaiian
Homes Commission Act that the State, as trustee, "must adhere to high
fiduciary duties normally owed by a trustee to its
beneficiaries." Ahuna,
64 Haw. at 338, 640 P.2d at 1168. In describing the scope of the
State's relevant fiduciary duties,
this court, in Ahuna,
analogized such duties to the fiduciary duties of the United States to
native Americans by quoting,
with approval, the words of the United States Supreme Court and stated:
Under a humane and self imposed policy which
has found expression in many acts of Congress and numerous decisions of
this Court, [the
Government] has charged itself with moral obligations of the highest
responsibility and trust. Its conduct, as disclosed in the acts
of those who
represent it in dealings with the Indians, should
therefore be judged by the most exacting fiduciary standards.
Id. at 339, 640 P.2d at
1169 (quoting Seminole
Nation v. United States, 316 U.S. 286, 296-97 (1942)) (brackets
and
emphases in original) (format altered). In Ahuna, we held that "[t]he
use of the term 'most exacting fiduciary standards'
imports the notion that [this] court will strictly scrutinize the
actions of the government." Id.
at 339, 640 P.2d at 1169. Moreover, we observed that "the nature of the
trust obligations of the [State] toward beneficiaries . . . may be
determined
by examining well-settled principles enunciated by the federal courts
regarding lands set aside by Congress in trust for the
benefit of other native Americans[.]" Id. at 339, 640 P.2d at
1168. In particular, we cited three specific trust duties
applicable to the State as trustee: (1) "the obligation . . . to
administer the trust solely in the interest of the beneficiary"; (2)
the obligation that the trustee "deal impartially when there is more
than one beneficiary"; and (3) the "obligation to use
reasonable skill and care to make trust property productive[.]" (17) Id. at 340, 604 P.2d at
1169-70 (citations omitted).
As native
Hawaiians, the individual plaintiffs are clearly beneficiaries of the
ceded lands trust. Additionally, OHA, which
is charged "with managing proceeds derived from the ceded lands and
designated for the benefit of native Hawaiians,"
OHA II, 110 Hawai‘i at
341, 133 P.3d at 770 (citation omitted), can be said to be representing
the interests of the native
Hawaiian beneficiaries to the ceded lands trust. The State, as trustee,
is under an obligation to "administer the trust solely
in the interest of the beneficiary" and to "deal impartially when there
is more than one beneficiary." Ahuna, 64 Haw. at
340, 640 P.2d at 1169-70 (citations omitted). As previously discussed,
the Apology Resolution and the aforementioned
related state legislation clearly contemplate that native Hawaiians
(1) "never directly relinquished their claims to . . . their
national lands to the United States," and (2) "are determined to
preserve, develop and transmit to future generations their
ancestral territory." Apology Resolution, Pub. L. No. 103-150, 107
Stat. 1510. As such, we believe and, therefore, hold
that the Apology Resolution and related state legislation, discussed supra, give rise to the
State's fiduciary duty to preserve
the corpus of the public lands trust, specifically, the ceded lands,
until such time as the unrelinquished claims of the native
Hawaiians have been resolved. Such duty is consistent with the State's
"obligation to use reasonable skill and care" in
managing the public lands trust and the Ahuna court's declaration
that the State's conduct "should . . . be judged by the
most exacting fiduciary standards." Ahuna, 64 Haw. at 339, 640
P.2d at 1169 (citations and emphasis omitted).
Keeping the
aforementioned discussion and holding in mind, we now turn to examine
the issues raised by the parties in this
appeal -- the first of which is the defendants' contention
that the plaintiffs' claim for injunctive relief is barred by the
doctrine of collateral estoppel.
B.
Collateral
Estoppel
Relying on Ewa Marina, the defendants
assert, as they did before the trial court, that the plaintiffs are
collaterally estopped
from relitigating whether the State has the power to alienate ceded
lands from the public lands trust. The OHA plaintiffs
maintain that the trial court addressed the issue and "correctly
rejected the argument presented by the [defendants]."
In Ewa Marina, the plaintiffs
-- OHA, Save Ewa Beach Ohana, and two individual plaintiffs --
challenged the Board of
Land and Natural Resources' (BLNR) issuance of a conservation district
use area (CDUA) permit to Haseko, Inc.
(Haseko). Ewa Marina,
slip op. at 2. "Haseko submitted a CDUA permit application to the
BLNR[,] seeking a permit to
dredge a channel through state-owned submerged lands. The purpose of
this permit was to allow Haseko to construct a
1400-slip marina as part of the proposed Ewa Marina development
project." Id. BLNR
conditionally granted Haseko's
application for the CDUA permit on December 29, 1994. Id. at 8. The plaintiffs
timely appealed the decision and order of
the BLNR to the circuit court, which affirmed the decision of the BLNR.
Id. at 8-9. The
plaintiffs then appealed to this
court, arguing, inter
alia, that "the
issuance of the permit violated the fiduciary obligations of the State
of Hawai‘i under
section 5(f) of the . . . Admission Act and the public trust doctrine"
and that "issuance of the permit constitute[d] an
improper disposition of public lands." Id. at 9.
This court upheld
the decisions of the circuit court and BLNR, reasoning that
"section 5(f) does not limit the use of the
ceded lands themselves to the five purposes[ ] so long as the proceeds
from the disposition of these lands are held in trust." Id. at 21. Additionally,
based on article XII, section 6 of the Hawai‘i Constitution, this court
concluded that the State
has the power to dispose of ceded lands. The
actual use to which these lands is put by this disposition does not
have to comport with one of the five
enumerated purposes in the Admission Act as long as fair compensation
for the disposition of these lands is used for trust purposes. The
actual
issue in this case, therefore, is whether the issuance of the CDUA
permit is a proper disposition of ceded lands.
Id. at 21-22 (emphasis
added) (footnote omitted). This court held that the "grant of the
permit for the dredging of a marina
entrance channel has an undisputably public purpose" and that,
therefore, "BLNR's conditional grant of the permit to
Haseko did not violate the public trust doctrine and was a proper
disposition of public lands." Id.
at 26-27.
"Collateral
estoppel is an aspect of res
judicata which
precludes the relitigation of a fact or issue which was previously
determined in a prior suit on a different claim between the same
parties or their privies." Pele
Defense Fund, 73 Haw. at
599, 837 P.2d at 1261 (citations omitted) (format altered). Thus, the
elements of collateral estoppel are:
(1) the issue decided in the prior
adjudication is identical to the one presented in the action in
question; (2) there is a final judgment on the merits;
(3) the issue decided in the prior adjudication was essential to the
final judgment; and (4) the party against whom collateral estoppel is
asserted was
a party or in privity with a party to the prior adjudication.
Keahole Def. Coal., Inc. v. Bd. of
Land & Natural Res., 110 Hawai‘i 419, 429, 134 P.3d 585, 595
(2006) (citations
omitted) (format altered); see
also Citizens for the Prot. of the N.
Kohala Coastline v. County of Hawai‘i, 91 Hawai‘i 94,
102, 979 P.2d 1120, 1128 (1999). These elements "are tempered only by
the prerequisite that a plaintiff have a full and fair
opportunity to litigate the relevant issues." Pele Defense Fund, 73 Haw.
at 600, 837 P.2d at 1261 (citations omitted).
In this case, the
trial court ultimately determined that Ewa Marina did not
collaterally estop the plaintiffs' claims in this
case because the "issue of whether the State has the power to sell ceded lands . . . was
not 'essential' to the final judgment
in Ewa Marina, which
merely decided whether the BLNR could issue a permit to dredge submerged ceded
lands." (Emphases in original.) Curiously, the trial court also found
that "the issue of whether the State could sell or dispose of
ceded lands for public purposes was actually litigated." However, the
trial court, after taking judicial notice of the files in
the Ewa Marina case,
seemingly concluded to the contrary, i.e., that the plaintiffs
in the instant case -- against whom
collateral estoppel is asserted -- did not have a "'full and fair
opportunity' in Ewa Marina
to litigate" the State's authority to
alienate ceded lands from the public lands trust.
Nevertheless, the
trial court appears to have correctly determined that two of the
elements of collateral estoppel were met in
this case, to wit: (1) there was a final judgment on the merits in the Ewa Marina case; and (2)
the individual plaintiffs are
privies of OHA for the purposes of collateral estoppel. However, it is
apparent that the other two elements of collateral
estoppel are not met here. First, the issue decided in Ewa Marina -- "whether the
issuance of the CDUA permit [was] a
proper disposition of ceded lands," Ewa Marina, slip op. at 22
(footnote omitted), -- is not identical to the issue raised by
the plaintiffs in this case, i.e.,
whether the State, as trustee, should be enjoined from alienating ceded
lands from the public
lands trust until such times as the claims of the native Hawaiian
people to the ceded lands are resolved. Second, the issue
whether such an injunction should be issued was not essential to the
final judgment in Ewa Marina
inasmuch as this court
in Ewa Marina needed
to determine only whether the State violated its fiduciary duties by
issuing the CDUA permit. Accordingly, we hold that the trial court
correctly determined that Ewa
Marina did not collaterally estop the plaintiffs'
claims in this case. We now turn to the plaintiffs' contentions on
appeal as they relate to (1) the Leialii parcel and (2) the
ceded lands in general. We then examine the political question doctrine
and the plaintiffs' request for injunctive relief.
C.
The
Leiali‘i Parcel
1.
Sovereign Immunity
The trial court
determined that the plaintiffs' claims with regard to the Leiali‘i
parcel were barred by sovereign immunity
because title to the Leiali‘i parcel had already been transferred to
the
HFDC. The trial court reasoned that, in order to
return the Leiali‘i parcel to the public lands trust, it would be
required "to 'turn back the clock and examine actions already
taken by the State.'" Thus, the trial court concluded:
The Leali‘i [sic] [parcel is] no longer in
the
[p]ublic [l]ands [t]rust. Although the [p]laintiffs argue that the
[parcel was] merely transferred to
another State entity and that sovereign immunity therefore does not
apply, the facts show that the State of Hawai‘i received payment for
the
transfer
of [this parcel] to the HFDC. [HRS §] 171-2 specifically exempts from
the definition of "public lands" those lands to which the HFDC holds
title in
its corporate capacity. To return the [parcel] at Leali‘i [sic] to the
[p]ublic [l]ands [t]rust, the DLNR would have to expend moneys from the
State
treasury. Moreover, the HFDC has already spent millions of dollars
improving those properties.
Accordingly, this court cannot compel HFDC to
return the [parcel] at Leali‘i [sic] to the [p]ublic [l]ands [t]rust
without directly affecting the state
treasury. Pursuant to Pele Defense Fund v. Paty,
[73 Haw. 578, 837 P.2d 1247 (1992),] [the p]laintiffs' request for
injunctive relief . . . with respect
to Leali‘i [sic] is, therefore, barred by sovereign immunity.
On appeal, the
plaintiffs argue that the trial court erred in concluding that their
claim with regard to the Leiali‘i parcel was
barred by the doctrine of sovereign immunity. Specifically, the
plaintiffs take issue with the trial court's reliance on Pele
Defense Fund. The plaintiffs assert that their claim regarding
the Leiali‘i parcel was not barred by sovereign immunity
because the claim is for prospective injunctive relief.
Additionally, the OHA plaintiffs contend that: (1) the requested
injunction would not directly affect the State treasury inasmuch as the
transfer "from DLNR to HFDC was a paper
transaction shifting title from one State agency to another for which
DLNR received a mere $1[.00]"; and (2) the "dispute
over the Leiali‘i [parcel] involves governmental agencies rather than
private parties." Consequently, the OHA plaintiffs
argue that the case at bar is distinguishable from Pele Defense Fund.
The defendants, on
the other hand, believe -- as did the trial court -- that "the State
has already transferred the Leiali‘i
[parcel] to HFDC" and, therefore, to return the parcel to the public
lands trust, "DLNR would have to expend moneys from
the State treasury." The defendants, therefore, maintain that the trial
court correctly determined that Pele Defense Fund
mandates the conclusion that the plaintiffs' claim is barred by
sovereign immunity. Moreover, the defendants argue that
the exception to sovereign immunity recognized in Pele Defense Fund -- "for
'the limited purpose of enjoining state
officials' breach of trust by disposal of trust assets in violation of
the Hawai‘i constitutional and statutory provisions
governing the public land trust'" -- is inapplicable in this case
"because the Admission Act and state constitutional and
statutory provisions explicitly authorize the State to sell ceded
lands."
The doctrine of
sovereign immunity dictates that
the State cannot be sued without its consent
or waiver of its immunity in matters "involving the enforcement of
contracts, treasury liability for tort,
and the adjudication of interest in property which has become unsullied
by tort into the bosom of government." However, sovereign
immunity may
not be invoked as a defense by state officials who comprise an
executive department of government when their action is attacked as
being
unconstitutional. Nor will sovereign immunity bar suits to enjoin state
officials from violating state statutes.
