Hilo Bay Marina, LLC v. State. Concurring Opinion of the Court by Eddins, J., with Whom McKenna and Devens, JJ., Join. Concurring and Dissenting Opinion by Devens, J.

CourtHawaii Supreme Court
DecidedSeptember 12, 2025
DocketSCAP-23-0000310
StatusPublished

This text of Hilo Bay Marina, LLC v. State. Concurring Opinion of the Court by Eddins, J., with Whom McKenna and Devens, JJ., Join. Concurring and Dissenting Opinion by Devens, J. (Hilo Bay Marina, LLC v. State. Concurring Opinion of the Court by Eddins, J., with Whom McKenna and Devens, JJ., Join. Concurring and Dissenting Opinion by Devens, J.) is published on Counsel Stack Legal Research, covering Hawaii Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Hilo Bay Marina, LLC v. State. Concurring Opinion of the Court by Eddins, J., with Whom McKenna and Devens, JJ., Join. Concurring and Dissenting Opinion by Devens, J., (haw 2025).

Opinion

*** FOR PUBLICATION IN WEST’S HAWAI‘I REPORTS AND PACIFIC REPORTER ***

Electronically Filed Supreme Court SCAP-XX-XXXXXXX 12-SEP-2025 08:56 AM Dkt. 19 OP

IN THE SUPREME COURT OF THE STATE OF HAWAII

---o0o---

HILO BAY MARINA, LLC and KEAUKAHA MINISTRY LLC, Plaintiffs-Appellants,

vs.

STATE OF HAWAI‘I; BOARD OF LAND AND NATURAL RESOURCES, STATE OF HAWAI‘I, Defendants-Appellees.

SCAP-XX-XXXXXXX

APPEAL FROM THE CIRCUIT COURT OF THE THIRD CIRCUIT (CAAP-XX-XXXXXXX; CASE NO. 3CCV-XX-XXXXXXX)

SEPTEMBER 12, 2025

RECKTENWALD, C.J., McKENNA, EDDINS, GINOZA, AND DEVENS, JJ.; WITH EDDINS, J., CONCURRING SEPARATELY, WITH WHOM McKENNA AND DEVENS, JJ., JOIN; AND DEVENS, J., ALSO CONCURRING AND DISSENTING

OPINION OF THE COURT BY GINOZA, J.

I. INTRODUCTION

This appeal arises from a 1922 Land Patent issued by

the Territory of Hawai‘i (Territory) to the trustee of a

religious organization for certain lands located on Hawai‘i *** FOR PUBLICATION IN WEST’S HAWAI‘I REPORTS AND PACIFIC REPORTER ***

Island (the Property).1 The Land Patent contains a deed

restriction that the Property must be used “for Church purposes

only” and that, if the Property is used for other purposes, the

land grant is voided and the Property reverts to the Territory

(Deed Restriction).

Following the initial 1922 conveyance, the Property

was transferred to different owners via private land

transactions that occurred in 1988, 2000, and 2015, each

referencing the original Land Patent. There is no dispute that

the Deed Restriction and reversionary interest carried over with

each transaction.

Plaintiffs-Appellants Hilo Bay Marina, LLC (Hilo Bay)

and Keaukaha Ministry, LLC (Keaukaha Ministry) (collectively,

Appellants) are the current owners of the Property.2 Appellants

filed this action against Defendants-Appellees State of Hawai‘i

and the State of Hawai‘i Board of Land and Natural Resources

(collectively, the State) in the Circuit Court of the Third

Circuit3 (Circuit Court), asserting that the State refuses to

remove the Deed Restriction and continues to assert that it is

1 The Property encompasses present day Tax Map Key (TMK) Numbers (3)2-1-014:25, 29, 30, 31, 60 and 74.

2 Hilo Bay owns TMK Nos. (3)2-1-014:29, 30, 31, 60, and 74 and Keaukaha Ministry owns TMK No. (3)2-1-014:25.

3 The Honorable Henry T. Nakamoto presided.

2 *** FOR PUBLICATION IN WEST’S HAWAI‘I REPORTS AND PACIFIC REPORTER ***

enforceable. Appellants contend that the Deed Restriction is

void under Hawai‘i Revised Statutes (HRS) § 515-6(b) (2018);4

violates the Hawai‘i Establishment Clause in article I, section 4

of the Hawai‘i Constitution;5 and violates the Federal

Establishment Clause in the First Amendment to the United States

Constitution.6

The parties filed cross-motions for summary judgment

(MSJ) in the Circuit Court. The Circuit Court entered summary

4 HRS § 515-6(b) (2018) provides that:

(b) Every condition, restriction, or prohibition, including a right of entry or possibility of reverter, that directly or indirectly limits the use or occupancy of real property on the basis of race, sex, including gender identity or expression, sexual orientation, color, religion, marital status, familial status, ancestry, disability, age, or human immunodeficiency virus infection is void, except a limitation, on the basis of religion, on the use of real property held by a religious institution or organization or by a religious or charitable organization operated, supervised, or controlled by a religious institution or organization, and used for religious or charitable purposes.

