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FIRST CIRCUIT C.[}URÏ
                                                                sTAtf '0F i{r,HÂil
McCORRISTON MILLER MUKAI MacKINNON lr_p                              i.ii-Í. I)

ROBERT G. KLEIN                   #1192-0                    ?ûll HAR 17     Pll l¡ 30
RANDALL K. SCHMITT                #3752-0
JORDON J. KIMURA                  #9182-0                           F.   0TôKE_      __
Five Waterfront Plaza,4th Floor                                      OI.E.RK
500 Ala Moana Boulevard
Honolulu, Hawai'i 968 I 3
Telephone: (808) 529-7300
Facsimile: (808) 524-8293
Attorneys for Plaintiff (Civiì No. 07-l -1122-06)
GOLD COAST NEIGHBORHOOD ASSOCIATION
and Defendants (Civil No. l0-l-0S83-04)
TROPIC SEAS,INC.; THE ASSOCIATION OF APARTMENT
OWNERS OF DIAMOND HEAD BEACH HOTEL, INC.;
DIAMOND HEAD APARTMENTS, LTD.; C S APARTMENTS,
LTD.; THE ASSOCIATION OF APARTMENT OWNERS OF
2987 KALAKAUA CONDOMINIUM; TAHITIENNE,
INCORPORATED; THE ASSOCIATION OF APARTMENT
OWNERS OF 3003 KALAKAUA, INC.; THE ASSOCIATION
OF APARTMENT OWNERS OF 3OI9 KALAKAUA. INC.

                     IN THE CIRCUIT COURT OF THE FIRST CIRCUIT

                                  STATE OF HAWAI'I

GOLD COAST NEIGHBORHOOD                     )   CIVIL NO. O7-1 -1122.06 (VLC)
ASSOCIATION.                                )   (Declaratory Judgment)
                                            )
              Plaintifl,                    )   PLAINTIFF GOLD COAST
                                )               NETGHBORHOOD ASSOCTA'|rON AND
      vS.                       )               DEFENDANTS TROPIC SEAS, INC., THE
                                )               ASSOCTATION OF APARTMENT OWNERS
                                )               OF DIAMOND HEAD BEACH HOTEL, INC.,
STATE OF HAWAI.I; DOE           )               DIAMOND HEAD APARTMENTS, LTD., C S
GOVERNMENTAL ENTITIES I-IO; DOE )               APARTMENTS, LTD, THE ASSOCIATIoN
GOVERNMENTAL AGENCIES I -10,    )               OF APARTMENT OWNERS OF 2987
                                )               KALAKAUA CONDOMINIUM,
           Defendants.          )               TAHITIENNE,INCORPORATED,THE
                                )               ASSOCTATTON OF APARTMENT OWNERS
                                )               oF 3003 KALAKAUA,INC., AND THE
                                )               ASSOCTATTON OF APARTMENT OWNERS
                                )               oF 3019 KALAKAUA, TNC'S TRIAL BRIEF:
                                )               CERTIFICATE OF SERVICE
                                            I
STATE OF HAWAI'I BY ITS ATTORNEY                    crvll. No. 10-1-0888-04 (vLC)
GENERAL,                                            (Declaratory Judgment)

                 Plaintiff,

           vs.
                                               )
TROPIC SEAS, INC.; THE ASSOCIATION OF )
APARTMENT OWNERS OF            DIAMOND         )
HEAD BEACH,INC.; OLIVIA CHEN LUM, )
trustee of the Olivia Chen Lum Revocable Living)
Trust; CLARENCE KWON HOU LUM, trustee )
of the Clarence Kwon Hou Lum Trust and trustee)
under the Will and Estate of Chow Sin Kum       )
Lum; JEANNE S. J. CHAN and HOWARD N. )
H. CHAN, trustees of the Jeanne S. J.Chan       )
TruSt; DIAMOND HEAD AMBASSADOR )
HOTEL, LTD.; DIAMOND           HEAD             )
APARTMENTS, LTD.; C S APARTMENTS, )
LTD.; THE ASSOCIATION OF APARTMENT )
owNERS OF 2987         KALAKAUA                 )
CONDOMINIUM; TAHITIENNE,            )
INCORPORATED; THE ASSOCIATION OF )
APARTMENT OWNERS OF 3OO3
KALAKAUA, INC.; THE ASSOCIATION OF
APARTMENT OWNERS OF 3019
KALAKAUA, INC.; JOHN DOES 1-20; DOE
CORPORATIONS 1 -20: DOE PARTNERSHIPS)
1-20; DOE ASSOCIATIONS 1-20, DOE
GOVERNMENTAL AGENCIES 1-20; AND
DOE ENTITIES 1-20.

                 Defendants.

                                                    Trial: March 22,2011
                                                    Judge: The Honorable Virginia L. Crandall




216171.4
TABLE OF CONTENTS

                                                                                                      Page

r.       TNTRODUCTION                                                                  .................... I

II.      FACTUAL   BACKGROI.IND                                                        .....................2

         A.   Property and   Easements...........                                                   .......3

         B.   History of State's Position on Seawall-State Policy in      1975                .............4

         C.   State Policy and Seawall Work Between       l98l and 1982.........               ............ 6

         D.   State Policy and Seawall Work Between 1982 and         1983.........             ............ 8

         E.   State Policy and Seawall Work Between 1983 and         1985.........             ............ 8

         F.   State Policy and Seawall Work Between 1992 and         1993.........             ..........   l0
         G.   State Action on the Seawall   in 1999                                       ............... I I

         H.   State Policy in2002-2003 and the Sea Ladder       Easement..              ............-.-..12

       . I.   Legislative   Action....-.                                               ................... 13

III.     DISCUSSION   _..........                                                          .............. 14

         A.   The State Has Repeatedly Admitted Its Duty to Keep the Seawall in Good
              and Safe Condition for Travel..                                                       .....14

         B.   The Seawall is a State Public Highway and the State is Responsible for its
              Maintenance..............                                         .................... 16

              l.      Review of the Relevant State and Federal Case Law.                     .........-,.17

              2.      Applying HRS Section264-1, Levy, andJones to the Seawall ...........-....21

         C.   In the Alternative, At a Minimum, the State Holds a Prescriptive Easement
              Over the Seawall and, Therefore, Has a Responsibility for its Maintenance.-.....23

IV.      REBUTTAL OF THE STATE'S          DEFENSES...............                          ..............24

         A.   There is no Public Access to the   Seawall                                          .......24

         B.   The State is not Responsible for the Seawall Adjacent to Properties
              Registered in Land Court                                                     ..........-...26

         C.   Hawaii's Constitution Mandates Public      Access                           ...............27

              l.      Public Trust   Doctrine...                                                    .....27
TABLE OF AUTHORITIES

                                                                      Page(s)




Cases

Akau v. Olohana Corp.,
       65 Haw. 383,652P.2d1130          (1982)..........     .................29

Appl ication of Ashford,
        50 Haw. 374,440P.2d76         (1968)                    .29,29,30
Application of Kelley,
       50 Haw. 567, 445 P.2d 538       (1968)                     ...........   l8
Bishop v. Mahiko,
       35 Haw. 608 (Haw. Terr.        1940)..........                  .-....29

County of Hawaii v. Sotomura,
      55 Haw. 176,517 P.zd 57         (1973)                    .............28

Diamond Head v. State of Haw.. Bd. of Land & Natural Res.,
      112 Hawai'i 16l, 145 P.3d 704 (2006)                              14,29

Illinois Central R.R. v. Illinois,
             146 U.S. 387   (1892)......-...                           ......28

In re Banning,
        73 Haw.297,832P.2d724          (1968)                     ........... t9

In re Waiola O Molokai. Inc.,
       103 Hawai'i 401,83 P.3d 664       (2004)                       .......29

Jones v. Halekulani Hotel. Inc.,
        557 F.2d 1308 (9th Cir.      1977)                            passim

King v. Oahu Railway & Land Co.,
       1l Haw. 717 (Haw. Terr. 1899)..........                         ._....28

Levy v. Kimball,
             50Haw.497,443P.2d142      (1968)                     ....passim

Martin v. Waddell,
             4l u.s.367   (1842)...._.....                           ........28

McBryde Sugar Co. v. Robinson,
      54 Haw. 174, 504 P.2d 1330 (l 973)       ..........    ................. 30

2t6t7t   4                                        iii
State v. Zimring,
        52 Haw. 472,479 P.2d202      (1970)                                                 ............ 30


Statutes

Haw. Rev. Stat. 5 264-l

Haw. Rev. Stat. $ 26a-l(c).                                                            .....17,lg,Z3
Haw. Rev. Stat. ç   264-2                                                                          .... 17

Haw. Rev. Stat. ç   520-7                                                                          ....20
Haw. Rev. Stat. Ch.   115............                                                         ....25.27
Haw. Rev. Stat.   Ch.264.....                                                          ................. 14

Haw. Rev. Stat. Ch.   520...........                                                         ...........20

Haw. Rev. Statu. g I l5-l                                                            ....................25


Other Authorities

Access to Beach in Hawaii:    "A Social Necessity". l0 Haw. B.J. 3, l5   (1973)               .........30

Hawaiian Beach Access: A customar-v Right, 26 Hastings L.J. Bz3, g3g (1975)....................... 30




2t6171.4
                                                 lv
i''
PLAINTIFF GOLD COAST NEIGHBORHOOD ASSOCIATION AND DEFENDANTS
 TROPIC SEAS, INC., THE ASSOCIATION OF APARTMENT OWNERS OF DIAMOND
     IIEAD BEACII IIOTEL, fNC., DIAMOND I-IEAD APARTMENTS, LTD., C S
   APARTMENTS, LTD, THE ASSOCIATION OF APARTMENT OWNERS OF 2987
KALAKAUA CONDOMINIUM, TAHITIENNE, INCORPORATED, THE ASSOCIATION OF
  APARTMENT OWNERS OF 3OO3 KALAKAUA, INC., AND THE ASSOCIATION OF
        APARTMENT OV/NERS OF 3OI9 KALAKAUA. INC'S TRIAL BRIEF

              Plaintiff Gold Coast Neighborhood Association, and Defendants Tropic   Seas, Inc., the

Association of Apartment Owners of Diamond Head Beach Hotel,Inc., Diamond Head

Apartments, Ltd., C S Apartments, Ltd., the Association of Apartment Owners of 2987 Kalakaua

Condominium, Tahitienne,Incorporated, the Association of Apartment Owners of 3003

Kalakaua, Inc., and the Association of Apartment Owners of 3019 Kalakaua,Inc. (collectively,

"GCNA") submit the following Trial Brief detailing the key facts and legal analysis for the

purpose of this Court making a dispositive decision in this matter.

I.            INTRODUCTION

              This case arises from a dispute between the GCNA and the State of Hawai'i (the "State")

pertaining to whether the State is responsible, legally and f,rnancially, for the seawall on the

Waikiki coastline along Kalakaua Avenue near Diamond Head (the "Seawall").I The members

of the GCNA--owners of property bordering the Seawall-maintain that the State is responsible

for the Seawall, the State argues that it has no such duty. GCNA will detail herein the evidence,

along with state statutes, state and federal case law, and the State's own past admission    of

responsibility for maintenance of the Seawall, to prove that the State clearly is responsible for the

Seawall in its use as a public thoroughtàre.




              '
         The Sear¡,all is located in the City and County of Honolulu, State of Hawai'i, and the
Seawall at issue in this case borders the property identified by Tax Map Key nos. 3-l-032:030,
029,028,027,026,004, 003, 002, 001 and 3-l-033: 0l l, 009. See Stipulation of Facts tf 3.


2t6t1t   .4
II.         FACTUAL BACKGROUND

            The State has acknowledged its responsibility regarding the Seawall on a virtr-rally

continuous basis for over 50 years as a blatant admission of this duty, and the State has repaired

or contemplated repairing the Seawall on several occasions in the past. Indeed, the policy of past

administrations of this State, with the exception of the administration under Governor Linda

Lingle, was to repair seawall walkways for the safety of the public. There are records dating

back to the early 1980s which show that the State not only believed that the Seawall was heavily

used as a public thoroughfare, as well as access to the ocean for surfers, swimmers and

fisherman, but that the State was responsible for the upkeep and safety of the Seawall.

            The GCNA is a non-profit incorporated organization doing business in the City and

County of Honolulu and is comprised of individuals and organizations that own real property

along Kalakaua Avenue on the Waikiki coastline in the City and County of Honolulu, State              of

Hawai'i.2      See   Stipulation of Facts (*SOF') !f 1. The Seawall was originally built by unknown



            t The following organizations and/or incorporated entities are members of the GCNA:

                a.   Tropic Seas, Inc., the governing organization for   a   cooperative identified by Tax
                     Map Key ("TMK") No. 3-l-032:030;

                b.   The Association of Apartment Owners of Diamond Head Beach Hotel, Inc., the
                     governing organization for a leasehold identified by TMK No. 3-1 -032:029;

                c.   Diamond Head Ambassador Hotel, Ltd., the governing organization for the
                     cooperative identified by TMK Nos. 3-l-032:028,027 and 026:

                d.   Diamond Head Apartments, Ltd., the governing organization for a cooperative
                     identified by TMK No. 3-l-032:004;

                e.   C S Apartments, Ltd., the governing organization for a cooperative identified by
                     TMK No. 3-l-032:003

                f.   The Association of Apartment Owners of 2987 Kalakaua Condominium, the
                     governing organization for the condominium identified by TMK No. 3-l -032:A02;


7t617 t.1
private parties 80 to 100 years ago. See SOF           ![22. For at least the last 55 years, the Seawall      has

been used as a thoroughfare for public travel from one portion of Waikiki beach to another.

Declaration of June Anderson ('(Anderson Decl.") !f 4. One Gold Coast resident, June

Anderson, has lived at Diamond Head Apartments for over 37 years, but began regularly using

the Seawall as a walkway over 55 years ago. Anderson Decl.               f   3-   5. For at least 50 years,
persons living in properties fronted by the Seawall have used-and still use-the various

portions of the Seawall relevant to this matter as a thoroughfare and to access the water in front

of the properties fronted by the Seawalls. See SOF           ![23.   Further, during this same 50 year

period, the Seawall has been used by swimmers, fishermen, and beachgoers to access the water

along the Gold Coast area of Waikiki. See Anderson Decl. fl 5.

            A.         Property and Easements

            All of the properties bordering the Seawall     and relevant to this action were originally

granted to one "Pehu" during the Mahele in I 848. See Disctosure of Expert                  Testimony-
Ernest M. Collins, Joint Exhibit ("J")-19 at 1. The lands subject to this suit are all in Apana 3,

identified and described as "Lele of Kekio, called Kapua, situate in Waikiki kai." See Exhibit J-

19   at2.    Royal Patênt No. 5667, Apana 3, indicates that the original makai boundary was along

the sea. See          id.   The properties that are now TMK Nos. 3-1-032:030 (Tropic Seas, Inc.), :029

(Diamond Head Beach Hotel), :028 (the first of three lots of Diamond Head Ambassador Hotel),


                 g.    Tahitienne, Incorporated, the goveming organization for the cooperative
                       identified by TMK No. 3-1-032:001;

                 h.    The Association of Apartment Owners of 3003 Kalakaua, Inc., the governing
                       organization for the condominium identified by TMK No. 3-l-033:01l;

                 i     The Association of Apartment Owners of 3019 Kalakaua,lnc., the governing
                       organization for the condominium identified by TMK No. 3-l -033:009.

See SOF !J2.


216t7 t.1
i'



and:027 (the second of three lots of Diamond Head Ambassador Hotel) are each a portion of the

property that was registered in the Land Court in 1904 pursuant to Land Court Application No.

13 of Ida Tenney Castle. See             id.   The properties that are now TMK Nos. 3-l-032026 (the third

of three lots of Diamond Head Ambassador Hotel), :004 (Diamond Head Apartments), :003

(Coral Strand Apartments), :002 (2987 Kalakaua), and :001 (The Tahitienne) are each a portion

of the property that was subdivided in 1910 as shown on the Plan of W. G. Irwin Lots, prepared

by Arthur C. Alexander, surveyor, in August 1910. See id. The properties that are now TMK

Nos. 3-l-033:01I (3003 Kalakaua) and :009 (3019 Kalakaua) are all or portions of Lots 73,J2,

andTl of the "Diamond Head Terrace"                 as shown on the Map of that property   filed in the Bureau

of Conveyances as File Plan 214 and dated April2, 1921. See Exhibit J-l9 at 3.

                Since at least 1960, the property designated as TMK No. 3- I -033 :009 (3019 Kalakaua)

has been subject to "[a] perpetual easement of right of way for pedestrians only over, across and

along the seawall along the highwater mark at seashore as designated in and by the third course

of the description of the premises." See SOF f[25. A survey map of the properties and their

makai borders is found at Exhibit J-24, and a full history of each parcel of property is found at

Exhibit J-l9.

                B.     History of State's Position on Seawall-State Policv in 1975

                In a letter dated February 27, 1975; Deputy Attorney General Wallace W. Weatherwax

commented to Christopher Cobb, the Director of the Department of Land and Natural Resources,

State of Hawaii ("DLNR"), about the "Seawall Right of Way" for TMK Nos. 3-l-033:002 and

053.       See    Exhibit J-2. Although these two properties are not the subject to this lawsuit, they are

along the same stretch of seawall, and Weatherv¿ax's discussion of the policy regarding seawall

maintenance and right-of-way is applicable and informative on the issues in this matter. The

purpose of the letter was to determine "whether or not the State has-the responsibility to maintain


7t6t'l   | .1
and improve a public right of way which passes over a seawall located within the above cited

properties; and, further, that if such responsibility exists, with what State agency would the

responsibility lie." See id. at 1. The letter further notes that "during periods of high tide, [the

seawall] is the only means of right of way along the shoreline other than through the water." See

id, at 2. This was a clear admission. There was no question expressed by the State's Chief

Legal Agency about the State's duty. The only question was which of the State's agencies was

responsible.