Pele Defense Fund, 73 Haw.
at 607, 837 P.2d at 1265 (emphasis added) (internal brackets, ellipsis,
and citations omitted)
(format altered). Additionally, this court has adopted the rule from Ex parte Young, 209 U.S.
123 (1908), which makes an
important distinction between prospective and retrospective relief. Id. at 609, 837 P.2d at
1266.
If
the relief sought against a state official is prospective in nature,
then the relief may be allowed regardless of the state's sovereign
immunity. This
is true even though accompanied by a substantial ancillary effect on
the state treasury. However, relief that is tantamount to an
award of damages
for a past violation of law, even though styled as something else, is
barred by sovereign immunity.
Id. at 609-10, 837 P.2d at
1266 (emphasis added) (citations, ellipsis, footnote, and internal
quotation marks omitted). The
burden is on the State to prove "with specific facts that the effect on
the State treasury will be directly, substantially, and
quantifiably impacted." OHA
II, 110 Hawai‘i at 357, 133 P.3d at 786 (footnote omitted).
Pele Defense Fund involved
a claim brought by a non-profit corporation comprised of native
Hawaiian beneficiaries of the
section 5(f) Admission Act trust, challenging the exchange of ceded
lands in Puna on the island of Hawai‘i for privately
owned lands. 73 Haw. at 584-85, 837 P.2d at 1253. The plaintiff prayed
for, inter alia, injunctive relief to
restore the Puna
parcel to the public lands trust, arguing that the transfer constituted
a breach of the trust created under section 5(f) and
article XII, section 4 of the Hawaii Constitution. Id. This court held that,
although the plaintiff's claim was couched as a
claim for prospective injunctive relief, its "request that the trust
status of the exchanged lands be restored by means of a
constructive trust [was] essentially equivalent to a nullification of
the exchange and the return of the exchanged lands to the
trust res." Id. at
611, 837 P.2d at 1267 (internal quotation marks omitted). This court,
therefore, concluded that the "effect
on the state treasury would be direct and unavoidable, rather than
ancillary, because imposing a constructive trust on lands
[then privately owned] would require . . . the
State to compensate [the purchaser] for its property." Id. at 611, 837 P.2d at
1267 (citations omitted). Consequently, we held that the plaintiff's
"requested relief [was], in effect, a request for
compensation for the past actions of the [State]" and was, accordingly,
barred by sovereign immunity. Id.
Subsequent cases
decided by this court have reaffirmed the continued viability of the
analysis articulated in Pele
Defense
Fund. See, e.g., OHA II, 110 Hawai‘i at
356-57, 133 P.3d at 785-86 (holding that, under Pele Defense Fund,
plaintiffs'
claims alleging a breach of the State's fiduciary duties were barred by
sovereign immunity because the plaintiffs requested
relief -- a share of revenues that the State had collected from the
ceded lands trust -- was essentially a request for past
monetary damages, and, therefore, the relief requested was
"retrospective"); Bush v.
Watson, 81 Hawai‘i 474, 481-82, 918
P.2d 1130, 1137-38 (1996) (holding that claims by native Hawaiian
homestead lessees, challenging the validity of third-party agreements
(TPAs) between other lessees and non-Hawaiian farmers as violating the
Hawaiian Homes Commission
Act, were not barred by sovereign immunity because they sought
declaratory and injunctive relief that would void existing
TPAs and enjoin the Hawaiian Homes Commission from approving future
TPAs); Aged Hawaiians v.
Hawaiian Homes
Comm'n, 78 Hawai‘i 192, 208 n.26, 891 P.2d 279, 295 n.26 (1995)
(noting that, with respect to claims against state
officials, claimants cannot recover money damages or the equivalent for
past violations of law; nevertheless, relief that is
prospective in nature may be allowed regardless of the state's
sovereign immunity).
Most recently,
this court affirmed the Pele
Defense Fund analysis in Kahoohanohano v. State, 114
Hawai‘i 302, 162 P.3d
696 (2007). Kahoohanohano
involved a class action lawsuit brought by members of the Employees'
Retirement System
of the State of Hawaii (ERS), the State of Hawai‘i Organization of
Police Officers, and the trustees of ERS [hereinafter,
the plaintiffs] against the State alleging a breach of trust. Id. at 310, 162 P.3d at
704. The plaintiffs sought declaratory and
injunctive relief based on a challenge to a statute that authorized the
diversion of $346.9 million from the ERS fund, which
the plaintiffs alleged violated the State's constitutional and
contractual obligations to ERS members. Id. at 315, 162 P.3d
at 709. This court determined that, inasmuch as the State had not
expressly waived sovereign immunity and the plaintiffs
did not claim money damages, "the relevant inquiry [was] whether the
relief sought for a past violation of law [was]
'tantamount to an award of damages' or would merely have an 'ancillary'
effect on the state treasury." Id. at 337, 162 P.3d
at 731 (citation and and other internal quotation marks omitted). (18) Ultimately, this court concluded
that, by granting the
plaintiffs' requested relief, the effect on the state treasury, if any,
would be only "ancillary" inasmuch as the state would be
prohibited from any future "skimming" from the ERS fund. Id. Accordingly, this court
held that the plaintiffs' claims
were not barred by sovereign immunity. Id. at 337-38, 162 P.3d at
731-32.
In this case, the
plaintiffs seek to enjoin the actions of state executive officials from
transferring the Leiali‘i parcel because
they believe such transfer would further diminish the corpus of the
public lands trust -- in violation of the State's
constitutional and statutory fiduciary duties -- before their
unrelinquished claims to the ceded lands could be resolved. As
in Kahoohanohano, the
State, here, has not expressly waived sovereign immunity, and the
plaintiffs do not claim money
damages. Although the plaintiffs characterize their claim with respect
to the Leaili‘i parcel as being one for prospective
injunctive relief, i.e.,
enjoining the transfer of the Leiali‘i parcel, the parcel was, in fact,
transferred from DLNR to HFDC
on the same day the plaintiffs filed suit. Accordingly, in this case,
as in Kahoohanohano,
"the relevant inquiry is whether
the relief sought for a past violation of law[, i.e., the transfer of
property,] is 'tantamount to an award of damages' or would
merely have an 'ancillary' effect on the state treasury." Kahoohanohano, 114 Hawai‘i
at 337, 162 P.3d at 731 (some
internal quotation marks and citation omitted).
Unlike Pele Defense Fund, in which
ceded lands were exchanged for privately owned lands, the Leialii
parcel was
transferred from one state agency to another, i.e., from DLNR to HFDC.
Moreover, the consideration of $1.00 was also
paid from one state agency to another. In other words, the return of
the property and purchase price between both state
agencies effectively changes nothing. Both the parcel and the $1.00
would remain within the control of the State. To the
contrary, because the lands at issue in Pele Defense Fund had been
transferred to a private third-party, this court concluded
that the State would have to
compensate the private third-party for the return of the
property in the public lands trust. 73
Haw. at 611, 837 P.2d at 1267. In that regard, Pele Defense Fund is
distinguishable from the instant case because the
Leiali‘i parcel would remain within the control of the State. Returning
the parcel to the public lands trust would require
only that the HFDC transfer title back to DLNR and that DLNR pay only
$1.00 for such transfer. As such, the effect on the
State treasury, if any, would be only ancillary.
However, in
concluding that sovereign immunity barred the plaintiffs' claims with
regard to the Leiali‘i parcel, the trial
court additionally relied upon the fact that, prior to the transfer of
the Leiali‘i parcel, HFDC had spent $31 million
developing infrastructure on the property. In so doing, the trial court
did not provide any explanation as to how the
expenditure of $31 million prior
to the plaintiffs' filing of the present lawsuit resulted in a "direct"
as opposed to
"ancillary" effect on the state treasury. We further observe that the
parties do not any present argument on this issue.
Although we
recognize that $31 million dollars is a significant sum of money, that
fact alone is insufficient to support a
conclusion that such past expenditure constitutes a "direct" future
effect on the state treasury. Indeed, as previously stated,
sovereign immunity does not bar a claim for prospective injunctive
relief "even though
accompanied by a substantial
ancillary effect on the state treasury." Pele Defense Fund, 73 Haw.
at 609, 837 P.2d at 1266 (emphasis added) (internal
quotation marks, citation, and footnote omitted). In the case at bar,
the plaintiffs are not asking that the $31 million be
returned to them or even to the state treasury. Moreover, the benefit
of the $31 million expenditure by HFDC on
infrastructure remains with the State. Thus the plaintiffs' requested
relief -- i.e., an
injunction -- is not
"tantamount to an
award of damages for a past violation of law." Id. at 609-10, 837 P.2d at
1266 (internal quotation marks, citation, and
ellipsis omitted). As such, the effect of the expenditure of $31
million on the state treasury is "ancillary" -- albeit a
substantial one. We, therefore, hold that the plaintiffs' claim for
injunctive relief with regard to the Leiali‘i parcel is not
barred by sovereign immunity. Accordingly, we also hold that the trial
court erred in determining otherwise.
2.
Waiver
and Estoppel
The plaintiffs
argue that the trial court erred in determining that the defenses of
waiver and estoppel barred the plaintiffs'
request for injunctive relief with respect to the Leiali‘i parcel.
Because waiver and estoppel are distinct doctrines, we
analyze them separately below.
a.
waiver
The trial court
concluded that the
[p]laintiffs, by their actions and inactions
during the seven years between 1987 and 1994 . . . waived any right
they may have had to contest the sale
of [the Leiali‘i parcel] to HFDC as illegal.
. . . .
The [i]ndividual [p]laintiffs argue that they
and their counsel relied on Congress's 1993 Apology Resolution and the
Legislature's Act 359 of 1993
as central bases to seek an injunction in the fall of 1994 on the sale
of ceded lands, pending resolution of the Hawaiians' claim to ownership
of the
ceded lands. Mr. Meheula's discussions with the OHA Board did cause OHA
to insist in the fall of 1994 that a disclaimer be placed in the HFDC
agreements.
As a practical matter, however, neither OHA
nor the [i]ndividual [p]laintiffs objected to the sale of the [Leiali‘i
parcel] until the fall of 1994. In any
event, even if the [p]laintiffs did not consider challenging the
State's power to sell ceded lands until after the Apology Resolution
was adopted in
1993, OHA's continuing to negotiate for market value after the Apology
Resolution was passed is also "conduct from which an intention to waive
may reasonably be inferred." [The p]laintiffs' failure to object to the
development plan, which included market homes, before the LUC and
Legislature in testimony relating to Act 318 is "wholly inconsistent
with any dissatisfaction" with the development plan, also suggesting
waiver of
any right to challenge them. [Goo v. Hee Fat, 34 Haw.
123, 129 (1997), overruled on other grounds by
Goo v. Goo, 36 Haw. 530
(1943).]
Moreover, HFDC and the State were prejudiced
by their reliance on [p]laintiffs' acquiescence in the development plan
to sell [the Leiali‘i parcel]. As testified to by the project managers
for both Leali‘i [sic] and La‘i‘opua, there were no objections from OHA
as
to the State's power to sell public
trust lands for those projects until November 1994. By that time,
however, $31 million had already been invested in Leali‘i [sic].
(Footnotes
omitted.)
The plaintiffs
argue that they did not waive their claim with regard to the Leiali‘i
parcel. The OHA plaintiffs' maintain
that,
[a]fter the passage of the Apology
Resolution, and as the full import of the congressional findings that
[c]rown, [g]overnment and [p]ublic lands
were ceded to the United States "without the consent of or compensation
to the [n]ative Hawaiian people of Hawai‘i or their sovereign
government"
and that "the indigenous Hawaiian people never directly relinquished
their claims to their inherent sovereignty as a people or over their
national
lands to the United States[ ]" became evident, the OHA Trustees
took
appropriate action to assure that the claim to the "national lands" of
the
[n]ative Hawaiian people was properly asserted.
As indicated by
the trial court, the individual plaintiffs posit that, "[a]lthough OHA
did not earlier object to the transfer of
ceded lands for the ultimate sale to homeowners in the Leiali‘i
project,
the 1993 legislation [(i.e.,
the Apology Resolution,
as well as, Acts 359 and 329, discussed supra)] and Mr. Meheula's
discussions with the OHA Board in [September 1994]
were new events that justified their objection in [September 1994]."
