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Electronically Filed Supreme Court SCWC-XX-XXXXXXX 03-SEP-2025 08:16 AM Dkt. 19 OP
IN THE SUPREME COURT OF THE STATE OF HAWAI‘I
---oOo--- ________________________________________________________________
NORDIC PCL CONSTRUCTION, INC., f/k/a NORDIC CONSTRUCTION LTD., a corporation, Petitioner/Claimant/Counterclaim Respondent-Appellee,
vs.
LPIHGC, LLC, Respondent/Respondent/Counterclaimant-Appellant. ________________________________________________________________
SCWC-XX-XXXXXXX
CERTIORARI TO THE INTERMEDIATE COURT OF APPEALS (CAAP-XX-XXXXXXX; S.P. No. 1SP101000346)
SEPTEMBER 3, 2025
McKENNA, ACTING C.J., EDDINS AND GINOZA, JJ., CIRCUIT JUDGE HAMMAN, IN PLACE OF RECKTENWALD, C.J., RECUSED, AND CIRCUIT JUDGE NICHOLS, IN PLACE OF DEVENS, J., RECUSED
OPINION OF THE COURT BY McKENNA, ACTING C.J.
I. Introduction
The dispositive issue in this appeal is whether a circuit
court order that denied confirmation of and vacated an
arbitration award, which also ordered a rehearing before a new
arbitrator, is an appealable order under Hawaiʻi Revised Statutes ** FOR PUBLICATION IN WEST’S HAWAIʻI REPORTS AND THE PACIFIC REPORTER **
(“HRS”) § 658A-28(a) (2016). We hold it is not. The
Intermediate Court of Appeals therefore erred by dismissing this
appeal for lack of appellate jurisdiction based on untimeliness.
This matter arises from a construction dispute between
Nordic PCL Construction, Inc. (“Nordic”) and LPIHGC, LLC
(“LPIHGC”). An arbitration award was entered in favor of
LPIHGC. The award was initially confirmed by the Circuit Court
of the First Circuit (“circuit court”) in a special proceeding.
On appeal, this court remanded the case to the circuit court for
an evidentiary hearing to determine the arbitrator’s evident
partiality, as alleged by Nordic.
On remand, the circuit court found evident partiality to
exist. It entered an order denying confirmation of and vacating
the award, and ordering a rehearing before a new arbitrator
(“March 3, 2017 order”). Nordic then filed a motion for
taxation of costs it had incurred on appeal, which the circuit
court granted on October 20, 2017 (“October 20, 2017 costs
order”). LPIHGC moved for an interlocutory appeal of the
October 20, 2017 costs order, which the circuit court denied.
An arbitration rehearing took place, resulting in another
award in favor of LPIHGC. LPIGHC filed a new special proceeding
to confirm that award. On December 1, 2023, a final judgment
confirming the second award was entered in the new special
proceeding.
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On December 29, 2023, LPIHGC filed the instant appeal from
the October 20, 2017 costs order in the first special
In a published opinion, the ICA ordered dismissal of this
appeal, holding that the March 3, 2017 order in the first
special proceeding had been an appealable final order under HRS
§ 658A-28(a)(3). The ICA ruled that, therefore, Nordic’s motion
for taxation of costs filed in the first special proceeding was
tantamount to a post-judgment motion, which was also appealable
when it was granted on October 20, 2017. Because LPIHGC filed
this appeal years later, the ICA ruled it must be dismissed
based on a lack of appellate jurisdiction due to untimeliness.
Nordic therefore prevailed on the costs issue. It filed
this certiorari application based on concerns regarding the
impact of the ICA’s published decision on other matters. Nordic
raises two questions on certiorari:
1. Did the ICA gravely err when it effectively overruled the “bright line” rule of its previously published SHOPO decision [State of Hawaii Organization of Police Officers (SHOPO) v. County of Kauai, 123 Hawai‘i 128, 230 P.3d 428 (App. 2010) (per curiam)] by holding that the [March 3, 2017 order] was a final order that terminated the proceedings for purposes of appellate jurisdiction notwithstanding the fact that it retained the matter for further proceedings by vacating the underlying arbitration award and directing a rehearing before a new arbitrator?
2. Did the ICA gravely err by retrospectively applying this change in Hawai[‘]i law regarding when an order vacating an arbitration award becomes appealable to the substantial prejudice of both parties?
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We answer question (1) “yes.” We therefore need not
address question (2).
Question (1) requires us to interpret HRS § 658A-28(a)
within the Hawai‘i Uniform Arbitration Act, which is modelled on
the Model Uniform Arbitration Act (“UAA”). HRS § 658A-28(a)1
contains an ambiguity. HRS § 658A-28(a)(3) allows an appeal
from an order denying confirmation while subsection (a)(5)
indicates an appeal is not allowed from an order vacating an
award if a rehearing is ordered. Thus, the March 3, 2017 order
appears appealable under subsection (a)(3) because the circuit
court denied confirmation. But it also appears unappealable
under subsection (a)(5) because the circuit court ordered a
rehearing.
With respect to this conflict, for reasons explained below,
the majority of UAA states hold that an order vacating for a
rehearing is not appealable based on subsection (a)(5), despite
the language of subsection (a)(3). We hold that the ICA was
correct when it adopted this majority rule in SHOPO, 123 Hawai‘i
128, 230 P.3d 429. But we hold the ICA erred by ruling in this
1 HRS § 658A-28(a) provides in relevant part: (a) An appeal may be taken from: . . . . (3) An order confirming or denying confirmation of an award; . . . . (5) An order vacating an award without directing a rehearing[.]
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case that subsection (a)(5)’s preclusion of an appeal does not
apply when the rehearing ordered is a full rehearing, as
compared to a partial rehearing, as was the case in SHOPO.
In so ruling, the ICA adopted a minority view, inconsistent
with the majority rule it had correctly adopted in SHOPO. And
subsection (a)(5) itself contains no such distinction between
full and partial rehearings. Other reasons also support the
majority rule. The ICA therefore erred by dismissing the
December 29, 2023 appeal of the October 20, 2017 costs order for
lack of appellate jurisdiction based on untimeliness.
