FOR PUBLICATION IN WEST'S HAWAI‘I REPORTS AND PACIFIC REPORTER
IN
THE INTERMEDIATE COURT OF APPEALS
OF THE STATE OF HAWAI‘I
---o0o---
NO. 28175
DECEMBER 30, 2009
OPINION OF THE COURT BY WATANABE, J.
This appeal arises from an inverse-condemnation lawsuit filed by Maunalua Bay Beach Ohana 28, Maunalua Bay Beach Ohana 29, and Maunalua Bay Beach Ohana 38 (1) (collectively, Plaintiffs), on behalf of themselves and all non-governmental owners of oceanfront real property in Hawai‘i on and/or after May 19, 2003 (oceanfront, littoral, or riparian owners), challenging the constitutionality of Act 73, 2003 Haw. Sess. Laws at 128 (Act 73). Plaintiffs alleged that Act 73:a. Took oceanfront owners' rights to claim accreted land (other than that which restored previously eroded land and that which was the subject of registration or quiet title proceedings on May 20, 2003) and declared all such land to be "state land";
c. Damaged oceanfront owners' remaining property by depriving them of ownership of the land abutting the ocean; and
Plaintiffs sought just compensation, blight damages, a declaratory judgment that Act 73 was unenforceable under the Hawai‘i State Constitution unless and until Defendant-Appellant State of Hawai‘i (State) pays just compensation to Plaintiffs and the class they represented, and an injunction forbidding the State from asserting ownership or control over the affected property and from enforcing Act 73.
On September 1, 2006, the Circuit Court of the First Circuit (2) (circuit court) entered an order granting Plaintiffs' February 13, 2006 amended motion for partial summary judgment (PSJ) on Plaintiffs' claim for declaratory relief. In relevant part, the circuit court declared that
This interlocutory appeal by the State followed.
We vacate that part of the PSJ order which concluded that Act 73 effected an uncompensated taking of and injury to littoral owners' right to ownership of future accreted land and remand this case to the circuit court for further proceedings consistent with this opinion.
THE LEGAL LANDSCAPE
A. Definitions and General Doctrines
In his treatise on real property, Professor Powell notes:
The term "accretion" denotes the process by which an area of land is increased by the gradual deposit of soil due to the action of a boundary river, stream, lake, pond, or tidal waters. The term "dereliction," or its modern counterpart "reliction," denotes the process by which land is exposed by the gradual receding of a body of water. The term "erosion" denotes the process by which land is gradually covered by water. The term "avulsion" denotes the process by which there is a sudden and perceptible change in the location of a body of water.
Where the change in location of a body of water is caused by accretion, reliction, or erosion, the boundary line between the abutting landowners moved with the waterway. Thus the riparian or littoral owner is given title to lands that are gradually added by accretion or reliction. In some circumstances, whether the accretion occurs on the banks of a river or stream rather than on the banks of other bodies of water may be critical in determining the ownership of the accreted lands. Similarly, a riparian owner loses title to lands that are submerged through the process of erosion. In contrast, if the boundary river, stream, lake, or tidal water changes its location because of the process of avulsion, the boundary line remains the same. In some circumstances, the doctrine of re-emergence[ (3)] will be applied to both accretive and avulsive changes to determine the ownership of certain lands.
Richard M. Powell, 9 Powell on Real Property §§ 66.01[1] - 66.01[2], at 66-2 - 66-9 (2006) (footnote added; footnotes omitted).Some scholars have expressed doubt that the doctrines of accretion, erosion, reliction, and avulsion are actually rules of law, causing a stated result upon the occurrence of stipulated facts, rather than rules of construction used to determine what the grantor of riparian land intended the grantee of the land to receive. See, e.g., 9 Powell on Real Property § 66.03[1], at 66-24 (2006); Herbert Thorndike Tiffany, 4 The Law of Real Property § 1220 (3d ed. 1975 & 2009-2010 cum. supp.). As Professor Tiffany explains,
4 The Law of Real Property § 1220, at 1075-76 (footnotes omitted).
The doctrine of accretion has been rationalized by courts and commentators on various grounds. Professor Powell summarized and critiqued these rationales as follows:
A second rationale occasionally mentioned by the courts and commentators is the ancient legal maxim of de minimis non curat lex. There is a logical connection between the de minimis concept and the requirement for accretion, reliction, and erosion that the change be gradual and imperceptible, but the justification has received little modern support since in many accretion cases substantial and valuable acreage is involved.
