Richardson v. City and County of Honolulu

868 P.2d 1193, 76 Haw. 46, 1994 Haw. LEXIS 11
CourtHawaii Supreme Court
DecidedFebruary 18, 1994
Docket16457
StatusPublished
Cited by166 cases

This text of 868 P.2d 1193 (Richardson v. City and County of Honolulu) 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
Richardson v. City and County of Honolulu, 868 P.2d 1193, 76 Haw. 46, 1994 Haw. LEXIS 11 (haw 1994).

Opinions

LEVINSON, Justice.

The United States District Court for the District of Hawai'i has certified a question of state law to this court. See Hawai'i Rules of Appellate Procedure (HRAP) 13 (1987).1 In substance, the question is whether Ordinance 91-95 of the City and County of Honolulu,2 relating, inter alia, to residential condominium leasehold conversion, is preempted by Hawai'i Revised Statutes (HRS) chs. 46, 101, 516, 516D, 519, 514A, or 421H, as interpreted in conjunction with the Hawai'i Constitution.

The plaintiffs-appellants William S. Richardson, Henry H. Peters, Oswald K. Stender, Myron B. Thompson, and Matsuo Takabuki (the Trustees), in their capacities as Trustees of the Kamehameha Schools/Bernice Pauahi Bishop Estate, urge that the question be answered in the affirmative. The defendant-appellee City and County of Honolulu (the City) and the intervenor-appellee HALE Coalition (the Coalition) urge a negative answer. For the reasons discussed below, we answer the question in the negative and rule that Ordinance 91-95 is not preempted by state law.

I. BACKGROUND

On December 4, 1991, the Honolulu City Council enacted Bills 156 (1990) and 36 (1991), which became effective on December 18, 1991, as Ordinances 91-95 and 91-96, respectively. Ordinance 91-95 provides for the condemnation of a lessor’s leased fee interest in leasehold condominium developments,3 cooperative housing corporation de[52]*52velopments,4 and planned unit developments 5 and the transfer of such fee simple interests to the lessees. See Honolulu, Haw., Rev.Ordinances §§ 38-1.3 (applicability), 38-1.7 (administration of chapter), 38-1.8 (department powers and duties), 38-1.9 (quitclaim deeds), and articles 2 (condemnation of condominium development leaseholds), 3 (condemnation of cooperative housing development leaseholds), 4 (condemnation of residential planned development leaseholds), and 5 (eminent domain) (Apr. 1992 Rev.). Ordinance 91-966 imposes a ceiling on renegotiated lease rents for ground leases of owner-occupied residential “apartments”7 in the City and County of Honolulu. See Honolulu, Haw., Rev.Ordinances §§ 39-1.5 (maximum annual renegotiated lease rent), 39-1.6 (biennial adjustment of renegotiated lease rent), and 39-1.7 (administrative adjustment of an[53]*53nual renegotiated lease rent to exceed maximum) (Apr. 1992 Rev.).

In response to the enactment of these two ordinances, the Trustees, on December 18, 1991, filed a complaint (No. 91-00725 DAE) against the City in the United States District Court for the District of Hawai‘i (the federal court), challenging the validity of Ordinances 91-95 and 91-96. The Coalition, a group representing the interests of lessees, was granted leave to intervene as a defendant on April 1, 1992.

The Trustees’ complaint advances thirteen claims for relief. Count XIII, at issue in the instant case, alleges, inter alia, that: (1) Ordinance 91-95 is preempted by HRS chs. 101 (eminent domain), 516 (residential leaseholds), 516D (residential leasehold condominiums and cooperatives), 519 (real property leases), 514A (condominium property regimes), and 421H (limited-equity housing cooperatives); and (2) the City lacked the authority to enact Ordinance 91-95 because (a) the ordinance conflicts with these statutes and the Hawai'i Constitution, and (b) the state has not delegated such authority to the City.

On February 14, 1992, the Trustees filed a motion for partial summary judgment as to Counts I through IV, VI, VII, XII, and XIII. On June 8, 1992, the Coalition filed a motion for summary judgment as to the remaining counts of the complaint. On June 9, 1992, the City filed a cross motion for summary judgment on all-counts.8

On September 16, 1992, the federal court entered an order resolving the claims for relief contained in Counts I through XII of the Trustees’ complaint. 802 F.Supp. 326. Specifically, the federal court’s order granted the Trustees’ motion for partial summary judgment with respect to all counts relating to Ordinance 91-96 and declared the ordinance unconstitutional. However, the federal court found Ordinance 91-95 “to be in compliance with the relevant provisions and standards of the United States Constitution and the Constitution of the State of Ha-wai[‘]i” and, accordingly, granted partial summary judgment in favor of the City and the Coalition and against the Trustees on the Trustees’ constitutional claims.

Although it upheld the constitutionality of Ordinance 91-95, the federal court’s order did not resolve Count XIII of the Trustees’ complaint. Rather, “[u]pon careful review of the relevant state law and the underlying ... policy implications involved,” the federal court found “that the purely state law preemption issue would be best answered in the first instance by the Hawai[‘]i Supreme Court.” Therefore, the federal court certified the question to this court pursuant to HRAP 13. On October 26, 1992, we entered an order determining the question to be “amenable to answer” and establishing an appropriate briefing schedule for the parties.

II. CERTIFIED QUESTION

According to Hawai'i state law, is Ordinance 91-95 preempted by HRS chs. 46, 101, 516, 516D, 519, 514A, or 421H, as interpreted in conjunction with the Hawai'i Constitution?

III. DISCUSSION

A. The City Possesses The Authority To Enact Ordinance 91-95.

The Trustees devote considerable energy to the contention that “[t]he state legislature never delegated to the. City the authority necessary for it to enact an involuntary fee conversion ordinance.” Trustees’ opening brief at 10-15. The City’s statutory authority to enact Ordinance 91-95 is not expressly placed in issue by the federal court’s certified question. Nevertheless, we choose to resolve the issue inasmuch as the federal court indicated unambiguously, in the course of settling the precise language of the certified question, that it intended

the question [to] be as broad as is appropriate because [it did not] want the Su[54]*54preme Court to decide the issue, have the matter then go to the Ninth Circuit Court of Appeals, have someone make the argument that ... there [is] still [another] issue, send it back down to [the federal court] ... because it hasn’t been decided, ... and [the parties] are right back at square one again.

Oct. 15, 1992 Tr. at 10-11.

I. HRS §§ 46-61, 4.6-62, and 101-2 neither limit the counties’ general “power of eminent domain nor divest them of the authority to enact ordinances allowing for the condemnation of land for any particular public purpose.

The City maintains that it has the authority to enact Ordinance 91-95 pursuant to HRS § 46-1.5(6) (Supp.1992), which confers upon the City the power of condemnation by eminent domain when it is in the public interest to do so.9 City’s answering brief at 2-7.

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Cite This Page — Counsel Stack

Bluebook (online)
868 P.2d 1193, 76 Haw. 46, 1994 Haw. LEXIS 11, Counsel Stack Legal Research, https://law.counselstack.com/opinion/richardson-v-city-and-county-of-honolulu-haw-1994.