Kau v. City and County of Honolulu

92 P.3d 477, 104 Haw. 468, 2004 Haw. LEXIS 420
CourtHawaii Supreme Court
DecidedJune 22, 2004
Docket23674
StatusPublished
Cited by27 cases

This text of 92 P.3d 477 (Kau v. City and County of Honolulu) 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.

Bluebook
Kau v. City and County of Honolulu, 92 P.3d 477, 104 Haw. 468, 2004 Haw. LEXIS 420 (haw 2004).

Opinion

Opinion of the Court by

DUFFY, J.

Petitioners/plaintiffs-appellants Violet Leong Kau, et al. [hereinafter, Fee Owners], applied for a writ of certiorari to review the published opinion of the Intermediate Court of Appeals (ICA) in Kau v. City and County of Honolulu, 104 Hawai'i 490, 92 P.3d 1000, 2001 WL 1205618 (App.2001) [hereinafter, the ICA’s opinion or Kau /]. Based on the *471 following, we affirm in part and reverse in part the ICA’s opinion.

In 1994, Rodney E. Gardiner, et al. [hereinafter, Lessees] submitted applications to the City and County of Honolulu (City), requesting the initiation of condemnation proceedings under Revised Ordinances of Honolulu (ROH) chapter 38 (ROH chapter 38 or the Ordinance). Kau I, at 495-96, 92 P.3d at 1005-06 The City and County of Honolulu Department of Community Services (DCS), charged with administering the leasehold condominium process under ROH chapter 38 (ROH § 38-1.8), held a public hearing to determine whether the acquisition of the leased fee interests, using the City’s power of eminent domain, would effectuate the public purpose of ROH chapter 38 as stated by the City Council in its enactment. Following the hearing, the DCS found that the public purpose of ROH chapter 38 would be effectuated by this condemnation. The Fee Owners subsequently filed the present action seeking declaratory relief to stop the condemnation proceedings.

I. BACKGROUND

Neither party disputes the substantive facts 1 in Kau I, so this court adopts the facts laid out in the ICA opinion.

The real property relevant to this dispute is a 15,957[ 2 ] square foot parcel of land at 3003 Kalakaua Avenue, Honolulu, Hawaii [sic] (the Land). Prior to 1958, Mrs. Chang Tai Leong (Mrs. Leong) owned and lived in a residence on the Land. The [Fee Owners] are Mrs. Leong’s descendants (or trustees of trusts established for the benefit of her descendants).
In 1958, Mrs. Leong’s family executed a lease of the Land (Master Lease) to Ka-piolani Park Land Company, Ltd. [KPL]. The term of the Master Lease was fifty-five years from April 1, 1959, to midnight on March 31, 2014.
[KPL] constructed a building on the Land and organized it as a cooperative apartment project.
[[Image here]]
In 1964, [KPL] requested an amendment to the Master Lease to facilitate [KPL]’s submission of its leasehold interest to a CPR.[ 3 ] Consent was given and an Amendment of Lease [ ] was executed on July 6, 1964, and states, in relevant part, as follows:
WHEREAS, the [Fee Owners] and [KPL] desire to submit the land described in said Lease and the apartment building constructed upon said land to the [CPR] established by Act 180, Session Laws Hawaii 1961, as amended, so as to convert said property into a condominium apartment projeet[ ]...[.]
[[Image here]]
NOW, THEREFORE, IT IS MUTUALLY AGREED by and between the [Fee Owners] and [KPL] that said Lease ... be and the same is hereby amended as follows:
(a) by adding the following paragraph
[[Image here]]
5. [CPR]. The demised premises are hereby submitted to the [CPR] established by Act 180, Session Laws of Hawaii 1961, as amended, and shall during the whole of said term unless and until waived or otherwise terminated as provided by law, constitute and be established as a[CPR] known as 3003 KALA-KAUA, consisting of a leasehold interest in the demised land, the building thereon, and the common elements thereof as described in the document entitled “Declaration of [CPR] ”, attached hereto and made a part hereof.
*472 (Emphasis in original.) This document initially states that “the land described in said Lease and the apartment building constructed upon said land” would be submitted to a[CPR]. However, it subsequently states that only “[t]he demised premises are hereby submitted to the [CPR] ... [ ] and shall during the whole of said term ... [ ] constitute and be established as a[CPR] known as 3003 KALAKAUA, consisting of a leasehold interest in the demised land, the building thereon, and the common elements thereof[J” (Emphasis in original.)
Similarly, the Declaration of [CPR] submits only the leasehold interest to the [CPR] as follows:
NOW, THEREFORE, [KPL] does hereby express its desire that its leasehold interest in said land and said building thereon shall be submitted to the [CPR] established by Act 180 Session Laws of Hawaii 1961, as amended, and does hereby establish a [CPR] with respect to its leasehold interest in said land and said building thereon....
The [Lessees] state that
Hollowing the creation of the CPR, the Developer sold each of the condominium units which comprise the building constructed at 3003 Kalakaua, together with an assignment of a 1/25 leasehold interest in 3003 Kalakaua under the Master Lease to various individuals. Lessees own 13 of the 25 condominium units located at 3003 Kalakaua and are the assignees of 13/25 of the Developer’s leasehold interest under the Master Lease.
(Footnote and record citations omitted.)
The [Lessees] state that there are “25 condominium units.” According to our calculations, there are 24 residential condominium units (2 apartments on each of 12 floors = 24 apartments and 23 x 4/95 + 3/95 = 95/95). 4 The [Lessees] own 13 of the 24 residential condominium units. The remaining 11 residential condominium units are owned by others....
Hawai'i Revised Statutes § 514A-20 (1993)[J ... effective May 24, 1975, [provided that] ... [a CPR] could not be established for a parcel of land absent submission of the fee of the land to the [CPR].
[[Image here]]
In 1991, the City Council passed Bill No. 156 as Ordinance 91-95. Ordinance 91-95 became codified as ROH Chapter 38. ROH Chapter 38 enabled lessees ... “to purchase the leased fee interest in their eondominiums[.]” ROH § 38-2.5(a)....
[[Image here]]
In 1994, the [Lessees] began the ROH Chapter 38 process to purchase the Leased Fee Interest. The [Fee Owners] vigorously objected to the process at every step and, as a result, the City and County of Honolulu [ ] did not move forward with the condemnation action. At the suggestion of the City’s Corporation Counsel, the [Fee Owners] and the [Lessees] agreed to apply to the circuit court for expedited relief.

Kau

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Cite This Page — Counsel Stack

Bluebook (online)
92 P.3d 477, 104 Haw. 468, 2004 Haw. LEXIS 420, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kau-v-city-and-county-of-honolulu-haw-2004.