Since a riparian owner is subject to losing land by erosion beyond his [or her] control, he [or she] should benefit from any additions to his [or her] lands by the accretions thereto which are equally beyond his [or her] control.
B. Hawai‘i Supreme Court Precedent
The supreme court of the Kingdom of Hawai‘i first addressed the ownership of accreted lands in Halstead v. Gay, 7 Haw. 587 (1889), a case in which the plaintiff sought damages from the defendant for trespassing on land seaward of the boundary of the plaintiff's oceanfront property, as described in the plaintiff's deed. According to the deed, the property's seaside boundary was "ma kahakai a hiki i ka hope o ka holo mua ana," without distance given. The supreme court explained that "kaha" means "scratch, or mark," "'[k]ai means the sea, or salt water," and as described in the survey, "[k]ahakai . . . means the mark of the sea, the junction or edge of the sea and land." Id. at 589. The supreme court translated "[a] hiki i kahakai" as "reaching to high water mark" and "ma kahakai a hiki i ka hope o ka holo mua ana" as "along the high water mark to the end of the first course," id., and held, based on this description, that it was "clear" that "[t]he intention is . . . to grant to the sea, and make it coterminous with it." Id. The supreme court then observed:
Section 387 of the Code, page 92 Compiled
Laws,[ (4)] seems to imply that the
proprietorship of land adjacent to the beach extended to low water
mark, for it enacts that the fisheries for a mile from low water mark
are the property of the owners of the lands adjacent and appurtenant,
thus
making the boundary between the land and the fishery to be the low
water line.
But whether some land between present high and low water has been trespassed upon is not the question in this case, but it is whether land now above high-water mark, which has been formed by imperceptible accretion against the shore line existing at the date of the survey and grant, has become attached by the law of accretion to the land described in the grant. By the definitions we have given, it follows that the plaintiff has the rights of a littoral proprietor, and that the accretion is his.
Id. at 589-90 (emphasis and footnote added).In In re Ashford, 50 Haw. 314, 440 P.2d 76 (1968), the petitioners sought to register title to two parcels of land on the island of Molokai, which were described in the royal patents as running "ma ke kai" (along the sea). The petitioners claimed that "the phrase describes the boundaries at mean high water which is represented by the contour traced by the intersection of the shore and the horizontal plane of mean high water based on the publications of the U.S. Coast and Geodetic Survey." Id. at 314-15, 440 P.2d at 77. The State claimed "that 'ma ke kai' is the high water mark that is along the edge of vegetation or the line of debris left by the wash of waves during ordinary high tide[,]" or "approximately 20 to 30 feet above the line claimed by the [petitioners]." Id. at 315, 440 P.2d at 77 (footnote omitted). The Hawai‘i Supreme Court, in a 4-1 decision, held:
In this jurisdiction, it has long been the rule, based on necessity, to allow reputation evidence by kamaaina witnesses in land disputes. The rule has a historical basis unique to Hawaiian land law. It was the custom of the ancient Hawaiians to name each division of land and the boundaries of each division were known to the people living thereon or in the neighborhood. 'Some persons were specially taught and made repositories of this knowledge, and it was carefully delivered from father to son.' With the Great Mahele in 1848, these kamaainas, who knew and lived in the area, went on the land with the government surveyors and pointed out the boundaries to the various divisions of land. In land disputes following the Great Mahele, the early opinions of this court show that the testimony of kamaaina witnesses were permitted into evidence. In some cases, the outcome of decisions turned on such testimony.