Because the March 3, 2017 order was not appealable,
however, the October 20, 2017 costs order was also not
appealable. Hence, appellate jurisdiction is still lacking, not
based on untimeliness, as the ICA ruled, but based on lack of an
appealable order or judgment. Pursuant to our policy of
permitting litigants, where possible, to appeal and to have
their cases heard on the merits, we therefore remand this case
to the ICA with instructions that it temporarily remand the case
to the circuit court with instructions to enter a final judgment
in the first special proceeding and to supplement the record on
appeal with the final judgment. The ICA can then address the
merits of this appeal.
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To avoid this situation from reoccurring, we also provide
guidance to the circuit courts and to the ICA.
II. Background
We previously addressed the underlying dispute in Nordic
PCL Const., Inc. v. LPIHGC, LLC, 136 Hawai‘i 29, 358 P.3d 1
(2015) (“Nordic 2015”). To summarize, in 2006, Nordic and
LPIHGC entered into a subcontract under which Nordic agreed to
provide concrete work for LPIHGC in the Honua Kai construction
project on Maui. 136 Hawaiʻi at 32, 358 P.3d at 4. When a
disagreement arose regarding quality of the work, their dispute
was submitted to binding arbitration. Id.
A. Initial arbitration award and court proceedings
1. Initial award and circuit court proceedings
The initial arbitrator issued an award in favor of LPIHGC
and, in 2010, LPIHGC moved to confirm the award in special
proceeding 1SP101000346. Nordic 2015, 136 Hawaiʻi at 35-36, 358
P.3d at 7-8. Nordic opposed confirmation and filed a motion to
vacate under HRS §6581A-23(a)(2)(A)(2016) based on the
arbitrator’s alleged evident partiality.2 136 Hawaiʻi at 36, 358
2 HRS § 658A-23(a)(2)(A) provides:
Vacating award. (a) Upon motion to the court by a party to an arbitration proceeding, the court shall vacate an award made in the arbitration proceeding if: . . . . (2) There was: (A) Evident partiality by an arbitrator appointed as a neutral arbitrator[.]
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P.3d at 8. Nordic claimed the arbitrator failed to disclose a
substantial relationship with LPIHGC’s lawyers, which created an
impression of bias. 136 Hawaiʻi at 36-37, 358 P.3d at 8-9.
The circuit court held a hearing on LPIHGC’s motion to
confirm the award and Nordic’s motion to vacate, but did not
hold an evidentiary hearing. Nordic 2015, 136 Hawai‘i at 37-38,
358 P.3d at 9-10. The circuit court denied Nordic’s motion to
vacate, granted LPIHGC’s motion to confirm, and entered
judgment. 136 Hawai‘i at 38, 358 P.3d at 10.
2. Appellate court proceedings
Nordic appealed, and the ICA vacated the award based on
evident partiality. Nordic PCL Const., Inc. v. LPIHGC, LLC, No.
CAAP-XX-XXXXXXX, 2014 WL 624870 (Haw. App. Feb. 14, 2014) (mem.
op.). On certiorari, we vacated the ICA’s judgment on appeal
and the circuit court’s judgment because there was insufficient
evidence to determine whether evident partiality existed.
Nordic 2015, 136 Hawai‘i at 31, 358 P.3d at 3. We remanded for
the circuit court to conduct an evidentiary hearing and render
findings of fact and conclusions of law regarding the
arbitrator’s alleged evident partiality. Id.
3. Proceedings on remand
After an evidentiary hearing, on March 3, 2017, the circuit
court found evident partiality to exist, denied confirmation of
the 2010 arbitration award, and ordered a rehearing before a new
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arbitrator. On March 31, 2017, Nordic filed a motion for
taxation of $251,747.31 in costs, mainly for supersedeas bond
premiums paid to stay execution of the judgment pending appeal.
Over LPIHGC’s objection, on October 20, 2017, the circuit court
granted the motion.
LPIHGC then moved for leave to file an interlocutory appeal
under HRS § 641-l(b) (2016). The circuit court denied the
motion based on the ICA’s unpublished order in Noel Madamba
Contracting, LLC v. Romero (“Madamba”), No. CAAP-XX-XXXXXXX,
2018 WL 852453, at *2 (Haw. App. Feb. 14, 2018) (order
dismissing appeal). Madamba actually ruled that “[a]bsent a
final circuit court judgment, the proper way for a circuit court
to authorize appellate review of an interlocutory order awarding
attorneys’ fees and costs would be to grant leave to assert an
interlocutory appeal pursuant to HRS § 641–1(b) (2016)[.]” 2018
WL 852453, at *3. However, the circuit court appears to have
interpreted Madamba as holding that an appeal of costs was not
permitted when a final judgment had yet to be entered.
B. Second arbitration award and court proceedings
1. Second award and circuit court proceedings
The second arbitration, before a new arbitrator, again
resulted in an award in favor of LPIHGC. On June 23, 2023,
LPIHGC filed a petition to confirm this award in a new special
proceeding, 1CSP-XX-XXXXXXX. Nordic opposed confirmation and
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moved to vacate or modify the award. On December 1, 2023, the
circuit court denied Nordic’s motions to vacate or modify,
confirmed the award, and issued a final judgment, which Nordic
separately appealed. That appeal is not the subject of this
certiorari proceeding.
Instead, after the circuit court entered its December 1,
2023 final judgment confirming the second award in 1CSP-23-
0000427, on December 29, 2023, LPIHGC appealed the circuit
court’s October 20, 2017 costs order in 1SP101000346, which had
awarded costs to Nordic for prevailing in the first appeal.
That appeal is the subject of this certiorari proceeding.
