In re: Office of Information Practices Opinion Letter No. F19-04.

501 P.3d 304, 150 Haw. 335
CourtHawaii Intermediate Court of Appeals
DecidedOctober 11, 2021
DocketCAAP-20-0000470
StatusPublished

This text of 501 P.3d 304 (In re: Office of Information Practices Opinion Letter No. F19-04.) is published on Counsel Stack Legal Research, covering Hawaii Intermediate Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re: Office of Information Practices Opinion Letter No. F19-04., 501 P.3d 304, 150 Haw. 335 (hawapp 2021).

Opinion

FOR PUBLICATION IN WEST'S HAWAI#I REPORTS AND PACIFIC REPORTER

Electronically Filed Intermediate Court of Appeals CAAP-XX-XXXXXXX 11-OCT-2021 07:50 AM Dkt. 50 OP IN THE INTERMEDIATE COURT OF APPEALS

OF THE STATE OF HAWAI#I

---o0o---

IN RE OFFICE OF INFORMATION PRACTICES OPINION LETTER NO. F19-04

NO. CAAP-XX-XXXXXXX

APPEAL FROM THE CIRCUIT COURT OF THE FIRST CIRCUIT (CASE NO. 1SP191000157)

OCTOBER 11, 2021

LEONARD, PRESIDING JUDGE, HIRAOKA AND NAKASONE, JJ.

OPINION OF THE COURT BY HIRAOKA, J.

The issue in this case is whether the "frustration of a

legitimate government function" exception applies to Complainant-

Appellant City and County of Honolulu's obligation to disclose a

particular public record under the Hawai#i Uniform Information

Practices Act (Modified), Hawaii Revised Statutes (HRS) Chapter

92F (UIPA).1 The record at issue is an appraisal of the value of

1 The Hawai#i Supreme Court recently addressed the UIPA's "clearly unwarranted invasion of personal privacy" exception in State of Hawaii Organization of Police Officers v. City & Cnty. of Honolulu, SCAP-XX-XXXXXXX, 2021 WL 4236732 (Haw. Sept. 17, 2021). FOR PUBLICATION IN WEST'S HAWAI#I REPORTS AND PACIFIC REPORTER

an easement the requestor desires to purchase from the City.

After making "an individualized determination [whether]

disclosure [of the easement appraisal report] would frustrate a

legitimate government function," Peer News LLC v. City & Cnty. of

Honolulu, 143 Hawai#i 472, 475, 431 P.3d 1245, 1248 (2018) (Peer

News II),2 we hold that the State of Hawai#i Office of

Information Practices (OIP) correctly determined that the report

must be disclosed. We do so, however, for reasons other than

those stated by OIP.

BACKGROUND

Brad and Logan Johnasen Halas (collectively, the

Halases) own property in Kahalu#u, O#ahu. The property is

landlocked. The Halases seek to purchase an access and utility

easement over the City-owned Kahalu#u Flood Control maintenance

road.

The City's Department of Budget and Fiscal Services

(BFS) requested an appraisal of the value of the proposed

easement from the City's Department of Design and Construction (DDC). The resultant appraisal reported the "suggested value

range for the subject easement" "as a guideline for negotiation

purposes." After obtaining the appraisal information, BFS made

an offer to sell an easement to the Halases.

2 Peer News LLC v. City & Cnty. of Honolulu, 138 Hawai#i 53, 376 P.3d 1 (2016) (Peer News I) dealt with Civil Beat's request to the Honolulu Police Department for the disciplinary records of 12 police officers.

2 FOR PUBLICATION IN WEST'S HAWAI#I REPORTS AND PACIFIC REPORTER

Logan Johnasen Halas, apparently unhappy with the

City's price, requested a copy of the easement appraisal report.

BFS denied Johnasen Halas's request, citing HRS § 92F-13(3). The

statute provides, in relevant part: § 92F-13 Government records; exceptions to general rule. This part shall not require disclosure of:

. . . .

(3) Government records that, by their nature, must be confidential in order for the government to avoid the frustration of a legitimate government function[.]