Five years later, the Hawai‘i Supreme Court further developed the rule pronounced in Ashford in an eminent-domain case initiated by the County of Hawai‘i to acquire a park site. County of Hawaii v. Sotomura, 55 Haw. 176, 517 P.2d 57 (1973). In Sotomura, unlike in Ashford, the seaward boundary of the property at issue had been registered with the land court in 1962. The defendant property owners argued that "because land court proceedings are res judicata and conclusive against all persons as to the boundary determination, the certificate of registration [with the land court] shall be conclusive evidence of the location of the seaward boundary[,]" even if the seaward boundary had subsequently eroded. Id. at 178, 517 P.2d at 60. The supreme court disagreed with the property owners and held
Id. at 181, 517 P.2d at 61. The supreme court then said:
Having concluded that the trial court properly determined that the seaward boundary had been altered by erosion and the location of the high water mark has shifted, we now hold that the new location of the seaward boundary on the ground, as a matter of law, is to be determined by our decision in In re Application of Ashford, supra.
In the absence of kamaaina testimony or other evidence of Hawaiian custom relevant to the question, we resort to common law principles:
We hold that the land below the Ashford seaward boundary line as to
be redetermined belongs to the State of Hawaii, and the defendants
should not
be compensated therefor.
Id. at 183-84, 517 P.2d at 62-63 (brackets and ellipses in original).
In In re Sanborn, 57 Haw. 585, 562 P.2d 771 (1977), the appellees had sought approval from the County of Kauai (Kauai) to subdivide a beachfront lot into two smaller lots. Pursuant to the then-recently enacted state-shoreline-setback act, HRS §§ 205-31 through 205-37 (Supp. 1975), the appellees were required to submit to the Kauai planning department a map of their property, certified partly by the state land surveyor (state surveyor). When the state surveyor refused to certify the map prepared by the appellees, they sued. Id. at 587, 562 P.2d at 772. The land court recognized that the vegetation and debris line drawn on a map of the appellees' property represented "the 'upper reaches of the wash of waves' during ordinary high tide during the winter season, when the . . . waves are further mauka (or inland) than the highest wash of waves during the summer season." Id. at 588, 562 P.2d at 773. However, the land court denied legal significance to the vegetation and debris line, determining instead that the appellees' "beachfront title is fixed by certain distances and azimuths set out in the 1951 land court decree of registering title to the property." Id. at 589, 562 P.2d at 774. When these distances and azimuths were plotted on a map of the appellees' property, "they gave a line approximately 40 to 45 feet makai (seaward) of the 'vegetation and debris line'." Id., 562 P.2d at 774. On appeal by the state surveyor, the Hawai‘i Supreme Court held:
Id. at 589-91, 562 P.2d at 774-75. The supreme court then addressed the appellees' contention that HRS § 501-71 gave binding effect to the specific distances and azimuths set out in the 1951 decree for the line of high water. HRS § 501-71 provided then, as it does currently, in relevant part, as follows:
Id. at 591, 562 P.2d at 775; HRS § 501-71 (2006). The supreme court stated that although the foregoing statute literally "states in general terms that a land court decree of registration shall bind the land and be conclusive[,]" "[t]he section does not say that every aspect of a land court decree is always conclusive." Id., 562 P.2d at 775. The supreme court explained that
. . . .
In McCandless v. Du Roi, 23 Haw. 51 (1915), this court stated that land court decrees are subject to the same rules of construction generally applicable to deeds and that therefore, in construing a land court decree, "'course and distance will yield to known visible and definite objects whether natural or artificial.'" 23 Haw. at 54.
We follow McCandless, finding that in the 1951 decree the natural monument "along high water mark" controls over the specific distances and azimuths. We further find that the true line of high water in this jurisdiction is along the upper reaches of the wash of waves, as discussed in In re Application of Ashford, and Sotomura, supra.
Id. at 591-96, 562 P.2d at 775-77 (footnotes and some citations omitted). The supreme court then turned its attention to the appellees' contention that "both the Hawai‘i and federal constitutions would be violated if this court fixes [their] title line along the upper reaches of the wash of waves" because "such an adjudication would be a taking of private property for public use without just compensation." Id., 562 P.2d at 777-78. The supreme court held as follows:Under our interpretation of the 1951 decree, we see no constitutional infirmity. The 1951 decree recognized that the [appellees'] title extends to a line "along high water mark". We affirm the holding in McCandless, supra, that distances and azimuths in a land court decree are not conclusive in fixing a title line on a body of water, where the line is also described in general terms as running along the body of water.