2. ICA proceedings
a. Issue on appeal
In its May 8, 2024 opening brief, LPIHGC asserted four
points of error regarding the October 20, 2017 costs order; the
merits of these points of error are not at issue here.3 Instead,
this certiorari proceeding concerns whether the ICA had
3 LPI alleged error in the (1) award of supersedeas bond premiums on the grounds they can only be awarded by an appellate court; (2) award of supersedeas bond premiums as costs pursuant to HRS § 607-9 (2016); (3) award of Hawaiʻi Rules of Appellate Procedure (“HRAP”) Rule 39 costs on the grounds Nordic waived its right to pursue such costs and failed to comply with procedural requirements; and (4) award of other specific costs to Nordic. In response, Nordic argued that (1) the circuit court was authorized by HRS §§ 658A-25 (2016) and 607-9 to award all of Nordic’s costs incurred in its motion to vacate the first arbitration award, including supersedeas bond premiums; (2) HRAP Rule 39 does not reserve exclusive authority to award supersedeas bond payments to appellate courts; (3) it did not waive its right to pursue costs under HRAP 39; and (4) the circuit court’s decision to award specific costs was reasonable and appropriate.
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appellate jurisdiction over LPIHGC’s December 29, 2023 appeal
from the October 20, 2017 costs order in 1SP101000346 based on
the filing of the December 1, 2023 final judgment in 1CSP-23-
0000427. LPIHGC asserted the ICA did have appellate
jurisdiction based on HRS § 641-1(a).4
b. The ICA’s 2010 opinion in SHOPO
The ICA’s SHOPO opinion, 123 Hawai‘i 128, 230 P.3d 428, is
frequently referenced, so we summarize the opinion here.
In SHOPO, a circuit court denied a motion to confirm an
arbitration award, partially granted a motion to vacate the
award, and ordered a partial, supplemental rehearing before the
same arbitrator to determine an appropriate remedy. SHOPO, 123
Hawai‘i at 128-29, 230 P.3d at 428-29. On appeal, the ICA
focused on HRS § 658A-28(5) (“an appeal may be taken from . . .
[a]n order vacating an award without directing a rehearing”).
123 Hawai‘i at 129, 230 P.3d at 429. Because the subsection
indicates appellate jurisdiction exists when an order vacates an
arbitration award without directing a rehearing, the ICA
reasoned that an order vacating an award while directing a
rehearing does not create appellate jurisdiction because it
lacks sufficient finality. Id.
4 HRS § 641-1(a) (2016) provides, “Appeals shall be allowed in civil matters from all final judgments, orders, or decrees of circuit and district courts and the land court to the intermediate appellate court. . . .”
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The ICA addressed the majority and minority rules
interpreting the seeming conflict between HRS § 658A-28(a)(3)
and (a)(5). As explained earlier, HRS § 658A-28(a)(3) says an
appeal may be taken from “[an] order confirming or denying
confirmation of an award[,]” but HRS § 658A-28(a)(5) says an
appeal may be taken from “[a]n order vacating an award without
directing a rehearing[.]” The conflict arises when an order
denies confirmation and vacates an award while also directing a
The ICA adopted the majority rule that appellate
jurisdiction does not exist when a rehearing is ordered. SHOPO,
123 Hawai‘i at 129-32, 230 P.3d at 429-32. The ICA reasoned that
the circuit court’s order did not constitute an appealable final
order because it did not conclude the arbitration process. 123
Hawai‘i at 132, 230 P.3d at 432. The ICA indicated it “agree[d]
with the conclusion reached by several courts that the statutory
structure providing for appeals from arbitration-related orders,
when read as a whole, is designed to permit appeals only from
orders that bring an element of finality to the arbitration
process.” Id.
In SHOPO, the ICA relied heavily on the Nevada Supreme
Court’s opinion in Karcher Firestopping v. Meadow Valley
Contractors, Inc., 125 Nev. 111, 204 P.3d 1262 (2009). Karcher
addressed NRS § 38.247(1)(e), which is identical to HRS § 658A-
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28(a)(5). SHOPO, 123 Hawaiʻi at 129-30, 230 P.3d at 429-30. In
Karcher, the trial court denied a motion to confirm an
arbitration award, granted a motion to vacate the award, “and
referred the matter back to arbitration for supplemental
proceedings.” Karcher, 125 Nev. at 113, 204 P.3d at 1262. The
Nevada Supreme Court held that ordering supplemental arbitration
“extended, rather than concluded, the arbitration process,” so
there was insufficient finality to constitute an appealable
final judgment. Karcher, 125 Nev. at 117, 204 P.3d at 1266.
c. Nordic’s motion to consolidate appeals and ICA’s order to show cause
As additional background, two separate related appeals had
been sua sponte consolidated by the ICA on February 9, 2024. In
CAAP-XX-XXXXXXX, LPIHGC appealed an order in 1CC181000689, a
separate lawsuit filed by Nordic against LPIHGC, which denied
LPIHGC’s motion to dismiss Nordic’s complaint to enforce a
mechanic’s lien discharge bond. In CAAP-XX-XXXXXXX, Nordic
appealed the December 1, 2023 final judgment in 1CSP-XX-XXXXXXX
confirming the second arbitration award.
On June 7, 2024, Nordic filed a motion to consolidate this
appeal with those two previously consolidated appeals, arguing
that the ICA would lack appellate jurisdiction over this appeal
if the ICA were to vacate the order confirming the arbitration
award in CAAP-XX-XXXXXXX. Instead of ruling on motion to
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consolidate, on August 2, 2024, the ICA issued an OSC as to why
the instant costs order appeal should not be dismissed for lack
of appellate jurisdiction. Citing some factors it had discussed
in SHOPO, 123 Hawaiʻi at 129, 230 P.3d at 429, the ICA ordered
the parties to submit briefs addressing whether: (1) the March
3, 2017 order was an order ending the proceedings leaving
nothing further to be accomplished; (2) whether the matter below
was retained for further action; and (3) whether any legal
authority supports the proposition that entry of an appealable
final judgment in one circuit court special proceeding can
trigger a right to appeal from an interlocutory order entered in
a different circuit court special proceeding.