Relying on the
ruling and rationale of the trial court, the defendants maintain that
the plaintiffs waived their claims
regarding the Leiali‘i parcel because the "[p]laintiffs' failure to
object to the development plan at the LUC and before the
Legislature in testimony relating to Act 318 [(setting forth a formula
to compensate OHA for the 'villages of Leiali‘i, Maui
and villages of La‘i‘opua, Hawai‘i')] is 'wholly inconsistent with any
dissatisfaction' with the development plan . . . and[,
therefore,] clearly waived any right to challenge the plan." The
defendants further maintain that, "[e]ven if plaintiffs did
not think to challenge the State's power to sell [c]eded lands until
after the Apology Resolution, OHA's continuing to
negotiate for 'market value' after the Apology Resolution was passed is
clearly 'conduct from which an intention to waive
may reasonably be inferred.'"
This court has
defined waiver as "an intentional relinquishment of a known right, a voluntary
relinquishment of rights, and
the relinquishment or refusal to use a right." Coon v. City & County of
Honolulu, 98 Hawai‘i 233, 261, 47 P.3d 348, 376
(2002) (emphasis added) (citation omitted).
To constitute a waiver, there must have
existed a right claimed to have been waived and the waiving party must
have had knowledge, actual or
constructive, of the existence of such a right at the time of the
purported waiver. While the question whether a valid waiver
exists is generally a
question of fact, "when the facts are undisputed it may become a
question of law." Hawaiian Homes Comm'n v. Bush,
43 Haw. 281, 286 (1959)
(citations omitted); see also
Stewart v. Spalding, 23
Haw. 502, 517 (1916) ("The question of waiver is usually a mixed one of
law and fact but
where the facts are undisputed and are susceptible of but one
reasonable inference it becomes one of law for the court." (Citations
omitted.)).
Id. at 261-62, 47 P.3d
at
376-77 (some citations and original ellipsis omitted) (emphasis added).
Furthermore,
[w]aiver
must be intentional. Such intention may be indicated by language
or conduct, may be either express or implied but does not necessarily
imply that one has been misled to his prejudice or into an altered
position. Waiver depends upon the intention of the party who is charged
with the
waiver. . . . It may be proven by an express declaration of the party
charged with the waiver. It may also be proved by the existence of acts
or
language so inconsistent with the purpose of the person charged to
stand upon his rights as to leave no opportunity for a reasonable
inference to the
contrary.
Hewahewa v. Lalakea,
35
Haw. 213, 218-19 (1939) (emphasis added) (internal quotation marks and
citations omitted).
In this case, the
record indicates that the first time that OHA had knowledge that DLNR
intended to alienate the Leiali‘i
parcel from the public lands trust for the purposes of residential
development was in December 1989 when HFDC filed a
petition with the LUC to reclassify the Leiali‘i parcel from
agriculture
to urban use. It is undisputed that OHA did not
object to the transfer of the Leiali‘i parcel and participated in
negotiations with HFDC regarding the parcel's fair market
value, pursuant to Act 318. As previously stated, it was not until the
adoption of the Apology Resolution that OHA
requested the disclaimer that its acceptance of funds would not affect
any further claim the native Hawaiian people may
have to the Leiali‘i parcel. When HFDC declined to honor their request,
the plaintiffs filed suit.
In support of
their position that they did not waive their claim with regard to the
Leiali‘i parcel, the plaintiffs essentially
maintain that the Apology Resolution gave rise to their breach of trust
claim. Pointing to language in the Apology
Resolution that "the indigenous Hawaiian people never directly
relinquished their claims to their inherent sovereignty as a
people or over their national lands to the United States," Apology
Resolution, Pub. L. No. 103-150, 107 Stat. 1510, the
plaintiffs submit that title to the ceded lands is now clouded.
Having held that
the Apology Resolution and related state legislation give rise to a
fiduciary duty by the State, as trustee, to
preserve the corpus of the public lands trust, specifically, the ceded
lands, until such time as the unrelinquished claims of
the native Hawaiians have been resolved, it necessarily follows that it
was not until at least November 23, 1993, when the
Apology Resolution was signed into law by President Clinton, that the
plaintiffs "had knowledge, actual or constructive, of
the existence of . . . a right [claimed to have been waived] at the
time of the purported waiver." Coon, 98 Hawai‘i at 261,
47 P.3d at 376 (citation omitted). Consequently, we cannot say that the
plaintiffs' purported waiver was "intentional,"
expressly or impliedly. Hewahewa,
35 Haw. at 218. Accordingly, we hold that the trial court's conclusion
that OHA's
actions between 1987 and 1994 constituted a waiver of the plaintiffs'
claims was clearly erroneous and that, therefore, the
trial court erred in determining that the plaintiffs waived their claim
for injunctive relief with regard to the Leiali‘i
parcel. (19)
b.
estoppel
The trial court
ruled that, "[f]or the same reasons that [the p]laintiffs waived any
challenge to the legality of the sales of
Leali‘i [sic] lands, [the p]laintiffs are estopped from making that
challenge." Specifically, the trial court found that,
[a]pplying equitable estoppel and quasi
estoppel principles to the case at hand, during the years of
negotiations and planning for Leali‘i [sic] before
[the p]laintiffs filed this lawsuit, [the p]laintiffs did not suggest
that they would file a lawsuit challenging the right to sell the
[Leiali‘i parcel] to
HFDC and in turn to third parties for their homes. During these same
five years, the [p]laintiffs had notice of the planned development at
Leali‘i
[sic], but chose not to challenge it. The State spent substantial
amounts of time and money developing [the parcel] before November 1994
when
[the p]laintiffs first filed suit.
By their action (or inaction with respect to
the [i]ndividual [p]laintiffs) and conduct . . . [the p]laintiffs
caused the HFDC to believe that no one
would challenge its acquisition of the [Leiali‘i parcel] as long as OHA
and DLNR received fair monetary compensation for the lands. [The
p]laintiffs' acquiescence in the development of Leali‘i [sic] and
HFDC's
expenditure of funds for infrastructure, and OHA's active participation
in
negotiations for an appraised value for the ceded lands induced the
State to continue moving forward with the housing development. The
State
obtained necessary land use changes, entered into agreements with
developers, made agreements with county officials and spent over $31
million
for infrastructure at Leali‘i [sic] alone. The State significantly
altered its position because of the statements and conduct of OHA, as
well as the
inaction of the [i]ndividual [p]laintiffs. [The p]laintiffs are,
therefore, also estopped from challenging the State's sale of public
trust lands at Leali‘i
[sic].
It is
true, as argued by the OHA
[p]laintiffs, that the doctrine of equitable estoppel cannot be invoked
against a governmental agency such as OHA
in the absence of overt
detrimental reliance and "manifest injustice." The law recognizes that governmental bodies
must be able to change their
minds in some circumstances. Thus, a mere change of mind by the
government does not invoke estoppel unless the other party had
detrimentally
relied upon the agency's earlier position to such an extent that it
would constitute a "manifest injustice" to fail to invoke and apply the
doctrine. In
this case, however, based on the facts above, the requisite showings of
extensive detrimental reliance by and manifest injustice to the
[d]efendants
have been satisfied to invoke equitable estoppel against the OHA
plaintiffs. Thus, the doctrine of estoppel prohibits both sets of
[p]laintiffs from
seeking injunctive relief with respect to the sale of [the Leiali‘i
parcel].
(Internal
footnotes omitted.) (Format altered.)
The OHA plaintiffs
argue that the trial court erred in concluding that the doctrine of
estoppel barred the plaintiffs claims
because it is "manifestly unjust to [n]ative Hawaiians to allow
alienation of [c]eded [l]ands -- their national lands -- prior to
a final resolution of the [n]ative Hawaiian land claim." Additionally,
the OHA plaintiffs argue that the application of the
doctrine of equitable estoppel against the government is not favored,
and, furthermore, "there can be no suggestion here
that OHA wilfully misled the HFDC in its earlier position on the
Leiali‘i [parcel] or acted in bad faith." The individual
plaintiffs appear to contend that estoppel is not applicable in this
case because it is an equitable defense, which cannot be
raised against the plaintiffs because "the 1993 Legislation obligated
the State to seek instructions from the [c]ourt before
selling ceded lands without prompting by [the p]laintiffs."
The defendants
insist that the trial court correctly determined that the plaintiffs
were estopped from challenging the transfer
of the Leiali‘i parcel because the "unchallenged findings of facts show
that HFDC spent more than $31 million at Leiali‘i
over a seven-year period in reliance on OHA's failure to object to the
project." Accordingly, the defendants assert that
"[t]hese facts squarely raise the defense of equitable estoppel[.]"
"The theory of
equitable estoppel requires proof that one person wilfully caused
another person to erroneously believe a
certain state of things, and that person reasonably relied on this
erroneous belief to his or her detriment." Potter v. Hawai‘i
Newspaper Agency, 89 Hawai‘i 411, 419, 974 P.2d 51, 59 (1999)
(citation omitted). "A species of equitable estoppel, the
principle of quasi estoppel, precludes a party from asserting to
another's disadvantage, a right inconsistent with a position
previously taken." Id.
at 420, 974 P.2d at 60 (internal brackets and citation omitted).
As the OHA
plaintiffs correctly point out, "[t]he application of the doctrine of
equitable estoppel against the government is
not favored." Turner v.
Chandler, 87 Hawai‘i 330, 333, 995 P.2d 1062, 1065 (App. 1998)
(citations omitted). However,
this court has also stated that the doctrine "is fully applicable
against the government if it is necessary to invoke it to
prevent manifest injustice." State
ex rel. Kobayashi v. Zimring, 58 Haw. 106, 126, 566 P.2d 725,
737 (1977) (internal
quotation marks and citation omitted).
As previously
discussed, it was not until the Apology Resolution was signed into law
on November 23, 1993 that the
plaintiffs' claim regarding the State's explicit fiduciary duty to
preserve the corpus of the public lands trust arose. As such,
it was not until that time that the plaintiffs' lawsuit could have been
grounded upon such a basis. Consequently, the
plaintiffs cannot be deemed to have "wilfully caused [the defendants]
to erroneously believe a
certain state of things,"
Potter, 89 Hawai‘i at
419, 974 P.2d at 59, upon which the defendants relied to their
detriment.
Accordingly, we
conclude that the trial court incorrectly determined that the
plaintiffs were estopped from challenging the
transfer of the Leiali‘i parcel based on their pre-1993 actions and
hold
that the plaintiffs' claims are not barred by the
principles of equitable and quasi estoppel. We now turn to the
plaintiffs' arguments as they relate to the ceded lands in
general.
D.
The Ceded
Lands in General
1.
Sovereign Immunity
With regard to ceded lands
in general, the trial court concluded that:
Case law
has held that sovereign immunity
does not bar a suit for injunctive relief to prohibit state officials
from acting in an illegal manner. [(Citing in a footnote to Pele
Defense Fund, supra.)] The State of
Hawai‘i has not consented, however, to be sued in a lawsuit contesting
the
validity of its title to the ceded lands. "It is the law in this
jurisdiction that a proceeding against property in which the State of
Hawai‘i has an
interest is a suit against the State and cannot be maintained without
the consent of the State," so that the State "and its interest in land
are immune
from suit." [(Citing in a footnote to A.C.
Chock, Ltd. v. Kaneshiro, 51 Haw. 87, 88, 451 P.2d 809, 811
(1969).)] "If it is made to appear at any
stage of the case that the State claims title, the court's jurisdiction
over the merits of such claim thereby is ousted under the doctrine of
sovereign
immunity." [(Citing in a footnote to Marks
v. Ah Nee, 48 Haw. 92, 94, 395 P.2d 620, 622 (1964).)]
A claim for injunctive and declaratory
relief would have the effect of depriving the State of control over
public lands under [HRS] chapters 171 and
201E is the "functional equivalent of a quiet title action," and is
barred by sovereign immunity. [(Citing in a footnote to Idaho
v. Couer d'Alene
Tribe, 521 U.S. 261 (1997).)] Looking beyond the pleadings to
"examine the effect" of the suit and "its impact on these special
sovereignty
interests [of the State]," sovereign immunity bars [p]laintiffs' claims
to the extent they seek relief based on an allege [sic] cloud on the
State's title to
ceded lands. Where the "requested injunctive relief would bar the
State's principal officers from exercising their governmental powers
and
authority over the disputed lands and waters," and "would diminish,
even extinguish, the State's control over a vast reach of land and
waters long
deemed by the State to be an integral part of its territory," sovereign
immunity applies. [(Citing in a footnote to Couer
d'Alene)]
(Internal
footnotes omitted.)
The plaintiffs
take issue with the trial court's reliance on Couer d'Alene.