             The way that the State dealt with these two sections of the seawall along Waikiki

exemplifies the way that the State viewed the public's use of the seawall. The memorandum

explains that, by way of quitclaim deed dated December 19, 1930, the then-Territory conveyed

whatever interest it had in the seawall and a filled area of     I ,3   l9   square feet mauka of the seawall

to the abutting property owner. See Exhibit J-Z at       l.   However, the Territory made sure to

reserve a pedestrian public riqht-of-way over. along and across of the seawall. See             id. The
Territorial government understood the importance of the seawall as a public right-of-way and,

when given the chance, made sure to reserve public easements over the Seawall. Similar to these

properties, the State reserved a public easement ove¡ TMK No. 3-l-033:009 (3019 Kalakaua),

which is subject to this lawsuit. See SOF !f 25. With its reservation of public easements over a

portion of a seawall as a public right-of'-way, the State has essentially admitted its duty to the

other portions of the Seawall to make this access useful. Since the public uses all areas of the

Seawall along the Gold Coast for access to the ocean, regardless of an explicit easement, the

State has admitted its dutv over the whole Seawall.

             The letter ultimately examined then current State case law, specifically Levy v. Kimball,

50 Haw. 497 (1968), and concluded that "the State's control over the seawall right of way carried




2t617 | .4
with it the responsibility to maintain the seawall in a reasonably safe fashion" and that

"appropriate actions cited [in Levy] be considered and implemented."        þ      Exhibit J-2 at2-3.

           C.    State Policv and Seawall Work Between 1981 and 1982

           On or around September 24,1981, the DLNR sent a memorandum to Councilwoman

Marilyn Bornhorst stating that "state and federal courts in the jurisdiction of Hawaii have found

that the state is liable for injuries incurred due to lack of repairs to seawalls that are public

thoroughfares. As such the state government, through the Department of Land and Natural

Resources, is primarily responsible for the repairs to seawalls that are public thoroughfares."            &
Memorandum dated September 24,1981, issued by the DLNR to Councilwoman Marilyn

Bornhorst, Exhibit J-3. Early the following year, the Department of the Attomey General

("DAG") wrote a letter to the State Representative Paul L. Lacy, Jr. on March 2, 1982, in

response to Mr. L,acy's letter "requesting comments on the State's liability for personal injury

and properly damage that may arise from the deteriorated condition of Waikiki seawalls used by

the public." See Exhibit J-4 at 1. The DAG reviewed Levy, supra, as well as other state cases

and determined that they "clearly establish[] the State's liability for personal injury damages

where the State controls (even   if it does not own)    an easement like the Waikiki seawall." See id.

The DAG's letter did not apply to a specific section of the seawall along Waikiki. Instead,           it

applied generally to any section that is used by the public. Again, this is an explicit admission          of
the State's duty regarding the Seawall.

           Around the same time, the DLNR, Land Division, performed emergency repair work,

completed in June 1982, to shore approximately 40 feet of the Seawall along the boundary             of
Diamond Head Apartments, l'MK No. 3-l -032:04. See Exhibit J-13. The contract price for this

repair work was 525,000, and it was authorized by Act        l, SLH   1981, Item   K-2.   See   id. The
project involved the underpinning of approximately 40 feet of an existing lava rock seawall


216171.1                                            6
along the makai boundary of Diamond Head Apartments and Coral Sands Apartments with

concrete grout. See id.

            On or around April 16, 1982, the DLNR sent a letter to the Department of Land

Utilization ("DLU") regarding the work to be done under Act 1, SLH 1981, Item K-2.              See


Exhibit J-5. The DLNR explained the following:

            A coral shelf on which the existing seawall was constructed several years ago, has
                                                                          'Wave
            broken and eroded leaving a huge cavity beneath the seawall.         action is
            continually eroding material from beneath and behind the seawall such that the
            seawall and the abutting properties are being undermined. Unless immediate
            action is taken to stop the erosion, the seawall is in danger of collapsing which
            would result in a major seawall reconstruction work,

            The purpose of this project is to render the existing seawall safe for public
            passage and to halt the undermining action of the waves.

            The existing seawall extending along the shoreline of V/aikiki Beach serves as
            protection to properties against wave action and also as a public walkway for
            residents and beachgoers.

            The surrounding properties are lined with multi-storied apartments with access on
            Kalakaua Avenue. Residents. surfèrs. beachgoers and fisherman use the top of
            the seawall to traverse between the Diamond Head end of Waikiki Beach and
            Sans Souci Beach. If it becomes necessary to close the seawall walkway,
            beachgoers will have to detour either along Kalakaua Avenue or walk on the
            rocky reef along the seawall.

            Inquiry with the State Survey Division and the City and County Department of
            Land Utilization and the Land Survey Division indicates that there are no
            recorded shoreline easements along the affected property. However, in a decision
            rendered by the Hawaii State Supreme Court in the case of Levy v. Kimball, 50
            Haw. 497,443 P.2d 142 (1968) the court ruled that the State has a duty to keep
            seawalls which are used by the public in good repair. Further, the Deputy
            Attorney General in commenting on the seawall fronting Halekulani Hotel stated
            that if the rehabilitation or reconstruction cannot be done, then the seawall should
            be closed to pedestrian traffic or signs posted warning the public of its condition.




2t6t7 t.4
See   Exhibit J-5 (emphasis added). By these actions and correspondence, the State clearly

stated its position that the Seawall was a public thoroughfare and that it was responsible for its

maintenance and the safetv of those who use the Seawall for access to the ocean.

               D.     State Policy and Seawall üork Between 1982 and 1983

               During the 198213 period, the DLNR, Land Division, admitted its duty to maintain the

Seawall by repairing and rehabilitating broken sections of the Seawalls from the Elks Club

property (TMK No. 3-l-032:05) to TMK No. 3-1-033'.02,near the Diamond Head end                     of

Kalakaua Avenue. See Exhibit J-13. Funds for this work were authorized by Act 1, SLH 1981,

Item K-2 and Act 264,ltem K-2. See            id.   The repair work was completed in June 1983 at a

contract price of $50,000 to fix damage caused by Hunicane             lwa.   See   id.   Act264, SLH 1981,

Item K-2, is titled "Seawall Improvement, Waikiki." It set aside State funds for "[p]lans, design

and incremental construction of improvements to seawall including railings, rehabilitation               of

seawall, fences and other improvements necessary for the safe passage of the public over

existing seawalls." See        id.   Although not all of these improvements were ultimately

implemented, the State therein expressly admitted its responsibility to create a safe passage for

the public over the Seawall. This was a continuation of its previous policy of Seawall

responsibility.

               E.     State Policy and Seawall Work Between 1983 and 1985

               In September 1983, Hawaiian Dredging completed Phase II of an improvement project

on the seawall along Kalakaua Avenue, as authorized by Ãct264, SLH 1982, Item                   K-2.    See


Exhibit J-13 at 2. The contract price for Phase II (Job No. 1 -OL-29) was $54,714, and the

scope of the work originally planned for Phase           II construction consisted "of rehabilitating    a


seawall, constructing a hand railing and other incidental and appurtenant work necessary to

compìete this project."        þ id. Although the construction of hand rails was not completed               over


2t617   | .1
the Seawall, the State, at the very least, contemplated creating a safer walkway over that area of

the Waikiki seawall. See        id. By doing so, it admitted its ongoing duty regarding       the Seawall.

             Phase   III of the same improvement project was completed in June        1985 by Iwamoto

Construction for a contract price of     $5 0,7   4l   . See Exhibit J-6; J-13 at 2. Phase III affected the
Seawall along TMK Nos. 3-l-32:029,027,:026,:004, :003, :002, :001 and 3-l-033:011 and

:009. See Exhibit J-25; SOF ![ 14. Similar to Phase II, the scope of work originally planned for

Phase    III construction consisted "of rehabilitating seawalls, constructing hand railing and other

incidental and appurtenant work necessary to complete this project."             þ    J-6; SOF ![ 13. The

scope of work actually performed for Phase             III construction is described in the as-built plans and

summarized in the followins table:

             Desisnation on plans           Properties affected                  Nature of repair
             A-2                            Portion of 33:009 to 32:004          Crack repair on walkway-
                                            (33:009, :010, :01l, 32:001,         chip off loose material and
                                            :002.:003. :004)                     epoxv the crack
             B-2                            Approx. 35 linear feet at            Repair nosing at edge of
                                            32:002                               walkway
                                            Approx. 5 linear feet at
                                            33:011
             c-2                            Deleted-work not done                Repair walkway-remove
                                            32:029                               existing top 4" of concrete
                                            Pofiion of 32:028                    and pour new 4"
             D-2                            32:026 and:027                       Repair walkway-remove
                                            33:010 and :011                      loose concrete topping and
                                                                                 replace with 2" thick
                                                                                 cement mortar. (Taper new
                                                                                 concrete left to right, see G-
                                                                                 2
             E-2                             Portion of 32:008                   Add new concrete walkway
                                                                                 on top of existing wall



See   id.; SOF       1[ 14.

             The State named Fhase    III "Waikiki Seawall, Walkway Rehabilitation" and

photographed the condition of the Sea¡valls prior to its construction and rehabilitation, on or



2t617 | .1
about January 25, 1983. See Exhibit J-22; SOF tT 15. These photographs included images                        of

TMK Nos. 3-1-032:004,026,027, and 028.                  See   id.; SOF f[ 15. On or about December      16,

1982, the State also photographed images of the Seawalls and what it called the "access

easement Diamond Head to Ocean" Iocated at                TMK 3-l-033:006.        See   id.; SOF fl 15. Although

not all of these locations are directly related to this lawsuit, their similarity proximity

demonstrate the State's admitted duty to the Seawall as a public walkway. Furthermore, the

State acknowledges the public access from Kalakaua Avenue to the Seawall.

               F.         State Policv and Seawall'Work Between 1992 and 1993

               In 1992, the DLNR, Water and Land Development Division, released a Notice of

Determination Olegative Declaration) for Waikiki Seawall Walkway Rehabilitation. Phase V

("Notice of Determination"), pertaining to the Seawalls, which stated: "[t]he State of Hawaii has

a   right-of-way over all the seawalls and walkways and is responsible to keep them in good and

safe condition. The walkways are used by the              public."    See   Notice of Determination, Exhibit

J-8 at         7   . The purpose of the 1992 rehabilitation   was   "[t]o increase safety of existing walkways

which are deteriorating and becoming hazardous" and "[t]o lengthen the useful life of the

existing seawalls, which are deteriorating." See Exhibit J-8 at 2.

                   In 1992 and 1993, the State followed through with its planned rehabilitation of the

Seawall, On December 8, 1992, via a Resolution, the Council of the City and County of

Honolulu granted a Special Management Area ("SMA") Use Permit and Shoreline Setback

Variance to the DLNR to rehabilitate the existing Seawall walkway located in Diamond Head,

Oahu and identified by TMK Nos.3-l-032:001 ,002,003,004, 026,027,028 and 029,and3-l-




2t6t7   | -4
                                                              l0
033:002,003, 004, 005, 006, 007, 008, 009, 010, 0l           l,   053, and 056.3 see Exhibit J-10;   soF tl
16. Phase V construction was a G.O. Bond-funded CIP project authorized by Act 316, SLH

I 989,     Item K- I I , following Hurricane Iniki (Job No.   3   1   -OL-C 1). See Exhibits J-8, J-9 and J-

13; SOF ![ 17. Construction was completed by Sea Engineering in September 1993 ata contract

price of $609,605. See        id.   This project repaired and rehabilitated the Seawall, although the only

portion of the project that was completed was for the section in front of Diamond Head

Ambassador Hotel, Ltd. (TMK Nos. 3-l-032.026,027 and 028). See                     id. Although the project
was ultimately limited in scope, the DLNR originally planned to "rehabilitat[e] seawalls and

walkways, constructing hand railings and other appurtenant work necessary to complete this

project." See Exhibit J-9; SOF flfl 18-20. In the several years since, however, the Seawall              has

again fallen into disrepair. See Photos of the Seawall, Exhibits J-26 to J-224.

            G.        State Action on the Seawall in 1999

            In a general statement about the rehabilitation of the Seawall (or other very similar

seawalls in the Diamond Head/Waikiki area), the DLNR released a memorandum from Andrew

Monden, Chief Engineer of the DLNR, to Dean Uchida, Administrator of the DLNR, that states:

            Since 1982, at the request of Land Management, the Engineering Branch
            (DOWALD) has been repairing and rehabilitating damaged sections of the
            seawall between Halekulani Hotel and the city mini-park (TMK: 3-1-36:l)
            located along Diamond Head Road.

            Another project was authorized using special funds by Act 289, SLH 1993, Item
            K-8. DOWALD was not requested to implement this project and the funds
            lapsed.

            All CIP projects were authorized under LNR l0l             and were implemented by
            DOWALD upon Land Management's request. The work involved walkway
            improvements, rehabilitation of the seawall and/or railing installation or repair.


            '
         Of these properties, Nos. 3-l-032:001,002,003, 004,026,027,028 and029,and 3-l-
033:009 and 011 are subject to this lawsuit. The State only reserved an explicit public easement
over one of these properties, 3-i-033:009 (3019 Kalakaua). See SOF tT 25.


2t6t71.4                                                ll
See     Exhibit J-l3.

               H.     State Policv in 2002-2003 and the Sea Ladder Easement

               On or about March 15,2002, a letter from the DLNR to a "Concerned Resident" living in

the area around the Seawall stated that no permits were ever obtained to construct a sea ladder on

the State's Seawall. See Exhibit J-14; SOF          f   5. The sea ladder sat on an   area   of the Seawall in

front of Diamond Head Ambassador (TMK No. 3-l -032:026). See Exhibit J-16. To resolve

this issue, on July 25,2003, for the sum of $2,406 plus a $218 performance bond, the State

granted the GCNA a 37 square-foot Non-Exclusive Ladder Easement for a term of 55 years for

the right, privilege, and authority to construct, use, maintain and repair a ladder at the following

location:

               Waikiki, Honolulu, Oahu, Hawaii

               Being a portion of the submerged land fronting Royal Patent 5667, Apana 3, Land
               Commission Award 5931, Part I to Pehu.

               Being at the north corner of this easement, the true azimuth and distance to the
               south corner of Lot 5 as shown on Map 3 of Land Court Application l3 being:
               249" 32'4.95 feet, the coordinates of said point of beginning referred to
               Government Survey Triangulation Station "LEAHI" being 312.88 feet North and
               2931.86 feet West, thence running by azimuths measured clockwise from True
               South: -

               1.     304" 43' 45"   5.00 feet along the top edge of concrete wall;
               2.     32" 04'        7.5 feet;
               3.     124" 43' 45"   5.00 feet to rock groin;
               4.     212" 04'       7.50 feet along rock groin to the point of beginning and
                                     containing an AREA OF 37 SQUARE FEET.

See     Exhibit J-16. The preceding survey description was prepared by the Survey Division,

Department of Accounting and General Services, State of Hawaii, designated by C.S.F. No.

23,559 and dated June 25, 2003. See id. The Non-Exclusive Ladder Easement sits on an area                   of
the Seawall located on the ocean side of TMK No. 3-1-032:026, the Diamond Head Ambassador




2t6t7   | .1
                                                        12
Hotel and includes the right of public ingress and egress to and from the easement area for all

    purposes in connection with the rights granted by the State. See id.

                  The GCNA was required by the State, pursuant to terms of the Non-Exclusive Ladder

'   Easement, to procure and maintain, at its own cost and expense, commercial general liability

    insurance, or its equivalent, in an amount of at least $300,000 for each occurrence and $500,000

,   aggregate, with an insurance company or companies licensed to do business in the State            of
    Hawai'i.           See   Exhibits J-I6 and J-21. The insurance policy or policies must name the State   and

    Diamond Head Ambassador Hotel, Ltd., as an additional named insureds. See              id.   The GCNA

    procured commercial general liability insurance regarding the Seawalls with John H. Connors

    Insurance. The State, per the terms of the Non-Exclusive Ladder Easement, has renewed this

    ¡nsurance effective July 30, 2003,and has renewed this insurance every year since 2003. See

    Exhibit J-21. This is a direct acknowledgment of its responsibility by the State.

                  In   a June   30,2002, memorandum with the subject, "Line Waikiki Sea Ladder at2957

,   Kalakaua Avenue, Honolulu, Hawaii," Sam Lemmo, Senior Staff Planner for the DLNR, Land

.   Division, stated that "it is my understanding that the subject ladder was part of      a   public access

    thoroughfare through the Diamond Head Beach area, which was partially improved by the State

    (top of seawall) and by adjacent landowners (ladder)." See Exhibit J-15. The State's clear

    stance on the sea ladder, its acknowledgement of the public's right-of-way over the Seawall, and

    the requirement that the GCNA purchase an easement from the State admits clear ownership, or

    at least full control, over a portion of the Seawall.

                  I.         Lesislative Action

-                 On June 1,2006,the legislature enacted the Supplemental Appropriations Act of 2006, in

:   which the State set aside $2 million. as requested by the DLNR, for improvements to the

    Diamond Head Seawall. See Relevant Portions of Hse. Bilt No. 1900 and its status


    2t6t7   1.1
                                                             l3
information, Exhibits J-18 and J-23 , and Exhibit J-17 (State Representative Scott

Nishimoto mentions at a Waikiki Board meeting on May 2006, that the State appropriated

$2 million for improvements to the     Waikiki seawall on the Gold Coast). The State intended

to use the funds to resurface the Diamond Head Seawall and add railings. See Exhibit J-23 at

393. Although the State appropriated this money to repair and rehabilitate the Seawall, the funds

were never released for actual use and the State made no improvements to the Seawall in 2006 or

2007.