With respect to (1) and (2), the parties’ briefing agreed
that the March 3, 2017 order did not end the proceedings leaving
nothing further to be accomplished because, like in SHOPO, the
March 3, 2017 order called for a new arbitration hearing. With
respect to (3), LPIHGC cited Hawaii Providers Network, Inc. v.
AIG Hawai‘i Ins. Co., Inc., No. 27345, 2006 WL 1402199 (Haw. May
23, 2006) (SDO), in which this court determined that an
appellate decision in a related case constituted a final
decision sufficient to trigger a provision of a stipulation that
a subject case would be dismissed with prejudice. Nordic
countered that appellate review is only permitted of orders or
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judgments filed in the case appealed from and not from orders in
related proceedings.
LPIHGC alternatively posited that if the ICA determined it
lacked appellate jurisdiction, it should temporarily remand the
case for entry of a final judgment in the first special
proceeding, 1SP101000346. LPIHGC cited to Waikiki v. Ho‘omaka
Village Association of Apartment Owners, 140 Hawai‘i 197, 204,
398 P.3d 786, 793 (2017) (per curiam), in which this court held
that where the only thing lacking to perfect an aggrieved
party’s right to appeal was the entry of an appealable final
judgment, the ICA should have exercised its authority under HRS
§ 602-57(3) (2016)5 to temporarily remand the case to circuit
court with instructions to enter an appealable final judgment.6
d. ICA’s published order dismissing appeal
Without ruling on Nordic’s motion to consolidate, in its
September 30, 2024 published order dismissing appeal, the ICA
concluded it lacked appellate jurisdiction and dismissed
5 HRS § 602-57(3) provides in relevant part: “[T]he intermediate appellate court shall have jurisdiction . . . [t]o make or issue any order or writ necessary or appropriate in the aid of its jurisdiction[.]”
6 LPIHGC did not cite to State by Office of Consumer Protection v. Joshua, 141 Hawaiʻi 91, 405 P.3d 527 (2017), in which we subsequently held that when a party to a circuit court civil case timely appeals a purportedly appealable final judgment later determined not to meet appealable final judgment requirements, rather than dismiss the appeal, the ICA must temporarily remand the case to the circuit court “in aid of its jurisdiction” pursuant to HRS § 602-57(3) for entry of an appealable final judgment with a direction to the circuit court to supplement the record on appeal with the final judgment.
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LPIHGC’s December 29, 2023 appeal of the October 20, 2017 costs
order, determining it had been untimely filed. Nordic PCL
Construction, Inc. v. LPIHGC, LLC (“Nordic 2024”) 156 Hawaiʻi 16,
568 P.3d 76 (App. 2024) The ICA reasoned that HRS § 658A-
28(a)(3) rendered the March 3, 2017 order an appealable final
order, and that Nordic’s motion for taxation of costs was like a
post-judgment motion. 156 Hawaiʻi at 21, 568 P3d at 81.
According to the ICA, the October 20, 2017 costs order was
therefore an appealable final order at the time it was issued.
Id.
The ICA distinguished SHOPO on the grounds that, here, the
circuit court ordered a full rehearing before a new arbitrator
rather than a supplemental rehearing before the same arbitrator.
156 Hawaiʻi at 19, 568 P.3d at 79. The ICA opined that a full
rehearing before a new arbitrator essentially wipes the slate
clean, creating sufficient finality to constitute an appealable
order. 156 Hawaiʻi at 18-20, 568 P.3d at 78-80. Therefore,
according to the ICA, while a final appealable order was lacking
in SHOPO, it existed here in the March 3, 2017 order. 156
Hawaiʻi at 19, 568 P.3d at 79. The ICA maintained that an
alternative holding would waste time and resources because
parties would be required to arbitrate all over again before
appealing a circuit court’s order vacating a first arbitration
award. Id.
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The ICA cited extensively to the Texas Supreme Court’s
opinion in E. Texas Salt Water Disposal Co., Inc. v. Werline,
307 S.W.3d 267 (Tex. 2010). 156 Hawaiʻi at 19-20, 568 P.3d at
79-80. There, like in this case, a trial court denied
confirmation of an arbitration award, vacated the award, and
ordered a full rehearing before a new arbitrator. 307 S.W.3d at
269. The ICA relied on Werline to distinguish SHOPO:
In denying Werline’s request for confirmation of the award, the district court made it clear that it rejected the award and all bases on which it rested. . . .
When an arbitration award is unclear or incomplete or contains an obvious error, a limited rehearing to correct the problem is but a preface to determining confirmation, not a decision on the issue. If, for example, the arbitrator’s award required clarification or interpretation, a rehearing for that limited purpose would not necessarily be a denial of confirmation of the award, but merely a deferral of final ruling until the arbitration was complete. When rehearing is necessary for the issue of confirmation to be fully presented, vacatur pending rehearing is not appealable, not because the order falls outside subsection (5), but because it falls outside subsection (3), and the rest of section 171.098(a).
Nordic 2024, 156 Hawaiʻi at 20, 568 P.3d at 80, quoting Werline,
307 S.W.3d at 270-71 (emphasis added; footnote omitted). The
ICA concluded that Werline and SHOPO are consistent because, in
SHOPO, the circuit court’s order was not a final order denying
confirmation under HRS § 658A-28(a)(3) and HRS § 658A-28(a)(5)
did not apply. Nordic 2024, 156 Hawaiʻi at 20, 568 P.3d at 80.
Based on its determination that the circuit court’s March
3, 2017 order constituted an appealable final order, the ICA
concluded that the October 20, 2017 costs order was equivalent
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to a post-judgment order. Nordic 2024, 156 Hawaiʻi at 21, 568
P.3d at 81. The ICA therefore ruled the October 20, 2017 costs
order was appealable when it was issued. Id. Because HRAP Rule
4(a)(2020) requires that a notice of an appeal “be filed within
30 days after entry of the judgment or appealable order,” and
LPIHGC filed its notice of appeal on December 29, 2023, the ICA
held it lacked appellate jurisdiction based on untimeliness.