Specifically, the plaintiffs challenge the trial
court's determination that their claims with regard to the sale of
ceded lands in general "were the functional equivalent of a
quiet title action" (20) and,
therefore, barred by sovereign immunity inasmuch as "'[i]t
is the law in this jurisdiction that a
proceeding against property in which the State of Hawai‘i has an
interest in is a suit against the State and cannot be
maintained without the consent of the State[.]'" On appeal, the OHA
plaintiffs contend that they are not seeking ownership
of property from this court, but "only an order prohibiting
the transfer of [c]eded [l]ands pending the resolution of [n]ative
Hawaiian claims." (Emphasis in original.) As such, the OHA plaintiffs
argue that the trial court's reliance on Couer
d'Alene, discussed infra,
was error. The OHA plaintiffs submit that the trial court should have,
instead, been guided by
Mille Lacs Band of Chippewa Indians v. Minnesota, 124 F.3d 904
(8th Cir. 1997), aff'd,
526 U.S. 172 (1999), discussed
infra. The individual
plaintiffs similarly maintain that they "do not seek an ownership
determination or even a declaration
that they are entitled to the beneficial use and/or occupancy of the
ceded lands."
The defendants,
however, contend that the trial court correctly relied on Couer d'Alene because, as
in this case, "'the
requested injunctive relief would bar the State's principal officers
from exercising their governmental powers and authority
over the disputed lands and waters,' and 'would diminish, even extinguish
the State's control over a vast reach of lands . . .
long deemed by the State to be an integral part of its territory.'"
(Citing Couer
d'Alene, 521 U.S. at 282).
In Couer d'Alene, the
sole
issue before the Court was whether the federally recognized Couer
d'Alene Tribe's (the Tribe)
suit against the State of Idaho, seeking "the beneficial interest,
subject to the trusteeship of the United States, in the beds
and banks of all navigable watercourses and waters (the 'submerged
lands') within the original boundaries of the Coeur
d'Alene Reservation," was barred by sovereign immunity. 521 U.S. at
264-65. The Tribe styled its suit as a claim for
declaratory and injunctive relief, "alleging an ongoing violation of
its property rights in contravention of federal law and
[seeking] prospective injunctive relief." Id. at 266, 281. The Court
recognized that "[a]n allegation of an ongoing violation
of federal law where the requested relief is prospective is ordinarily
sufficient to invoke the Young
[exception].[ (21)] However, this case
is unusual in that the Tribe's suit is the functional equivalent of a
quiet title action which implicates
special sovereignty interests." Id. at 281. The Court, in
its principal decision, determined that the Tribe's suit was the
functional
equivalent of a quiet title action "in that substantially all benefits
of ownership and control [in the submerged
lands] would shift from [Idaho] to the Tribe." Id. at 282. Moreover, the
Court reasoned that the submerged lands "have
historically been considered 'sovereign lands[,' and] State ownership
of them has been considered an essential attribute of
sovereignty." Id. at
283 (internal quotation marks and citation omitted). The Court
concluded:
It is apparent, then, that[,] if the Tribe
were to prevail, Idaho's sovereign interest in its lands and waters
would be affected in a degree fully as
intrusive as almost any conceivable retroactive levy upon funds in its
Treasury. Under these particular and special circumstances, we find the
Young exception
inapplicable. The dignity and status of its statehood allow Idaho to
rely on its Eleventh Amendment immunity and to insist upon
responding to these claims in its own courts, which are open to hear
and determine the case.
Id. at 287-88.
In a concurring
opinion, Justice O'Connor seemingly attempted to clarify the Court's
decision by distinguishing Coeur
d'Alene from Ex parte
Young. She noted that
the Tribe does not merely seek to possess
land that would otherwise remain subject to state regulation, or to
bring the State's regulatory scheme into
compliance with federal law. Rather, the Tribe seeks to eliminate
altogether the State's regulatory power over the submerged lands at
issue -- to
establish not only that the State has no right to possess the property,
but also that the property is not within Idaho's sovereign jurisdiction
at all.
Id. at 289 (O'Connor, J.,
concurring).
As previously
stated, the OHA plaintiffs suggest that the trial court erred in
applying the Couer d'Alene
analysis and should
look instead to the Eighth Circuit's opinion in Mille Lacs. In Mille Lacs, the Mille Lacs
Band of Chippewa Indians (the
Band), amongst others, brought an action for injunctive and declaratory
relief, seeking to enforce its alleged treaty rights to
hunt, fish, and gather on state and private lands free of state
regulation. 124 F.3d at 914. The Eighth Circuit held that the
Band's claims were not barred by sovereign immunity, reasoning, inter alia, that the Bands'
claims "[sought] prospective
injunctive relief against state officials in their official capacities
for continuing violations of the Bands' federal treaty
rights. As such, they fall squarely within the Ex parte Young exception to
the [sovereign immunity doctrine]." Id. The
court further noted that its holding was supported by the Coeur d'Alene Court's
concurring opinion, which observed that
"[a] Young suit is
available where a plaintiff alleges an ongoing violation of federal
law, and where the relief sought is
prospective rather than retrospective." Id. (quoting Couer d'Alene, 521 U.S. at
294 (O'Connor, J., concurring)) (internal
quotation marks omitted).
In the present
case, the plaintiffs, unlike the Couer d'Alene plaintiffs,
do not seek a determination from this court that
would shift "the benefits of ownership and control [of the ceded lands]
from the State to [themselves]." Couer d'Alene,
521 U.S. at 282. Rather, they seek only to enjoin the defendants from
alienating ceded lands.
Based on Mille Lacs and Justice
O'Connor's concurrence in Couer
d'Alene, a claim seeking injunctive relief with regard to
property rights may be maintained, if it falls within the Young exception, i.e., allowing only
prospective injunctive relief. Here, as the plaintiffs have repeatedly
made clear, they are not asking this court to return the ceded lands to
the possession
of the plaintiffs; they seek only an injunction barring the future
alienation -- by way of sale or transfer -- of
ceded lands
until their unrelinquished claims to those lands are resolved via the
reconciliation process contemplated by the Apology
Resolution and related state legislation. As such, the plaintiffs'
requested relief is clearly prospective in nature and,
therefore, not barred by sovereign immunity under the Young exception.
Based on the
foregoing discussion, we hold that the plaintiffs' claims with regard
to the sale or transfer of the ceded lands
in general are not barred by sovereign immunity. Accordingly, we also
hold that the trial court incorrectly determined that
sovereign immunity barred the plaintiffs' claims.
(22)
2. Ripeness
The trial court,
in ruling that the plaintiffs' claims with regard to the ceded lands in
general were also barred by the ripeness
doctrine, stated:
With respect to "ripeness," Pele
Defense Fund makes clear that beneficiaries of the ceded lands
trust have standing to bring suit to enjoin disposition
of ceded lands that would constitute breaches of trust. No evidence was
presented, however, of any proposed sales of ceded lands other than at
Lealii [sic]. In fact the evidence suggests that the State has been
following a self[-]imposed moratorium on the sales of additional ceded
lands.[ (23)] Proposed sales could
constitute breaches of trust, but . . . not all sales of ceded lands
would violate the ceded lands trust.
(Footnotes
omitted.)
The OHA plaintiffs
argue that the trial court erred in determining that their claims were
not ripe because "the court need
not resolve the breach of trust issue in order to grant injunctive
relief." Additionally, the OHA plaintiffs assert that
the [trial] court's ruling places [the
plaintiffs] on the horns of a dilemma. [The plaintiffs] it seems, filed
both too early and too late. [They] waited
too long on the Leialii parcel and not long enough on the moratorium.
[The plaintiffs] must wait until the State takes preliminary steps to
enjoin the
sale of [c]eded [l]ands, but because the State took preliminary steps
in the Leiali‘i transfer, injunctive relief is barred because it would
'turn back the
clock and examine actions already taken by the State.'
The defendants
assert that the trial court correctly determined that the plaintiffs'
claims were barred by the doctrine of
ripeness because the plaintiffs "preemptive[ly] challenge" the "sale of
any and all [c]eded [l]ands." The defendants reason
that "any particular sale of [c]eded [l]ands could present a conflict
of interest or a breach of fiduciary duty (for example, if
the State proposed to sell for less than fair market value to a state
official for his or her private benefit)[,]" but that "this
[c]ourt should decline to speculate as to such future events."
Additionally, the defendants argue that "the trial court rightly
declined to enter relief based on the assumption that the coordinate
and co-equal executive and legislative branches will
engage in bad faith and wrongful conduct in the future. This [c]ourt
should also decline to do so."
We have stated
that "ripeness is peculiarly a question of timing, and a ruling that an
issue is not ripe ordinarily indicates the
court has concluded a later decision may be more apt or that the matter
is not yet appropriate for adjudication." County of
Kauai ex rel. Nakazawa v. Baptiste, 115 Hawai‘i 15, 36, 165 P.3d
916, 937 (2007) (internal quotation marks and citation
omitted). Moreover, "prudential rules of judicial self-governance
founded in concern about the proper -- and properly
limited -- role of courts in a democratic society, [and] considerations
flowing from our coequal and coexistent system of
government, dictate that we accord those charged with drafting and
administering our laws a reasonable opportunity to
craft and enforce them in a manner that produces a lawful result." Save Sunset Beach Coal. v. City
& County of Honolulu,
102 Hawai‘i 465, 483, 78 P.3d 1, 19 (2003) (internal quotation marks,
original brackets, and citation omitted). The federal
courts have applied the following test, which we believe is
instructive, in determining whether a particular case is ripe:
Because ripeness is peculiarly a question of
timing, the court must look at the facts as they exist today in
evaluating whether the controversy before
us is sufficiently concrete to warrant our intervention. The ripeness
inquiry has two prongs: the fitness of the issues for judicial decision
and the
hardship to the parties of withholding court consideration. The fitness
element requires that the issue be primarily legal, need no further
factual
development, and involve a final agency action. To meet the hardship
requirement, a party must show that withholding judicial review would
result
in direct and immediate hardship and would entail more than possible
financial loss.
Rice v. Cayetano, 941 F.
Supp. 1529, 1538 (D. Haw. 1996) (citations and internal quotation marks
omitted), rev'd on other
grounds, 528 U.S. 495 (2000).
With respect to
the first prong of the federal test, the plaintiffs must show that the
issue regarding their entitlement to
injunctive relief is fit for judicial decision because the issue is
"primarily legal, need[s] no further factual development and
involve[s] a final agency action." Id. (internal quotation
marks and citation omitted). Here, as the plaintiffs argue, the
issue is fit for judicial resolution inasmuch as they are not seeking a
determination whether the native Hawaiian people are
entitled to ownership of the ceded lands; what they are seeking is a
determination whether an injunction is appropriate to
allow for a resolution of their claims to the ceded lands without
further diminishment of the trust res. There is no doubt
that the issuance of an injunction involves a legal question. See, e.g., HRCP Rule 65 (2007)
(governing the issuance of
injunctive relief); Wahba,
LLC v. USRP (Don), LLC, 106 Hawai‘i 466, 106 P.3d 1109 (2005)
(describing injunctions and
temporary restraining orders). Moreover, the record demonstrates that
there is no need for further factual development
inasmuch as the facts necessary to decide ripeness are currently before
this court. With regard to the Leialii parcel, a final
agency action (i.e.,
the transfer of the parcel from DLNR to HFDC) has been taken, and,
although "final agency action"
with regard to the ceded lands in general has yet to be taken, the very
nature of the plaintiffs' requested relief -- that an
injunction issue to protect the corpus of the public land trust until
the reconciliation efforts contemplated by the Apology
Resolution and related state legislation has been completed -- dictates
that a judicial decision regarding the issuance of such
an injunction is appropriate. We, therefore, believe that the fitness
element has been met.
With respect to
the second prong of the federal test, i.e., the hardship
requirement, the plaintiffs must show "that
withholding judicial review would result in direct and immediate
hardship and would entail more than possible financial
loss." Rice, 941 F.
Supp. at 1538 (internal quotation marks and citation omitted). Here,
inasmuch as the Leiali‘i parcel
was transferred to the HFDC for purposes of developing a residential
housing project, and, although the defendants have
voluntarily discontinued development, there exists a real threat that,
should the HFDC proceed with the housing
development project, the parcel could be transferred by the HFDC to
third parties. Moreover, as indicated by the trial
court, "the State has been following a self[-]imposed moratorium on the
sales of additional ceded lands." Thus, by the
same token, should the State decide to lift its own moratorium, there
is a potential for the sale or transfer of additional
ceded lands. Once the ceded lands are alienated from the public lands
trust, they will be lost forever and will not be
potentially available to satisfy the unrelinquished claims of native
Hawaiians to the lands, as recognized and contemplated
by the Apology Resolution and the related state legislation, discussed supra. Were this court to
withhold consideration of
the plaintiffs' request for injunctive relief, the State would be free
to alienate the ceded lands from the public lands trust. And, in so
doing, the resulting hardship to the plaintiffs would be obvious
-- the alienated lands would be lost forever --
and, as discussed more fully infra,
the loss of the land itself entails a much greater injury "than
possible financial loss." Were we to determine that the plaintiffs'
claim for injunctive relief was not ripe, they may be left without a
remedy while
the corpus of the public lands trust continues to diminish, a result
surely not contemplated by the Apology Resolution and
our own state legislative pronouncements in Acts 354 and 359.