The absence of a clear legal standard in 1951 tends to disprove the existence of a reasonable expectation in 1951 that the land court would be able to fix conclusively the distances and azimuths of high water. Moreover, as of 1951 the McCandless decision had been standing undisturbed for over 35 years. It would have been unreasonable for the parties to rely on specific distances and azimuths after McCandless had held that such measurements are inconclusive.
Id. at 597, 562 P.2d at 778.In State v. Zimring, 58 Haw. 106, 566 P.2d 725 (1977), the State sought to quiet title in itself as against the Zimrings and their predecessors-in-interest to approximately 7.9 acres of new land that had been added to the Zimrings' shoreline property by the Puna volcanic eruption of 1955 (lava extension). The Zimrings' deed described the oceanfront boundary of their property as being "along high water mark[.]" Id. at 108, 566 P.2d at 728. The Hawai‘i Supreme Court initially observed that historically, "the people of Hawai‘i are the original owners of all Hawaiian land." Id. at 111, 566 P.2d at 729. However, bowing to pressure exerted by foreign residents who sought fee title to land, "King Kamehameha III undertook a reformation of the traditional system of land tenure by instituting a regime of private title in the 1840's" which necessarily diminished the lands in the public domain. Id., 566 P.2d at 729. The supreme court stated:
Id. at 114-15, 566 P.2d at 731. The supreme court held that there was a paucity of evidence adduced that "Hawaii usage prior to 1892 gave to the owner of the land along the seashore, title to land created by volcanic eruption when the eruption destroyed the pre-existing seashore boundary and formed a new boundary along the sea[.]" Id. at 118, 566 P.2d at 733. The supreme court also disagreed with the Zimrings that "the common law on accretion and avulsion in other states is not directly on point" and held that
Likewise, in cases where there have been rapid, easily perceived and sometimes violent shifts of land (avulsion) incident to floods, storms, or channel breakthroughs, preexisting legal foundations are retained notwithstanding the fact that former riparian owners may have lost their access to the water.
In In re Application of Banning, 73 Haw. 297, 832 P.2d 724 (1992), the Trustees of Kalama Community Trust (Trustees) filed a petition with the land court pursuant to HRS § 501-33 (6) to register title to approximately 0.251 acres of "accreted" land fronting their Kailua shoreline property and joined and served all neighboring landowners. A neighboring landowner and the State asserted that registration should be denied because the alleged "accretion" to the Trustees' property "was not natural and permanent." Id. at 302, 832 P.2d at 727. The land court found that the "accreted" land was permanent and natural but that it had been used by the general public for recreation and access to the beach for at least twenty years, with the acquiescence of the Trustees, and had therefore been impliedly dedicated to the general public. Id., 832 P.2d at 727-28. On appeal, the supreme court reversed the land court's finding of implied dedication to the general public. In doing so, the supreme court initially observed:
Id. at 303-04, 832 P.2d at 728 (brackets and ellipsis in original). The supreme court also stated:
More recently, in Diamond v. State, 112 Hawai‘i 161, 145 P.3d 704 (2006), the supreme court was called upon to determine the proper location of the shoreline under HRS chapter 205A, the Coastal Zone Management Act (CZMA). Pursuant to HRS § 205A-1 (2001), "[s]horeline" is defined as the "upper reaches of the wash of the waves, other than storm and seismic waves, at high tide during the season of the year in which the highest wash of the waves occurs, usually evidenced by the edge of vegetarian growth, or the upper limit of debris left by the wash of the waves." This definition is thus equivalent to the Hawai‘i Supreme Court's delineation of the boundary dividing private land from public beaches that was adopted in Ashford. Under the CZMA, the state board of land and natural resources (BLNR) is responsible for certifying the shoreline of an oceanfront property for building-setback purposes. HRS § 205A-42 (2001). A certified shoreline, which is valid for twelve months, HRS § 205A-42(a), is the baseline that is used to (1) measure the shoreline setback line, defined as "that line established in this part [III (7)] or by the county running inland from the shoreline at a horizontal plane," HRS § 205A-41 (2001) (footnote added); and (2) determine the "shoreline area," which encompasses "all of the land area between the shoreline and the shoreline setback line," HRS § 205A-41, where structures and certain activities are prohibited by statute. See HRS § 205A-44 (2001).
