Maunalua Bay Beach Ohana 28 v. State. ICA Opinion, filed 03/18/2024 [ada], 154 Haw. 144. Application for Writ of Certiorari, filed 06/14/2024. S.Ct Order Accepting Application for Writ of Certiorari, filed 08/12/2024 [ada]. ICA Order of Correction, filed 11/04/2024 [ada].

CourtHawaii Supreme Court
DecidedSeptember 17, 2025
DocketSCWC-19-0000776
StatusPublished

This text of Maunalua Bay Beach Ohana 28 v. State. ICA Opinion, filed 03/18/2024 [ada], 154 Haw. 144. Application for Writ of Certiorari, filed 06/14/2024. S.Ct Order Accepting Application for Writ of Certiorari, filed 08/12/2024 [ada]. ICA Order of Correction, filed 11/04/2024 [ada]. (Maunalua Bay Beach Ohana 28 v. State. ICA Opinion, filed 03/18/2024 [ada], 154 Haw. 144. Application for Writ of Certiorari, filed 06/14/2024. S.Ct Order Accepting Application for Writ of Certiorari, filed 08/12/2024 [ada]. ICA Order of Correction, filed 11/04/2024 [ada].) 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
Maunalua Bay Beach Ohana 28 v. State. ICA Opinion, filed 03/18/2024 [ada], 154 Haw. 144. Application for Writ of Certiorari, filed 06/14/2024. S.Ct Order Accepting Application for Writ of Certiorari, filed 08/12/2024 [ada]. ICA Order of Correction, filed 11/04/2024 [ada]., (haw 2025).

Opinion

*** FOR PUBLICATION IN WEST’S HAWAI᷾I REPORTS AND PACIFIC REPORTER ***

Electronically Filed Supreme Court SCWC-XX-XXXXXXX 17-SEP-2025 12:49 PM Dkt. 36 OPA

IN THE SUPREME COURT OF THE STATE OF HAWAI‘I

---o0o---

MAUNALUA BAY BEACH OHANA 28, a Hawai‘i Non-Profit Corporation; MAUNALUA BAY BEACH OHANA 29, a Hawai‘i Non-Profit Corporation; and MAUNALUA BAY BEACH OHANA 38, a Hawai‘i Non-Profit Corporation, individually and on behalf of all others similarly situated, Petitioners/Plaintiffs-Appellants/Cross-Appellees,

vs.

STATE OF HAWAI‘I, Respondent/Defendant-Appellee/Cross-Appellant.

SCWC-XX-XXXXXXX

CERTIORARI TO THE INTERMEDIATE COURT OF APPEALS (CAAP-XX-XXXXXXX; CASE NO. 1CC051000904)

SEPTEMBER 17, 2025

RECKTENWALD, C.J., McKENNA, EDDINS, AND DEVENS, JJ., AND CIRCUIT JUDGE KIMURA IN PLACE OF GINOZA, J., RECUSED *** FOR PUBLICATION IN WEST’S HAWAI᷾I REPORTS AND PACIFIC REPORTER ***

OPINION OF THE COURT BY RECKTENWALD, C.J.

I. INTRODUCTION

This case involves the temporary taking of accreted

beachfront land located in the Portlock neighborhood of East

Honolulu, Oʻahu. The Petitioners, Maunalua Bay Beach Ohana 28,

Maunalua Bay Beach Ohana 29, and Maunalua Bay Beach Ohana 38

(collectively “the Ohanas”), are three non-profit corporations,

organized by littoral homeowners, to purchase and own narrow

strips of land (beach reserve lots) that separate their

properties from the publicly owned beach. The Ohanas prevailed

before the Circuit Court of the First Circuit (circuit court)

and the Intermediate Court of Appeals (ICA) in the underlying

suit, establishing that Act 73, a state law that declared

certain accreted lands to be public lands, effectuated an

uncompensated taking in violation of article I, section 20 of

the Hawaiʻi Constitution.

On remand, the sole issue before the circuit court was

the amount of just compensation owed to the Ohanas for the

temporary taking of their property pursuant to the statute.

Following a jury waived trial, the circuit court determined that

the Petitioners were not entitled to any compensation for the

temporary taking, given that the land accreted to the beach

reserve lots had no fair market rental value. The Petitioners

2 *** FOR PUBLICATION IN WEST’S HAWAI᷾I REPORTS AND PACIFIC REPORTER ***

challenge the circuit court’s award of zero dollars in just

compensation and its failure to award nominal damages. We

conclude that the circuit court did not err when it (1)

determined that, for purposes of just compensation, the fair

market rental value of the accreted land was zero dollars, and

(2) declined to award nominal damages.

