Ralston v. Board of Land and Natural Resources

Hawaii Supreme Court·Decided May 15, 2026·No. SCWC-22-0000402·Published

Opinion

Electronically Filed

Supreme Court

SCWC-XX-XXXXXXX

15-MAY-2026

07:50 AM

Dkt. 25 OP

IN THE SUPREME COURT OF THE STATE OF HAWAIʻI

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TYLER RALSTON,

Petitioner/Appellant-Appellant,

vs.

BOARD OF LAND AND NATURAL RESOURCES and RESORTRUST HAWAII, LLC, Respondents/Appellees-Appellees.

SCWC-XX-XXXXXXX

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

MAY 15, 2026

DEVENS, C.J., McKENNA, EDDINS, AND GINOZA, JJ., AND CIRCUIT JUDGE CASTAGNETTI, ASSIGNED BY REASON OF VACANCY

OPINION OF THE COURT BY McKENNA, J.

I. Introduction

The narrow question before us concerns whether the private attorney general doctrine (“PAG doctrine”) applies when a party challenging a one-year revocable permit is denied a contested case hearing and an appellate court determines due process

requires a contested case hearing, but remands the matter to the lower court to determine the scope of relief. We conclude the Intermediate Court of Appeals (“ICA”) erred by ruling that the PAG doctrine does not apply because it has not yet been determined what relief, if any, could be obtained on remand. We therefore vacate the ICA’s September 19, 2025 order denying Tyler Ralston’s (“Ralston”) attorney fees and remand this matter to the ICA to determine the reasonableness of Ralston’s attorney fees and whether Resorttrust Hawaii, LLC (“RTH”) is liable for them.

II. Background

A. Factual background RTH owns and operates the Kahala Hotel. The underlying dispute arises from RTHʻs use of ceded lands fronting the hotel, known as Lot 41. The ICA recently outlined the history of Lot 41 in a related case:

In 1963, four years after the crown and government lands were returned, the State entered into an agreement with the Kahala Hilton Hotel, Charles J. Pietsch, Jr., and David T.

Pietsch (collectively, Kahala Hotel) to allow Kahala Hotel to “dredge a swimming area and construct a beach . . . for and on behalf of the State.” The agreement provided that “[t]itle to and ownership of all filled and reclaimed lands and improvements seaward of the makai boundaries . . .

shall remain in and vest in the State of [Hawaiʻi] and shall be used as a public beach.” (Emphasis added.)

This newly constructed beach and swimming area (Lot 41) is part of the returned crown and government lands.

In 1968, shortly after completion of Lot 41, the Board granted a temporary month-to-month permit for one year to Kahala Hotel allowing it “to enter and occupy” 6,250 square feet of Lot 41 for “[r]ecreational purposes.” The Board

granted these temporary month-to-month yearly permits for the next 50 years.

. . . .

In August 2018, the new owner of Kahala Hotel, . . .

Resorttrust Hawaii (or RTH), requested to amend its permit for Lot 41, which granted it use of 40,460 square feet.

The request recounted some of the history of the Kahala Hotel’s use of Lot 41, noting that the Board granted Kahala Hotel use of the entire parcel in 1986; the parcel served as a “buffer zone” between the sandy beach and hotel; and the parcel was used for “hukilaus,” parties, weddings and other “important events,” with public access along the side of the parking structure and by the shoreline.

Frankel v. Bd. of Land & Nat. Res., 155 Hawaiʻi 358, 361-62, 564 P.3d 1157, 1160-61 (App. 2025) (alterations in original, footnotes omitted), cert. denied, 2025 WL 1713026 (Haw. June 19, 2025).

In January 2019, the Board of Land and Natural Resources (“BLNR” or “Board”) issued RTH revocable permit number S-7915 (“RP 7915”), which in relevant part required RTH to pay the State a monthly rent of $1,320.05 to utilize Lot 41 for “[r]ecreational and maintenance purposes limited to storage area, cabana hale, cabana tent, beach shower, tower caddy, hammock, trash can, beach chair storage, clam shell lounger, beach chair set up, and outrigger canoes storage.” BLNR granted RTH one-year extensions of RP 7915 in 2020 and 2021. This matter concerns the 2022 renewal of RP 7915. B. BLNR’s 2022 renewal of RP 7915 At a November 12, 2021 public meeting, the Board considered RTH’s request to renew RP 7915 for the 2022 calendar year.

Ralston submitted testimony opposing the continuation of permit conditions that allowed RTH to pre-set lounge chairs, which he contended “generally sends a message that this land is for hotel guests and not for the public.” Ralston also orally requested a contested case hearing. BLNR advised Ralston to submit his request for a contested case in writing within ten days.

Ralston therefore submitted a written petition for a contested case hearing on November 17, 2021. Ralston explained his specific property interest in Lot 41 that he contended entitled him due process protections:

I began enjoying the RP parcel, the sandy beach, and the waters in front of the Kāhala Hotel and Resort (Kahala Hilton at that time) in the late 1960s. I have frequented the area for recreation and enjoyment my whole life and I am very familiar with the area. I started swimming and snorkeling out beyond the dredged lagoon over the reef and far out in front of the hotel in the channel through the reef, around 1980. Hundreds of times over the decades I’ve enjoyed recreation and relaxing on the sandy beach and the RP parcel after a swim with family and friends. When my son was born, and as he grew, our family spent countless hours swimming in the lagoon and out over the reef, and playing on the sandy beach and grassed over RP portion of the beach. More recently, in the last approximately six years, the area has changed for the worse. In particular, the grassed over beach portion (the State land RP parcel)

has changed such that it’s been more challenging to enjoy recreation, lounging, the natural views and beauty of the area. The negative changes have all been the result of the Hotel placing furniture and other items of their commercial activity on the RP parcel. Other than when I was away at college and at an internship, I would go to the beach in front of the Kāhala Hotel and Resort two to four times a week (until 2017). Since approximately 2017, I have gone there approximately twice a month, sometimes more frequently up to several times a week.

My use and enjoyment of the revocable permit parcel and the surrounding area are adversely affected by the hotel’s use of the revocable permit property (pre-setting beach chairs, storing equipment, and making commercial use of the land).

I cannot use those areas where the hotel’s chairs and

equipment remain (I have no objection to the shower or garbage cans.) The area is cluttered and unsightly.

Please see the testimony I provided this year and in prior years.

BLNR considered Ralston’s written petition for a contested case hearing at a January 14, 2022 public meeting. It denied the petition after an executive session. C. Appellate proceedings 1. Underlying appeal Ralston appealed to the Circuit Court of the First Circuit (“circuit court”), challenging the Board’s denial of a contested case hearing and the renewal of RTH’s permit without a contested case hearing.

On May 19, 2022, after hearing oral argument from counsel for Ralston, RTH, and BLNR, the circuit court affirmed the Board’s denial of Ralston’s request for a contested case hearing and issuance of RP 7915 for the 2022 calendar year. In relevant part, the circuit court concluded:

10. Even assuming [Ralston] has a property interest protected by due process, [Ralston] has been given a meaningful opportunity to be heard through the BLNR meetings on RP 7915. The record demonstrates that [Ralston] has been given ample opportunity to share his views and concerns with BLNR, including providing written and oral testimony on RP 7915 and past RPs issued to RTH.

[Ralston] has also submitted declarations and photographs in support of legal challenges to past RPs for the use of the State Parel.

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