In Diamond, an oceanfront property owner hired a contractor to cut the trees on the owner's property, hired a landscaper to plant salt-tolerant vegetation in the shoreline area of the property, and installed an irrigation line to water the newly planted vegetation. Id. at 164, 145 P.3d at 707. In certifying the property's shoreline, the BLNR used the "stable vegetation line"--the line where plants, "without continued human intervention, are well-established and would not be uprooted, broken off, or unable to survive occasional wash or run-up of waves"--even though the vegetation had originally been induced by human hands and the debris line representing the upper wash of the waves occur[red] mauka (inward) of the vegetation line. Id. at 168, 145 P.3d at 711.
The Hawai‘i Supreme Court held that based on the plain and obvious meaning of the statute, the statute's legislative history, and relevant case law, the shoreline should be certified at the "highest reach of the highest wash of the waves," id. at 172-73, 145 P.3d at 715-16, and BLNR therefore erred in certifying the shoreline based on a per se rule establishing the primacy of a vegetation line, which is a more permanent monument, over the debris line. Id. at 174-75, 145 P.3d at 717-18. The supreme court noted that its Sotomura decision "clearly favored the public policy of extending 'as much of Hawai‘i's shoreline as is reasonably possible' to public ownership and use" and, therefore, the vegetation line cannot trump the debris line if the debris line is mauka of the vegetation line. Id. at 175, 145 P.3d at 718. The supreme court also rejected the use of artificially planted vegetation to determine the certified shoreline, stating:
In summary, under Hawai‘i Supreme Court precedent, (1) the "highest reach of the highest wash of the waves" delineates the boundary between private oceanfront property and public property for ownership purposes, as well as the baseline for measuring the shoreline setback line and determining the shoreline area, the so-called no-building zone, notwithstanding that the deed for the oceanfront property describes the property by "certain distances and azimuths" that put the seaward boundary of the property below the high-water mark, In re Sanborn, 57 Haw. at 589, 562 P.2d at 774; (2) land added to oceanfront property through avulsive lava extension belongs to the State; and (3) land added to oceanfront property through accretion belongs to the oceanfront property owner.
C. The Statutory Landscape
1. Act 221, 1985 Haw. Sess. Laws at 401 (Act 221)
In 1985, the Hawai‘i State Legislature passed House Bill No. 194, entitled "A Bill for an Act Relating to Accretion[,]" which was signed into law by the Governor as Act 221 on June 4, 1985. Act 221 provided, in relevant part, as follows:
"§ 183-45 Accreted land. No structure, retaining wall, dredging, grading, or other use which interferes or may interfere with the future natural course of the beach, including further accretion or erosion, shall be permitted to accreted land as judicially decreed under section 501-33 or 669-1(e). This provision shall not in any way be construed to affect state or county property.
The legislative history of Act 221 indicates that one of the primary purposes of the act was "to protect the public's access to and enjoyment of Hawaii's beaches." H. Stand. Comm. Rep. No. 346, in 1985 House Journal, at 1142; S. Stand. Comm. Rep. No. 790, in 1985 Senate Journal, at 1223; S. Stand. Comm. Rep. No. 899, in 1985 Senate Journal, at 1291. The House Committees on Water, Land Use, Development and Hawaiian Affairs (WLUDHA) and Judiciary explained, in pertinent part, as follows:
H. Stand. Comm. Rep. No. 346, in 1985 House Journal, at 1142-43. Similarly, the Senate Judiciary Committee stated that House Bill No. 194 "will protect public's access to beaches, as well as to provide for the minimal interference with the natural processes of beach accretion and erosion." S. Stand. Comm. Rep. No. 899, in 1985 Senate Journal, at 1291.