LPIHGC had alternatively argued that if the ICA determined
appellate jurisdiction to be lacking, it should temporarily
remand the case for entry of a Jenkins7-compliant appealable
final judgment based on Waikiki, 140 Hawaiʻi at 204, 398 P.3d at
793. The ICA rejected this request on the grounds this appeal
is from a special proceeding and Ditto v. McCurdy held that the
7 Jenkins v. Cades Schutte Fleming & Wright, 76 Hawaiʻi 115, 119, 869 P.2d 1334, 1338 (1994) (holding that “[a]n appeal may be taken from circuit court orders resolving claims against parties only after the orders have been reduced to a judgment and the judgment has been entered in favor of and against the appropriate parties pursuant to [Hawaiʻi Rules of Civil Procedure Rule] 58”).
HRCP Rule 58 (2010) provides:
Unless the court otherwise directs and subject to the provisions of Rule 54 of these rules and Rule 23 of the Rules of the Circuit Courts, the prevailing party shall prepare and submit a proposed judgment. The filing of the judgment in the office of the clerk constitutes the entry of the judgment; and the judgment is not effective before such entry. The entry of the judgment shall not be delayed for the taxing of costs. Every judgment shall be set forth on a separate document.
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Jenkins separate judgment rule “is limited to circuit court
orders disposing of claims raised in a circuit court complaint.”
Nordic 2024, 156 Hawaiʻi at 20-21, 568 P.3d 80-81 (citing Ditto
v. McCurdy, 103 Hawaiʻi 153, 159, 880 P.3d 974, 980 (2003)). The
ICA ruled that, in any event, remanding this case to the circuit
court to enter a final judgment would not revive appellate
jurisdiction, as the time to appeal had begun to run on October
20, 2017. 156 Hawaiʻi at 21, 568 P.3d at 81.
3. Certiorari proceedings
Although the ICA’s published order dismissing appeal would
result in an affirmance of the October 20, 2017 costs order in
its favor, Nordic petitioned for certiorari based on concerns
regarding the impact of the ICA’s decision, raising the two
questions on certiorari:
1. Did the ICA gravely err when it effectively overruled the “bright line” rule of its previously published SHOPO decision by holding that the [March 3, 2017 order] was a final order that terminated the proceedings for purposes of appellate jurisdiction notwithstanding the fact that it retained the matter for further proceedings by vacating the underlying arbitration award and directing a rehearing before a new arbitrator?
2. Did the ICA gravely err by retrospectively applying this change in Hawai[‘]i law regarding when an order vacating an arbitration award becomes appealable to the substantial prejudice of both parties?
For the reasons below, we answer the first questions “yes.”
We therefore need not address the second question.
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III. Standards of Review
A. Jurisdiction
A court always has jurisdiction to determine whether it has
jurisdiction over a particular case. Joshua, 141 Hawaiʻi at 95,
405 P.3d at 531. Appellate courts have an independent
obligation to insure they have jurisdiction to hear and
determine each case. SHOPO, 123 Hawaiʻi at 129, 405 P.3d at 429.
The legislature may define and limit the right of appeal because
the remedy of appeal is not a common law right and it exists
only by authority of statutory or constitutional provisions.
Id. The existence of jurisdiction is a question of law and is
reviewed de novo under the right/wrong standard. Lingle v.
Hawai‘i Gov’t Emps. Ass’n, AFSCME, Local 152, AFL-CIO, 107
Hawai‘i 178, 182, 111 P.3d 587, 591 (2005).
B. Statutory interpretation
Statutory interpretation is a question of law reviewable
de novo. State v. Wheeler, 121 Hawai‘i 383, 390, 219 P.3d 1170,
1177 (2009). To interpret statutes, “our foremost obligation is
to ascertain and give effect to the intention of the
legislature, which is to be obtained primarily from the language
contained in the statute itself.” Coon v. City & Cnty. of
Honolulu, 98 Hawai‘i 233, 245, 47 P.3d 348, 360 (2002). “In
determining the purpose of the statute, we are not limited to
the words of the statute to discern the underlying policy which
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the legislature seeks to promulgate.” State v. Wells, 78 Hawai‘i
373, 376, 894 P.2d 70, 73 (1995) (cleaned up). Further, we may
depart from the plain language of a statute if a literal
interpretation would produce an absurd or unjust result that is
inconsistent with the purposes and policies of the statute.
Richardson v. City & Cnty. of Honolulu, 76 Hawai‘i 46, 60, 868
P.2d 1193, 1207 (1994).
IV. Discussion
A. Rules of statutory interpretation support the ICA’s holding in SHOPO that an order vacating an arbitration award is appealable only if it does not direct a rehearing
We first examine the text of the statute. With
respect to the language of the statute itself, HRS § 658A-28
provides:
(a) An appeal may be taken from: (1) An order denying a motion to compel arbitration; (2) An order granting a motion to stay arbitration; (3) An order confirming or denying confirmation of an award; (4) An order modifying or correcting an award; (5) An order vacating an award without directing a rehearing; or (6) A final judgment entered pursuant to this chapter. (b) An appeal under this section shall be taken as from an order or a judgment in a civil action.
(Emphases added.) Thus, HRS § 658A-28(a)(3) allows an appeal
from an order denying confirmation of an award while subsection
(a)(5) indicates an appeal is not allowed from an order vacating
an award if a rehearing is ordered.
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With respect to this conflict, among the thirty-five states
that have adopted the UAA or the Revised UAA, it appears that
three follow the minority position and allow appeals from orders
denying confirmation while vacating and requiring a rehearing.
Thomas A. Telesca et al., Must Arbitrators Follow the Law?, 41
Franchise L.J. 347, 356 (2022) (noting 13 states adopted the UAA
and 22 states and the District of Columbia adopted the Revised
UAA); SHOPO, 123 Hawaiʻi at 131, 230 P.3d at 431 (listing the two
jurisdictions following the minority approach on this issue as
of 2010 as Texas and Missouri).
