Nelson v. Hawaiian Homes Commission

307 P.3d 142, 130 Haw. 162
Hawaii Supreme Court·Decided June 28, 2013·No. No. SCWC-30110·Published·Cited by 21 cases

Opinions

Opinion of the Court by

McKENNA, J.

1. Introduction

Following the publication of this court’s opinion in Nelson v. Hawaiian Homes Comm’n, 127 Hawai'i 185, 277 P.3d 279 (2012), Respondents/Plaintiffs-Appellants Richard Nelson III, Kaliko Chun, James Aki-ona, Sr., Sherilyn Adams, Kelii Ioane, Jr., and Charles Aipia (collectively “Plaintiffs”), represented by Native Hawaiian Legal Corporation (“NHLC”) requested attorneys’ fees and costs2 as the prevailing party, pursuant to the private attorney general doctrine. Both the State of Hawai'i and the Department of Hawaiian Home Lands filed objections3 to Plaintiffs’ request, arguing, inter alia, that Plaintiffs were not the prevailing party, that Plaintiffs do not qualify for an award of fees under the private attorney general doctrine, and that sovereign immunity bars an award of fees in any event. Additionally, DHHL objected to the request for costs as inadequately documented. For reasons that follow, we deny Plaintiffs’ request for appellate attorneys’ fees as barred by the State’s sovereign immunity. We also deny Plaintiffs’ request for appellate costs without prejudice.

II. Discussion

A. Prevailing Party

The first step in analyzing whether Plaintiffs are entitled to attorneys’ fees (and costs) is to determine whether they are the “prevailing party.” The “prevailing party” is the one who “prevails on the disputed main issue[.]” Food Pantry, Ltd. v. Waikiki Business Plaza, Inc., 58 Haw. 606, 620, 575 P.2d 869, 879 (1978). Even if the party does not prevail “to the extent of his original contention, he will be deemed to be the successful party for the purpose of taxing costs and attorney’s fees.” Id. (citation and footnote omitted).

“The trial court is required to first identify the principle issues raised by the pleadings and proof in a particular case, and then determine, on balance, which party prevailed on the issues.” MFD Partners v. Murphy, 9 Haw.App. 509, 515, 850 P.2d 713, 716 (1992). In the circuit court, the principle issues raised were:

Count I: The State violated its constitutional duty to sufficiently fund DHHL in order to rehabilitate native Hawaiian beneficiaries, under the Hawai'i State Constitution’s Article XII, Sections 1 and 2
Count 2: DHHL violated the constitution and breached its trust obligation to beneficiaries to seek sufficient funds from the legislature.
Count 3: The DHHL Defendants breached their trust obligation to beneficiaries by [166]*166leasing DHHL lands for commercial purposes to raise funds.
Count 4: The DHHL Defendants breached their obligation to trust beneficiaries by failing to ascertain whether trust lands are necessary for general homestead purposes before offering them for commercial lease.

The circuit court granted summary judgment in favor of the State and DHHL on Counts 1 and 2 based on the political question doctrine. The parties entered into a Stipulation to Dismiss Count 3 without prejudice and Count 4 with prejudice. On balance, before the trial court, the Defendants were the prevailing parties, securing summary judgment in their favor on the first two counts and a dismissal with prejudice on the fourth count.

Before the ICA, Plaintiffs prevailed on Counts I and II (or at least succeeded in reversing summary judgment and securing a remand), as the ICA held that the political question doctrine did not bar the determination of what constituted sufficient sums that (1) the State must provide to DHHL and that (2) DHHL must request. See Nelson v. Hawaiian Homes Comm’n, 124 Hawai'i 437, 447, 246 P.3d 369, 379 (App.2011).

On certiorari, however, only the State further appealed the ICA’s decision as to Count I, and the principle issue raised was

Does the political question doctrine bar Hawaiian Homes Commission Act (HHCA) beneficiaries from using Haw. Const. Article XII, Section l’s “sufficient sums” provision to demand more legislative funding of the Department of Hawaiian Home lands (DHHL), when that provision provides no guidance at all as to how quickly homesteads must be developed?

This court held that the political question doctrine did not bar determination of what constituted “sufficient sums” for one of four enumerated purposes under Article XII, Section 1: administrative and operating expenses. Nelson, 127 Hawai'i at 188, 277 P.3d at 282. Thus, the extent to which Plaintiffs “prevailed” is at issue.

This court has previously given guidance on determining which party prevailed in a case in which the relief granted was not solely in favor of one party. In Food Pantry, 58 Haw. at 620, 575 P.2d at 879, which involved a lease dispute, this court determined that the lessor was the prevailing party, even though the lessee did receive the relief he requested. In that case, the trial court found that the lessor was required to consent to a sublease under the lease, that the lessee materially breached that provision of the lease, and that the lessor was entitled to terminate the lease. Id. Even though the trial court granted the lessee’s requested relief (that the lease not be forfeited and that damages for the breach be paid instead), the lessor was, “on balance,” the successful party in the case, based on the pleadings and proof. Id.

In this case, although the State received the relief it requested on certiorari (that the political question bar the determination of what constitutes “sufficient sums” for the development of homestead lots), Plaintiffs are the prevailing party, because this court affirmed the ICA’s judgment, albeit on a narrower ground that the political question doctrine did not bar determination of what constituted “sufficient sums” for administrative and operating expenses only. More importantly, part of Plaintiffs’ claims against the State survived, in that the circuit court’s grant of summary judgment in favor of the state was vacated, and this case has been remanded to the circuit court for further proceedings.

Having established that Plaintiffs prevailed on appeal, we next examine whether the private attorney general doctrine entitles them to an award of attorneys’ fees.

B. Private Attorney General Doctrine

Normally, “pursuant to the ‘American Rule,’ each party is responsible for paying his or her own litigation expenses. This general rule, however, is subject to a number of exceptions,” including the private attorney general doctrine. Sierra Club v. Dep’t of Transp., 120 Hawai'i 181, 218, 202 P.3d 1226, 1263 (2009). In In re Water Use Permit Applications, 96 Hawai'i 27, 29, 25 P.3d 802, 804 (2001)(“Waiahole ”), this court first recognized the private attorney general doctrine, which it summarized as follows:

[167]

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