Moreover, were
this court to grant the plaintiffs' requested injunctive relief, it
would not be over-stepping "prudential rules
of judicial self-governance," Save
Sunset Beach Coal., 102 Hawai‘i at 483, 78 P.3d at 19 (original
brackets omitted),
because, as previously indicated, such a decision would not involve a
determination whether the native Hawaiian people
are entitled to ownership of the ceded lands; we need only address
whether an injunction is appropriate to allow resolution
of these claims without further diminishment of the trust res. As such,
any injunctive relief granted by this court would
allow Congress and/or the state legislature a "reasonable opportunity
to craft and enforce," id.,
relevant laws consistent
with the congressional and legislative calls for reconciliation and
settlement of native Hawaiian claims.
Based on the
foregoing discussion, we hold that the plaintiffs' claims -- to the
extent they seek injunctive relief -- are ripe
for adjudication and, accordingly, hold that the trial court erred in
determining otherwise. Because the plaintiffs' remaining
claims do not necessitate a distinction between the Leiali‘i parcel and
the ceded lands in general, the following discussion
encompasses both the Leiali‘i parcel and the ceded lands in general.
E.
Political
Question
"The political
question doctrine, often considered the most amorphous aspect of
justiciability, holds generally that certain
matters are political in nature and thus inappropriate for judicial
review." Nishitani v. Baker,
82 Hawai‘i 281, 290, 921
P.2d 1182, 1191 (App. 1996) (citation omitted). In deciding whether the
political question doctrine should be invoked, this
court, in Trustees of the
Office of Hawaiian Affairs v. Yamasaki, 69 Haw. 154, 737 P.2d
446 (1987), adopted the test
recited by the United States Supreme Court in Baker v. Carr, 369 U.S. 186
(1962):
Prominent
on the surface of any case held to involve a political question is
found[: (1)] a textually demonstrable constitutional commitment of the
issue to a coordinate political department; [(2)] a lack of judicially
discoverable and manageable standards for resolving it; [(3)] the
impossibility of
deciding without an initial policy determination of a kind clearly for
nonjudicial discretion; [(4)] the impossibility of a court's
undertaking
independent resolution without expressing lack of respect due
coordinate branches of government; [(5)] an unusual need for
unquestioning
adherence to a political decision already made; or [(6)] the
potentiality of embarrassment from multifarious pronouncements by
various departments
on one question.
Yamasaki, 69 Haw. at 170,
737 P.2d at 455 (quoting Baker,
369 U.S. at 217) (format altered). The presence of any one of
these six factors renders a case nonjusticiable. Id. Moreover, the political
question doctrine is "essentially a function of the
separation of powers." Id.
(citation omitted).
The trial court
concluded that all the plaintiffs' claims were barred by the doctrine
of political question. Specifically, the
trial court ruled that this court has held that "the issue of whether
the Territory of Hawai‘i received good title to the ceded
lands is a non-justiciable political question," and, as such, it was
precluded from "consider[ing] the merits of [p]laintiffs'
claim that the sale of ceded lands is prohibited due to a cloud on the
States's title due to the illegality of the overthrow."
(24)
In challenging the
trial court's ruling, the OHA plaintiffs assert that their claims do
not present a non-justiciable political
question because, in their view, they are "not seeking a judicial
resolution of the underlying claim for a return of lands,"
but, instead, are asking only that this court "protect the trust assets
while the dispute is being resolved by the political
branches." In other words, the plaintiffs specifically assert that they
are not "ask[ing]
this [c]ourt to resolve any claim [to
the ceded lands], but only to protect the trust assets that are in
dispute by issuing an injunction barring the sale or transfer of
the [ceded] lands. [The plaintiffs] are seeking only to have this
[c]ourt protect the [c]eded [l]ands from dissipation until the
political branches can reach a just solution to this dispute." In fact,
the OHA plaintiffs admit that "the ultimate resolution
of the [n]ative Hawaiian claims must be through the political
processes, and it is actively engaged in these processes. But
this struggle for justice will
be futile if the assets in disputes [i.e., the ceded lands] no longer
exist when a solution is
found." Additionally, the individual plaintiffs point out that
their claims are not barred by the political question doctrine
because the standards that apply to trusts provide this court with
"judicially discoverable and manageable standards for
resolving this issue."
The defendants
maintain that the trial court correctly determined that the plaintiffs'
claims presented non-justiciable
political questions inasmuch as, "[f]or nearly 100 years[,] the Hawai‘i
Supreme Court has foreclosed judicial inquiry into
the State's title to the [c]eded [l]ands because the issue presents a
political question, inappropriate for decision by the
judicial branch." Moreover, the defendants argue that there are four
specific reasons why the plaintiffs' claims present a
non-justiciable political question: (1) "the case involves examination
of questions for which there is a 'textually
demonstrable constitutional commitment of the issue to a coordinate
political department'"; (2) "there is a 'lack of
judicially discoverable and manageable standards for resolving' this
case"; (3) "the case is impossible to decide 'without an
initial policy determination of a kind clearly for nonjudicial
discretion'"; and (4) "[this c]ourt cannot undertake an
'independent resolution without expressing lack of the respect due
coordinate branches of government.'"
The primary
question before this court on appeal is whether, in light of the
Apology Resolution, this court should issue an
injunction to require the State, as trustee, to preserve the
corpus of the ceded lands in the public lands trust until such time
as the claims of the native Hawaiian people to the ceded lands are
resolved. The important distinction here is that this
court is not being
asked to decide whether native Hawaiians are entitled to the ceded
lands. As even the plaintiffs
recognize, the "ultimate resolution of the [n]ative Hawaiian claims
must be through the political process." We believe, as
discussed supra, that
the Apology Resolution -- which is at the heart of the plaintiffs'
claim -- and the related state
legislation, give rise to the State's fiduciary duty to preserve the
corpus of the public lands trust, specifically, the ceded
lands, until such time as the unrelinquished claims of the native
Hawaiians have been resolved. Accordingly, we hold that
the Apology Resolution and the related state legislation provide the
standards needed for determining whether the issuance
on an injunction is proper. In other words, the question before
this court -- whether an injunction should issue -- presents a
type of dispute that is traditionally resolved in the judiciary and,
therefore, does not present a non-justiciable political
question.
Moreover, we
believe that the defendants' arguments with regard to four of the six Baker factors, previously
enumerated,
are without merit. First, this case does not involve "an
examination of questions for which there is a 'textually
demonstrable constitutional commitment of the issue to a coordinate
political department'" inasmuch as the plaintiffs only
request an injunction pending the resolution of the plaintiffs'
underlying claims in the legislative process, and this court
need not encroach on any issues that have been constitutionally
committed to a coordinate political department in order to
determine if injunctive relief is appropriate. Second, there are, as
discussed infra,
judicially manageable standards for
issuing an injunction. Third, this court need not make "'an initial
policy determination of a kind clearly for nonjudicial
discretion'" in order to determine whether the plaintiffs' requested
injunction is appropriate inasmuch as this court need
only look to the Apology Resolution and, additionally, the related
state legislation, as discussed supra. Lastly, were this
court to grant the plaintiffs' requested injunctive relief, this court
would not be "undertak[ing] an 'independent resolution
without expressing lack of the respect due coordinate branches of
government'" because, as previously indicated, the
question whether an injunction is warranted in this case is the kind of
question traditionally reserved for the courts.
Therefore, we
agree with the plaintiffs that "the [trial c]ourt's analysis and
citations miss[ed] the mark because [the
plaintiffs are] not seeking a judicial resolution of the underlying
claim for a return of lands, but [are] rather asking the
judiciary to protect the trust assets while the dispute is being
resolved by the political branches. This modest goal is well
within the domain of the judiciary[.]" Accordingly, we hold the trial
court incorrectly determined that the claims presented
by the plaintiffs in this case -- to the extent they seek injunctive
relief -- were barred by the political question doctrine.
F.
The
Plaintiffs' Requested
Injunction
As previously
stated, the trial court -- although not required -- concluded that the
defendants had the explicit authority
under the Admissions Act and the Hawai‘i State Constitution to alienate
the ceded lands. Having so concluded, the trial
court summarily denied the plaintiffs' claim for injunctive relief,
reasoning only that,
for injunctive relief to issue on [the
p]laintiffs' claim seeking a permanent injunction based on the
allegation that sales of ceded lands constitute a
breach of trust, [the p]laintiffs must first prevail on the merits of
the underlying cause of action. The [trial] court only reaches the
issue of "balance
of irreparable harm" and "public interest in support" if the plaintiffs
prevail on the merits.
The plaintiffs
assert that the trial court erred in denying their request for
injunctive relief because it was not necessary to
first "resolve whether the State received 'good title' to grant
injunctive relief in this case." As previously discussed, the
plaintiffs' request for injunctive relief is grounded in their view
that the "recognition in [the Apology Resolution and Acts
354 and 359] of the illegality of the transfer of [the ceded] lands and
the ongoing reconciliation and negotiation process
dramatically reinforces the State's fiduciary obligation to protect the
corpus of the [p]ublic [l]and [t]rust until an
appropriate settlement is reached." Additionally, the plaintiffs
maintain that injunctive relief is critical to their ability to
"protect the status quo before these [c]eded lands are lost and the
[n]ative Hawaiian people suffer irreparable harm." The
OHA plaintiffs cite to a number of international situations that they
claim "illustrate[ ] that a moratorium on governmental
action is appropriate to protect the rights of the natives while
efforts to reach a proper settlement are underway."
(25) The
individual plaintiffs suggest that this court should look to general
trust law for guidance in determining whether to issue an
injunction and that trust law mandates that an injunction be issued
inasmuch as any sale or transfer of the illegally obtained
ceded lands by the State would constitute a breach of its fiduciary
duties to preserve the assets of the public lands trust until
a settlement is reached.
The defendants
maintain that the trial court correctly denied the plaintiffs' request
for injunctive relief because the
plaintiffs have not shown they can prevail on the merits. Specifically,
the defendants argue that "the State has the
undoubted and explicit power to sell [c]eded [l]ands pursuant to the
terms of the Admission Act and pursuant to [s]tate
law.[ (26)] [The p]laintiffs have
completely failed to show any basis for deviating from the terms of the
trust or for finding
that applicable [s]tate laws are unconstitutional or void." The
defendants also argue that "the plaintiffs in our case
specifically disclaim title to the [c]eded [l]ands. There simply are no
'merits' on which plaintiffs did or could prevail." The defendants
further assert that "the unprecedented nature of the plaintiffs'
request is highlighted by their use of the term
'moratorium.' It is not even clear whether this term is supposed to
mean something different from 'injunction,' and if so,
what."
The test for
granting or denying temporary injunctive relief is three-fold: (1)
whether the plaintiff is likely to prevail on the
merits; (2) whether the balance of irreparable damage favors the
issuance of a temporary injunction; and (3) whether the
public interest supports granting an injunction. Life of the Land v. Ariyoshi,
59 Haw. 156, 158, 577 P.2d 1116, 1118
(1978); see also Morgan v. Planning Dept', County
of Kauai, 104 Hawai‘i 173, 86 P.3d 982 (2004). However, as
observed
by the Intermediate Court of Appeals in Penn v. Transportation Lease
Hawaii, Ltd., 2 Haw. App. 272, 630 P.2d 646 (1981),
"[t]he more the balance of irreparable damage favors issuance of the
injunction, the less the party seeking the injunction
has to show the likelihood of his success on the merits." Id. at 276, 630 P.2d at 650
(citations omitted). As pointed out by
the parties and the trial court, "[n]o reported Hawai‘i case discusses
the requirements for entry of a permanent injunction." However, we
agree with the trial court that "it is generally held that '[t]he
standard for a preliminary injunction is
essentially the same as for a permanent injunction with the exception
that the plaintiff must show a likelihood of success on
the merits rather than actual success.'" (27)
Accordingly, we believe that the appropriate test in this jurisdiction
for
determining whether a permanent injunction is proper is: (1) whether
the plaintiff has prevailed on the merits; (2) whether
the balance of irreparable damage favors the issuance of a permanent
injunction; and (3) whether the public interest
supports granting such an injunction.
Thus, where a
permanent injunction is sought from an appellate court, the first
element of the test is necessarily concerned
with whether the plaintiffs have prevailed on the merits of the appeal.