The majority of states resolve the conflict by holding that
because the language in HRS § 658A-28(a)(5) provides that
vacating an arbitration award without directing a rehearing is
appealable, vacating an award while directing a rehearing is not
appealable. SHOPO, 123 Hawai‘i at 129-31, 230 P.3d at 429-31.
Otherwise, the language “without directing a rehearing” would
become superfluous. 123 Hawaiʻi at 130, 230 P.3d at 430. And
courts are bound, if rational and practicable, to give effect to
all parts of a statute, and no clause, sentence, or word is to
be construed as superfluous. See Franks v. City & Cnty. of
Honolulu, 74 Haw. 328, 339, 843 P.2d 668, 673 (1993).
In this case, the ICA concluded that SHOPO is
distinguishable because the circuit court vacated all the
arbitrator’s rulings and ordered a full rehearing before a new
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arbitrator, while in SHOPO, the court vacated the award only in
part and ordered a partial rehearing before the same arbitrator.
Nordic 2024, 156 Hawaiʻi at 19-20, 568 P.3d at 79-80. In doing
so, it relied on a minority jurisdiction ruling, Werline, from
the Texas Supreme Court. Id.
But subsection (a)(5) itself does not distinguish between
full and partial rehearings. Other majority jurisdictions with
the same statutory language have also not made this distinction.
For example, in SHOPO, the ICA cited favorably to majority
jurisdiction opinions from Nebraska, Washington, D.C., and
Maine. SHOPO, 123 Hawaiʻi at 132, 230 P.3d at 432 (citing
Nebraska Dep’t of Health & Human Servs. v. Struss, 623 N.W.2d
308, 314 (Neb. 2001); Connerton, Ray & Simon v. Simon, 791 A.2d
86, 87 (App. D.C. 2002) (per curiam); and Dep’t of Transp. v.
State Emp. Ass’n, 581 A.2d 813, 814–15 (Me. 1990)). In all of
those cases, courts ordered rehearings before new arbitrators.
In Struss, like here, a trial court denied a motion to
confirm, vacated the award, and remanded for a rehearing before
a new arbitrator. 623 N.W.2d at 312. Based on a Nebraska
statute with language identical to HRS § 658A-28(a), the Supreme
Court of Nebraska interpreted subsection (5) to mean that an
order vacating an award while directing a rehearing is not
appealable. 623 N.W.2d at 314. The court reasoned that the
inclusion of the phrase “without directing a rehearing” meant
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that orders directing a rehearing are not appealable. Id. The
Nebraska Supreme Court did not distinguish between a
supplemental rehearing before the same arbitrator and a full
rehearing before a new arbitrator.
Similarly, in Connerton, the trial court vacated an
arbitration award, denied confirmation, and ordered a full
rehearing before a new arbitrator to “essentially begin
arbitration anew.” 791 A.2d at 87. The District of Columbia
Court of Appeals acknowledged that under D.C. Code § 16-
4317(a)(3),8 the order appeared to be appealable because the
court denied confirmation. Id. The court reasoned, however,
that such a ruling would render subsection (5) superfluous. Id.9
In Department of Transportation, the Supreme Judicial Court
of Maine addressed appealability when, after a full new
rehearing before a new arbitrator had resulted in a second
arbitration award, a party appealed the first arbitration award
that had been vacated. 581 A.2d at 813-14. The court addressed
8 Like Hawaiʻi, the District of Columbia adopted the Revised UAA and the text of D.C. Code § 16-4317(a) is identical to HRS § 658A-28(a).
9 Connerton also cited to Kepner v. United States, 195 U.S. 100, 125, 24 S.Ct. 797, 803 (1904) for the rule of statutory interpretation that specific terms prevail over general terms. The court reasoned that subsection (5) is more specific while subsection (3) is general, because subsection (5) “addresses the jurisdictional impact of ordering a new rehearing.” Connerton, 791 A.2d at 88. The court determined that the specific provision of subsection (5) should be prioritized over the general provision of subsection (3) because it is a “clearer and more definite expression of the legislative will.” 791 A.2d at 88 (citations omitted).
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language identical to HRS § 658A-28(a)(3) and (5) in ruling that
the appeal had to be dismissed for lack of appellate
jurisdiction. 581 A.2d at 814. The court stated:
Although [language identical to HRS § 658A-28(a)(3)] does provide for an appeal from an order confirming or denying confirmation of an award, that section has to be read in conjunction with [language identical to HRS § 658A- 28(a)(5)] and with the sound policy, present throughout our system of jurisprudence as well as in the arbitration statute, of preserving judicial resources and limiting appeals prior to judgment to those instances where the element of finality is present. (quoting Uniform Arbitration Act Prefatory Note, 7 Uniform Laws Annotated 2 (Master Ed.1978)). By providing for appeals only from those orders vacating arbitration awards that do not direct a rehearing, [language identical to HRS § 658A-29(a)(5)] implicitly bars appeals from orders that direct a rehearing.
581 A.2d at 814-15 (cleaned up).
Thus, majority jurisdiction states do not draw the
distinction made by the ICA in distinguishing SHOPO. It appears
three states have adopted the minority position based on
subsection (3), which expressly permits an appeal from an order
denying confirmation of an arbitration award. Morgan Keegan &
Co. v. Smythe, 401 S.W.3d 595 (Tenn. 2013); Werline, 307 S.W.3d
at 270 (Texas); Nat’l Ave. Bldg. Co. v. Stewart, 910 S.W.2d 334,
341 (Mo. Ct. App. 1995). According to the Tennessee Supreme
Court, “[t]o hold otherwise would be to elevate form over
substance and would enable trial courts to shield their orders
vacating arbitration awards from timely appellate review.” 401
S.W.3d at 607. Werline posits that subsection (5) does not
expressly prohibit appeals when a trial court orders a
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rehearing; it merely does not say whether appeals are permitted.