         Considering the poor condition of the Seawall, its need for repair, and the State's current

unwillingness to release appropriated funds to maintain the Seawall in a condition safe for travel,

GCNA, as owners of property adjacent to the Seawall, filed its complaint for declaratory relief

on June 22,2007.

III.     DISCUSSION

         GCNA asks that this Court grant judgment in its favor and rule that the State be deemed

responsible for the maintenance and upkeep of the Seawall. The State has previously admitted to

this duty and for decades has undertaken that duty. This duty is mandated by a series of major

legal decisions which hold that the Seawall is a public highway, is in strict accordance with HRS

Chapter 264 and our constitution. At a minimum, the State has a prescriptive easement over the

Seawall and this too mandates its duty to maintain the Seawall.

         A.     The State Has Repeatedly Admitted lts Dutv to Keep the Seawall in Good
                and Safe Condition for Travel.

         Public policy favors "extending to public use and ownership as much of Harvaii's

shoreline as is reasonably possible." Diamond Head v. State of Haw.. Bd. of Land & Natural

Res.,   ll2Hawai'i161,174,745P.3d704,717(2006} Upuntilthelastadministrationherein

Hawai'i, that public policy favoring shoreline access was reflected in the way that the State



                                                  14
maintained and rehabilitated the Seawall. As explained above, the State has repaired or

discussed repairing the Seawall on numerous occasions. Moreover, the State has repeatedly

stated that the Seawall is a public thoroughfare over which it has a duty to maintain.

               The DLNR released a letter in 1975 referring to the Seawall as "a public right of way."

See     Exhibit J-2 at 1. The DAG in 1982 stated that State        cases   "clearly establish[] the State's

liability for personal injury damages where the State controls (even if it does not own)            an

easement like the Waikiki seawall." See           Exhibit J-4 at I (emphasis added). The DLNR

expanded on the use of the Seawall that same year when it explained why it was rehabilitating a

portion of the Seawall: "[t]he purpose of this project is to render the existing seawall safe for

public passaqe."         b   Exhibit J-5 (emphasis added). The DLNR went on to note that the

Seawall is used "as a public walkway for residents and beachgoers" and that "[r]esidents, surfers,

beachgoers and fishermen use the top of the seawall to traverse between the Diamond Head end

of Waikiki Beach and San Souci Beach." See id. (emphasis added). In 1992, when the DLNR

was once again rehabilitating the Seawall, it explained that repair was necessary "for the safe

passage over existing         seawalls."   þ   Exhibit J-I3. The 1992 Notice of Determination released

by the DLNR pertaining to planned Seawall rehabilitation stated: "[t]he State of Hawaii has a

right-of-way over all the seawalls and walkways and is responsible to keep them in good and

safe condition. The walkways are used by the public." (underlineation added) See Exhibit J-8

at 7. These clear, admissions of unqualified duty, control and public access should resolve the

State' s responsibilities here.

               In addition to the State's past public admissions of responsibility, the State implicitly

accepted the responsibility of maintaining the Seawall by repairing            it several times and

appropriating funds for its improvement. See Exhibits J-5, J-6, J-I3 and J-25 (describing the




2t6t7   | .1                                             t5
emergency repâir work done to portions of the Seawall in 1981 to 1983); Exhibits J-8, J-9

and J-13 (describing repair work done on portions on the Seawall |n 1992 and 1993); and

Exhibits J-17, J-18 and J-23 at 393 (showing the appropriation by the State Legislature of

$2 million to repair the Seawall). Pursuant to the 2006 appropriation, the Seawall was to be

resurfaced and handrails added-another clear acknowledgement that the intended use of the

Seawall is for public access. See Exhibit J-23 at 393. These types of improvements indicate a

clear intent by the State to make the wall safer for travel, as handrails would not be necessary    if
the State did not believe that the public uses the Seawall on a regular basis. As will be explained

below, current case law and statutory authority supports the GCNA's position that the State has

control over the Seawall and is responsible for its safety and maintenance.

       B.      The Seawall is a State Public Hishwav and the State is Responsible for its
               Maintenance.

        State statute along with both state and federal case law provide that private parties

surrender a seawall to the State as a "public highway" when the following conditions are met: (1)

the seawall was originally built by private parties, (2) the private parties, as historic owners   of

the seawall, have exercised no act of ownership over the seawall in five years, and (3) the State

holds some form of easement (including a right of way) over the seawall. These three conditions

are met here. The Seawall, originally built over 80 years ago by private parties. The private

party adjacent to the Seawall have not exercised ownership over the Seawall for many years.

Instead, the Seawall, has been controlled by the State and used as a public thoroughfare for at

least 55 years, and likely much longer. Hawaii's legislature has long decreed that public

thoroughfares are the State's responsibility. The following cases, Levy v. Kimball , 50 Haw.        497 ,


443 P.2d 142 (1968) and Jones v. Halekulani Hotel. Inc. , 557 F.2d 1308 (9th Cir. 1977), analyze

and explain Hawai'i Revised Statute ("HRS") Section 264-1, which provides the basis for the




                                                  l6
State's responsibility, (as opposed to a private landowners' responsibility) to maintain the

Seawall.

                   l.     Review of the Relevant State and Federal Case Law.

                          a.      Levy v. Kimball

            The primary Hawai'i state case to examine a seawall as a public thoroughfare is Levy v.

Kimball, supra. Levy provides two important points of precedent: (1) that a seawall may be

surrendered in ownership to the State for use as a public highway under HRS Section264-l(c),

and (2) that the State has a responsibility to maintain "public highways," including seawalls, in a

condition safe for travel. Whether a paficular seawall meets the conditions of HRS Section 264-

l(c) such that its ownership is surrendered to the State depends on whether its historic private

owners exerted any control or acts of ownership over the seawall within the past ñve years. As

is explained below, Levy involves a seawall very similar to the Seawall in this case. Levy's

disposition clearly indicates that the State cannot abandon its responsibility for lands that it alone

can control.

            Levy involved a seawall along the Waikiki coastline adjacent to several hotels.a A visitor

to the islands fell ofTthe seawall, portions of which were badly deteriorated, and sued the State

for negligence. Levy, 50 Haw. at 497-98, 443 P.2d at 143. The State had previously acquired an

express easement over the seawall for the purpose of providing a path for public travel. Id at

498,443 P.2d at 144.

            The Coun explained that an owner of an easement has the right and duty to keep the land

in repair, and that the owner of the easement is liable for any damages caused by the lack of

proper repairs. Levy, 50 Haw. at 498, 443 P.2d af 144. Most important, the Court held that       "it is

            o This seawall is not the Diamond Head Seawall.



2t6t7 t.4                                           t7
the control and not the ownership which determines          liability." Levy, 50 Haw. at 499,443 P.2d at

144 (quoting In re Taxes Victoria Ward, 33 Haw. 235 (1934)). The Court found that since the

State controlled the seawall, that it had the duty to maintain the whole     wall. Id.

             The Court held that the State not only owned an express easement over the seawall, but

that the seawall had. in fact. been surrendered to the State for public use. Therefore. the Seawall

was a public highway. Levy, 50 Haw. at 499, 443 P.2d at 144- Ownership of the seawall

transferred to the State.s For this proposition, the Court cited Revised Laws of Hawai'i 1955

("RLH") Section 142-l-what is now HRS Section264-l (2006). Id. Section 264-l(c) has

remained largely unchanged from RLH Section 142-1, and provides in part that:

             Allroads, alleys, streets, ways, lanes, trails, bikeways, and bridges in the State,
             opened, laid out, or built by private parties and dedicated or surrendered to the
             public use, are declared to be public highways or public trails as follows:

             (2)     Surrender of public highways or trails shall be deemed to have taken place
             if no act of ownership by the owner of the road, alley, street, bikeway, way, Iane,
             trail, or bridge has been exercised for five years.

HRS $ 264-l (c). The Court in Levy held that, "[a]lthough a seawall is not expressly mentioned

in the above enumeration, it can be fairly implied that a seawall such as that which is in question

here which is used as a public thorouqhfare is included in the term 'public       highway."' Levy, 50

Haw. at 499,443 P.2d at 144 (emphasis added). Because the seawall was a public highway open

to the public for travel, the State had a "duty to maintain Lthe] highway in a condition safe for


        s The seawall in Levy was surrendered to the State, meaning that, even without a formal
transfer of ownership, the State now owned the seawall. The history of HRS section 264-l(c)
confirms that a "surrender" of a thoroughfare to the State does indeed confer upon the State full
control and ownership of the highway. The Supreme Court of Hawai'i has clarified that "Hawaii
is one of the few jurisdictions which have provided, at one time or another, for vesting the fee     of
a highway or road laid out by a private party and abandoned to the public in the central
government." Application of Kelley, 50 Haw. 567 , 579, 445 P.2d 538, 546 (1968) (emphasis
added). Hence, Levv's holding vests ownership of the seawall to the State, regardless of any
dedication or formal transfer of ownership.



?16t7 | .4                                             r8
travel." Levy, 50 Haw. at499,443P.2dat144 (quoting Restatement (Second) of Torts $ 349,

cmt. b (1965) (emphasis added).

           HRS Section264-1(c) requires that, in order for a public thoroughfare to be surrendered

to the State,   (l) it must have been originally   built by private parties, and (2) the historic private

owners must not have exercised any act of ownership over the thoroughfare for five years.

Expanding on Levy, In re Banning, 73 Haw. 297 , 832          P   .2d 724 ( 1968), added, in dicta, a third

requirement to HRS Section         264-l(clthat    before a public thoroughfare may be surrendered to

the State, the State must have previously held an easement over the thoroughfare. Id.              at3l2, B32
P.2d at 732. As     will   be explained, infra, the Seawall in this case meets all three requirements.

Therefore, the State is the entity responsible for the maintenance of the Seawall.

                            b.      Jones v. Halekulani Hotel, Inc.

           There exist two distinctions between Levy and the instant case:        (l)   here, the State does

not hold an express easement over the Seawall, and (2) in Levy, the State admitted it controlled

the seawall. Neither of these distinctions is significant, however, given the holding in Jones v.

Halekulani Hotel. Inc., supra. Here, the State holds a prescriptive easement over the Seawall.

The Jones court abolished any notion that the type of easement---€xpress or prescriptive-makes

any difference in the application of Levy Holdings. Second,4!çg also stands for the proposition

that the State's control over the Seawall may be established by the public's consistent, Iengthy

use of it as a public thoroughfare.

           Like Lev-v, Jones involved a seawall along the Waikiki coastline.6 A visitor to the

islands, a minor, dove from a seawall on Halekulani Hotel property into shallow ocean water and

fractured his neck. Jones, 557 F.2d at 1309. He sued the Halekulani, asserting that the hotel had



           u Th.
                 Jones seawall is not the Levy seawall or the seawall in this case.


2t6t71.4
                                                      r9
breached its duty to warn users of the seawall of the shallowness of the water, or otherwise

protect users of the walkway from dangers incident to use. Id.

               The Halekulani argued   (l)   that the State had acquired an easement by prescription over

the top of the seawall and had the sole duty to maintain it, and (2) that the provisions of HRS

chapter 5207 precluded liability on the part of the hotel. Jones, 557 F.2d at 1309-10. The Ninth

Circuit chose not to address the second issue but, instead, explained that the Halekulani owned a

prescriptive easement over the seawall because:

               (1)    The seawall had been used as a walkway from l9l7 to 1972.
               (2)    The Halekulani's owners never attempted to interfere with pedestrian
                      traff,rc.
               (3)    The Halekulani "assumed that the public had a right to use the wall as         a
                      public walkway."

Id. at l3 10. The court held that "[u]se which is constant. unintemrpted and peaceful is sufficient

to create an easement by prescription." Id. (emphasis added). Because of the public's extensive

use of the seawall as a thoroughfare, the Halekulani had no control over the seawall and

therefore had no duty with respect to the protection of its users. Id.

               Not only did the Ninth Circuit hold that the State held a prescriptive easement over the

seawall, the court recognized that the Supreme Court of Hawai'i characferized this type             of
seawall easement as a "public highway" under HRS Section 264-1. Jones, 557 F.2d at                  l3l   I

(citing Levy, supra). Given that the Halekulani had abandoned control over the seawall, and that

the public had been using the seawall as a walkway for over 50 years, the Court found that the

Halekulani no longer had a right to control the seawall. Jones, 557 F .2d at         l3l I .   In accordance


               '
           HRS Chapter 520 "was enacted to encourage land owners to make their land available
to the public for recreational purposes by limiting their liability toward persons entering the land
for such purposes." Jones, 557 F .2d at l3 10 n.l . Under chapter 520, no person or entity may
acquire an easement over land which a landowner opens for recreational public use through this
public use. HRS ç 520-7 . Chapter 520 was enacted in 1969, at least l7 years after the public
started to use the Diãmond Head Seawall as a thoroughfare. See Anderson Decl. !f 4.


2t617   | .4
                                                          20
with the holdings in Jones and Levy,    a seawall used by the        public as a thoroughfare, either by

 means of an express or prescriptive easement, is surrendered to the State as a public highway

 where the historic owners exercised no act of ownership over the seawall for at least frve
                                                                                            vears.

 The Seawall in this case clearly meets this description.

                   2.

            The statutory and case law explained above provides three requirements before a seawall

 is surrendered to the State as a public highway:        (l)   that the seawall was built by private parties

 (2) that no private parties have exercised any act of ownership over the seawall for at least
                                                                                               five
 years' and (3) that the State previously held an easement over the seawall. The Seawall
                                                                                         meets all

three requirements.

                          a.      Private Parties Built the Seawall.

            The State acknowledges that the govemment did not originally build the Seawall. See

SOF T 22 (the various portions of the Seawalls relevant to this matter were constructed by

unknown private parties at least 80 to 100 years ago).

                          b.      The Private Parties who Built the seawall, and rheir Successors,
                                  Have committed No Act of ownership over the Seawall for
                                  Several Decades.

            June Anderson has lived in her home along the Gold Coast for over 37 years, and has

used the Seawall as a pathway for over 55 years. See Anderson DecI.                     4. Throughout this
                                                                    T13,
entire period, Ms. Anderson has observed the public using the Seawall as a walkway and

thoroughfare, as well as for access to the water for fishing, surfing and swimming. See id.
                                                                                                       ff   3,

41517. To the best of Ms. Anderson's knowledge, no owner of property along the Seawall has

ever attempted to block access to the wall or exen any other similar acts of control or ownership

over the Seawall during that time- See id. fl   6. Indeed, the private property owners along the
Gold Coast have no control over the Seawall. If they were to attempt to complete minor repairs


216t7 t.4                                          ,ìt
                                                   zl
over portions of the Seawall, it would only be because the State has refused to undertake such

 repairs, and the conditions were so dangerous on the Seawall as to put the public in danger.

               The State has admitted that it has a "right-of-way" over the Seawall and has appropriated

 funds for improvements to the Seawall to make it safer for travel. Not only has it appropriated

 funds for improvements, the DLNR has repaired and rehabilitated the Seawall multiple times in

 the past. The public, which extensively uses the Seawall as a walkway, often to parts of the

 ocean and beach that cannot be accessed otherwise, obviously regards the Seawall as a public

 thoroughfare with no restriction on its use.

               In the past, the State has explicitly exerted control over the Seawall, through its use and

its repair, and inexplicably abandoned during the last administrated the Seawall when repair is

desperately needed. Although the State is aware that the Seawall is used consistently by the

public, it is foisting the responsibility of the public's safety on private landowners who do not

control, nor have the right to control, the Seawall. It is clear, based on the public's use for at

least 55 years and the State's control over the Seawall that any responsibility over the Seawall

now rests with the State.

                              c.      The State Holds an Easement by prescription over the Diamond
                                      Head Seawall.

               The Seawall has been used by the public for at least 55 years, if not more. Like the

Halekulani Hotel in Jones, the members of the GCNA understood that, because of the public's

use of the Seawall for so many decades, they have no right to control             it.   Indeed, the State has

taken over that responsibility by repairing the Seawall and appropriating funds for further

rehabilitation. The public has deemed the Seawall            a   public thoroughfare by using it consistently.

The public's "constant, uninterrupted and peaceful" use for at least 55 years is sufficient to create

an easement by prescription in the state. See Jones, 557 F.zd at 1310.



2t6t7   | .4
                                                        22
Once an easement is established giving the public the right to use the privately-built

 Seawall as a public thoroughfare, and the historic owners of the Seawall fail to exert ownership

 over it for at least five years, HRS Section264-l(c) dictates that ownership of the Seawall

 transfer from historic owners and to the State. Indeed, this mandatory transfer of ownership took

 place decades ago. The Seawall is a "public highway." The State is responsible for the

 maintenance of the Seawall.

           C.               Alterna                 tmu               Ho


           Even   if the Seawall was not formally surrendered or dedicated to the State as a public

highway under HRS Section264-l(c), the State still holds a prescriptive easement over the

Seawall. The public's "constant, unintemrpted and peaceful" use of the Diamond Head Seawall

is sufficient to create an easement by prescription. Jones, 557 F.2d at 1310. According to Levy,

"[i]t is a well   established rule that an owner of an easement has the right and the duty to keep it

in repair." 50 Haw. af 498, 443 P.2d at 144. Additionally, "[t]he owner of the easement is liable

in damages for injuries caused by failure to keep the easement in repair." Id. Further, ,.it is the

control and not the ownership which determines the liability." Id. at 499, 443 p.2d at 144.