HRS § 92F-13 (2012). BFS explained:

Deliberative process privilege. Government records that, by their nature, must be confidential in order for the government to avoid the frustration of a legitimate government function.

(Bold italics added.)

Johnasen Halas appealed BFS's denial to OIP. She

informed OIP: The City has appraised this area for $300,000. Is it [sic] not clear at all how they are coming up with this ridiculous amount which [is] why I have required a copy to better understand the metholody [sic] they are trying to use.

In response, the City sent a copy of the easement appraisal

report to OIP for in-camera inspection, and explained: In a recent Memorandum Opinion dated March 5, 2015, U Memo 15-8, regarding a request from the Aina Haina Community Association to BFS, OIP confirmed that BFS is not required to disclose internal communications between City departments when the communications contain predecisional and deliberative material that falls within the deliberative process privilege. When the requested records contain such internal communications, they may be withheld under the UIPA's exception to disclosure to avoid the frustration of a legitimate government function. HRS Section 92F-13(3). As part of the decision-making process in selling the City's real property interests, BFS solicits an estimate of

3 FOR PUBLICATION IN WEST'S HAWAI#I REPORTS AND PACIFIC REPORTER

value from DDC, another City agency, for use in BFS's negotiations in reaching a purchase price. There is no City ordinance or State statute that expressly requires public disclosure of such communications. In the instant case, BFS received the subject appraisal prior to the decision on the purchase price for the easement. DDC's appraisal provided an estimated range of value for negotiation purposes, which was a direct part of the decision-making process. Such communications must be withheld from public disclosure, and especially cannot be disclosed to the proposed purchaser, when the City has not yet completed negotiations of a purchase price. Such disclosure would have a chilling effect upon BFS obtaining such an estimate of value for negotiation purposes, and would thus impede BFS's negotiation efforts. Disclosure of the appraisal at this point in the negotiation and decision-making process would frustrate the legitimate government function of negotiating and ultimately determining a fair purchase price for City assets. Therefore, BFS may withhold the appraisal from public disclosure under the "frustration of a legitimate government function" exception under HRS Section 92F-13(3). See OIP Opinion Letter Nos. 90-8 and 04-15.

(Emphasis added.)

This all happened in 2016. On December 21, 2018,

before OIP issued a decision on Johnasen Halas's appeal, the

Hawai#i Supreme Court decided Peer News II. The supreme court

held that the deliberative process privilege,3 which shielded all

pre-decisional, deliberative agency records from public access

"without an individualized determination that disclosure would

frustrate a legitimate government function," was "clearly irreconcilable with the plain language and legislative history of

Hawai#i's [sic] public record laws." Peer News II, 143 Hawai#i at

475, 431 P.3d at 1248. The supreme court vacated the City's

summary judgment and remanded to the circuit court for "a

redetermination of whether the records withheld pursuant to the

3 The deliberative process privilege had been developed by OIP in a series of eight opinion letters issued between 1989 and 2007. Peer News II, 143 Hawai#i at 475, 431 P.3d at 1248.

4 FOR PUBLICATION IN WEST'S HAWAI#I REPORTS AND PACIFIC REPORTER

purported privilege fall within a statutory exception to the

disclosure requirement." Id.

By letter dated January 2, 2019, OIP notified BFS and

Johnasen Halas of Peer News II.

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Related

John Doe Agency v. John Doe Corp.
493 U.S. 146 (Supreme Court, 1989)
Hoopai v. Civil Service Commission
103 P.3d 365 (Hawaii Supreme Court, 2004)
Matter of Acme Bus Corp. v. County of Suffolk
136 A.D.3d 896 (Appellate Division of the Supreme Court of New York, 2016)
Peer News LLC v. City and County of Honolulu.
376 P.3d 1 (Hawaii Supreme Court, 2016)

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Bluebook (online)
501 P.3d 304, 150 Haw. 335, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-office-of-information-practices-opinion-letter-no-f19-04-hawapp-2021.