The Ohanas also challenge the circuit court’s denial

of their motion for attorneys’ fees under the private attorney

general doctrine. Whether article I, section 20 of the Hawaiʻi

Constitution waives sovereign immunity in inverse condemnation

cases is a question of first impression before this court. 1

Because our just compensation clause does not contemplate

attorneys’ fees, we hold that an award of attorneys’ fees

against the State is barred by sovereign immunity. In so doing,

we join the unanimous position of other states that have

considered the issue.

Accordingly, we affirm the circuit court and the ICA.

II. BACKGROUND

In 2003, the Legislature passed and the governor

signed into law Act 73, which expanded the definition of public

1 “Inverse condemnation” involves “[a]n action brought by a property owner for compensation from a governmental entity that has taken the owner’s property without bringing formal condemnation proceedings.” Condemnation, Black’s Law Dictionary (12th ed. 2024).

3 *** FOR PUBLICATION IN WEST’S HAWAI᷾I REPORTS AND PACIFIC REPORTER ***

lands to include “accreted lands not otherwise awarded.” 2 2003

Haw. Sess. Laws Act 73, at 128-30 (amending Hawaiʻi Revised

Statutes (HRS) §§ 171-1, -2, 501-33, and 669-1 (eff. May 20,

2003)). Act 73 prevented anyone other than the State from

registering or quieting title to accreted lands, except where

that accretion restored eroded lands. Id.

On May 6, 2005, the Ohanas purchased three beach

reserve lots from the Estate of Bernice Pauahi Bishop dba

Kamehameha Schools for $1,000 per lot. 3 Each of these Ohanas was

formed as a non-profit corporation by its members, the littoral

homeowners, “for the specific and sole purpose of owning one of

the beach reserve lots,” which are narrow strips of beach that

front the littoral homeowners’ lots and separate the homeowners’

lots from the ocean. As the ICA explained in Maunalua Bay Beach

Ohana 28 v. State (Maunalua Bay I), 122 Hawaiʻi 34, 35 n.1, 222

P.3d 441, 442 n.1 (App. 2009):

The oceanfront lots underlying the Portlock homes were originally owned and developed in leasehold by the Trustees of the Estate of Bernice Pauahi Bishop (Bishop Estate). The lease for each oceanfront lot described the lot by specific metes and bounds. The leases did not include a

2 Section 1 of Act 73 amended HRS § 171-1, defining accreted lands as “lands formed by the gradual accumulation of land on a beach or shore along the ocean by the action of natural forces.”

3 The record reflects that the land was originally awarded to Crown Princess and Kuhina Nui Victoria Kamāmalu as Land Commission Award 7713, Apana, and that it subsequently passed to Bernice Pauahi Bishop and, eventually, her estate.

4 *** FOR PUBLICATION IN WEST’S HAWAI᷾I REPORTS AND PACIFIC REPORTER ***

narrow strip of land between the lot and the ocean, which Bishop Estate reserved for itself (beach-reserve lot). In the late 1980’s or early 1990’s, Bishop Estate sold its fee interest in the oceanfront lots to the Portlock homeowners but reserved its fee interest in the beach-reserve lots. On May 6, 2005, Bishop Estate sold to [Ohanas] the beach- reserve lots that adjoined the lots of [Ohanas]’s respective homeowner members. Pursuant to the deeds for the beach reserve lots, Bishop Estate reserved access and utility easements for itself, together with the right to grant easements over the lots to government agencies and public utilities; Plaintiffs agreed to continue to allow the public to use the beach-reserve lots “for access, customary beach activities and related recreational and community purposes”; and Plaintiffs accepted numerous restrictive covenants that ran with the lots.

On May 19, 2005, less than two weeks after the

purchase and one day before the statute of limitations expired, 4

the Ohanas brought an inverse condemnation action in the circuit

court, alleging that Act 73 effected an uncompensated and

therefore unconstitutional taking of land accreted to the beach

reserve lots (“makai land”) 5 and seeking declaratory and

injunctive relief and money damages. Id. at 51-52, 222 P.3d at

458-59.

The makai land did not accrete to the homeowners’ lots

directly, but rather to the beach reserve lots, which are owned

4 HRS § 661-5 (1993), “Limitations on action,” provided in relevant part, “Every claim against the State, cognizable under this chapter, shall be forever barred unless the action is commenced within two years after the claim first accrues[.]”

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Maunalua Bay Beach Ohana 28 v. State. ICA Opinion, filed 03/18/2024 [ada], 154 Haw. 144. Application for Writ of Certiorari, filed 06/14/2024. S.Ct Order Accepting Application for Writ of Certiorari, filed 08/12/2024 [ada]. ICA Order of Correction, filed 11/04/2024 [ada]., Counsel Stack Legal Research, https://law.counselstack.com/opinion/maunalua-bay-beach-ohana-28-v-state-ica-opinion-filed-03182024-ada-haw-2025.