See Indian Motorcycle Ass'n, 66
F.3d at 1249. Having held that the Apology Resolution and related state
legislation give rise to the State's fiduciary duty to preserve the
corpus of the public lands trust, specifically, the ceded lands, until
such time as the unrelinquished claims of the native Hawaiians have
been resolved, we believe the plaintiffs, as a matter of law, have
succeeded on the merits of their claim
inasmuch as any future transfer of ceded lands by the State would be a
breach of the State's fiduciary duty to preserve the
trust res.
Specifically, the
language of the Apology Resolution itself supports the issuance of an
injunction. As previously discussed,
we believe, based on a plain reading of the Apology Resolution, that
Congress has clearly recognized that the native
Hawaiian people have unrelinquished claims over the ceded lands, which
were taken without consent or compensation and
which the native Hawaiian people are determined to preserve, develop,
and transmit to future generations. Equally clear is
Congress's "express[ed] . . . commitment to acknowledge the
ramifications of the overthrow of the Kingdom of Hawaii, in
order to provide a proper
foundation for reconciliation between the United States and the
[n]ative Hawaiian people." Apology Resolution, Pub. L. No. 103-150, 107
Stat. 1510 (emphasis added). Accordingly, the Apology Resolution
dictates
that the ceded lands should be preserved pending a reconciliation
between the United States and the native Hawaiian
people. Without an injunction, the ceded lands are at risk of being
alienated and, as previously stated, once the ceded lands
are sold or transferred from the public lands trust, they will not be
available to satisfy the unrelinquised claims of native
Hawaiians and will, as discussed more fully infra, undoubtedly have a
negative impact on the contemplated reconciliation
efforts.
The plaintiffs'
argument that an injunction is necessary to preserve the status quo
pending the resolution of the native
Hawaiians' claims to the ceded lands is further supported by the
Justice and Interior Departments' report, entitled "From
Mauka to Makai: The River of Justice Must Flow Freely." As previously
stated, the report states: "As [a] matter of justice
and equity, this report recommends that [n]ative Hawaiian people should
have self-determination over their own affairs
within the framework of [f]ederal law, as do Native American tribes."
(Format altered.) (Emphases added.) Moreover, the
Departments asserted that, "[t]o safeguard and enhance [n]ative
Hawaiian self-determination over their lands, cultural
resources, and internal affairs, the Departments believe Congress
should enact further legislation to clarify [n]ative
Hawaiians' political status and to create a framework for recognizing a
government-to-government relationship with a
representative [n]ative Hawaiian governing body."
More importantly,
the state legislature itself has announced that future reconciliation
between the State and native
Hawaiians will occur. The Hawai‘i legislature, in Acts 359 and 329,
discussed supra,
recognized that "the indigenous
people of Hawai‘i were denied . . . their lands," 1993 Haw. Sess. L.
Act
359, § 1(9) at 1010 (creating a Hawaiian
Sovereignty Advisory Commission), and contemplated further action by
the legislature to reach a "lasting reconciliation so
desired by all people of Hawaii." 1997 Haw. Sess. L. Act 329,
§ 1 at 956. Although Act 359, which created the Hawaiian
Sovereignty Advisory Commission, did not specifically address the issue
of native Hawaiians' title to ceded lands, the
stated purpose of the Act was to "facilitate the efforts of native
Hawaiians to be governed by an indigenous sovereign
nation of their own choosing." 1993 Haw. Sess. L. Act 359,
§ 2 at 1010. As previously stated, Act 354 recognized that
"[m]any native Hawaiians believe that the lands taken without their
consent should be returned and if not, monetary
reparations made, and that they should have the right to sovereignty,
or the right to self-determination and self-government
as do other native American peoples." 1993 Haw. Sess. L. Act 354,
§ 1 at 1000. Moreover, the legislature "acknowledged
that the actions by the United States were illegal and immoral, and
pledge[d] its continued support to the native Hawaiian
community by taking steps to promote the restoration of the rights and
dignity of native Hawaiians." Id.
Additionally, in
Act 329, the legislature indicated that it was moving "toward a comprehensive, just, and
lasting resolution" regarding
native Hawaiian claims to the ceded lands. 1997 Haw. Sess. Law. Act
329, § 1 at 956 (emphasis added).
The governor,
herself, has indicated her commitment -- and, by association, that of
the executive branch -- to settling the
native Hawaiians' claims to the ceded lands. On January 21, 2003, in
her "State of the State Address," Governor Lingle
stated, "Here at home in Hawai‘i[,] I will continue to work with you [i.e., the members of the
legislature] and with the
Hawaiian community to resolve the ceded lands issue once and for all."
Linda Lingle, Governor, State of Hawai‘i, State of
the State Address: An Outline of the Governor's Agenda (Jan. 21,
2003).
Also, as
previously noted, testimony was adduced at trial that the State has
been following a self-imposed moratorium since
1994 on the sales of ceded lands until a resolution of the present
lawsuit. Such a self-imposed moratorium leads to an
inference that questions regarding the title to the ceded lands exist
and, additionally, that the State is apparently able to
comply with its duties as public lands trustee without having to
alienate the ceded lands.
In sum, all of the
aforementioned pronouncements indicate that the issue of native
Hawaiian title to the ceded lands will be
addressed through the political process. In this case, Congress, the
Hawai‘i state legislature, the parties, and the trial court
all recognize (1) the cultural importance of the land to native
Hawaiians, (2) that the ceded lands were illegally taken from
the native Hawaiian monarchy, (3) that future reconciliation between
the state and the native Hawaiian people is
contemplated, and, (4) once any ceded lands are alienated from the
public lands trust, they will be gone forever. For
present purposes, this court need not speculate as to what a future
settlement might entail -- i.e., whether such
settlement
would involve monetary payment, transfer of lands, ceded or otherwise,
a combination of money and land, or the creation
of a sovereign Hawaiian nation; it is enough that Congress, the
legislature, and the governor have all expressed their desire
to reach such a settlement. In other words, the aforementioned
pronouncements as they relate and impact the plaintiffs'
claim for injunctive relief clearly support the plaintiffs' position
that the State has a fiduciary duty as trustee to protect the
ceded lands pending a resolution of native Hawaiian claims. As such, we
believe that the plaintiffs have met the first prong
of the three-part test for issuance of a permanent injunction, i.e., prevailing on the
merits of their claim.
The second prong
of the test for an injunction is whether "the balance of irreparable
damage favor[s] the issuance of a
temporary injunction." Life
of the Land, 59 Haw. at 158, 577 P.2d at 1118. Obviously,
without an injunction, any ceded
lands alienated from the public lands trust will be lost and will not
be available for the future reconciliation efforts
contemplated by the Apology Resolution, Acts 354, 359, and 329, and
Governor Lingle. Although an argument could be
made that monetary reparations would be the logical remedy for such
loss, we are keenly aware -- as was Congress -- that
"the health and well-being of the [n]ative Hawaiian people is
intrinsically tied to their
deep feelings and attachment to the
land[.]" Apology Resolution, Pub. L. No. 103-150, 107 Stat. 1510
(emphasis added). Indeed, as more eloquently stated by
the trial court:
The [n]ative Hawaiian [p]eople continue to be
a unique and distinct people with their own language, social system,
ancestral and national lands,
customs, practices and institutions. "The health and well-being of the
[n]ative [H]awaiian people is intrinsically tied to their deep feelings
and
attachment to the land." [(Citing in a footnote to the Apology
Resolution.)] Aina, or land, is of crucial
importance to the [n]ative Hawaiian
[p]eople -- to their culture, their religion, their economic
self-sufficiency and their sense of personal and community well-being. Aina is a living
and vital part of the [n]ative Hawaiian cosmology, and is irreplaceable.
The natural elements -- land, air, water,
ocean -- are interconnected and
interdependent. To [n]ative Hawaiians, land is not
a commodity; it is the foundation of their cultural and spiritual
identity as Hawaiians. The aina is part of their ohana, and they
care for it as they do for other members of their families. For
them, the land and the natural environment
is alive, respected, treasured, praised, and even worshiped.
(Footnotes
omitted.) (Emphases added.)
Moreover,
testimony adduced at trial further supports and underscores the
importance of the land to native Hawaiians and
to their continued "cultural identity . . . spiritual and traditional
beliefs, customs, practices, language, and social
institutions," Apology Resolution, Pub. L. No. 103-150, 107 Stat. 1510,
as well as the historical and cultural reasons
therefor. For example, David H. Getches, a professor at the University
of Colorado School of Law, was called to testify as
the plaintiffs' expert. Getches testified that he was a member of the
editorial board for the 1982 edition of the Felix
Cowen's Handbook of Federal Indian Law, considered "one of the
leading treatises on Indian law," and authored the
chapter on native Hawaiians. He was qualified as an expert in the field
of "natural resources law," without objection. With
regard to the ceded lands, Getches testified:
Q [By
plaintiffs' counsel] You have said that preventing ceded lands from
being transferred would keep the claims situation from becoming more
complicated, preserve flexibility, and be consistent with the intent of
Congress and the state legislature. Based on your knowledge of the
history of
native Hawaiian claims[,] what is so special about these lands?
A [By Getches] I think that what
is special about these claims is that this is land that has a pedigree
tracing back to a disposition of the Hawaiian
people at the time of the overthrow. This is highly unusual to
be able to trace this much land still in public ownership back to the
time of
dispossession, the very root of these claims.
Secondly, this is land which my understanding
is has been traditionally used in some places by native people for
traditional purposes.
Third, it is land that was granted to the
State only on specific conditions that demand fiduciary responsibility.
So there is certainly something
special about those lands when it comes to their use and disposition in
the future.
Further, I think that it is notable that the
objection to the use of these lands is coming now by the only legally
constituted voice for the present day
successors to the people who were dispossessed. This
is a remarkable claim in this case. And I think those reasons
all support the conclusion that
there is something special about these lands.
. . . .
Q Can a political entity have governance
without having any territory?
A It is very difficult to have
sovereignty without land. There are some exceptional examples.
Israelites before there was an Israel had a notion of
governance. It is very difficult for a government to operate without
territorial boundaries.
Q Is governance important? Is land important
to native people for cultural survival as well?
A Yes. As I indicated, there are traditional
uses of land, and in particular the land you were asking me about, that
make it especially important. Land generally for native people -- I am
now speaking based on my knowledge of Indian tribes throughout the
United States and the ones I have
worked with -- land is generally extremely
important as the very root of their culture. It is the homeland. It
provides the basis for self
determination, self expression. It is a source of identity.
Who we are. As a people. As people have said it to me. It
is a connection, as well, to
one's cultural roots, going back to the ancestors that can be
felt and who were known and the ancestors who were unknown and exist
only in the
spiritual world. That connects present day communities with one
another, within those cultural roots. So the
land is symbolic for that, whether it is
for burial places or just the feeling that this is the place of
importance.
Finally,
it
is important for spiritual fulfillment, something we as non native people
don't feel, is the importance of place in a
spiritual way. I love
certain places that I go and some that I own. But it is really quite
different, having the land, water, nature connection that native people
have. I
don't like generalizations about native groups. And what is
common among them. This is the only generalization I
have found in over thirty-some
years that holds up, that is, that there is a special spiritual
connection with land among all native groups that I know.
(Emphases added.)
Olive Kanahele was
called as a witness by the plaintiffs. She holds a bachelor of arts
degree in Hawaiian Studies and is a
"kumu hula" or dance teacher. In addition to teaching dance, i.e., the hula, Kanahele
described learning about ancient
Hawaiian chants and testified specifically regarding chants that tell
the story of Pele and Hiiaka, deities of the life cycle. According to
Kanahele,
Pele
comes and she erupts and her lava goes all over the lands and also
extends land. And Hiiaka comes along and her function as the egg child
. . .
is to allow things to grow on the land. And so she's the healer of the
family and she heals the lands and things begin to grow. And as the
things
begin to grow, then it becomes suitable for . . . humans
. . . to live on.
When asked about
"the land," Kanahele testified:
The land itself . . . is the deity, Pele. The
land itself was made from fire and it comes from out of the earth. And,
you know, I can give you a little
geneaology [sic] of the Pele family. The Pele family comes from -- the
mythological geneaology [sic] of the Pele family is that the mother is
Haumea, she is the Mother Earth, she is the earth and all of these
children are born from different parts of her.
. . . .
Pele . . . is born from the natural channel
of a female, she comes from the womb. And so . . . her responsibility
is to go back into the womb of the
mother and -- and bring out all of these things that we call land, that
we call magma and lava and eventually will become land.
One of the -- one of the most amazing
literary work that we have is the kumulipo. . . . The kumulipo spans
generations of people. . . . And the first
era of the kumulipo, the very first line of the kumulipo talks about
the making of the earth. . . .
. . . .
. . . And why does it have to be earth, you
ask me?
. . . .
