Sierra Club v. Board of Land and Natural Resources

Hawaii Intermediate Court of Appeals·Decided November 18, 2025·No. CAAP-22-0000063·Published

Opinion

NOT FOR PUBLICATION IN WEST'S HAWAI‘I REPORTS AND PACIFIC REPORTER

Electronically Filed Intermediate Court of Appeals CAAP-XX-XXXXXXX 18-NOV-2025 08:02 AM Dkt. 162 MO

NO. CAAP-XX-XXXXXXX

IN THE INTERMEDIATE COURT OF APPEALS OF THE STATE OF HAWAIʿI

SIERRA CLUB, Plaintiff-Appellant, v. BOARD OF LAND AND NATURAL RESOURCES, DEPARTMENT OF LAND AND NATURAL RESOURCES, DAWN N.S. CHANG in her official capacity as Chairperson of the Board of Land and Natural Resources, 1 ALEXANDER AND BALDWIN, INC., EAST MAUI IRRIGATION COMPANY, LLC, COUNTY OF MAUI, MAHI PONO, LLC and MAHI PONO HOLDINGS, LLC, Defendants-Appellees

APPEAL FROM THE CIRCUIT COURT OF THE FIRST CIRCUIT (CIVIL NO. 1CC191000019)

MEMORANDUM OPINION (By: Nakasone, Chief Judge, Leonard and Hiraoka, JJ.)

This appeal arises out of a 2020 bench trial on Plaintiff-Appellant Sierra Club's claims that Defendant-Appellee

1 Pursuant to Hawai‘i Rules of Appellate Procedure (HRAP) Rule 43(c)(1), Dawn N.S. Chang, in her official capacity as Chairperson of the Board of Land and Natural Resources, is automatically substituted as Defendant-Appellee herein in place of Suzanne Case. NOT FOR PUBLICATION IN WEST'S HAWAI‘I REPORTS AND PACIFIC REPORTER

Board of Land and Natural Resources (BLNR) breached its public trust duties in Count 2 and violated its Hawaii Revised Statutes (HRS) Chapter 205A obligations in Count 3, by approving the continuation of 2019 and 2020 annual permits (Permits) allowing Defendants-Appellees Alexander & Baldwin, Inc. (A&B) and East Maui Irrigation Company, LLC (EMI) (collectively, A&B/EMI) to divert water from East Maui streams. We hold that, because the claims in Counts 2 and 3 expressly and substantively challenged BLNR's decisionmaking on the Permits, BLNR had exclusive original jurisdiction over the claims; and Sierra Club was required to exhaust all corrective procedures provided in BLNR's administrative process, including an administrative appeal under HRS § 91-14. See Maui Lani Neighbors, Inc. v. State (Maui Lani), 156 Hawaiʻi 520, 533, 542, 575 P.3d 610, 623, 632 (2025) (holding that the circuit court lacked jurisdiction to hear claims that challenged the substance of the commission's approval of a county special use permit, where plaintiff failed to exhaust the administrative remedies available to it under HRS § 91-14). 2 Alternative vehicles for judicial review -- such as HRS § 632-1 declaratory relief, a direct action for breach of trust under state constitutional public trust provisions, or an original action for a Coastal Zone Management Act (CZMA) violation under HRS § 205A-6 -- were not available under the circumstances of this case, and the Environmental Court of the First Circuit (Environmental Court) 3 thus lacked jurisdiction over the claims. See id. Accordingly, we vacate and remand for entry of an order of dismissal.

2 After the September 12, 2025 Maui Lani decision, we issued a September 29, 2025 order requesting supplemental briefing on its impact, and the parties filed their supplemental briefs on October 13, 2025.

3 The Honorable Jeffrey P. Crabtree presided.

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I. BACKGROUND Sierra Club appeals from the (1) January 11, 2022 "Amended Findings of Fact and Conclusions of Law" (FOFs/COLs); and (2) February 16, 2022 "Final Judgment," both filed and entered by the Environmental Court. On appeal, Sierra Club challenges the Environmental Court's trial rulings that BLNR did not breach its public trust duties or violate its HRS Chapter 205A obligations in its decisionmaking on the 2019 and 2020 Permits. In the supplemental briefs regarding the impact of Maui Lani on this case, A&B/EMI and BLNR contend that Maui Lani applies to preclude judicial review outside of the administrative remedy of an HRS Chapter 91 appeal; and Sierra Club and the County of Maui (County) contend the opposite, that Maui Lani is distinguishable with no application here. A&B/EMI asserts that "[t]his case falls squarely within the precedent set by Maui Lani" and therefore "should be dismissed." 2018 Decision on the 2019 Permits On November 9, 2018, BLNR held a public meeting on the continuation of the Permits for 2019. Sierra Club provided written and oral testimony and requested a contested case hearing "[i]f the conditions . . . and the due diligence" Sierra Club suggested were not implemented. BLNR approved the continuation of the Permits for 2019 (2018 Decision). On November 19, 2018, Sierra Club filed a petition with BLNR requesting a contested case hearing (2018 Petition), to address whether BLNR "is fulfilling [its] duty under the constitutional public trust and state law to protect public trust resources"; whether A&B/EMI "failed to provide sufficient information to the BLNR"; and whether A&B/EMI's proposal violated HRS Chapter 205A. The 2018 Petition was denied at a December 7, 2018 meeting. The record reflects that Sierra Club did not file an HRS § 91-14

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appeal from BLNR's 2018 Decision or BLNR's denial of Sierra Club's 2018 Petition. 2019 Decision on the 2020 Permits On October 11, 2019, BLNR held a public meeting on the continuation of the Permits for 2020. Sierra Club provided written and oral testimony and requested a contested case hearing. BLNR approved the continuation of the Permits for 2020 (2019 Decision) and denied the request for a contested case hearing. On October 17, 2019, Sierra Club filed a written petition requesting a contested case hearing (2019 Petition), to address whether BLNR "is fulfilling [its] duty under the constitutional public trust and state law to protect public trust resources." The 2019 Petition similarly argued, inter alia, that A&B/EMI "failed to provide sufficient information to the BLNR," and A&B/EMI's proposal violated HRS Chapter 205A. The record contains no disposition of the 2019 Petition. The record reflects that Sierra Club did not file an HRS § 91-14 appeal from BLNR's 2019 Decision, or BLNR's denial of Sierra Club's oral request for a contested case hearing. Current proceedings Approximately two months after the November 9, 2018 BLNR meeting and 2018 Decision, Sierra Club filed the original January 7, 2019 Complaint in this case. Approximately two months after the October 11, 2019 BLNR meeting and 2019 Decision, Sierra Club filed its December 6, 2019 First Amended Complaint (FAC) against, inter alia, BLNR, A&B/EMI, and the County, adding allegations regarding the 2020 Permits. The FAC included the breach of trust claim in Count 2, entitled "(BLNR, DLNR and Chair Case Breached Their Trust Duties)"; and the HRS Chapter 205A violation in Count 3, entitled "(BLNR, DLNR and

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Chair Case Violated Their HRS Chapter 205A Obligations)." 4 Counts 2 and 3 were premised on factual allegations of flaws and deficiencies in BLNR's decisionmaking at the 2018 and 2019 public meetings on the 2019 and 2020 Permits.

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