Whitey's Boat Cruises, Inc. v. Napali-Kauai Boat Charters, Inc.

132 P.3d 1213, 110 Haw. 302, 2006 Haw. LEXIS 199
CourtHawaii Supreme Court
DecidedApril 18, 2006
DocketNo. 26334
StatusPublished
Cited by21 cases

This text of 132 P.3d 1213 (Whitey's Boat Cruises, Inc. v. Napali-Kauai Boat Charters, Inc.) 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
Whitey's Boat Cruises, Inc. v. Napali-Kauai Boat Charters, Inc., 132 P.3d 1213, 110 Haw. 302, 2006 Haw. LEXIS 199 (haw 2006).

Opinion

Opinion of the Court by

MOON, C.J.

The instant case involves an ongoing dispute among commercial tour boat operators and tour boat promoters in the area of Hana-lei and the neighboring Na Pali coast of the island of Kaua‘i, Hawai'i. Plaintiffs-appellants Whitey’s Boat Cruises, Inc., Robert F. Butler, Jr. dba Captain Sundown Enterprises, and Ralph Young dba Hanalei Sport Fishing & Tours [hereinafter, collectively, Appellants] are commercial tour boat operators who filed a complaint against a number of other tour boat operators and promoters, asserting claims of, inter alia, common law unfair competition, tortious interference with prospective business advantage, and unjust enrichment. Essentially, Appellants claim that certain tour boat operators conducted tours in the area of Hanalei and along the Na Pali coast without the requisite county and state permits, in violation of county and state rules and regulations, to the financial detriment of Appellants.

Appellants appeal from the Circuit Court of the Fifth Circuit’s December 17, 2003 judgment1 entered pursuant to orders granting summary judgment in favor of, inter alia, defendants-appellees (1) Napali Kauai Boat Charters, Inc., Napali Coast Tours, Inc., R.A.T., Inc., Napali Ocean Ventures, Inc., Ramblin’ Rose Charters, Inc., Ancient Mariner, Inc., and Joe Paskal2 [hereinafter, collectively, Napali Appellees] and (2) Michael G. Sheehan, Sr. (Sheehan, Sr.) and Hanalei River Enterprises, Inc. [hereinafter, collectively, Sheehan Appellees].3 On appeal, Appellants claim that the circuit court erred in granting summary judgment in favor of Na-pali Appellees and Sheehan Appellees. Specifically, Appellants contend that the circuit court erred in dismissing their claims of common law unfair competition, tortious interfer[304]*304ence with prospective business advantage, and unjust enrichment.

For the reasons discussed more fully infra, we hold that Appellants are precluded from asserting a private right of action for damages pursuant to the county and state regulations at issue in the instant case. Accordingly, we affirm the circuit court’s December 17, 2003 judgment.

I. BACKGROUND

A. Factual Background

On November 29, 1975, the County of Kaua'i (the County) approved a special management area (SMA) in Hanalei, located on the north shore of Kaua'i, to protect a substantial portion of the Hanalei River, the river mouth, and surrounding lands. The County then issued SMA Minor Permit SMA (M)-87-27 ■ to the State of Hawaii (State) Department of Transportation (DOT). SMA Minor Permit SMA (M)-87-27 (the DOT Permit) was in effect from 1976 through 1988. The DOT Permit authorized the DOT to issue permits to commercial tour boat operators to conduct their tour activities within the Hanalei SMA during the effective life of the DOT Permit.

The DOT Permit expired on September 30, 1988, and the County apparently did not extend or renew the DOT Permit. Instead, the County decided to establish a permitting process to directly regulate commercial tour boat operations in the Hanalei SMA. During the time that the County was formulating and drafting its permitting procedures (ie., between 1988 and 1993), tour boat operators were not allowed to conduct their tom- activities in the Hanalei SMA. Tour boat operators were also not allowed to conduct their tours in the Hanalei SMA during the pendency of their permit applications with the County.

In 1988, the County sought injunctive relief against Napali Appellees and other tour boat operators for allegedly failing to comply with the County’s prohibition against conducting commercial tours. The circuit court issued a preliminary injunction on April 5, 1988. According to Napali Appellees, no permanent injunction has ever been issued, and the County’s action is still pending.

In 1992, the County enacted section 19 of the County’s SMA Rules and Regulations, also known as the Hanalei Estuary Management Plan (HEMP), setting forth the procedures to be followed in processing SMA permit applications for commercial boating within the Hanalei Estuary.4 Pursuant to HEMP, the County issued a limited number of permits (SMA permits) to Appellants and other tour boat operators in 1993.5

In addition to HEMP, the commercial tour boat industry on the north shore of Kaua'i is also regulated by Hawaii Administrative Rules (HAR) chapter 256, entitled “Ocean Recreation Management Rules and Areas” (ORMRA). The specific purpose of ORMRA “is to reduce conflicts among ocean water users, especially in areas of high activity.” HAR § 13-256-1(a).

Commercial tour boat operators conducting tours off the adjoining Na Pali coast were required to have state commercial boating licenses (state permits) issued by the State Department of Land and Natural Resources (DLNR). The commercial tour boat operators, therefore, were required to have SMA permits and state permits in order to conduct tours in the Hanalei SMA and along the Na Pali coast. According to Appellants, the SMA permits set forth limitations on the number of tours (generally, no more than two trips per day), the number of passengers (generally, no more than fifteen persons per trip), the days of operation (daily, except Sundays and county holidays), and the hours of operation (generally, departures no earlier than 7:00 a.m. and arrivals no later than 7:30 p.m.).

As previously stated, Appellants have the requisite SMA permits and, thus, are legally [305]*305entitled to operate tour boats in the Hanalei SMA. Appellants claim that Napali Appellees and other tour boat operators, however, conducted tours in the Hanalei SMA and along the Na Pali coast without the required SMA permit and the state permit. Specifically, Appellants allege that, when the County prohibited tour boat operators from conducting tour activities in the Hanalei SMA between 1988 and 1993, certain tour boat operators, as later named in Appellants’ first amended complaint, continued to do so. Consequently, Appellants claim that these tour boat operators “gained substantial income and name recognition in the business, ... established] and capitalize^] on economies of scale in light of the lack of competition, and made lasting business relations with the various companies engaged in tour boat promotions[.]” Once Appellants received their SMA permits in 1993, they allege that they “substantially complied” with the limitations in the SMA permits. Appellants maintain that, inasmuch as other tour boat operators continued to engage in tours without the SMA permit, these tour boat operators were not constrained by the limitations in the SMA permit. Thus, Appellants claim that “unpermitted” tour boat operators made unlimited trips, carried unlimited passengers, and were unrestricted with respect to the time of day or- the days of operation (ie., disregarding the Sunday and holiday prohibition). As such, Appellants allege that these tour boat operators “gained significant and unfair competition advantages over [Appellants,] who were acting legally and pursuant to their Hanalei SMA permits.... ”

Moreover, Appellants claim that certain tour boat promoters, as later named in their first amended complaint, “provided material assistance” to these illegally operating tour boat operators by promoting, advertising, and referring activities on behalf of these operators.

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Cite This Page — Counsel Stack

Bluebook (online)
132 P.3d 1213, 110 Haw. 302, 2006 Haw. LEXIS 199, Counsel Stack Legal Research, https://law.counselstack.com/opinion/whiteys-boat-cruises-inc-v-napali-kauai-boat-charters-inc-haw-2006.