Werline, 307 S.W.3d at 275 (Willett, J., concurring). Because
subsection (3) says appeals are allowed from a denial of
confirmation, the minority approach prioritizes subsection (3).
Id.10
But in interpreting statutes, our obligation is to
ascertain and give effect to the intention of our legislature.
Hawaiʻi enacted the UAA as HRS Chapter 658A in 2001 to
“standardize Hawaiʻi's arbitration laws with those used in other
states. . . .” Conf. Comm. Rep. No. 115, in 2001 House Journal,
at 1093, 2001 Senate Journal, at 905. Thus, legislative intent
supports following the majority rule to prioritize subsection
(a)(5). Interpreting a UAA provision consistently with the
majority of states furthers the goal of standardizing Hawaiʻi’s
arbitration law with that of other states.
10 We also previously held that HRS § 658A-28(a) only “enumerates the appeals that ‘may’ be taken from a court order concerning an arbitration proceeding, [and] does not represent an exclusive list of appealable orders,” which could be interpreted to support the minority approach. Cnty. of Hawaiʻi v. UNIDEV., LLC, 129 Hawaiʻi 378, 380, 301 P.3d 588, 590 (2013). UNIDEV, however, dealt with an appeal of an order compelling arbitration, which is not listed in HRS § 658A-28(a); we held that, despite this, an order compelling arbitration is sufficiently final under the collateral order doctrine to be appealable under the general civil matters appeal statute, HRS § 641-1 (which allows appeals “in civil matters from all final judgments,” etc.). Id. An order awarding costs for an initial arbitration proceeding in which a new hearing has been ordered does not have the same finality.
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B. Policies regarding finality and conservation of resources also favor construing HRS § 658A-28 as disallowing an appeal from an order vacating an arbitration award if a rehearing is directed
In SHOPO, the ICA indicated it “agree[d] with the
conclusion reached by several courts that the statutory
structure providing for appeals from arbitration-related orders,
when read as a whole, is designed to permit appeals only from
process.” 123 Hawai‘i at 132, 230 P.3d at 432.
The Struss opinion from the Supreme Court of Nebraska,
which the ICA cited in SHOPO, also favored finality. The
Nebraska court determined that the “obvious purpose” of the
statute is to “identify orders relating to arbitration which are
final and appealable.” Struss, 623 N.W.2d at 314 (emphasis
added). This reasoning also led the court to adopt the majority
position and determine finality for appellate jurisdiction does
not exist when the trial court vacates an arbitration award and
orders a rehearing, including before a new arbitrator. Id.
We depart from the language of a statute, here subsection
(a)(3), if a literal construction would produce an absurd or
unjust result inconsistent with the purposes and policies of the
statute. Richardson, 76 Hawai‘i at 60, 868 P.2d at 1207. The
purpose of HRS § 658A-28(a) is to standardize state arbitration
law and identify orders that have sufficient finality to
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conclude the arbitration process and create appellate
jurisdiction. SHOPO, 123 Hawai‘i at 130-31, 230 P.3d at 430-31.
When an award is vacated and a rehearing is ordered, whether the
rehearing is partial or full, finality is lacking.
This court has also expressed the need to preserve judicial
resources by limiting appeals to instances where finality
plainly exists. Jenkins, 76 Hawai‘i at 119, 869 P.2d at 1338.
We are also cognizant of the need to not waste the parties’ time
and resources. In this regard, the Missouri Court of Appeals
held that if parties are required to undergo a second
arbitration before appealing, the second arbitration could also
be vacated with a new rehearing ordered, and that order would
also not be appealable. Stewart, 910 S.W.2d at 340.
But although waiting to appeal until after the second
arbitration is completed would seemingly burden parties with
time and resources, parties would also incur time and resources
to appeal an order denying confirmation, vacating, and remanding
for a new hearing before a new arbitrator. As recognized by the
United States Court of Appeals for the Fifth Circuit, “[t]hough
waiting until after the arbitration to seek appellate review . .
. may waste the parties’ resources, parties may also waste
resources appealing every referral when a quick arbitration
might settle the matter.” In re Amberson, 57 F.4th 205, 207
(5th Cir. 2023) (per curiam) (cleaned up).
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In our opinion, the majority rule therefore supports the
policies favoring finality and conservation of resources.
C. Disallowing appeals from orders vacating arbitration awards and requiring a new hearing is analogous to disallowing appeals from orders granting new trials in civil proceedings
In addressing whether orders denying confirmation, vacating
awards, and ordering a new hearing should be appealable, courts
have also considered whether the jurisdiction allows
interlocutory appeals of orders granting a new trial in a civil
suit. See, e.g., Stewart, 910 S.W.2d at 340. In Stewart, the
Missouri Court of Appeals, which adopted the minority rule,
distinguished the majority rule holding in Department of
Transportation, 581 A.2d 813. In Maine, a party cannot appeal
an order granting a new trial in a civil case until judgment is
entered after the new trial; in contrast, Missouri allows
appeals “from any order granting a new trial” in civil
litigation. 910 S.W.2d at 340. This was another factor that
led the Missouri court to adopt the minority rule. Id.
In Hawai‘i, like in Maine, appeals are not permitted from
orders granting a new trial in a civil suit until after the
final judgment in the second trial. See Murasko v. Loo, 125
Hawai‘i 39, 43, 252 P.3d 58, 62 (2011) (per curiam) (“ [A]n order
granting a new trial is not an appealable order. . . .”). This
factor also supports the majority rule.
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For all these reasons, we hold that under the majority rule
correctly adopted by the ICA in SHOPO, an order denying
confirmation of an arbitration award, vacating the award, and
ordering a rehearing does not constitute an appealable order
under HRS § 658A-28.