           The State has exerted control over the Seawall for many years, repairing and

rehabilitating it and appropriating funds for its improvement. The public's use of the Seawall

has been constant, unintemrpted, and peaceful for at least 55 years. Even         if the ownership of the
Seawall does not vest in the State, the State has, by its own admission, a "right-of-wây,,, which,

when combined with the public's long use of the Seawall, equates to a prescriptive easement. To

hold otherwise would confound logic.

           The State, by now disclaiming any interest in the Seawall, is essentially taking either one

of two positions:     (l)   that the Seawall may, and indeed should, be cut off to public use entirely,



2t6t7t.4
                                                      ¿)
completely undermining the constant accessibility the public has enjoyed for several decades, or

 (2) that members of the GCNA should be responsible for all maintenance of the Seawall, liable

 for all accidents that occur thereon, yet completely incapable of exerting control over who uses

 the Seawall, how they use it, and when they use it. Both positions show a complete disregard for

 public access rights and general principles of liability. Public use of the Seawall, as with other

 seawalls along the Waikiki coast, has become both a tradition-an accepted means of travel from

 one part of the ocean and beach to another-as well as an engrained legal        right. The State's
confounding position in this matter ignores these practical realities.

IV.          REBUTTAL OF THE STATE'S DEFENSES

             The State has asserted two reasons why it should not be found responsible for the

Seawall: (a) no public access to the Seawall; and (b) no responsibility for portions of the

Seawall adjacent to land registered in Land Court. Both ignore the facts, the statute and the

caselaw.

             A.     There is no Public Access to the Seawall

             The State claims that there is no real public access to the Seawall and, hence, the Seawall

cannot be a public thoroughfare. This is in bold denial of the public's extensive use over several

decades. To support its position, the State points to a "hole" in the continuity of the public

easements over the path that the public generally uses to access the Seawall. The property at

3037 Kalakaua Avenue, TMK No. 3-l-033:006, includes a narrow stretch of dirt road that leads

from Kalakaua Avenue to the ocean, with access to the Seawall. See Exhibit J-19 at I l. This

property was registered in Land Court pursuant to Land Court Application No. 1243 of Bishop

'frust, Ltd. See     id. As indicated on the LCD No. 2384206 and T.C.T. No. 492637,       there is an

"[Easement] of [right of way] to the sea in favor of the owners of lots in the Diamond Head

Terrace Tract across Lots A and C" and an "[Easement] of [right of way] in favor of the general


216t7 | .4
                                                     24
public across Lot C." See id; J-244. Lot A and C are the two sections of the narïow dirt road

access to the ocean, on the Ewa side of TMK No. 3-l-033:006. Lot A is the section closest to

Kalakaua Avenue, and Lot C sits between Lot A and the ocean. See          id.   Essentially, Lot C is a

public access to the ocean and the Seawall that, if read literally would mean that no member of

the public could access because Lot A only contains an easement for owners of lots in the

Diamond Head Terrace Tract.

           This landlocked public easement contravenes the purpose of HRS Chapter I15, which

was enacted specifically to combat a lack of public right-of-way to the shoreline and ocean in

Hawai'i. HRS Section I l5-l states as follows:

           The legislature finds that miles of shorelines, waters, and inland recreational areas
           under the jurisdiction of the State are inaccessible to the public due to the absence
           of public rights-of-way; that the absence of public rights-of-way is a contributing
           factor to mounting acts of hostility against private shoreline properties and
           properties bordering inland recreational areas; that the population of the islands is
           increasing while the presently accessible beach, shoreline, and inland recreational
           areas remain f,rxed; and that the absence of public access to Hawaii's shorelines
           and inland recreational areas constitutes an infringement upon the fundamental
           right of free movement in public space and access to and use of coastal and inland
           recreational areas. The purpose of this chapter is to guarantee the riqht of public
           access to the sea. shorelines. and inland recreational areas. and transit along the
           shorelines, and to provide for the acquisition of land for the purchase and
           maintenance of public rights-of-way and public transit corridors.

(Emphasis added). Obviously, the grant of a public easement through Lot C was meant to

provide the public with access to the shoreline. The fact that Lot A, which provides access to

Lot C from Kalakaua Avenue, technically has no public easement should not prevent shoreline

access. The illogical results of bureaucracy on the encumbrances of land sales and modifications

should not prevent the people of Hawai'i from basic access to its shores. The pubtic has been

using both Lot A and Lot C as an access way to the ocean and the Seawall for several decades.

For the State to take a position that Lot C is now a useless public easement, and that access to the




2t6171.4
                                                    25
shoreline and along the shoreline by means of the Seawall is now trespassinq, is against the

public policy set forth in Chapter I 15.

             B.     The State is not Responsible for the Seawall Adiacent to Properties
                    Registered in Land Court

             The State's second assertion is that the registration of properties adjacent to the Seawall

in Land Court obviates its obligations. Specifically, the Land Coun properties relevant to this

case are      TMK Nos. 3-l-032:030 (Tropic      Seas,   Inc.), :029 (Diamond Head Beach Hotel), :028

(the first of three lots of Diamond Head Ambassador Hotel), and:027 (the second of three lots of

Diamond Head Ambassador Hotel). See Exhibit J-19 at 2. None of the Land Court applications

for these properties contain an explicit right-of-way for the public and, thus, the State contends

that it is not responsible for the maintenance of those areas of the Seawall. This position ignores

the plain language of the statute and the holdings in Levy and Jones.

             The stipulated survey map in this case shows that portions of the Seawall fronting the

Land Court properties are outside private property. See Exhibit J-24. This means that this land

is State property. Indeed, the "shoreline," where private property ends and State property begins,

often includes a portion of the top of the Seawall, on both Land Court and regular registered

properties. See id. This presents a curious conundrum-what if both the State and private

property owners own parts of the top of walkway on Land Court property that is used extensively

by the public? The GCNA does not dispute that properties registered in Land Coun cannot

include encumbrances not explicitly stated, but in this case the State controls (via actual

ownership, according to the survey map) the portion of the Seawall that is most likely to cause

underlying structural damage. Specif,rcally, the State owns portions of the top of the Seawall

adjacent to Land Court property and it owns the submerged portions of the Seawall. Since wave




2t6t7t   4
                                                        26
action causes underlying structural damage, it is illogical to require private land owners to be

responsible for the liability and maintenance of the Seawall fronting their properties.

             Second, there exists an unfortunate conflict between the policies regarding Land Court

property and the State's policy favoring ocean access. The Seawall represents a pathway along

the shoreline and the fact that portions of the Seawall may fall within Land Court property

creates unjustified "holes" in public access. HRS Chapter I 15, supra, was created so that these

holes would not       exist-so that the public would   have the right to access public beaches. The

Seawall, logically, is the classic example of an easement by ancient or historic use. Denying

access to the     public now would be unfair, and would be against the State's long-lasting policy

that the people of Hawai'i deserve reasonable access to all of the State's beaches.

             C.     Hawaii's Constitution Mandates Public Access

             GCNA's position here is also in direct accord with Hawaii's constitution and over       a

hundred years of Hawai'i caselaw. The public trust doctrine and Hawai'i Supreme Court's

reliance on ancient Hawaiian custom have established the public's right to access beaches. Both

are discussed in turn.

                    l.      Public Trust Doctrine

             Section XI of the Hawai'i constitution provides as follows:

                    For the benefit of present and future generations, the State and its political
                    subdivisions shall conserve and protect Hawai'i's natural beauty and all
                    natural resources, including land, water, air, minerals and energy sources,
                    and shall promote the development and utilization of these resources in a
                    manner consistent with their conservation and in furtherance of the self-
                    suffrciency of the State.

                    All public natural resources are held in trust by the State for the
                    benefit of the people.




2t617 | .4
                                                      27
It should be noted that Hawai'i adopted the "public trust" doctrine with respect to our shorelines

and submerged lands over a hundred years ago and the doctrine has been repeatedly affirmed in

several landmark cases over the years.

             In King v. Oahu Railway & Land Co., I I Haw. 717 (Haw. Terr. 1899), the Supreme

Court for the Territory of Hawai'i held that: "The people of Hawaii hold absolute rights to all its

navigable waters and the soils under them for their own common use. . . . The lands under the

navigable waters in and around the territory of the Hawaiian Government are held in trust for the

public uses of navigation." Id. at725 (citing Martin v. Waddell,4l U.S. 367 (1842) and

adopting the reasoning of the United States Supreme Court in Illinois Central R.R. v. Illinois,

146 U,S. 387 (1892)).

             In Application of Ashford,50 Haw. 314,440P.2d76 (1968), the Hawai'i Supreme Cour

further clarified that the boundary between private property and the public beach along the

coastline was "the upper reaches of the wash of waves, usually evidenced by the edge       of
vegetation or by the line of debris left by the wash of waves." Id. at 315, 440 P.2d at 77 .

Roughly five years later, the Court expanded the "public trust" doctrine to include tidelands,

when it held that "[]and below the high water mark. like flowing water, is a natural resource

owned by the state 'subject to, but in some sense in trust for, the enjoyment of certain public

rights."' County of Hawaii v. Sotomura,55 Haw. 176,183-84,          517   P.2d57,63 (1973) (quoting

Bishop v. Mahiko, 35 Haw. 608,641(Haw. Terr. 1940)).8 Importantly, the Court noted that

"[p]ublic policy,    as interpreted by this court, favors extending to public use and ownership as

much of Hawaii's shoreline as is reasonably possible." Id. at 182,517 P.2d at 6l; see also In re



      I More recently, the Hawai'i Supreme Court reaffirmed the decision of Ashford
                                                                                      and
Sotomura, see Diamond v. State , ll2 Hawai'i I6l, 145 P.3d 704 (2006), ultimately unifying        the
definition of "shoreline" of the state statutes, common law, and administrative rules.


2t617 | .4
                                                   28
waiola o Molokai. Inc., 103 Hawai'i 401, 432,83 p.3d664,695 (2004) (..any balancing

 between public and private purposes [shall] begin with a presumption in favor of public use,

 access, and enjoyment."). In fact, the Court boldly stated that "the state bears an 'affirmative
                                                                           []
 duty to take the public trust into account in the planning and allocation of water resources, and to

 protect public trust uses whenever feasible."' Waiola O Molokai, 103 Hawai,i at 430. g3 p.3d
                                                                                              at

 693.

             Further, the Hawai'i Supreme Court has held that access by the public to these beaches

 are also of utmost importance: "The ability to get to a recreation area is as vital for enjoying
                                                                                                  it as
 having it in its natural condition." Akau v. Olohana Com.,65 Haw. 383,390, 652p.2d I130,

 I 135 (1982)' In support, the Hawai'i State Legislature has enacted legislation in favor of public

 beach access, effectuating the public's ability to use Hawaii's shorelines. HRS Ch. I          l5 provides
 for public rights of way to access the shoreline and specif,rcally provides in HRS Section        ll5 -   4

as   follows:

                    The right of access to Hawaii's shorelines includes that right of transit
                    along the shorelines.

HRS $ 11s-4 (2009).

                    2.       Ancient Hawaiian Custom

             Similarly, Hawai'i courts' reliance on ancient Hawaiian custom and usage to secure

public beach access also supports GCNA's position. In re Ashford is the genesis of a line of

cases that secures       public beach access through the use of ancient Hawaiian custom and usage. In

Ashford, the Hawai'i Supreme Court recognized that the land laws of Hawai'i are unique in that

"they are based on ancient tradition. custom, practice and usage." Id., 50 Haw. at 315,440 p.Zd

at 77 . In so recognizing, the Court utilized the longstanding kama'aina witness rule, based on




21617 | .1
                                                     29
necessity, which permits the admission of reputable evidence of kama'aina witnesses in land

disputes. Id. 50 Haw. at 315-17, 440 P.2d at 77-78.

               The Hawai'i Supreme Court further relied upon kama'aina testimony in State v. Zimring,

52Haw.472,479 P.2d202 (1970). In Zimring, the Court considered                    a   claim of ownership

brought by the State that of seaward accretions to beach front property caused by volcanic

eruptions. Id. The Court admitted kama'aina testimony, based on personal knowledge and

knowledge passed down by the witness' parents and grandparents, regarding the Hawaiian

practice of granting ownership of new land to the abutting owner. Id. at 47 5, 479             P   .2d at 204.

               The foregoing line of cases culminated in the Court's reliance on ancient Hawaiian

custom and common law custom in McBryde Sugar Co. v. Robinson, 54 Haw. 174, 504 P.Zd

1330 (l 973) that "the right to water was not intended to be, could not be, and was not transferred

to the awardee, and the ownership of water in natural watercourses, streams and rivers remain[
                                                                                               ]
in the people of Hawai'i for the common good." Id. at 186-87, 504P.2d,1339. The court

recognized the public's right to running water, asserting that no private owner could acquire the

adverse right to "surplus" water from the state. Id. at I 85-87, 504 P.2d at 1338-39.

               Scholars have commented that the McBryde Court's reliance on documents from the

1840s, "Principle Adopted by the Land Commission" and "the Enactment of Further Principles"

in 1850 is important to public beach access. Michael Anthony Town & William 'Wai Lim yuen,

Public Access to Beach in Hawaii: "A Social Necessit)¡?', l0 Haw.8.J.3, l5 (1973). Utilizing

these documents, the Court established "that beach access,        if it existed   as a customary     right, is a

public right and, like the water right, is held by the state for the public." Michael D. Tom, Note,

Flawaiian Beach Access: A Customarv Right, 26 Hastings L.J. 823, 839 (1975). The botom

line is that the foregoing principles of the public trust doctrine and ancient Hawaiian custom




2t6t7   | .4
                                                      30
dictate that the State is responsible for maintaining the Seawall. For the State to now ignore this

duty would fly at the face of well-established case law and statutes.

V.             CONCLUSION

               GCNA submits that, as shown herein, the State has been and should continue to be

responsible for the Seawall. GCNA therefore respectfully request that this Court affirm that

duty.
                                                          l,fAR   17   2011
               Dated, Honolulu. Hawai'i




                                            ROBERT G. K
                                            RANDALL K. SCHM
                                            JORDON J. KIMURA

                                            Attorneys for Plaintiff (Civil No. 07-1-l 122-06)
                                            GOLD COAST NEIGHBORHOOD ASSOCIATION
                                            and Defendants (Civil No. l0-l-0888-04)
                                            TROPIC SEAS, TNC.; THE ASSOCIATION OF
                                            APARTMENT OWNERS OF DIAMOND HEAD BEACH
                                            HOTEL, INC.; DIAMOND HEAD APARTMENTS,
                                            LTD.; C S APARTMENTS, LTD.; THE ASSOCIATION
                                            OF APARTMENT OWNERS OF 2987 KALAKAUA
                                            CONDOMINIUM ; TAHITIENNE, INCORPORATED;
                                            THE ASSOCIATION OF APARTMENT OWNERS OF
                                            3003 KALAKAUA, INC.; THE ASSOCIATION OF
                                            APARTMENT OWNERS OF 3OI9 KALAKAUA. INC.




2t617   | .4
                                                     3l
IN THE CIRCUIT COURT OF THE FIRST CIRCUIT

                                       STATE OF HAWAI'I

GOLD COAST NEIGHBORHOOD                             cryrl- No. 07-l -1122-06 (vLC)
ASSOCIATION,                                        (Declaratory Judgment)

                   Plaintiff.                       CERTIFICATE OF SERVICE

             vs.



STATE OF HAWAI'I; DOE
GOVERNMENTAL ENTITIES l-10; DOE
GOVERNMENTAL AGENCIES 1-I O.

                   Defendants.




STATE OF HAWAI'I BY ITS ATTORNEY                    clvll. No. l0-1-0888-04 (VLC)
GENERAL.                                            (Declaratory Judgment)

                   Plaintiff,,

             VS.

                                                )
TROPIC SEAS, INC.; THE ASSOCIATION OF )
APARTMENT OWNERS OF DIAMOND )
HEAD BEACH, INC.; OLIVIA CHEN LUM, )
trustee of the Olivia Chen Lum Revocable Living)
Trust; CLARENCE KWON HOU LUM, trustee )
of the Clarence Kwon Hou Lum Trust and trustee)
under the Will and Estate of Chow Sin Kum
Lum; JEANNE S. J. CHAN and IIOWARD N.
H. CHAN, trustees of the Jeanne S. J. Chan
Trust; DIAMOND HEAD AMBASSADOR
HOTEL, LTD.; DIAMOND HEAD
APARTMENTS, LTD.; C S APARTMENTS, )
LTD.; THE ASSOCIATION OF APARTMENT )
owNERS OF 2987            KALAKAUA             )
CONDOMINIUM; TAHITIENNE,        -              )
INCORPORATED; THE ASSOCIATION              OF  )
216t7 | .1
APARTMENT OWNERS OF 3003            )
KALAKAUA, INC.; THE ASSOCIATION OF )
APARTMENT OWNERS OF 3019            )
KALAKAUA,INC.; JOHN DOES l-20; DOE )
CORPORATIONS I -20; DOE PARTNERSHIPS)
l-20; DOE ASSOCIATIONS l-20, DOE    )
GOVERNMENTAL AGENCIES l-20; AND )
DOE ENTITIES I -20.

                      Defendants.