(Emphasis added.) The emphasized portion of the statute is referred to as the “exemption clause.”

5 Article I, section 4 of the Hawai‘i Constitution provides in relevant part that: “No law shall be enacted respecting an establishment of religion, or prohibiting the free exercise thereof[.]”

Appellants’ Second Amended Complaint also alleged that the Deed Restriction violated article VII, section 4 of the Hawai‘i Constitution, which states in relevant part that: “No grant shall be made in violation of Section 4 of Article I of this constitution.” Article VII, section 4 is titled “Appropriations For Private Purposes Prohibited.” However, on appeal, Appellants do not raise any issue under article VII, section 4 of the Hawai‘i Constitution.

6 The Federal Establishment Clause provides that: “Congress shall make no law respecting an establishment of religion[.]” U.S. Const. amend. I, § 1.

3 *** FOR PUBLICATION IN WEST’S HAWAI‘I REPORTS AND PACIFIC REPORTER ***

judgment for the State, concluding that the Territory’s sale of

government lands with deed restrictions was an early form of

use-zoning; and that the Deed Restriction in this case did not

violate any of the laws asserted by Appellants.

Appellants appealed to the Intermediate Court of

Appeals (ICA). We granted transfer to this court.

We conclude that the State’s enforcement of the Deed

Restriction violates the Hawai‘i Establishment Clause in article

I, section 4 of the Hawai‘i Constitution. We therefore reverse

the Circuit Court’s Final Judgment on those grounds.

II. BACKGROUND

A. Factual Background

In 1922, Governor Wallace Farrington sold the 3.99-

acre Property via Land Patent No. 8039 to Heber J. Grant,

Trustee for the Church of Jesus Christ of Latter-Day Saints (LDS

Church). The Land Patent stated in part:

By this Patent the Governor of the Territory of Hawaii, in conformity with the laws of the United States of America and of the Territory of Hawaii, and in conformity with the provisions of Section 73 of the Hawaiian Organic Act, and in pursuance of the provisions of Section 357 of the Revised Laws of the Territory of Hawaii of 1915, makes known to all men that he has this day granted and confirmed unto HEBER J. GRANT, TRUSTEE In Trust for the Church of Jesus Christ of Latter-Day Saints for the consideration of TWENTY Dollars, $20.00, paid into the Treasury, all of the land situate at KEAUKAHA, WAIAKEA in the District of SOUTH HILO Island of HAWAII bounded and described as follows[.]

(Formatting altered.) The Land Patent further contained the

Deed Restriction, which stated:

4 *** FOR PUBLICATION IN WEST’S HAWAI‘I REPORTS AND PACIFIC REPORTER ***

Subject to the following:

The land covered by this Grant is to be used for Church purposes only. In the event of its being used for other than Church purposes, this Grant shall become void and the land mentioned herein shall immediately revert to and revest in the Territory of Hawaii[.]

(Emphases added.) The Land Patent was signed by Governor

Farrington and the Commissioner of Public Lands.

On December 16, 1988, the LDS Church conveyed the

Property to Deseret Title Holding Corporation by Warranty Deed.

On September 6, 2000, Property Reserve, Inc., formerly

known as Deseret Title Holding Corporation, conveyed the

Property to Hilo Bay by Quitclaim Deed.7

On May 5, 2015, Hilo Bay conveyed a portion of the

Property, TMK No. (3)2-1-014:25, to Keaukaha Ministry by

Warranty Deed.8

Appellants claim, without dispute from the State, that

they are the fee-simple owners of the Property. They assert

that after years of attempted negotiations with the State, they

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Related

§ 171-3
Hawaii § 171-3
§ 515
Hawaii § 515
§ 515-6
Hawaii § 515-6(b)
§ 515-
Hawaii § 515-

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Hilo Bay Marina, LLC v. State. Concurring Opinion of the Court by Eddins, J., with Whom McKenna and Devens, JJ., Join. Concurring and Dissenting Opinion by Devens, J., Counsel Stack Legal Research, https://law.counselstack.com/opinion/hilo-bay-marina-llc-v-state-concurring-opinion-of-the-court-by-eddins-haw-2025.