D. As appellate jurisdiction is still lacking, we vacate the ICA’s dismissal of the appeal and remand this matter to the ICA with instructions that it temporarily remand the case to the circuit court for entry of an appealable final judgment in 1SP101000346
Because we hold, contrary to the ICA, that the March 3,
2017 order in the first special proceeding, 1SP101000346, was
not appealable, the October 20, 2017 costs order in that special
proceeding, which is the subject of this appeal, was also not
appealable when it was issued.
Although a final judgment was entered after the second
award in 1CSP-XX-XXXXXXX, no final judgment was entered in
1SP101000346. The final judgment in 1CSP-XX-XXXXXXX did not
allow appellate review of an order in 1SP101000346. Thus,
appellate jurisdiction is lacking.
In furtherance of our policy of permitting litigants, where
possible, to appeal and to have their cases heard on the merits,
Dailey v. Dep’t of Land & Nat. Res., 155 Hawaiʻi 348, 350, 564
P.3d 1147, 1149 (2025), we consider how the merits of LPIHGC’s
appeal of the October 20, 2017 costs order can be addressed.
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Under the circumstances, pursuant to HRS § 602-5(a)(6) (2016),11
we vacate the ICA’s dismissal order and remand this case to the
ICA with instructions that it: temporarily remand the case to
the circuit court in 1SP101000346 (the first special
proceeding); with instructions to treat 1CSP-XX-XXXXXXX (the
second special proceeding) as a continuation of 1SP101000346,
enter a final judgment in the first special proceeding
consistent with the judgment entered in the second special
proceeding, and to supplement the record on appeal with the new
final judgment. The ICA can then address the merits of this
appeal.12
E. Guidance
In order to avoid this situation from reoccurring in the
future, we provide guidance to the circuit courts (and circuit
11 HRS § 602-5(a)(6) provides:
(a) Except as otherwise provided, the supreme court shall have jurisdiction and powers as follows:
. . . .
(6) To make and award such judgments, decrees, orders and mandates, issue such executions and other processes, and do such other acts and take such other steps as may be necessary to carry into full effect the powers which are or shall be given to it by law or for the promotion of justice in matters pending before it.
12 This is consistent with LPIHGC’s request. Nordic suggested that the ICA consolidate this appeal with the two related consolidated appeals, CAAP- XX-XXXXXXX and CAAP-XX-XXXXXXX. But the ICA issued a memorandum opinion regarding these two appeals on March 10, 2025; and the judgment on appeal on June 18, 2025.
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court practitioners) and to the ICA pursuant to our inherent
powers as well as our supervisory powers under HRS § 602-4
(2016).13 See State v. Milne, 149 Hawaiʻi 329, 335, 489 P.3d 433,
439 (2021).
With respect to the circuit courts, when an arbitration
award is vacated with an order for a new hearing, practitioners
should file motions to confirm the award issued after the
rehearing in the original special proceeding. Any costs order
pertaining to the first vacated arbitration award should be
included in a final judgment confirming a later arbitration
award. The final judgment would not render a previous order
vacating for a rehearing appealable. However, if the motion to
confirm the later arbitration award is filed in a new special
proceeding, as it was here, the circuit court should consolidate
the two special proceedings and issue one final judgment
regarding the two special proceedings.
With respect to the ICA, in this case, the ICA ordered
dismissal for lack of appellate jurisdiction based on
timeliness, not based on the lack of an appealable order or
judgment. As discussed earlier, LPIHGC had alternatively argued
that if the ICA determined appellate jurisdiction to be lacking
13 HRS § 602-4 provides, “Superintendence of inferior courts. The supreme court shall have the general superintendence of all courts of inferior jurisdiction to prevent and correct errors and abuses therein where no other remedy is expressly provided by law.”
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based on the lack of an appealable order (instead of
untimeliness), the case should be temporarily remanded for entry
of a Jenkins-compliant appealable final judgment pursuant to
Waikiki, 140 Hawaiʻi 197, 398 P.3d 786. The ICA rejected
LPIHGC’s request not only on the grounds that remanding the case
for entry of a final judgment would not revive appellate
jurisdiction, but also on the grounds that this appeal is from a
special proceeding and the Jenkins separate judgment rule is
limited to circuit court orders disposing of claims raised in a
circuit court complaint. Nordic 2024, 156 Hawaiʻi at 21, 568
P.3d at 81.
Waikiki was based on HRS § 602-57(3), which provides:
“[T]he intermediate appellate court shall have jurisdiction . .
. [t]o make or issue any order or writ necessary or appropriate
in the aid of its jurisdiction[.]” The statute does not
distinguish between proceedings initiated by civil complaints
and special proceedings. We therefore provide guidance to the
ICA that in special proceedings, as in civil complaint
proceedings, if the lack of appellate jurisdiction is based only
on the lack of an appealable order or final judgment, and the
record indicates the issues before the circuit court have been
resolved leaving nothing further to be accomplished, rather than
dismiss the appeal for lack of jurisdiction, the ICA should
temporarily remand the case to the circuit court for entry of an
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appealable order or final judgment with a direction to the
circuit court to supplement the record on appeal with the final
judgment.
In this regard, when a motion to confirm is filed in a new
special proceeding (as it was here), so that the ICA can
exercise its authority under HRS § 602-57(3) to act in aid of
its jurisdiction, pursuant to our authority under HRS § 602-
5(a)(6) (which permits this court to enter rulings that promote
justice), we hold that the ICA may treat the second special
proceeding as a continuation of the first special proceeding.
V. Conclusion
Based on the reasoning above, we vacate the ICA’s dismissal
order and remand this case to the ICA with instructions that it
temporarily remand the case to the circuit court with
instructions to enter a final judgment in 1SP101000346 and to
supplement the record on appeal with the final judgment. The
ICA can then address the merits of this appeal.
David Schulmeister /s/ Sabrina S. McKenna for petitioner /s/ Todd W. Eddins Terence J. O’Toole (Kukui Claydon, /s/ Lisa M. Ginoza with him on the briefs) for respondent /s/ Kirstin M. Hamman
/s/ Steven R. Nichols