                                                                Trial: March   2l,20ll
                                                                Judge: The Honorable Virginia L. Crandall




                                         CERTIFICATE OF SERVICE

               I hereby certify that copies of the foregoing document will be duly served upon the

following persons by hand-delivering (HD) or by mailing (M) said copy, postage prepaid, first

class in a United States post office in Honolulu, Hawai.i, as indicated below, on


                                 , addressed as set   forth below:

                      DAVID M. LOUIE, ESQ.                                          (HD)
                      Attorney General of Hawai'i
                      V/ILLIAM J. WYNHOFF, ESQ.
                      Deputy Attomey General
                      Department of the Attomey General, State of Hawai,i
                      465 King Streer, Suite 300
                      Honolulu, Hawai'i 968 I 3

                      Attorneys for Plaintiff
                      STATE OF HAWAI'I

                      LESTER K.M. LEU, ESQ.                                        (HD)
                      KARYN A. DOI, ESQ.
                      Leu & Okuda
                      The Merchant House
                      222Merchant Street, Main Floor
                      Honolulu, Hawai'i 9681 3

                     Attomeys for Defendants
                     OLIVIA CHEN LUM, CLARENCE KWON
                     HOU LUM, JEANNE S.J. CHAN and HOWARD
                     N.H. CHAN
2t6t7   | .4
STEPHEN K. C. MAU, ESQ.                                  (HD)
Rush Moore LLP
737 Bishop Street, Suite 2400
Honolulu, Hawai'i 9681 3

Attomey for Defendant
DIAMOND HEAD AMBASSADOR HOTEL, LTD.

DATED: Honolulu, Hawai'i,              }iAR 1   ? 20ll



                                ROBERT G. KLEIN
                                RANDALL K. SCH
                                JORDON J. KIMURA

                            Attorneys for Plaintiff (CivilNo. 07-1 -1122-06)
                            GOLD COAST NEIGHBORHOOD
                            ASSOCIATION
                            and Defendants (Civil No. l0-l-0S88-04)
                            TROPIC SEAS, INC.;THE ASSOCIATION OF
                            APARTMENT OWNERS OF DIAMOND HEAD
                            BEACH HOTEL, INC.; DIAMOND HEAD
                            APARTMENTS, LTD.; C S APARTMENTS,
                            LTD.; THE ASSOCIATION OF APARTMENT
                            OWNERS OF 2987 KALAKAUA
                            CONDOMINIUM ; TAHITIENNE,
                            INCORPORATED; THE ASSOCIATION OF
                            APARTMENT OWNERS OF 3OO3 KALAKAUA,
                            INC.; THE ASSOCIATION OF APARTMENT
                            OWNERS OF 3OI9 KALAKAUA. INC.