It has
to be earth because as man we need --
we need land to live on. That is -- that is our foundation. And
for the native Hawaiian, more than
the family, land is their foundation. Land is their identity.
(Emphases added.)
Based on the foregoing, we believe the second prong of the test for an
injunction, i.e.,
irreparable
damage, has been met. Life
of the Land, 59 Haw. at 158, 577 P.2d at 1118.
The last prong of
the test for an injunction is whether "the public interest supports
granting an injunction." Id.
Here, we
need look no further than the legislative pronouncement contained in
Act 329, declaring that a "lasting reconciliation [is]
desired by all people of Hawai‘i," 1997 Haw. Sess. L. Act. 329
§ 1 at 956, to conclude that the public interest supports
granting an injunction.
We firmly believe
that, given the "crucial importance [of the aina or land to] the
[n]ative Hawaiian people and their
culture, their religion, their economic self-sufficiency, and their
sense of personal and community well-being," any further
diminishment of the ceded lands (the aina) from the public lands trust
will negatively impact the contemplated
reconciliation/settlement efforts between native Hawaiians and the
State.
It is well-settled
that a "[s]ettlement is an agreement to terminate, by means of mutual
concessions, a claim that is disputed
in good faith . . . and is designed to prevent or put at
end to litigation." Rearden
Family Trust v. Wisenbaker, 101 Hawai‘i
237, 251, 65 P.3d 1029, 1043 (2003) (internal quotation marks, original
brackets, citation, and footnote omitted). The
continued diminishment of the public lands trust means that any land
sold or transferred to third parties will be lost and,
thus, unavailable for settlement purposes. As such, native Hawaiians
would be placed in an unfair and disadvantaged
position inasmuch as they may, ultimately, be forced to accept
less-than-desirable settlement terms and make concessions
that they would not have otherwise made had certain ceded lands, for
example, been kept in the public lands trust. Moreover, the State,
acting as both the trustee of the land (with the power to alienate it)
and a major participant in the
negotiation process, would be in a more advantageous position and have
greater bargaining power. In our view, enjoining
the defendants from selling or otherwise transferring to third parties
any ceded lands from the public land trust until the
claims of the native Hawaiians to those lands are resolved and, thus,
preserving the status quo and the trust res, would help
in leveling the playing field during the pendency of settlement
negotiations and reconciliation process contemplated by
the Apology Resolution and related state legislation discussed supra. Cf. Hosp. Klean of Tex., Inc. v.
United States, 65 Fed. Cl. 618 (2005) (finding lost opportunity
to compete for contract on level playing field sufficient to
constitute irreparable harm for purpose of issuing temporary
restraining order); Regal-Beloit
Corp. v. Drecoll, 955 F. Supp.
849, 867 (N.D. Ill. 1996) (injunction issued to level the playing field
of the parties).
Finally, as
indicated by the plaintiffs, their request for an injunction is further
supported by the United States Supreme
Court's decision in Lane v.
Pueblo of Santa Rosa, 249 U.S. 110 (1919). In Lane, the plaintiff, "an
Indian town," brought a
claim seeking to enjoin certain governmental officials from "offering,
listing, or disposing of certain lands in southern
Arizona as public lands of the United States." 249 U.S. at 111. The
plaintiffs alleged two grounds for their suit: (1) "that
under the laws of Spain and Mexico it had, when that region was
acquired by the United States, and under the provisions of
the treaty it now has, a complete and perfect title to the lands in
question"; and (2) "that in disregard of its title the
defendants are threatening and proceeding to offer, list and dispose of
these lands as public lands of the United States." Id. The court "of first
instance" granted the defendants' motion to dismiss. Id. On appeal, the Court of
Appeals of the
District of Columbia held that the plaintiff's claims entitled it to
relief and granted its requested permanent
injunction. Id. The
defendants challenged the Court of Appeals' decision. Although,
ultimately determining that the Court
of Appeals should not have granted the permanent injunction because
that proceeding did not afford the defendants the
opportunity to answer the merits, the Court observed:
The defendants assert with much earnestness
that the Indians of this pueblo are wards of the United States --
recognized as such by the legislative
and executive departments -- and that in consequence the disposal
of their lands is not within their own control, but subject to such
regulations as
Congress may prescribe for their benefit and protection. Assuming,
without so deciding, that this is all true, we think it has no real
bearing on the
point we are considering. Certainly[,] it would not justify the
defendants in treating the lands of these Indians -- to which,
according to the bill, they
have a complete and perfect title, as public lands of the United States
and disposing of the same under the public land laws. That
would not be an
exercise of guardianship, but an act of confiscation. Besides, the
Indians are not here seeking to establish
any power or capacity in themselves
to dispose of the lands, but only to prevent a threatened disposal by
administrative officers in disregard of their full ownership. Of
their
capacity to maintain such a suit we entertain no doubt. The existing
wardship is not an obstacle, as is shown by repeated decisions of this
court[.]
Lane, 249 U.S. at 113
(emphasis added) (footnote omitted). The Court held that
"the decrees of both courts below should be
reversed and the case remanded to the court of first instance, with
direction to overrule the motion to
dismiss, to afford the defendants an opportunity to answer the bill,
[and] to grant an order restraining them
from in any wise offering, listing or
disposing of any of the lands in question pending the final decree[
]."
Id. at 114 (emphasis
added).
As the defendants
in this case point out, the facts in the instant case differ from those
in Lane inasmuch the
plaintiffs do not
assert that they have "complete and perfect title" and do not "seek
judicial resolution of any controversy," as well as the
fact that "Lane
considered only the executive branch's power to deal with Indian land."
Nevertheless, Lane is
instructive to
the extent that it demonstrates the Court's rationale for ordering that
injunctive relief be granted pending a final resolution
of claims. The fact that Lane
involved a judicial resolution for a controversy versus a legislative
resolution as in the instant
case is, in our view, a distinction without a difference.
Based on the
foregoing discussion, we conclude that the plaintiffs have established
that injunctive relief is proper pending
final resolution of native Hawaiian claims through the political
process. Accordingly, we hold that the trial court erred in
denying the plaintiffs' request for injunctive relief.
G.
The
Plaintiffs' Remaining
Contentions
In light of the
above discussion, we need not address the OHA plaintiffs' remaining
contentions regarding declaratory relief
or certain evidentiary rulings made by the trial court.
IV.
CONCLUSION
Based on the
foregoing, we hold that: (1) the Apology Resolution and related state
legislation, give rise to the State's
fiduciary duty to preserve the corpus of the public lands trust,
specifically, the ceded lands, until such time as the
unrelinquished claims of the native Hawaiians have been resolved; (2)
the trial court correctly determined that this court's
unpublished decision in Trustees
of the Office of Hawaiian Affairs v. Board of Land and Natural Resources,
No. 19774
(Haw. Mar. 12, 1998) (mem.), did not collaterally estop the plaintiffs'
claims in this case inasmuch as the elements of
collateral estoppel, see
Keahole Def. Coal., Inc. v.
Bd. of Land & Natural Res., 110 Hawai‘i 419, 429, 134 P.3d
585, 595
(2006), are not present; (3) the plaintiffs' claim for injunctive
relief with regard to the Leiali‘i parcel is not barred by
sovereign immunity based on our conclusion that the $31 million
expenditure on infrastructure for the Leiali‘i parcel had
only an ancillary effect -- albeit a substantial one -- on the state
treasury, see Kahoohanohano v. State, 114
Hawai‘i 302,
337, 162 P.3d 696, 731 (2007); (4) inasmuch as the Apology Resolution
and related state legislation give rise to a fiduciary
duty by the State, as trustee, to preserve the corpus of the public
lands trust until such time as the unrelinquished claims of
the native Hawaiians have been resolved, the trial court's conclusion
that OHA's actions between 1987 and 1994
constituted a waiver of the plaintiffs' claims was clearly erroneous
and, therefore, the plaintiffs did not waive their claim
for injunctive relief with regard to the Leiali‘i parcel; (5) the
plaintiffs were not estopped from challenging the transfer of
the Leiali‘i parcel based on their pre-1993 actions because it was not
until the Apology Resolution was signed into law on
November 23, 1993 that the plaintiffs' claim regarding the State's
explicit fiduciary duty to preserve the corpus of the
public lands trust arose; (6) inasmuch as the plaintiffs'
requested relief is clearly prospective in nature, the plaintiffs'
claims
with regard to the sale or transfer of the ceded lands in general are
not barred by sovereign immunity; (7) the question
whether an injunction is appropriate to allow resolution of the
plaintiffs' unrelinquished claims without further
diminishment of the trust res is ripe for adjudication; (8) the
question whether an injunction should issue presents a type of
dispute that is traditionally resolved by the courts and, therefore,
does not present a non-justiciable political question; (9)
the appropriate test in this jurisdiction for determining whether a
permanent injunction is proper is: (a) whether the
plaintiff has prevailed on the merits; (b) whether the balance of
irreparable damage favors the issuance of a permanent
injunction; and (c) whether the public interest supports granting
such an injunction; and (10) the plaintiffs have established
that injunctive relief is proper pending final resolution of native
Hawaiian claims through the political process.
Accordingly, we
vacate the trial court's January 31, 2003 judgment and remand this case
to the circuit court with
instructions to issue an order granting the plaintiffs' request for an
injunction against the defendants from selling or
otherwise transferring to third parties (1) the Leiali‘i parcel and (2)
any other ceded lands from the public lands trust until
the claims of the native Hawaiians to the ceded lands have been
resolved.
On the briefs:
Sherry P. Broder,
Jon M. Van Dyke,
and
Melody MacKenzie,
for
plaintiffs-appellants
Office of
Hawaiian Affairs
William Meheula
(of Winer
Meheula & Devens) and
Hayden Aluli, for
individual
plaintiffs-appellants
Aluli, et al.
William J.
Wynhoff
and Sonia Faust,
Deputy Attorneys
General,
for
defendants-appellees
1.
The Honorable Sabrina S. McKenna presiding.
2.
HRCP Rule 54(b) provides in relevant part that:
When more than one
claim for relief is presented in an action, whether as a claim,
counterclaim, cross-claim, or third-party
claim, or when multiple parties are involved, the court may direct the
entry of final judgment as to one or more but fewer
than all of the claims or parties only upon an express determination
that there is no just reason for delay and upon an
express direction for the entry of judgment.
3.
Donald K.W. Lau is the executive director of
HCDCH, and the board of
directors includes chairperson, Wesley R.
Segawa, and members Nadine K. Nakamura, Kurt H. Mitchell, Don Fujimoto,
Allan Los Banos, Jr., Susan Chandler,
Craig Hirai, Ronald S. Lim, and Bradley J. Mossman.
4.
The plaintiffs filed suit before the parcel on
the island of Hawai‘i
(the Big Island) was transferred. It appears that, at
some point, the Big Island parcel [hereinafter, also referred to as the
La‘i‘opua parcel] was transferred to the Department of
Hawaiian Homelands (DHHL), which transfer is not specifically
challenged by the plaintiffs. Accordingly, other than a
few references to the La‘i‘opua parcel in this opinion, the disposition
of the Big Island parcel is not specifically addressed. See also infra note 11.
5.
The Hawaiian Homes Commission Act was enacted by the
United States
Congress (Congress) to set aside over 200,000
acres of ceded lands for exclusive homesteading by native Hawaiians.
H.R. Rep. No. 839, 66th Cong., 2d Sess. 4 (1920). As a condition of
statehood, the United States required the State to adopt the act as a
provision of the state constitution,
see Hawai‘i
Const. art. XI, § 2
(1959) (renumbered art. XII,
§ 2
(1978)); see also
Ahuna v. Dep't of Hawaiian Home
Lands,
64 Haw. 327, 336-38, 640 P.2d 1161,
1167-68 (1982)
(detailing the
purpose of the Hawaiian Homes Commission Act and
the creation of the Commission).
Although the Hawaiian
Homes Commission Act
defines the term "native Hawaiian" as "any descendant of not
less than
one-half part of the blood of the races inhabiting the Hawaiian
Islands previous to 1778," HRS, vol. 1 at § 201(7) of the
Hawaiian Homes Commission Act, for the purposes of this opinion, we use
the term to mean "any individual who is a
descendant of the aboriginal people who, prior to 1778, occupied and
exercised sovereignty in the area that now constitutes
the State of Hawai‘i." Pub. L. No. 103-150, 107 Stat. 1510 (1993).
