KRB, LLC v. State

155 Haw. 253
Hawaii Intermediate Court of Appeals·Decided December 23, 2024·No. CAAP-21-0000670·Published

Opinion

Electronically Filed

Intermediate Court of Appeals CAAP-XX-XXXXXXX

23-DEC-2024

08:02 AM

Dkt. 149 SO

CAAP-XX-XXXXXXX

IN THE INTERMEDIATE COURT OF APPEALS OF THE STATE OF HAWAI I

KRB, LLC, a Hawaii limited liability company, Plaintiff-Appellee/Cross-Appellant, v.

STATE OF HAWAII, DEPARTMENT OF LAND AND NATURAL RESOURCES;

DAWN N.S. CHANG, in her capacity as the Director of the Department of Land and Natural Resources;

STATE OF HAWAII, DEPARTMENT OF AGRICULTURE; SHARON HURD, in her capacity as the Director of the Department of Agriculture;

STATE OF HAWAII, DEPARTMENT OF HEALTH; KENNETH S. FINK, M.D., in his capacity as the Director of the Department of Health, Defendants-Appellants/Cross-Appellees, and JOHN DOES 1-20; JANE DOES 1-20; DOE PARTNERSHIPS 1-20;

DOE CORPORATIONS 1-20; and DOE GOVERNMENTAL UNITS 1-100, Defendants

APPEAL FROM THE CIRCUIT COURT OF THE FIFTH CIRCUIT (CIVIL NO. 5CC151000127)

SUMMARY DISPOSITION ORDER (By: Leonard, Acting Chief Judge, Hiraoka and Wadsworth, JJ.)

Defendants-Appellants/Cross-Appellees State of Hawai i, Department of Land and Natural Resources, Dawn N.S. Chang, in her capacity as the Director of the Department of Land and Natural Resources, State of Hawai i, Department of Agriculture, and Sharon Hurd, in her capacity as the Director of the Department of

Agriculture,1 (collectively, the State) appeal from the May 5, 2023 Amended Final Judgment (Amended Judgment), entered by the Circuit Court of the Fifth Circuit (Circuit Court).2 The State challenges the October 27, 2021 Findings of Fact [(FOFs)], Conclusions of Law, and Order Re: Attorney's Fees and Costs (Attorney's Fees Order).3 Plaintiff-Appellee/Cross-Appellant KRB, LLC, a Hawai i limited liability company (KRB), cross-appeals and challenges the Circuit Court's October 27, 2021 Findings of Fact, Conclusions of Law, and Order (Order After Trial).

The State raises two points of error on appeal, contending that the Circuit Court erred in entering the Attorney's Fees Order because: (1) sovereign immunity bars an award of attorney's fees and costs in this case; and (2) KRB was not entitled to fees and costs under the private attorney general doctrine.

KRB raises four points of error, contending that the Circuit Court erred when it: (1) failed to conclude that the State created a public nuisance; (2) did not apply the public trust doctrine and conclude that the State violated the protections of the Hawai i Constitution article XI, sections 1 and 7; (3) did not recognize KRB's water rights to use the

1 As the current directors of their departments, pursuant to Hawai i Rules of Appellate Procedure Rule 43(c)(1), Dawn N.S. Chang and Sharon Hurd are substituted for the previously-named parties to this case.

2 The Honorable Randal G.B. Valenciano presided.

3 The Amended Judgment was entered pursuant to an April 14, 2023 Order for Temporary Remand. The State's Notice of Appeal from the Attorney's Fees Order was filed on November 24, 2021.

Kainahola Stream (Stream) to cultivate taro; and (4) ordered an inadequate remedy.

Upon careful review of the record and the briefs submitted by the parties, and having given due consideration to the arguments advanced and the issues raised, we resolve the parties' points of error as follows, beginning with the issues raised by KRB:

KRB's Appeal

(1) KRB argues that the Circuit Court erred in not finding that the State created a public nuisance. KRB points to the Circuit Court's findings that the State has not provided for any maintenance of the Stream, and that as a result, the Stream is not in a condition suitable to carry off storm waters, and the lack of Stream maintenance has caused an unsanitary condition upon KRB's property.

The Hawai i Supreme Court has defined a nuisance,

stating:

A nuisance has been variously defined to mean "that which unlawfully annoys or does damage to another, anything that works hurt, inconvenience, or damage, anything which annoys or disturbs one in the free use, possession, or enjoyment of his property or which renders its ordinary use or physical occupation uncomfortable, and anything wrongfully done or permitted which injures or annoys another in the enjoyment of his legal rights."

Littleton v. State, 66 Haw. 55, 67, 656 P.2d 1336, 1344 (1982) (quoting 58 Am. Jur. 2d Nuisances § 1 at 555 (1971)).

The supreme court has defined a public nuisance as

follows:

A nuisance, to be a public nuisance, must be in a public place, or where the public frequently congregate, or where members of the public are likely to come within the range of its influence; for, if the act or use of property be in a remote and unfrequented locality, it will not, unless malum

in se, be a public nuisance. If the nuisance affects a place where the public has a legal right to go, and where the members thereof frequently congregate, or where they are likely to come within its influence, it is a public nuisance.

Id., at 67, 656 P.2d at 1344-45 (citations omitted).

In a pretrial summary judgment order, the Circuit Court concluded that the State was not in compliance with Hawai i Revised Statutes (HRS) § 46-11.5 (2012),4 and this failure to comply had created a private nuisance to KRB. Although KRB argues that the Circuit Court erred in not finding, after trial, that the State also created a public nuisance, KRB's argument is devoid of citation to findings or evidence in the record demonstrating the public nature of the nuisance. We decline to adopt KRB's rationale that because the Stream is public waters, the Circuit Court erred in failing to find that the State's lack of maintenance constitutes a public, as opposed to a private, nuisance in this case.

4 HRS § 46-11.5 provides:

§ 46-11.5 Maintenance of channels, streambeds, streambanks, and drainageways. Notwithstanding any law to the contrary, each county shall provide for the maintenance of channels, streambeds, streambanks, and drainageways, whether natural or artificial, including their exits to the ocean, in suitable condition to carry off storm waters; and for the removal from the channels, streambeds, streambanks, and drainageways and from the shores and beaches any debris which is likely to create an unsanitary condition or otherwise become a public nuisance; provided that to the extent any of the foregoing work is a private responsibility the responsibility may be enforced by the county in lieu of the work being done at county expense, and any private entity or person refusing to comply with any final order issued by the county shall be in violation of this chapter and be liable for a civil penalty not to exceed $500 for each day the violation continues; provided further that it shall be the responsibility of the county to maintain all channels, streambeds, streambanks, and drainageways unless such channels, streambeds, streambanks, and drainageways are privately owned or owned by the State, in which event such channels, streambeds, streambanks, and drainageways shall be maintained by their respective owners.

(2) KRB argues that the Circuit Court erred in not concluding that the State violated its duties under the public trust doctrine. KRB references FOFs 15-19, which include findings, inter alia, that the State's property is overgrown with hau bush, guinea grass, and other vegetation that obstructs the flow of the Stream. KRB argues that the State violated the public trust doctrine by failing to maintain the "purity and flow" of the Stream and by failing to protect the use of the Stream for the cultivation of taro.

The State, in turn, argues that the public trust doctrine does not obligate the State to maintain the artificial flow of water created by Lihue Plantation's past dredging and that the restoration of the natural wetlands should take priority over the maintenance of a watercourse altered for private interests.

The supreme court summarized the scope and enumerated

four protected trust purposes as follows:

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