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Gold Coast Trial Brief

  • 1. FIRST CIRCUIT C.[}URÏ sTAtf '0F i{r,HÂil McCORRISTON MILLER MUKAI MacKINNON lr_p i.ii-Í. I) ROBERT G. KLEIN #1192-0 ?ûll HAR 17 Pll l¡ 30 RANDALL K. SCHMITT #3752-0 JORDON J. KIMURA #9182-0 F. 0TôKE_ __ Five Waterfront Plaza,4th Floor OI.E.RK 500 Ala Moana Boulevard Honolulu, Hawai'i 968 I 3 Telephone: (808) 529-7300 Facsimile: (808) 524-8293 Attorneys for Plaintiff (Civiì No. 07-l -1122-06) GOLD COAST NEIGHBORHOOD ASSOCIATION and Defendants (Civil No. l0-l-0S83-04) TROPIC SEAS,INC.; THE ASSOCIATION OF APARTMENT OWNERS OF DIAMOND HEAD BEACH HOTEL, INC.; DIAMOND HEAD APARTMENTS, LTD.; C S APARTMENTS, LTD.; THE ASSOCIATION OF APARTMENT OWNERS OF 2987 KALAKAUA CONDOMINIUM; TAHITIENNE, INCORPORATED; THE ASSOCIATION OF APARTMENT OWNERS OF 3003 KALAKAUA, INC.; THE ASSOCIATION OF APARTMENT OWNERS OF 3OI9 KALAKAUA. INC. IN THE CIRCUIT COURT OF THE FIRST CIRCUIT STATE OF HAWAI'I GOLD COAST NEIGHBORHOOD ) CIVIL NO. O7-1 -1122.06 (VLC) ASSOCIATION. ) (Declaratory Judgment) ) Plaintifl, ) PLAINTIFF GOLD COAST ) NETGHBORHOOD ASSOCTA'|rON AND vS. ) DEFENDANTS TROPIC SEAS, INC., THE ) ASSOCTATION OF APARTMENT OWNERS ) OF DIAMOND HEAD BEACH HOTEL, INC., STATE OF HAWAI.I; DOE ) DIAMOND HEAD APARTMENTS, LTD., C S GOVERNMENTAL ENTITIES I-IO; DOE ) APARTMENTS, LTD, THE ASSOCIATIoN GOVERNMENTAL AGENCIES I -10, ) OF APARTMENT OWNERS OF 2987 ) KALAKAUA CONDOMINIUM, Defendants. ) TAHITIENNE,INCORPORATED,THE ) ASSOCTATTON OF APARTMENT OWNERS ) oF 3003 KALAKAUA,INC., AND THE ) ASSOCTATTON OF APARTMENT OWNERS ) oF 3019 KALAKAUA, TNC'S TRIAL BRIEF: ) CERTIFICATE OF SERVICE I
  • 2. STATE OF HAWAI'I BY ITS ATTORNEY crvll. No. 10-1-0888-04 (vLC) GENERAL, (Declaratory Judgment) Plaintiff, vs. ) TROPIC SEAS, INC.; THE ASSOCIATION OF ) APARTMENT OWNERS OF DIAMOND ) HEAD BEACH,INC.; OLIVIA CHEN LUM, ) trustee of the Olivia Chen Lum Revocable Living) Trust; CLARENCE KWON HOU LUM, trustee ) of the Clarence Kwon Hou Lum Trust and trustee) under the Will and Estate of Chow Sin Kum ) Lum; JEANNE S. J. CHAN and HOWARD N. ) H. CHAN, trustees of the Jeanne S. J.Chan ) TruSt; DIAMOND HEAD AMBASSADOR ) HOTEL, LTD.; DIAMOND HEAD ) APARTMENTS, LTD.; C S APARTMENTS, ) LTD.; THE ASSOCIATION OF APARTMENT ) owNERS OF 2987 KALAKAUA ) CONDOMINIUM; TAHITIENNE, ) INCORPORATED; THE ASSOCIATION OF ) APARTMENT OWNERS OF 3OO3 KALAKAUA, INC.; THE ASSOCIATION OF APARTMENT OWNERS OF 3019 KALAKAUA, INC.; JOHN DOES 1-20; DOE CORPORATIONS 1 -20: DOE PARTNERSHIPS) 1-20; DOE ASSOCIATIONS 1-20, DOE GOVERNMENTAL AGENCIES 1-20; AND DOE ENTITIES 1-20. Defendants. Trial: March 22,2011 Judge: The Honorable Virginia L. Crandall 216171.4
  • 3. TABLE OF CONTENTS Page r. TNTRODUCTION .................... I II. FACTUAL BACKGROI.IND .....................2 A. Property and Easements........... .......3 B. History of State's Position on Seawall-State Policy in 1975 .............4 C. State Policy and Seawall Work Between l98l and 1982......... ............ 6 D. State Policy and Seawall Work Between 1982 and 1983......... ............ 8 E. State Policy and Seawall Work Between 1983 and 1985......... ............ 8 F. State Policy and Seawall Work Between 1992 and 1993......... .......... l0 G. State Action on the Seawall in 1999 ............... I I H. State Policy in2002-2003 and the Sea Ladder Easement.. ............-.-..12 . I. Legislative Action....-. ................... 13 III. DISCUSSION _.......... .............. 14 A. The State Has Repeatedly Admitted Its Duty to Keep the Seawall in Good and Safe Condition for Travel.. .....14 B. The Seawall is a State Public Highway and the State is Responsible for its Maintenance.............. .................... 16 l. Review of the Relevant State and Federal Case Law. .........-,.17 2. Applying HRS Section264-1, Levy, andJones to the Seawall ...........-....21 C. In the Alternative, At a Minimum, the State Holds a Prescriptive Easement Over the Seawall and, Therefore, Has a Responsibility for its Maintenance.-.....23 IV. REBUTTAL OF THE STATE'S DEFENSES............... ..............24 A. There is no Public Access to the Seawall .......24 B. The State is not Responsible for the Seawall Adjacent to Properties Registered in Land Court ..........-...26 C. Hawaii's Constitution Mandates Public Access ...............27 l. Public Trust Doctrine... .....27
  • 4. TABLE OF AUTHORITIES Page(s) Cases Akau v. Olohana Corp., 65 Haw. 383,652P.2d1130 (1982).......... .................29 Appl ication of Ashford, 50 Haw. 374,440P.2d76 (1968) .29,29,30 Application of Kelley, 50 Haw. 567, 445 P.2d 538 (1968) ........... l8 Bishop v. Mahiko, 35 Haw. 608 (Haw. Terr. 1940).......... .-....29 County of Hawaii v. Sotomura, 55 Haw. 176,517 P.zd 57 (1973) .............28 Diamond Head v. State of Haw.. Bd. of Land & Natural Res., 112 Hawai'i 16l, 145 P.3d 704 (2006) 14,29 Illinois Central R.R. v. Illinois, 146 U.S. 387 (1892)......-... ......28 In re Banning, 73 Haw.297,832P.2d724 (1968) ........... t9 In re Waiola O Molokai. Inc., 103 Hawai'i 401,83 P.3d 664 (2004) .......29 Jones v. Halekulani Hotel. Inc., 557 F.2d 1308 (9th Cir. 1977) passim King v. Oahu Railway & Land Co., 1l Haw. 717 (Haw. Terr. 1899).......... ._....28 Levy v. Kimball, 50Haw.497,443P.2d142 (1968) ....passim Martin v. Waddell, 4l u.s.367 (1842)...._..... ........28 McBryde Sugar Co. v. Robinson, 54 Haw. 174, 504 P.2d 1330 (l 973) .......... ................. 30 2t6t7t 4 iii
  • 5. State v. Zimring, 52 Haw. 472,479 P.2d202 (1970) ............ 30 Statutes Haw. Rev. Stat. 5 264-l Haw. Rev. Stat. $ 26a-l(c). .....17,lg,Z3 Haw. Rev. Stat. ç 264-2 .... 17 Haw. Rev. Stat. ç 520-7 ....20 Haw. Rev. Stat. Ch. 115............ ....25.27 Haw. Rev. Stat. Ch.264..... ................. 14 Haw. Rev. Stat. Ch. 520........... ...........20 Haw. Rev. Statu. g I l5-l ....................25 Other Authorities Access to Beach in Hawaii: "A Social Necessity". l0 Haw. B.J. 3, l5 (1973) .........30 Hawaiian Beach Access: A customar-v Right, 26 Hastings L.J. Bz3, g3g (1975)....................... 30 2t6171.4 lv
  • 6. i''
  • 7. PLAINTIFF GOLD COAST NEIGHBORHOOD ASSOCIATION AND DEFENDANTS TROPIC SEAS, INC., THE ASSOCIATION OF APARTMENT OWNERS OF DIAMOND IIEAD BEACII IIOTEL, fNC., DIAMOND I-IEAD APARTMENTS, LTD., C S APARTMENTS, LTD, THE ASSOCIATION OF APARTMENT OWNERS OF 2987 KALAKAUA CONDOMINIUM, TAHITIENNE, INCORPORATED, THE ASSOCIATION OF APARTMENT OWNERS OF 3OO3 KALAKAUA, INC., AND THE ASSOCIATION OF APARTMENT OV/NERS OF 3OI9 KALAKAUA. INC'S TRIAL BRIEF Plaintiff Gold Coast Neighborhood Association, and Defendants Tropic Seas, Inc., the Association of Apartment Owners of Diamond Head Beach Hotel,Inc., Diamond Head Apartments, Ltd., C S Apartments, Ltd., the Association of Apartment Owners of 2987 Kalakaua Condominium, Tahitienne,Incorporated, the Association of Apartment Owners of 3003 Kalakaua, Inc., and the Association of Apartment Owners of 3019 Kalakaua,Inc. (collectively, "GCNA") submit the following Trial Brief detailing the key facts and legal analysis for the purpose of this Court making a dispositive decision in this matter. I. INTRODUCTION This case arises from a dispute between the GCNA and the State of Hawai'i (the "State") pertaining to whether the State is responsible, legally and f,rnancially, for the seawall on the Waikiki coastline along Kalakaua Avenue near Diamond Head (the "Seawall").I The members of the GCNA--owners of property bordering the Seawall-maintain that the State is responsible for the Seawall, the State argues that it has no such duty. GCNA will detail herein the evidence, along with state statutes, state and federal case law, and the State's own past admission of responsibility for maintenance of the Seawall, to prove that the State clearly is responsible for the Seawall in its use as a public thoroughtàre. ' The Sear¡,all is located in the City and County of Honolulu, State of Hawai'i, and the Seawall at issue in this case borders the property identified by Tax Map Key nos. 3-l-032:030, 029,028,027,026,004, 003, 002, 001 and 3-l-033: 0l l, 009. See Stipulation of Facts tf 3. 2t6t1t .4
  • 8. II. FACTUAL BACKGROUND The State has acknowledged its responsibility regarding the Seawall on a virtr-rally continuous basis for over 50 years as a blatant admission of this duty, and the State has repaired or contemplated repairing the Seawall on several occasions in the past. Indeed, the policy of past administrations of this State, with the exception of the administration under Governor Linda Lingle, was to repair seawall walkways for the safety of the public. There are records dating back to the early 1980s which show that the State not only believed that the Seawall was heavily used as a public thoroughfare, as well as access to the ocean for surfers, swimmers and fisherman, but that the State was responsible for the upkeep and safety of the Seawall. The GCNA is a non-profit incorporated organization doing business in the City and County of Honolulu and is comprised of individuals and organizations that own real property along Kalakaua Avenue on the Waikiki coastline in the City and County of Honolulu, State of Hawai'i.2 See Stipulation of Facts (*SOF') !f 1. The Seawall was originally built by unknown t The following organizations and/or incorporated entities are members of the GCNA: a. Tropic Seas, Inc., the governing organization for a cooperative identified by Tax Map Key ("TMK") No. 3-l-032:030; b. The Association of Apartment Owners of Diamond Head Beach Hotel, Inc., the governing organization for a leasehold identified by TMK No. 3-1 -032:029; c. Diamond Head Ambassador Hotel, Ltd., the governing organization for the cooperative identified by TMK Nos. 3-l-032:028,027 and 026: d. Diamond Head Apartments, Ltd., the governing organization for a cooperative identified by TMK No. 3-l-032:004; e. C S Apartments, Ltd., the governing organization for a cooperative identified by TMK No. 3-l-032:003 f. The Association of Apartment Owners of 2987 Kalakaua Condominium, the governing organization for the condominium identified by TMK No. 3-l -032:A02; 7t617 t.1
  • 9. private parties 80 to 100 years ago. See SOF ![22. For at least the last 55 years, the Seawall has been used as a thoroughfare for public travel from one portion of Waikiki beach to another. Declaration of June Anderson ('(Anderson Decl.") !f 4. One Gold Coast resident, June Anderson, has lived at Diamond Head Apartments for over 37 years, but began regularly using the Seawall as a walkway over 55 years ago. Anderson Decl. f 3- 5. For at least 50 years, persons living in properties fronted by the Seawall have used-and still use-the various portions of the Seawall relevant to this matter as a thoroughfare and to access the water in front of the properties fronted by the Seawalls. See SOF ![23. Further, during this same 50 year period, the Seawall has been used by swimmers, fishermen, and beachgoers to access the water along the Gold Coast area of Waikiki. See Anderson Decl. fl 5. A. Property and Easements All of the properties bordering the Seawall and relevant to this action were originally granted to one "Pehu" during the Mahele in I 848. See Disctosure of Expert Testimony- Ernest M. Collins, Joint Exhibit ("J")-19 at 1. The lands subject to this suit are all in Apana 3, identified and described as "Lele of Kekio, called Kapua, situate in Waikiki kai." See Exhibit J- 19 at2. Royal Patênt No. 5667, Apana 3, indicates that the original makai boundary was along the sea. See id. The properties that are now TMK Nos. 3-1-032:030 (Tropic Seas, Inc.), :029 (Diamond Head Beach Hotel), :028 (the first of three lots of Diamond Head Ambassador Hotel), g. Tahitienne, Incorporated, the goveming organization for the cooperative identified by TMK No. 3-1-032:001; h. The Association of Apartment Owners of 3003 Kalakaua, Inc., the governing organization for the condominium identified by TMK No. 3-l-033:01l; i The Association of Apartment Owners of 3019 Kalakaua,lnc., the governing organization for the condominium identified by TMK No. 3-l -033:009. See SOF !J2. 216t7 t.1
  • 10. i' and:027 (the second of three lots of Diamond Head Ambassador Hotel) are each a portion of the property that was registered in the Land Court in 1904 pursuant to Land Court Application No. 13 of Ida Tenney Castle. See id. The properties that are now TMK Nos. 3-l-032026 (the third of three lots of Diamond Head Ambassador Hotel), :004 (Diamond Head Apartments), :003 (Coral Strand Apartments), :002 (2987 Kalakaua), and :001 (The Tahitienne) are each a portion of the property that was subdivided in 1910 as shown on the Plan of W. G. Irwin Lots, prepared by Arthur C. Alexander, surveyor, in August 1910. See id. The properties that are now TMK Nos. 3-l-033:01I (3003 Kalakaua) and :009 (3019 Kalakaua) are all or portions of Lots 73,J2, andTl of the "Diamond Head Terrace" as shown on the Map of that property filed in the Bureau of Conveyances as File Plan 214 and dated April2, 1921. See Exhibit J-l9 at 3. Since at least 1960, the property designated as TMK No. 3- I -033 :009 (3019 Kalakaua) has been subject to "[a] perpetual easement of right of way for pedestrians only over, across and along the seawall along the highwater mark at seashore as designated in and by the third course of the description of the premises." See SOF f[25. A survey map of the properties and their makai borders is found at Exhibit J-24, and a full history of each parcel of property is found at Exhibit J-l9. B. History of State's Position on Seawall-State Policv in 1975 In a letter dated February 27, 1975; Deputy Attorney General Wallace W. Weatherwax commented to Christopher Cobb, the Director of the Department of Land and Natural Resources, State of Hawaii ("DLNR"), about the "Seawall Right of Way" for TMK Nos. 3-l-033:002 and 053. See Exhibit J-2. Although these two properties are not the subject to this lawsuit, they are along the same stretch of seawall, and Weatherv¿ax's discussion of the policy regarding seawall maintenance and right-of-way is applicable and informative on the issues in this matter. The purpose of the letter was to determine "whether or not the State has-the responsibility to maintain 7t6t'l | .1
  • 11. and improve a public right of way which passes over a seawall located within the above cited properties; and, further, that if such responsibility exists, with what State agency would the responsibility lie." See id. at 1. The letter further notes that "during periods of high tide, [the seawall] is the only means of right of way along the shoreline other than through the water." See id, at 2. This was a clear admission. There was no question expressed by the State's Chief Legal Agency about the State's duty. The only question was which of the State's agencies was responsible. The way that the State dealt with these two sections of the seawall along Waikiki exemplifies the way that the State viewed the public's use of the seawall. The memorandum explains that, by way of quitclaim deed dated December 19, 1930, the then-Territory conveyed whatever interest it had in the seawall and a filled area of I ,3 l9 square feet mauka of the seawall to the abutting property owner. See Exhibit J-Z at l. However, the Territory made sure to reserve a pedestrian public riqht-of-way over. along and across of the seawall. See id. The Territorial government understood the importance of the seawall as a public right-of-way and, when given the chance, made sure to reserve public easements over the Seawall. Similar to these properties, the State reserved a public easement ove¡ TMK No. 3-l-033:009 (3019 Kalakaua), which is subject to this lawsuit. See SOF !f 25. With its reservation of public easements over a portion of a seawall as a public right-of'-way, the State has essentially admitted its duty to the other portions of the Seawall to make this access useful. Since the public uses all areas of the Seawall along the Gold Coast for access to the ocean, regardless of an explicit easement, the State has admitted its dutv over the whole Seawall. The letter ultimately examined then current State case law, specifically Levy v. Kimball, 50 Haw. 497 (1968), and concluded that "the State's control over the seawall right of way carried 2t617 | .4
  • 12. with it the responsibility to maintain the seawall in a reasonably safe fashion" and that "appropriate actions cited [in Levy] be considered and implemented." þ Exhibit J-2 at2-3. C. State Policv and Seawall Work Between 1981 and 1982 On or around September 24,1981, the DLNR sent a memorandum to Councilwoman Marilyn Bornhorst stating that "state and federal courts in the jurisdiction of Hawaii have found that the state is liable for injuries incurred due to lack of repairs to seawalls that are public thoroughfares. As such the state government, through the Department of Land and Natural Resources, is primarily responsible for the repairs to seawalls that are public thoroughfares." & Memorandum dated September 24,1981, issued by the DLNR to Councilwoman Marilyn Bornhorst, Exhibit J-3. Early the following year, the Department of the Attomey General ("DAG") wrote a letter to the State Representative Paul L. Lacy, Jr. on March 2, 1982, in response to Mr. L,acy's letter "requesting comments on the State's liability for personal injury and properly damage that may arise from the deteriorated condition of Waikiki seawalls used by the public." See Exhibit J-4 at 1. The DAG reviewed Levy, supra, as well as other state cases and determined that they "clearly establish[] the State's liability for personal injury damages where the State controls (even if it does not own) an easement like the Waikiki seawall." See id. The DAG's letter did not apply to a specific section of the seawall along Waikiki. Instead, it applied generally to any section that is used by the public. Again, this is an explicit admission of the State's duty regarding the Seawall. Around the same time, the DLNR, Land Division, performed emergency repair work, completed in June 1982, to shore approximately 40 feet of the Seawall along the boundary of Diamond Head Apartments, l'MK No. 3-l -032:04. See Exhibit J-13. The contract price for this repair work was 525,000, and it was authorized by Act l, SLH 1981, Item K-2. See id. The project involved the underpinning of approximately 40 feet of an existing lava rock seawall 216171.1 6
  • 13. along the makai boundary of Diamond Head Apartments and Coral Sands Apartments with concrete grout. See id. On or around April 16, 1982, the DLNR sent a letter to the Department of Land Utilization ("DLU") regarding the work to be done under Act 1, SLH 1981, Item K-2. See Exhibit J-5. The DLNR explained the following: A coral shelf on which the existing seawall was constructed several years ago, has 'Wave broken and eroded leaving a huge cavity beneath the seawall. action is continually eroding material from beneath and behind the seawall such that the seawall and the abutting properties are being undermined. Unless immediate action is taken to stop the erosion, the seawall is in danger of collapsing which would result in a major seawall reconstruction work, The purpose of this project is to render the existing seawall safe for public passage and to halt the undermining action of the waves. The existing seawall extending along the shoreline of V/aikiki Beach serves as protection to properties against wave action and also as a public walkway for residents and beachgoers. The surrounding properties are lined with multi-storied apartments with access on Kalakaua Avenue. Residents. surfèrs. beachgoers and fisherman use the top of the seawall to traverse between the Diamond Head end of Waikiki Beach and Sans Souci Beach. If it becomes necessary to close the seawall walkway, beachgoers will have to detour either along Kalakaua Avenue or walk on the rocky reef along the seawall. Inquiry with the State Survey Division and the City and County Department of Land Utilization and the Land Survey Division indicates that there are no recorded shoreline easements along the affected property. However, in a decision rendered by the Hawaii State Supreme Court in the case of Levy v. Kimball, 50 Haw. 497,443 P.2d 142 (1968) the court ruled that the State has a duty to keep seawalls which are used by the public in good repair. Further, the Deputy Attorney General in commenting on the seawall fronting Halekulani Hotel stated that if the rehabilitation or reconstruction cannot be done, then the seawall should be closed to pedestrian traffic or signs posted warning the public of its condition. 2t6t7 t.4
  • 14. See Exhibit J-5 (emphasis added). By these actions and correspondence, the State clearly stated its position that the Seawall was a public thoroughfare and that it was responsible for its maintenance and the safetv of those who use the Seawall for access to the ocean. D. State Policy and Seawall üork Between 1982 and 1983 During the 198213 period, the DLNR, Land Division, admitted its duty to maintain the Seawall by repairing and rehabilitating broken sections of the Seawalls from the Elks Club property (TMK No. 3-l-032:05) to TMK No. 3-1-033'.02,near the Diamond Head end of Kalakaua Avenue. See Exhibit J-13. Funds for this work were authorized by Act 1, SLH 1981, Item K-2 and Act 264,ltem K-2. See id. The repair work was completed in June 1983 at a contract price of $50,000 to fix damage caused by Hunicane lwa. See id. Act264, SLH 1981, Item K-2, is titled "Seawall Improvement, Waikiki." It set aside State funds for "[p]lans, design and incremental construction of improvements to seawall including railings, rehabilitation of seawall, fences and other improvements necessary for the safe passage of the public over existing seawalls." See id. Although not all of these improvements were ultimately implemented, the State therein expressly admitted its responsibility to create a safe passage for the public over the Seawall. This was a continuation of its previous policy of Seawall responsibility. E. State Policy and Seawall Work Between 1983 and 1985 In September 1983, Hawaiian Dredging completed Phase II of an improvement project on the seawall along Kalakaua Avenue, as authorized by Ãct264, SLH 1982, Item K-2. See Exhibit J-13 at 2. The contract price for Phase II (Job No. 1 -OL-29) was $54,714, and the scope of the work originally planned for Phase II construction consisted "of rehabilitating a seawall, constructing a hand railing and other incidental and appurtenant work necessary to compìete this project." þ id. Although the construction of hand rails was not completed over 2t617 | .1
  • 15. the Seawall, the State, at the very least, contemplated creating a safer walkway over that area of the Waikiki seawall. See id. By doing so, it admitted its ongoing duty regarding the Seawall. Phase III of the same improvement project was completed in June 1985 by Iwamoto Construction for a contract price of $5 0,7 4l . See Exhibit J-6; J-13 at 2. Phase III affected the Seawall along TMK Nos. 3-l-32:029,027,:026,:004, :003, :002, :001 and 3-l-033:011 and :009. See Exhibit J-25; SOF ![ 14. Similar to Phase II, the scope of work originally planned for Phase III construction consisted "of rehabilitating seawalls, constructing hand railing and other incidental and appurtenant work necessary to complete this project." þ J-6; SOF ![ 13. The scope of work actually performed for Phase III construction is described in the as-built plans and summarized in the followins table: Desisnation on plans Properties affected Nature of repair A-2 Portion of 33:009 to 32:004 Crack repair on walkway- (33:009, :010, :01l, 32:001, chip off loose material and :002.:003. :004) epoxv the crack B-2 Approx. 35 linear feet at Repair nosing at edge of 32:002 walkway Approx. 5 linear feet at 33:011 c-2 Deleted-work not done Repair walkway-remove 32:029 existing top 4" of concrete Pofiion of 32:028 and pour new 4" D-2 32:026 and:027 Repair walkway-remove 33:010 and :011 loose concrete topping and replace with 2" thick cement mortar. (Taper new concrete left to right, see G- 2 E-2 Portion of 32:008 Add new concrete walkway on top of existing wall See id.; SOF 1[ 14. The State named Fhase III "Waikiki Seawall, Walkway Rehabilitation" and photographed the condition of the Sea¡valls prior to its construction and rehabilitation, on or 2t617 | .1