6. Although not pertinent to
the instant
appeal, we concluded, in Yamasaki, that the
construction of the term "funds," as
used in HRS § 10-13.5, "provide[d] no judicially discoverable
and manageable standards for resolving the disputes[, i.e.,
whether OHA was entitled to (1) a portion of damages received by the
State for illegal mining of sand from public land and
(2) a pro rata share of income and proceeds from sales, leases, or
other dispositions of certain public lands,] and [that the
disputes] cannot be decided without initial policy determinations of a
kind clearly for nonjudicial discretion." 69 Haw. at
173, 737 P.2d at 457 (citation, internal quotation marks, and original
brackets omitted). Consequently, the legislature
enacted Act 304, amending HRS § 10-13.5 by essentially
substituting "incomes" for "funds" and defining the term
"revenue." 1990 Haw. Sess. L. Act 304, §§ 3, 7 at
948, 951; HRS §§ 10-13.5 (1993), 10-2 (1993). However,
in OHA I,
we invalidated and effectively repealed Act 304 as conflicting with
federal law. 96 Hawai‘i at 399, 31 P.3d at 912.
7. We observe that the trial
court found that,
"[i]n recent years, there have been discussions and movement toward the
creation of a sovereign Hawaiian government, and this movement has
received both state and federal recognition." Some
scholars dispute that this movement has been of recent inception,
stating instead that, "[e]ver since the illegal overthrow
and annexation, the native people of Hawai‘i -- identified as
'Kanaka Maoli,' 'Native Hawaiians' or 'Hawaiians' -- have
struggled to regain their culture, recover their lands and restore
their sovereign nation." Jon M. Van Dyke & Melody K.
MacKenzie, An Introduction
to the Rights of Native Hawaiian People, 10-JUL Haw. B.J. 63, 63
(2006) (footnote omitted).
The trial court further found that "various Hawaiian groups
support[ ] different forms of sovereignty." However, as
observed by one scholar, "[u]ltimately, [n]ative Hawaiians seek return
of [the ceded lands] from both the state and federal
governments. How such lands would be cared for and managed, who would
have jurisdiction over them, and what rights
[n]ative Hawaiians could exercise upon them are crucial aspects of
[n]ative Hawaiian self-governance and sovereignty." Native Hawaiian Rights Handbook,
40 (Melody Kapilialoha MacKenzie, ed., 1991).
Additionally,
we note that the trial court found that the federal
legislation commonly referred to as the "Akaka Bill"
was passed out of the Senate
Committee on Indian Affairs on
September 21, 2001 . . . . The Committee Report on the
Akaka Bill explains that its purpose "is to authorize a process for the
reorganization of a [n]ative Hawaiian government and
to provide for the recognition of the [n]ative Hawaiian government by
the United States for the purpose of carrying on a
government-to-government relationship.
The Akaka Bill, if enacted[,] . . . provides that the federal
government is authorized to negotiate with the State and the
reorganized [n]ative Hawaiian government for a transfer of land and
resources to a [n]ative Hawaiian government. The
[n]ative Hawaiian government created by [the Akaka Bill] would thus
have a land base and resources and a status similar
to that over other native peoples in the United States. The Committee
Report to [the Akaka Bill] explains that "it is the
Committee's intent that the references to 'land, resources, and assets
dedicated to [n]ative Hawaiian use' include, but not
be limited to lands set aside under the Hawaiian Homes Commission Act
and ceded lands."
The legislation is still pending before the United States Congress.
(Footnotes
omitted.) We take judicial notice that the current
version of the Akaka Bill was passed by the House of
Representatives on October 24, 2007.
8. As this court stated in
OHA I :
In addition to its sovereignty,
the Republic
"ceded and transferred to the United States the absolute fee and
ownership of all
public, Government, or Crown lands belonging to the Government of the
Hawaiian Islands together with every right and
appurtenance thereunto appertaining." Yamasaki,
69 Haw. at 159, 737 P.2d at 449. Following annexation and until 1959,
Hawaii's seat of power was vested in a Territorial Government. See
Organic Act § 3, Act of April 30, 1990, c. 339, 31
Stat. 141, reprinted in
[HRS, vol. 1
at §§] 43, 44 [of the Organic Act] (establishing the
government of the Territory of
Hawai‘i).
96 Hawai‘i at 389-90, 31 P.3d at 902-03.
9. In 1997, the legislature
consolidated HFDC
with the Hawai‘i Housing Authority and the rental housing trust fund
into
the Housing and Community Development Corporation of Hawaii (HCDCH).
1997 Haw. Sess. L. Act 350, § 1 at 1010-11;
HRS chapter 201G (2001). However, the legislature, in 2006,
divided HCDCH into two separate agencies -- the Hawai‘i
Housing Finance and Development Corporation and the Hawai‘i Public
Housing Authority. See
2006 Haw. Sess. L. Act
180, § 2 at 709; 2007 Haw. Sess. L. Act 249, § 2 at
777-806 (codified in HRS chapters 201H and 356D). Nevertheless,
inasmuch as the instant action commenced prior to the aforementioned
legislative changes, we continue to utilize "HFDC,"
as do the parties, throughout this opinion.
10. As stated supra note 5, other than a
few references to the La‘i‘opua parcel in this opinion, the transfer of
said parcel is
not specifically challenged by the plaintiffs. Moreover, the parties'
briefs and arguments focus primarily on the Leialii
parcel and the ceded lands in general.
11. The Leiali‘i parcel was
part of the former
crown lands subject to subsection 5(b) of the Admission Act.
12. Initially, the
plaintiffs filed separate
complaints. On November 4, 1994, the OHA plaintiffs filed a complaint
in the
Circuit Court of the First Circuit. On November 9, 1994, the individual
plaintiffs filed a complaint in the Circuit Court of
the Second Circuit. Upon the filing of the First Amended Complaint in
August 1995, the individual plaintiffs and
allegations pertaining to their claims were added to those of the OHA
plaintiffs in the First Circuit Court action.
13. In their First Amended
Complaint, the
plaintiffs asserted two other alternative claims that addressed
valuation issues
concerning the Leiali‘i parcel (Counts IV and V). However, these counts
were bifurcated from the case for later
determination and are not at issue in this appeal. Counts IV and V are
currently stayed pending this appeal.
14. As correctly cited by
the trial court,
Hawai‘i Rules of Appellate Procedure (HRAP) Rule 35(c) (2007) prohibits
citation
to an unpublished memorandum opinion, "except when the opinion or
unpublished dispositional order establishes the law
of the pending case, res judicata or collateral estoppel[.]"
15. In March 1999, Senator
Daniel K. Akaka
requested Secretary of the Interior Bruce Babbitt and Attorney General
Janet
Reno designate officials from their respective Departments whose task
would be "to commence the reconciliation process." John Berry,
Assistant Secretary, and Mark Van Norman, Director of the Office of
Tribal Justice for the Department of
Justice were so designated and commenced public consultations in
Hawai‘i
in December 1999. Over forty hours of public
statements were heard, and the public consultation process ended in two
days of formal hearings on Oahu. The
Departments' report "contains recommendations [(including a 'proposed
plan of action')] with respect to the continuation
of the reconciliation process and should be read as merely the next
step, as the United States and [n]ative Hawaiians move
forward in further dialogue."
16. The island of Kahoolawe
was used by the
United States "as a military target range since 1941." 1993 Haw. Sess.
L.
Act 340, § 1 at 803.
In 1990, the bombing and shelling of the island was halted by
Congress and the President of the United States. A federal
commission, known as the Kahoolawe Island Conveyance Commission, was
created by Congress to determine the terms
of conveyance of the island to the State of Hawaii.
Id.
17. In so doing, we stated
that the
"reasonable prudent person standard applies to protecting and caring
for the [trust]
property[.]" Ahuna,
64 Haw. at 340, 640 P.2d at 1169.
18. We note that this
court's conclusion in Kahoohanohano
is consistent
with Bush, wherein we
"decline[d] to adopt the
federal courts' narrow view that a claim for relief based on past
illegal action is necessarily 'retrospective[,]'" holding
instead that "the crucial inquiry under our sovereign immunity
principles is whether the relief sought for a past violation of
law is 'tantamount to an award of damages' or would merely have an
'ancillary' effect on the state treasury. Bush, 81
Hawai‘i at 482 n.9, 918 P.2d at 1138 n.9 (citations omitted).
19. The trial court also
based its holding on
the fact that the defendants expended over $31 million dollars on
improvements to the Leiali‘i parcel prior to the transfer from DLNR to
HFDC. However, the question on waiver is strictly
whether the party charged with waiver intended to waive a known claim, Hewahewa, 35 Haw. at
218-19, not whether
the
party seeking to prove waiver was prejudiced, as was determined by the
trial court. As such, the trial court's finding that,
because OHA did not object to the transfer of the Leiali‘i parcel until
1994, HFDC and the State were prejudiced by their
reliance on the plaintiffs acquiescence in the project does not apply
to an analysis of waiver.
20. An action to quiet title
is defined as an
action brought "by any person against another person who claims, or who
may
claim adversely to the plaintiff, an estate or interest in real
property, for the purpose of determining the adverse claim." HRS
§ 669-1(a) (1993).
21. As previously
indicated, this court, in Pele
Defense Fund, adopted
the rule expressed in Ex
Parte Young, which
differentiated between prospective and retrospective relief. 73 Haw. at
609, 837 P.2d at 1266. Accordingly, it is the law in
this state that, "[i]f the relief sought against a state official is
prospective in nature, then the relief may be allowed
regardless of the state's sovereign immunity. This is true even though
accompanied by a substantial ancillary effect on the
state treasury." Id.
(internal quotation marks and citations omitted); see discussion supra.
22. In addition to the
arguments stated above,
the individual plaintiffs, in their opening brief, argue that the State
waived
sovereign immunity under the "Native Hawaiian Trusts Judicial Relief
Act" contained in HRS chapter 673 (Supp. 2006). However, in a previous
motion filed with the circuit court, the individual plaintiffs argued
that "[c]hapter 673, Native
Hawaiian Trusts Judicial Relief Act, does not permit [n]ative Hawaiians
to sue the State for return of ceded lands." Inasmuch as the individual
plaintiffs admit in a prior pleading that HRS chapter 673 does not
apply in this situation and
there is no other mention of this argument in the proceedings before
the trial court, the plaintiffs have waived this
argument.
23. In explaining the
"self-imposed
moratorium," the trial court stated:
The
Administrator for the Lands Division of
the DLNR [(i.e., Michael Wilson)]
wrote [a memorandum] to [the] then Chair
of DLNR, stating that "a moratorium" on the sale of ceded lands was in
effect[ ] and that "the current moratorium is based
on the concern that the sale of ceded lands diminishes the corpus of
the public lands and thereby diminished the potential
return to OHA [[hereinafter, the Wilson Memorandum]]."
At trial, Gilbert Coloma-Agaran, chair of the
BLNR, testified regarding the Wilson Memorandum as follows:
Q
[By OHA Plaintiffs' Counsel]:
. . . So, were you working for Michael Wilson at the time,
deputy director?
A: [By Coloma-Agaran]: In
April '95, yes.
Q: Are you familiar with
that memorandum?
A: I've seen it.
Q: And are you familiar
with a moratorium
that [then-]Director Wilson refers to?
A: Yes.
Q:
And could you -- could you tell us
what that was about.
A: I guess shortly after
we got there Michael
decided that given the controversy over the sale of ceded lands that we
would
try not to sell but that if we wanted to move forward
some transaction,
we would. So, if there were basically sales were
[sic] already approved by the board before we got there we couldn't. If
properties was [sic] necessary
because of some
ongoing project, you now, we take it case by case. But that generally
that we wouldn't encourage the sale of the public
lands.
(Emphasis added.)
24.
As previously indicated, the trial court,
nevertheless, went on to
determine that the State had the legal authority to sell
ceded lands.
25.
Although we recognize that international law
and situations cited
by the plaintiffs provide support for their requested
injunction, we do not believe it is necessary to engage in a discussion
of these issues inasmuch as our holding is grounded
in Hawai‘i and federal law.
26.
The defendants assert that there are five "reasons or bases" for
the State's "unchallenged power to sell" the ceded
lands: (1) "enabling acts generally and historically have afforded the
power to sell to new states"; (2) the Admission Act
specifically grants the power to sell"; (3) "the Hawai‘i Constitution
confirms the power to sell"; (4) "state statutes embody
the power to sell"; and (5) "the Hawai‘i Supreme Court has previously
held that the State has power to sell."
27.
See,
e.g., Indian Motorcycle Ass'n III Ltd.
P'ship v. Massachusetts Housing Fin. Agency, 66 F.3d 1246, 1249
(1st Cir.
1995):
Four principal
factors govern the appropriateness of permanent injunctive relief: (1)
whether the plaintiff has prevailed on
the merits; (2) whether the plaintiff will suffer irreparable injury
absent injunctive relief; (3) whether the harm to the
plaintiff outweighs any harm threatened by the injunction; and (4)
whether the public interest will be adversely affected by
the injunction.
(Internal
quotations marks and citation omitted.)
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