  • 16. about January 25, 1983. See Exhibit J-22; SOF tT 15. These photographs included images of TMK Nos. 3-1-032:004,026,027, and 028. See id.; SOF f[ 15. On or about December 16, 1982, the State also photographed images of the Seawalls and what it called the "access easement Diamond Head to Ocean" Iocated at TMK 3-l-033:006. See id.; SOF fl 15. Although not all of these locations are directly related to this lawsuit, their similarity proximity demonstrate the State's admitted duty to the Seawall as a public walkway. Furthermore, the State acknowledges the public access from Kalakaua Avenue to the Seawall. F. State Policv and Seawall'Work Between 1992 and 1993 In 1992, the DLNR, Water and Land Development Division, released a Notice of Determination Olegative Declaration) for Waikiki Seawall Walkway Rehabilitation. Phase V ("Notice of Determination"), pertaining to the Seawalls, which stated: "[t]he State of Hawaii has a right-of-way over all the seawalls and walkways and is responsible to keep them in good and safe condition. The walkways are used by the public." See Notice of Determination, Exhibit J-8 at 7 . The purpose of the 1992 rehabilitation was "[t]o increase safety of existing walkways which are deteriorating and becoming hazardous" and "[t]o lengthen the useful life of the existing seawalls, which are deteriorating." See Exhibit J-8 at 2. In 1992 and 1993, the State followed through with its planned rehabilitation of the Seawall, On December 8, 1992, via a Resolution, the Council of the City and County of Honolulu granted a Special Management Area ("SMA") Use Permit and Shoreline Setback Variance to the DLNR to rehabilitate the existing Seawall walkway located in Diamond Head, Oahu and identified by TMK Nos.3-l-032:001 ,002,003,004, 026,027,028 and 029,and3-l- 2t6t7 | -4 l0
  • 17. 033:002,003, 004, 005, 006, 007, 008, 009, 010, 0l l, 053, and 056.3 see Exhibit J-10; soF tl 16. Phase V construction was a G.O. Bond-funded CIP project authorized by Act 316, SLH I 989, Item K- I I , following Hurricane Iniki (Job No. 3 1 -OL-C 1). See Exhibits J-8, J-9 and J- 13; SOF ![ 17. Construction was completed by Sea Engineering in September 1993 ata contract price of $609,605. See id. This project repaired and rehabilitated the Seawall, although the only portion of the project that was completed was for the section in front of Diamond Head Ambassador Hotel, Ltd. (TMK Nos. 3-l-032.026,027 and 028). See id. Although the project was ultimately limited in scope, the DLNR originally planned to "rehabilitat[e] seawalls and walkways, constructing hand railings and other appurtenant work necessary to complete this project." See Exhibit J-9; SOF flfl 18-20. In the several years since, however, the Seawall has again fallen into disrepair. See Photos of the Seawall, Exhibits J-26 to J-224. G. State Action on the Seawall in 1999 In a general statement about the rehabilitation of the Seawall (or other very similar seawalls in the Diamond Head/Waikiki area), the DLNR released a memorandum from Andrew Monden, Chief Engineer of the DLNR, to Dean Uchida, Administrator of the DLNR, that states: Since 1982, at the request of Land Management, the Engineering Branch (DOWALD) has been repairing and rehabilitating damaged sections of the seawall between Halekulani Hotel and the city mini-park (TMK: 3-1-36:l) located along Diamond Head Road. Another project was authorized using special funds by Act 289, SLH 1993, Item K-8. DOWALD was not requested to implement this project and the funds lapsed. All CIP projects were authorized under LNR l0l and were implemented by DOWALD upon Land Management's request. The work involved walkway improvements, rehabilitation of the seawall and/or railing installation or repair. ' Of these properties, Nos. 3-l-032:001,002,003, 004,026,027,028 and029,and 3-l- 033:009 and 011 are subject to this lawsuit. The State only reserved an explicit public easement over one of these properties, 3-i-033:009 (3019 Kalakaua). See SOF tT 25. 2t6t71.4 ll
  • 18. See Exhibit J-l3. H. State Policv in 2002-2003 and the Sea Ladder Easement On or about March 15,2002, a letter from the DLNR to a "Concerned Resident" living in the area around the Seawall stated that no permits were ever obtained to construct a sea ladder on the State's Seawall. See Exhibit J-14; SOF f 5. The sea ladder sat on an area of the Seawall in front of Diamond Head Ambassador (TMK No. 3-l -032:026). See Exhibit J-16. To resolve this issue, on July 25,2003, for the sum of $2,406 plus a $218 performance bond, the State granted the GCNA a 37 square-foot Non-Exclusive Ladder Easement for a term of 55 years for the right, privilege, and authority to construct, use, maintain and repair a ladder at the following location: Waikiki, Honolulu, Oahu, Hawaii Being a portion of the submerged land fronting Royal Patent 5667, Apana 3, Land Commission Award 5931, Part I to Pehu. Being at the north corner of this easement, the true azimuth and distance to the south corner of Lot 5 as shown on Map 3 of Land Court Application l3 being: 249" 32'4.95 feet, the coordinates of said point of beginning referred to Government Survey Triangulation Station "LEAHI" being 312.88 feet North and 2931.86 feet West, thence running by azimuths measured clockwise from True South: - 1. 304" 43' 45" 5.00 feet along the top edge of concrete wall; 2. 32" 04' 7.5 feet; 3. 124" 43' 45" 5.00 feet to rock groin; 4. 212" 04' 7.50 feet along rock groin to the point of beginning and containing an AREA OF 37 SQUARE FEET. See Exhibit J-16. The preceding survey description was prepared by the Survey Division, Department of Accounting and General Services, State of Hawaii, designated by C.S.F. No. 23,559 and dated June 25, 2003. See id. The Non-Exclusive Ladder Easement sits on an area of the Seawall located on the ocean side of TMK No. 3-1-032:026, the Diamond Head Ambassador 2t6t7 | .1 12
  • 19. Hotel and includes the right of public ingress and egress to and from the easement area for all purposes in connection with the rights granted by the State. See id. The GCNA was required by the State, pursuant to terms of the Non-Exclusive Ladder ' Easement, to procure and maintain, at its own cost and expense, commercial general liability insurance, or its equivalent, in an amount of at least $300,000 for each occurrence and $500,000 , aggregate, with an insurance company or companies licensed to do business in the State of Hawai'i. See Exhibits J-I6 and J-21. The insurance policy or policies must name the State and Diamond Head Ambassador Hotel, Ltd., as an additional named insureds. See id. The GCNA procured commercial general liability insurance regarding the Seawalls with John H. Connors Insurance. The State, per the terms of the Non-Exclusive Ladder Easement, has renewed this ¡nsurance effective July 30, 2003,and has renewed this insurance every year since 2003. See Exhibit J-21. This is a direct acknowledgment of its responsibility by the State. In a June 30,2002, memorandum with the subject, "Line Waikiki Sea Ladder at2957 , Kalakaua Avenue, Honolulu, Hawaii," Sam Lemmo, Senior Staff Planner for the DLNR, Land . Division, stated that "it is my understanding that the subject ladder was part of a public access thoroughfare through the Diamond Head Beach area, which was partially improved by the State (top of seawall) and by adjacent landowners (ladder)." See Exhibit J-15. The State's clear stance on the sea ladder, its acknowledgement of the public's right-of-way over the Seawall, and the requirement that the GCNA purchase an easement from the State admits clear ownership, or at least full control, over a portion of the Seawall. I. Lesislative Action - On June 1,2006,the legislature enacted the Supplemental Appropriations Act of 2006, in : which the State set aside $2 million. as requested by the DLNR, for improvements to the Diamond Head Seawall. See Relevant Portions of Hse. Bilt No. 1900 and its status 2t6t7 1.1 l3
  • 20. information, Exhibits J-18 and J-23 , and Exhibit J-17 (State Representative Scott Nishimoto mentions at a Waikiki Board meeting on May 2006, that the State appropriated $2 million for improvements to the Waikiki seawall on the Gold Coast). The State intended to use the funds to resurface the Diamond Head Seawall and add railings. See Exhibit J-23 at 393. Although the State appropriated this money to repair and rehabilitate the Seawall, the funds were never released for actual use and the State made no improvements to the Seawall in 2006 or 2007. Considering the poor condition of the Seawall, its need for repair, and the State's current unwillingness to release appropriated funds to maintain the Seawall in a condition safe for travel, GCNA, as owners of property adjacent to the Seawall, filed its complaint for declaratory relief on June 22,2007. III. DISCUSSION GCNA asks that this Court grant judgment in its favor and rule that the State be deemed responsible for the maintenance and upkeep of the Seawall. The State has previously admitted to this duty and for decades has undertaken that duty. This duty is mandated by a series of major legal decisions which hold that the Seawall is a public highway, is in strict accordance with HRS Chapter 264 and our constitution. At a minimum, the State has a prescriptive easement over the Seawall and this too mandates its duty to maintain the Seawall. A. The State Has Repeatedly Admitted lts Dutv to Keep the Seawall in Good and Safe Condition for Travel. Public policy favors "extending to public use and ownership as much of Harvaii's shoreline as is reasonably possible." Diamond Head v. State of Haw.. Bd. of Land & Natural Res., ll2Hawai'i161,174,745P.3d704,717(2006} Upuntilthelastadministrationherein Hawai'i, that public policy favoring shoreline access was reflected in the way that the State 14
  • 21. maintained and rehabilitated the Seawall. As explained above, the State has repaired or discussed repairing the Seawall on numerous occasions. Moreover, the State has repeatedly stated that the Seawall is a public thoroughfare over which it has a duty to maintain. The DLNR released a letter in 1975 referring to the Seawall as "a public right of way." See Exhibit J-2 at 1. The DAG in 1982 stated that State cases "clearly establish[] the State's liability for personal injury damages where the State controls (even if it does not own) an easement like the Waikiki seawall." See Exhibit J-4 at I (emphasis added). The DLNR expanded on the use of the Seawall that same year when it explained why it was rehabilitating a portion of the Seawall: "[t]he purpose of this project is to render the existing seawall safe for public passaqe." b Exhibit J-5 (emphasis added). The DLNR went on to note that the Seawall is used "as a public walkway for residents and beachgoers" and that "[r]esidents, surfers, beachgoers and fishermen use the top of the seawall to traverse between the Diamond Head end of Waikiki Beach and San Souci Beach." See id. (emphasis added). In 1992, when the DLNR was once again rehabilitating the Seawall, it explained that repair was necessary "for the safe passage over existing seawalls." þ Exhibit J-I3. The 1992 Notice of Determination released by the DLNR pertaining to planned Seawall rehabilitation stated: "[t]he State of Hawaii has a right-of-way over all the seawalls and walkways and is responsible to keep them in good and safe condition. The walkways are used by the public." (underlineation added) See Exhibit J-8 at 7. These clear, admissions of unqualified duty, control and public access should resolve the State' s responsibilities here. In addition to the State's past public admissions of responsibility, the State implicitly accepted the responsibility of maintaining the Seawall by repairing it several times and appropriating funds for its improvement. See Exhibits J-5, J-6, J-I3 and J-25 (describing the 2t6t7 | .1 t5
  • 22. emergency repâir work done to portions of the Seawall in 1981 to 1983); Exhibits J-8, J-9 and J-13 (describing repair work done on portions on the Seawall |n 1992 and 1993); and Exhibits J-17, J-18 and J-23 at 393 (showing the appropriation by the State Legislature of $2 million to repair the Seawall). Pursuant to the 2006 appropriation, the Seawall was to be resurfaced and handrails added-another clear acknowledgement that the intended use of the Seawall is for public access. See Exhibit J-23 at 393. These types of improvements indicate a clear intent by the State to make the wall safer for travel, as handrails would not be necessary if the State did not believe that the public uses the Seawall on a regular basis. As will be explained below, current case law and statutory authority supports the GCNA's position that the State has control over the Seawall and is responsible for its safety and maintenance. B. The Seawall is a State Public Hishwav and the State is Responsible for its Maintenance. State statute along with both state and federal case law provide that private parties surrender a seawall to the State as a "public highway" when the following conditions are met: (1) the seawall was originally built by private parties, (2) the private parties, as historic owners of the seawall, have exercised no act of ownership over the seawall in five years, and (3) the State holds some form of easement (including a right of way) over the seawall. These three conditions are met here. The Seawall, originally built over 80 years ago by private parties. The private party adjacent to the Seawall have not exercised ownership over the Seawall for many years. Instead, the Seawall, has been controlled by the State and used as a public thoroughfare for at least 55 years, and likely much longer. Hawaii's legislature has long decreed that public thoroughfares are the State's responsibility. The following cases, Levy v. Kimball , 50 Haw. 497 , 443 P.2d 142 (1968) and Jones v. Halekulani Hotel. Inc. , 557 F.2d 1308 (9th Cir. 1977), analyze and explain Hawai'i Revised Statute ("HRS") Section 264-1, which provides the basis for the l6
  • 23. State's responsibility, (as opposed to a private landowners' responsibility) to maintain the Seawall. l. Review of the Relevant State and Federal Case Law. a. Levy v. Kimball The primary Hawai'i state case to examine a seawall as a public thoroughfare is Levy v. Kimball, supra. Levy provides two important points of precedent: (1) that a seawall may be surrendered in ownership to the State for use as a public highway under HRS Section264-l(c), and (2) that the State has a responsibility to maintain "public highways," including seawalls, in a condition safe for travel. Whether a paficular seawall meets the conditions of HRS Section 264- l(c) such that its ownership is surrendered to the State depends on whether its historic private owners exerted any control or acts of ownership over the seawall within the past ñve years. As is explained below, Levy involves a seawall very similar to the Seawall in this case. Levy's disposition clearly indicates that the State cannot abandon its responsibility for lands that it alone can control. Levy involved a seawall along the Waikiki coastline adjacent to several hotels.a A visitor to the islands fell ofTthe seawall, portions of which were badly deteriorated, and sued the State for negligence. Levy, 50 Haw. at 497-98, 443 P.2d at 143. The State had previously acquired an express easement over the seawall for the purpose of providing a path for public travel. Id at 498,443 P.2d at 144. The Coun explained that an owner of an easement has the right and duty to keep the land in repair, and that the owner of the easement is liable for any damages caused by the lack of proper repairs. Levy, 50 Haw. at 498, 443 P.2d af 144. Most important, the Court held that "it is o This seawall is not the Diamond Head Seawall. 2t6t7 t.4 t7
  • 24. the control and not the ownership which determines liability." Levy, 50 Haw. at 499,443 P.2d at 144 (quoting In re Taxes Victoria Ward, 33 Haw. 235 (1934)). The Court found that since the State controlled the seawall, that it had the duty to maintain the whole wall. Id. The Court held that the State not only owned an express easement over the seawall, but that the seawall had. in fact. been surrendered to the State for public use. Therefore. the Seawall was a public highway. Levy, 50 Haw. at 499, 443 P.2d at 144- Ownership of the seawall transferred to the State.s For this proposition, the Court cited Revised Laws of Hawai'i 1955 ("RLH") Section 142-l-what is now HRS Section264-l (2006). Id. Section 264-l(c) has remained largely unchanged from RLH Section 142-1, and provides in part that: Allroads, alleys, streets, ways, lanes, trails, bikeways, and bridges in the State, opened, laid out, or built by private parties and dedicated or surrendered to the public use, are declared to be public highways or public trails as follows: (2) Surrender of public highways or trails shall be deemed to have taken place if no act of ownership by the owner of the road, alley, street, bikeway, way, Iane, trail, or bridge has been exercised for five years. HRS $ 264-l (c). The Court in Levy held that, "[a]lthough a seawall is not expressly mentioned in the above enumeration, it can be fairly implied that a seawall such as that which is in question here which is used as a public thorouqhfare is included in the term 'public highway."' Levy, 50 Haw. at 499,443 P.2d at 144 (emphasis added). Because the seawall was a public highway open to the public for travel, the State had a "duty to maintain Lthe] highway in a condition safe for s The seawall in Levy was surrendered to the State, meaning that, even without a formal transfer of ownership, the State now owned the seawall. The history of HRS section 264-l(c) confirms that a "surrender" of a thoroughfare to the State does indeed confer upon the State full control and ownership of the highway. The Supreme Court of Hawai'i has clarified that "Hawaii is one of the few jurisdictions which have provided, at one time or another, for vesting the fee of a highway or road laid out by a private party and abandoned to the public in the central government." Application of Kelley, 50 Haw. 567 , 579, 445 P.2d 538, 546 (1968) (emphasis added). Hence, Levv's holding vests ownership of the seawall to the State, regardless of any dedication or formal transfer of ownership. ?16t7 | .4 r8
  • 25. travel." Levy, 50 Haw. at499,443P.2dat144 (quoting Restatement (Second) of Torts $ 349, cmt. b (1965) (emphasis added). HRS Section264-1(c) requires that, in order for a public thoroughfare to be surrendered to the State, (l) it must have been originally built by private parties, and (2) the historic private owners must not have exercised any act of ownership over the thoroughfare for five years. Expanding on Levy, In re Banning, 73 Haw. 297 , 832 P .2d 724 ( 1968), added, in dicta, a third requirement to HRS Section 264-l(clthat before a public thoroughfare may be surrendered to the State, the State must have previously held an easement over the thoroughfare. Id. at3l2, B32 P.2d at 732. As will be explained, infra, the Seawall in this case meets all three requirements. Therefore, the State is the entity responsible for the maintenance of the Seawall. b. Jones v. Halekulani Hotel, Inc. There exist two distinctions between Levy and the instant case: (l) here, the State does not hold an express easement over the Seawall, and (2) in Levy, the State admitted it controlled the seawall. Neither of these distinctions is significant, however, given the holding in Jones v. Halekulani Hotel. Inc., supra. Here, the State holds a prescriptive easement over the Seawall. The Jones court abolished any notion that the type of easement---€xpress or prescriptive-makes any difference in the application of Levy Holdings. Second,4!çg also stands for the proposition that the State's control over the Seawall may be established by the public's consistent, Iengthy use of it as a public thoroughfare. Like Lev-v, Jones involved a seawall along the Waikiki coastline.6 A visitor to the islands, a minor, dove from a seawall on Halekulani Hotel property into shallow ocean water and fractured his neck. Jones, 557 F.2d at 1309. He sued the Halekulani, asserting that the hotel had u Th. Jones seawall is not the Levy seawall or the seawall in this case. 2t6t71.4 r9
  • 26. breached its duty to warn users of the seawall of the shallowness of the water, or otherwise protect users of the walkway from dangers incident to use. Id. The Halekulani argued (l) that the State had acquired an easement by prescription over the top of the seawall and had the sole duty to maintain it, and (2) that the provisions of HRS chapter 5207 precluded liability on the part of the hotel. Jones, 557 F.2d at 1309-10. The Ninth Circuit chose not to address the second issue but, instead, explained that the Halekulani owned a prescriptive easement over the seawall because: (1) The seawall had been used as a walkway from l9l7 to 1972. (2) The Halekulani's owners never attempted to interfere with pedestrian traff,rc. (3) The Halekulani "assumed that the public had a right to use the wall as a public walkway." Id. at l3 10. The court held that "[u]se which is constant. unintemrpted and peaceful is sufficient to create an easement by prescription." Id. (emphasis added). Because of the public's extensive use of the seawall as a thoroughfare, the Halekulani had no control over the seawall and therefore had no duty with respect to the protection of its users. Id. Not only did the Ninth Circuit hold that the State held a prescriptive easement over the seawall, the court recognized that the Supreme Court of Hawai'i characferized this type of seawall easement as a "public highway" under HRS Section 264-1. Jones, 557 F.2d at l3l I (citing Levy, supra). Given that the Halekulani had abandoned control over the seawall, and that the public had been using the seawall as a walkway for over 50 years, the Court found that the Halekulani no longer had a right to control the seawall. Jones, 557 F .2d at l3l I . In accordance ' HRS Chapter 520 "was enacted to encourage land owners to make their land available to the public for recreational purposes by limiting their liability toward persons entering the land for such purposes." Jones, 557 F .2d at l3 10 n.l . Under chapter 520, no person or entity may acquire an easement over land which a landowner opens for recreational public use through this public use. HRS ç 520-7 . Chapter 520 was enacted in 1969, at least l7 years after the public started to use the Diãmond Head Seawall as a thoroughfare. See Anderson Decl. !f 4. 2t617 | .4 20
  • 27. with the holdings in Jones and Levy, a seawall used by the public as a thoroughfare, either by means of an express or prescriptive easement, is surrendered to the State as a public highway where the historic owners exercised no act of ownership over the seawall for at least frve vears. The Seawall in this case clearly meets this description. 2. The statutory and case law explained above provides three requirements before a seawall is surrendered to the State as a public highway: (l) that the seawall was built by private parties (2) that no private parties have exercised any act of ownership over the seawall for at least five years' and (3) that the State previously held an easement over the seawall. The Seawall meets all three requirements. a. Private Parties Built the Seawall. The State acknowledges that the govemment did not originally build the Seawall. See SOF T 22 (the various portions of the Seawalls relevant to this matter were constructed by unknown private parties at least 80 to 100 years ago). b. The Private Parties who Built the seawall, and rheir Successors, Have committed No Act of ownership over the Seawall for Several Decades. June Anderson has lived in her home along the Gold Coast for over 37 years, and has used the Seawall as a pathway for over 55 years. See Anderson DecI. 4. Throughout this T13, entire period, Ms. Anderson has observed the public using the Seawall as a walkway and thoroughfare, as well as for access to the water for fishing, surfing and swimming. See id. ff 3, 41517. To the best of Ms. Anderson's knowledge, no owner of property along the Seawall has ever attempted to block access to the wall or exen any other similar acts of control or ownership over the Seawall during that time- See id. fl 6. Indeed, the private property owners along the Gold Coast have no control over the Seawall. If they were to attempt to complete minor repairs 216t7 t.4 ,ìt zl
  • 28. over portions of the Seawall, it would only be because the State has refused to undertake such repairs, and the conditions were so dangerous on the Seawall as to put the public in danger. The State has admitted that it has a "right-of-way" over the Seawall and has appropriated funds for improvements to the Seawall to make it safer for travel. Not only has it appropriated funds for improvements, the DLNR has repaired and rehabilitated the Seawall multiple times in the past. The public, which extensively uses the Seawall as a walkway, often to parts of the ocean and beach that cannot be accessed otherwise, obviously regards the Seawall as a public thoroughfare with no restriction on its use. In the past, the State has explicitly exerted control over the Seawall, through its use and its repair, and inexplicably abandoned during the last administrated the Seawall when repair is desperately needed. Although the State is aware that the Seawall is used consistently by the public, it is foisting the responsibility of the public's safety on private landowners who do not control, nor have the right to control, the Seawall. It is clear, based on the public's use for at least 55 years and the State's control over the Seawall that any responsibility over the Seawall now rests with the State. c. The State Holds an Easement by prescription over the Diamond Head Seawall. The Seawall has been used by the public for at least 55 years, if not more. Like the Halekulani Hotel in Jones, the members of the GCNA understood that, because of the public's use of the Seawall for so many decades, they have no right to control it. Indeed, the State has taken over that responsibility by repairing the Seawall and appropriating funds for further rehabilitation. The public has deemed the Seawall a public thoroughfare by using it consistently. The public's "constant, uninterrupted and peaceful" use for at least 55 years is sufficient to create an easement by prescription in the state. See Jones, 557 F.zd at 1310. 2t6t7 | .4 22
  • 29. Once an easement is established giving the public the right to use the privately-built Seawall as a public thoroughfare, and the historic owners of the Seawall fail to exert ownership over it for at least five years, HRS Section264-l(c) dictates that ownership of the Seawall transfer from historic owners and to the State. Indeed, this mandatory transfer of ownership took place decades ago. The Seawall is a "public highway." The State is responsible for the maintenance of the Seawall. C. Alterna tmu Ho Even if the Seawall was not formally surrendered or dedicated to the State as a public highway under HRS Section264-l(c), the State still holds a prescriptive easement over the Seawall. The public's "constant, unintemrpted and peaceful" use of the Diamond Head Seawall is sufficient to create an easement by prescription. Jones, 557 F.2d at 1310. According to Levy, "[i]t is a well established rule that an owner of an easement has the right and the duty to keep it in repair." 50 Haw. af 498, 443 P.2d at 144. Additionally, "[t]he owner of the easement is liable in damages for injuries caused by failure to keep the easement in repair." Id. Further, ,.it is the control and not the ownership which determines the liability." Id. at 499, 443 p.2d at 144. The State has exerted control over the Seawall for many years, repairing and rehabilitating it and appropriating funds for its improvement. The public's use of the Seawall has been constant, unintemrpted, and peaceful for at least 55 years. Even if the ownership of the Seawall does not vest in the State, the State has, by its own admission, a "right-of-wây,,, which, when combined with the public's long use of the Seawall, equates to a prescriptive easement. To hold otherwise would confound logic. The State, by now disclaiming any interest in the Seawall, is essentially taking either one of two positions: (l) that the Seawall may, and indeed should, be cut off to public use entirely, 2t6t7t.4 ¿)
  • 30. completely undermining the constant accessibility the public has enjoyed for several decades, or (2) that members of the GCNA should be responsible for all maintenance of the Seawall, liable for all accidents that occur thereon, yet completely incapable of exerting control over who uses the Seawall, how they use it, and when they use it. Both positions show a complete disregard for public access rights and general principles of liability. Public use of the Seawall, as with other seawalls along the Waikiki coast, has become both a tradition-an accepted means of travel from one part of the ocean and beach to another-as well as an engrained legal right. The State's confounding position in this matter ignores these practical realities. IV. REBUTTAL OF THE STATE'S DEFENSES The State has asserted two reasons why it should not be found responsible for the Seawall: (a) no public access to the Seawall; and (b) no responsibility for portions of the Seawall adjacent to land registered in Land Court. Both ignore the facts, the statute and the caselaw. A. There is no Public Access to the Seawall The State claims that there is no real public access to the Seawall and, hence, the Seawall cannot be a public thoroughfare. This is in bold denial of the public's extensive use over several decades. To support its position, the State points to a "hole" in the continuity of the public easements over the path that the public generally uses to access the Seawall. The property at 3037 Kalakaua Avenue, TMK No. 3-l-033:006, includes a narrow stretch of dirt road that leads from Kalakaua Avenue to the ocean, with access to the Seawall. See Exhibit J-19 at I l. This property was registered in Land Court pursuant to Land Court Application No. 1243 of Bishop 'frust, Ltd. See id. As indicated on the LCD No. 2384206 and T.C.T. No. 492637, there is an "[Easement] of [right of way] to the sea in favor of the owners of lots in the Diamond Head Terrace Tract across Lots A and C" and an "[Easement] of [right of way] in favor of the general 216t7 | .4 24
  • 31. public across Lot C." See id; J-244. Lot A and C are the two sections of the narïow dirt road access to the ocean, on the Ewa side of TMK No. 3-l-033:006. Lot A is the section closest to Kalakaua Avenue, and Lot C sits between Lot A and the ocean. See id. Essentially, Lot C is a public access to the ocean and the Seawall that, if read literally would mean that no member of the public could access because Lot A only contains an easement for owners of lots in the Diamond Head Terrace Tract. This landlocked public easement contravenes the purpose of HRS Chapter I15, which was enacted specifically to combat a lack of public right-of-way to the shoreline and ocean in Hawai'i. HRS Section I l5-l states as follows: The legislature finds that miles of shorelines, waters, and inland recreational areas under the jurisdiction of the State are inaccessible to the public due to the absence of public rights-of-way; that the absence of public rights-of-way is a contributing factor to mounting acts of hostility against private shoreline properties and properties bordering inland recreational areas; that the population of the islands is increasing while the presently accessible beach, shoreline, and inland recreational areas remain f,rxed; and that the absence of public access to Hawaii's shorelines and inland recreational areas constitutes an infringement upon the fundamental right of free movement in public space and access to and use of coastal and inland recreational areas. The purpose of this chapter is to guarantee the riqht of public access to the sea. shorelines. and inland recreational areas. and transit along the shorelines, and to provide for the acquisition of land for the purchase and maintenance of public rights-of-way and public transit corridors. (Emphasis added). Obviously, the grant of a public easement through Lot C was meant to provide the public with access to the shoreline. The fact that Lot A, which provides access to Lot C from Kalakaua Avenue, technically has no public easement should not prevent shoreline access. The illogical results of bureaucracy on the encumbrances of land sales and modifications should not prevent the people of Hawai'i from basic access to its shores. The pubtic has been using both Lot A and Lot C as an access way to the ocean and the Seawall for several decades. For the State to take a position that Lot C is now a useless public easement, and that access to the 2t6171.4 25
  • 32. shoreline and along the shoreline by means of the Seawall is now trespassinq, is against the public policy set forth in Chapter I 15. B. The State is not Responsible for the Seawall Adiacent to Properties Registered in Land Court The State's second assertion is that the registration of properties adjacent to the Seawall in Land Court obviates its obligations. Specifically, the Land Coun properties relevant to this case are TMK Nos. 3-l-032:030 (Tropic Seas, Inc.), :029 (Diamond Head Beach Hotel), :028 (the first of three lots of Diamond Head Ambassador Hotel), and:027 (the second of three lots of Diamond Head Ambassador Hotel). See Exhibit J-19 at 2. None of the Land Court applications for these properties contain an explicit right-of-way for the public and, thus, the State contends that it is not responsible for the maintenance of those areas of the Seawall. This position ignores the plain language of the statute and the holdings in Levy and Jones. The stipulated survey map in this case shows that portions of the Seawall fronting the Land Court properties are outside private property. See Exhibit J-24. This means that this land is State property. Indeed, the "shoreline," where private property ends and State property begins, often includes a portion of the top of the Seawall, on both Land Court and regular registered properties. See id. This presents a curious conundrum-what if both the State and private property owners own parts of the top of walkway on Land Court property that is used extensively by the public? The GCNA does not dispute that properties registered in Land Coun cannot include encumbrances not explicitly stated, but in this case the State controls (via actual ownership, according to the survey map) the portion of the Seawall that is most likely to cause underlying structural damage. Specif,rcally, the State owns portions of the top of the Seawall adjacent to Land Court property and it owns the submerged portions of the Seawall. Since wave 2t6t7t 4 26
  • 33. action causes underlying structural damage, it is illogical to require private land owners to be responsible for the liability and maintenance of the Seawall fronting their properties. Second, there exists an unfortunate conflict between the policies regarding Land Court property and the State's policy favoring ocean access. The Seawall represents a pathway along the shoreline and the fact that portions of the Seawall may fall within Land Court property creates unjustified "holes" in public access. HRS Chapter I 15, supra, was created so that these holes would not exist-so that the public would have the right to access public beaches. The Seawall, logically, is the classic example of an easement by ancient or historic use. Denying access to the public now would be unfair, and would be against the State's long-lasting policy that the people of Hawai'i deserve reasonable access to all of the State's beaches. C. Hawaii's Constitution Mandates Public Access GCNA's position here is also in direct accord with Hawaii's constitution and over a hundred years of Hawai'i caselaw. The public trust doctrine and Hawai'i Supreme Court's reliance on ancient Hawaiian custom have established the public's right to access beaches. Both are discussed in turn. l. Public Trust Doctrine Section XI of the Hawai'i constitution provides as follows: For the benefit of present and future generations, the State and its political subdivisions shall conserve and protect Hawai'i's natural beauty and all natural resources, including land, water, air, minerals and energy sources, and shall promote the development and utilization of these resources in a manner consistent with their conservation and in furtherance of the self- suffrciency of the State. All public natural resources are held in trust by the State for the benefit of the people. 2t617 | .4 27
  • 34. It should be noted that Hawai'i adopted the "public trust" doctrine with respect to our shorelines and submerged lands over a hundred years ago and the doctrine has been repeatedly affirmed in several landmark cases over the years. In King v. Oahu Railway & Land Co., I I Haw. 717 (Haw. Terr. 1899), the Supreme Court for the Territory of Hawai'i held that: "The people of Hawaii hold absolute rights to all its navigable waters and the soils under them for their own common use. . . . The lands under the navigable waters in and around the territory of the Hawaiian Government are held in trust for the public uses of navigation." Id. at725 (citing Martin v. Waddell,4l U.S. 367 (1842) and adopting the reasoning of the United States Supreme Court in Illinois Central R.R. v. Illinois, 146 U,S. 387 (1892)). In Application of Ashford,50 Haw. 314,440P.2d76 (1968), the Hawai'i Supreme Cour further clarified that the boundary between private property and the public beach along the coastline was "the upper reaches of the wash of waves, usually evidenced by the edge of vegetation or by the line of debris left by the wash of waves." Id. at 315, 440 P.2d at 77 . Roughly five years later, the Court expanded the "public trust" doctrine to include tidelands, when it held that "[]and below the high water mark. like flowing water, is a natural resource owned by the state 'subject to, but in some sense in trust for, the enjoyment of certain public rights."' County of Hawaii v. Sotomura,55 Haw. 176,183-84, 517 P.2d57,63 (1973) (quoting Bishop v. Mahiko, 35 Haw. 608,641(Haw. Terr. 1940)).8 Importantly, the Court noted that "[p]ublic policy, as interpreted by this court, favors extending to public use and ownership as much of Hawaii's shoreline as is reasonably possible." Id. at 182,517 P.2d at 6l; see also In re I More recently, the Hawai'i Supreme Court reaffirmed the decision of Ashford and Sotomura, see Diamond v. State , ll2 Hawai'i I6l, 145 P.3d 704 (2006), ultimately unifying the definition of "shoreline" of the state statutes, common law, and administrative rules. 2t617 | .4 28
  • 35. waiola o Molokai. Inc., 103 Hawai'i 401, 432,83 p.3d664,695 (2004) (..any balancing between public and private purposes [shall] begin with a presumption in favor of public use, access, and enjoyment."). In fact, the Court boldly stated that "the state bears an 'affirmative [] duty to take the public trust into account in the planning and allocation of water resources, and to protect public trust uses whenever feasible."' Waiola O Molokai, 103 Hawai,i at 430. g3 p.3d at 693. Further, the Hawai'i Supreme Court has held that access by the public to these beaches are also of utmost importance: "The ability to get to a recreation area is as vital for enjoying it as having it in its natural condition." Akau v. Olohana Com.,65 Haw. 383,390, 652p.2d I130, I 135 (1982)' In support, the Hawai'i State Legislature has enacted legislation in favor of public beach access, effectuating the public's ability to use Hawaii's shorelines. HRS Ch. I l5 provides for public rights of way to access the shoreline and specif,rcally provides in HRS Section ll5 - 4 as follows: The right of access to Hawaii's shorelines includes that right of transit along the shorelines. HRS $ 11s-4 (2009). 2. Ancient Hawaiian Custom Similarly, Hawai'i courts' reliance on ancient Hawaiian custom and usage to secure public beach access also supports GCNA's position. In re Ashford is the genesis of a line of cases that secures public beach access through the use of ancient Hawaiian custom and usage. In Ashford, the Hawai'i Supreme Court recognized that the land laws of Hawai'i are unique in that "they are based on ancient tradition. custom, practice and usage." Id., 50 Haw. at 315,440 p.Zd at 77 . In so recognizing, the Court utilized the longstanding kama'aina witness rule, based on 21617 | .1 29
  • 36. necessity, which permits the admission of reputable evidence of kama'aina witnesses in land disputes. Id. 50 Haw. at 315-17, 440 P.2d at 77-78. The Hawai'i Supreme Court further relied upon kama'aina testimony in State v. Zimring, 52Haw.472,479 P.2d202 (1970). In Zimring, the Court considered a claim of ownership brought by the State that of seaward accretions to beach front property caused by volcanic eruptions. Id. The Court admitted kama'aina testimony, based on personal knowledge and knowledge passed down by the witness' parents and grandparents, regarding the Hawaiian practice of granting ownership of new land to the abutting owner. Id. at 47 5, 479 P .2d at 204. The foregoing line of cases culminated in the Court's reliance on ancient Hawaiian custom and common law custom in McBryde Sugar Co. v. Robinson, 54 Haw. 174, 504 P.Zd 1330 (l 973) that "the right to water was not intended to be, could not be, and was not transferred to the awardee, and the ownership of water in natural watercourses, streams and rivers remain[ ] in the people of Hawai'i for the common good." Id. at 186-87, 504P.2d,1339. The court recognized the public's right to running water, asserting that no private owner could acquire the adverse right to "surplus" water from the state. Id. at I 85-87, 504 P.2d at 1338-39. Scholars have commented that the McBryde Court's reliance on documents from the 1840s, "Principle Adopted by the Land Commission" and "the Enactment of Further Principles" in 1850 is important to public beach access. Michael Anthony Town & William 'Wai Lim yuen, Public Access to Beach in Hawaii: "A Social Necessit)¡?', l0 Haw.8.J.3, l5 (1973). Utilizing these documents, the Court established "that beach access, if it existed as a customary right, is a public right and, like the water right, is held by the state for the public." Michael D. Tom, Note, Flawaiian Beach Access: A Customarv Right, 26 Hastings L.J. 823, 839 (1975). The botom line is that the foregoing principles of the public trust doctrine and ancient Hawaiian custom 2t6t7 | .4 30
  • 37. dictate that the State is responsible for maintaining the Seawall. For the State to now ignore this duty would fly at the face of well-established case law and statutes. V. CONCLUSION GCNA submits that, as shown herein, the State has been and should continue to be responsible for the Seawall. GCNA therefore respectfully request that this Court affirm that duty. l,fAR 17 2011 Dated, Honolulu. Hawai'i ROBERT G. K RANDALL K. SCHM JORDON J. KIMURA Attorneys for Plaintiff (Civil No. 07-1-l 122-06) GOLD COAST NEIGHBORHOOD ASSOCIATION and Defendants (Civil No. l0-l-0888-04) TROPIC SEAS, TNC.; THE ASSOCIATION OF APARTMENT OWNERS OF DIAMOND HEAD BEACH HOTEL, INC.; DIAMOND HEAD APARTMENTS, LTD.; C S APARTMENTS, LTD.; THE ASSOCIATION OF APARTMENT OWNERS OF 2987 KALAKAUA CONDOMINIUM ; TAHITIENNE, INCORPORATED; THE ASSOCIATION OF APARTMENT OWNERS OF 3003 KALAKAUA, INC.; THE ASSOCIATION OF APARTMENT OWNERS OF 3OI9 KALAKAUA. INC. 2t617 | .4 3l
  • 38. IN THE CIRCUIT COURT OF THE FIRST CIRCUIT STATE OF HAWAI'I GOLD COAST NEIGHBORHOOD cryrl- No. 07-l -1122-06 (vLC) ASSOCIATION, (Declaratory Judgment) Plaintiff. CERTIFICATE OF SERVICE vs. STATE OF HAWAI'I; DOE GOVERNMENTAL ENTITIES l-10; DOE GOVERNMENTAL AGENCIES 1-I O. Defendants. STATE OF HAWAI'I BY ITS ATTORNEY clvll. No. l0-1-0888-04 (VLC) GENERAL. (Declaratory Judgment) Plaintiff,, VS. ) TROPIC SEAS, INC.; THE ASSOCIATION OF ) APARTMENT OWNERS OF DIAMOND ) HEAD BEACH, INC.; OLIVIA CHEN LUM, ) trustee of the Olivia Chen Lum Revocable Living) Trust; CLARENCE KWON HOU LUM, trustee ) of the Clarence Kwon Hou Lum Trust and trustee) under the Will and Estate of Chow Sin Kum Lum; JEANNE S. J. CHAN and IIOWARD N. H. CHAN, trustees of the Jeanne S. J. Chan Trust; DIAMOND HEAD AMBASSADOR HOTEL, LTD.; DIAMOND HEAD APARTMENTS, LTD.; C S APARTMENTS, ) LTD.; THE ASSOCIATION OF APARTMENT ) owNERS OF 2987 KALAKAUA ) CONDOMINIUM; TAHITIENNE, - ) INCORPORATED; THE ASSOCIATION OF ) 216t7 | .1
  • 39. APARTMENT OWNERS OF 3003 ) KALAKAUA, INC.; THE ASSOCIATION OF ) APARTMENT OWNERS OF 3019 ) KALAKAUA,INC.; JOHN DOES l-20; DOE ) CORPORATIONS I -20; DOE PARTNERSHIPS) l-20; DOE ASSOCIATIONS l-20, DOE ) GOVERNMENTAL AGENCIES l-20; AND ) DOE ENTITIES I -20. Defendants. Trial: March 2l,20ll Judge: The Honorable Virginia L. Crandall CERTIFICATE OF SERVICE I hereby certify that copies of the foregoing document will be duly served upon the following persons by hand-delivering (HD) or by mailing (M) said copy, postage prepaid, first class in a United States post office in Honolulu, Hawai.i, as indicated below, on , addressed as set forth below: DAVID M. LOUIE, ESQ. (HD) Attorney General of Hawai'i V/ILLIAM J. WYNHOFF, ESQ. Deputy Attomey General Department of the Attomey General, State of Hawai,i 465 King Streer, Suite 300 Honolulu, Hawai'i 968 I 3 Attorneys for Plaintiff STATE OF HAWAI'I LESTER K.M. LEU, ESQ. (HD) KARYN A. DOI, ESQ. Leu & Okuda The Merchant House 222Merchant Street, Main Floor Honolulu, Hawai'i 9681 3 Attomeys for Defendants OLIVIA CHEN LUM, CLARENCE KWON HOU LUM, JEANNE S.J. CHAN and HOWARD N.H. CHAN 2t6t7 | .4
  • 40. STEPHEN K. C. MAU, ESQ. (HD) Rush Moore LLP 737 Bishop Street, Suite 2400 Honolulu, Hawai'i 9681 3 Attomey for Defendant DIAMOND HEAD AMBASSADOR HOTEL, LTD. DATED: Honolulu, Hawai'i, }iAR 1 ? 20ll ROBERT G. KLEIN RANDALL K. SCH JORDON J. KIMURA Attorneys for Plaintiff (CivilNo. 07-1 -1122-06) GOLD COAST NEIGHBORHOOD ASSOCIATION and Defendants (Civil No. l0-l-0S88-04) TROPIC SEAS, INC.;THE ASSOCIATION OF APARTMENT OWNERS OF DIAMOND HEAD BEACH HOTEL, INC.; DIAMOND HEAD APARTMENTS, LTD.; C S APARTMENTS, LTD.; THE ASSOCIATION OF APARTMENT OWNERS OF 2987 KALAKAUA CONDOMINIUM ; TAHITIENNE, INCORPORATED; THE ASSOCIATION OF APARTMENT OWNERS OF 3OO3 KALAKAUA, INC.; THE ASSOCIATION OF APARTMENT OWNERS OF 3OI9 KALAKAUA. INC.