Another legislative purpose of Act 221 was to establish a burden of proof and provide clear standards in cases where oceanfront property owners seek to register or quiet title to accreted lands. In this regard, the House Committees on WLUDHA and Judiciary reported:
H. Stand. Comm. Rep. No. 346, in 1985 House Journal, at 1142-43 (footnotes added). The Senate Judiciary Committee also explained:
Written testimony submitted in support of House Bill No. 194 expressed the need for clearer standards. For example, Dr. Doak C. Cox (Dr. Cox) of the University of Hawai‘i Environmental Center testified, in pertinent part:
2. Act 73
In 2003, the Hawai‘i State Legislature passed House Bill No. 192, which was signed into law as Act 73 (11) on May 20, 2003, the date Act 73 became effective. Act 73 amended HRS §§ 501-33 and 669-1(e) to provide that owners of oceanfront lands could no longer register or quiet title to accreted lands unless the accretion restored previously eroded land. Act 73 also amended HRS §§ 171-2, 501-33, and 669-1 to provide that, henceforth, accreted lands not otherwise awarded shall be considered "[p]ublic lands" or "state land."
The conference committee considering House Bill No. 192 indicated that
(1) Including accreted lands, that is lands formed by the gradual accumulation of land on a beach or shore along the ocean by the action of nature forces, in the definition of state public lands;
(3) Allowing a private property owner to file an accretion claim to regain title to and register the owner's eroded land that has been restored by accretion; and
Conf. Comm. Rep.
No. 2, in 2003 House Journal, at 1700, 2003 Senate Journal, at 945. The
Senate Committee on
Judiciary and Hawaiian Affairs found that
this measure will stop the unlawful taking of public beach land under the guise of fulfilling a nonexistent littoral right supposedly belonging to shorefront property owners. The measure will help Hawai‘i's public lands and fragile beaches by ensuring that coastal property owners do not inappropriately claim newly deposited lands makai of their property as their own.
S. Stand. Comm. Rep. No. 1224, in 2003 Senate Journal, at 1546. The House Committee on Judiciary similarly found "it crucial to protect public beaches from being transformed into private lands through the filing of accretion claims, except to restore to private ownership portions of private land removed by erosion." H. Stand. Comm. Rep. No. 626, in 2003 House Journal, at 1360.PROCEDURAL HISTORY OF THE UNDERLYING LAWSUIT
On May 19, 2005, one day shy of two years from the date of Act 73's enactment, (12) Plaintiffs filed the underlying complaint in the circuit court.
On December 30, 2005, the circuit court, over the State's objection, entered an order granting Plaintiffs' October 28, 2005 Amended Motion for Class Certification and certified a class of plaintiffs consisting of "[a]ll non-governmental owners of oceanfront real property in the State of Hawai‘i on and/or after May 19, 2003" (Class Certification Order) This order was not certified as final for appeal purposes and is therefore not before us.
On February 13, 2006, Plaintiffs filed an amended motion for PSJ "on their claim for Injunctive Relief, barring enforcement of [Act 73] unless and until the State of Hawai‘i acknowledges that it must provide just compensation to the class members and undertakes to do so in conjunction with these proceedings." Plaintiffs claimed that they were "entitled to [PSJ] in their favor . . . because there is no dispute that Act 73 is a taking of private property and no dispute that the State is refusing to pay for such taking. Injunctive Relief is necessary to enjoin the State's unlawful exercise of ownership over private real property rights it refuses to pay for." Plaintiffs argued that their motion should be granted because (1) "[i]t is undisputed that Plaintiffs owned property rights to accretion that the State wrongfully appropriated by its enactment of Act 73;" (2) "[i]t is undisputed that the State has refused to pay for Plaintiffs' accreted property rights;" and (3) "Plaintiffs are entitled to injunctive relief as a matter of law because Plaintiffs must be protected against the State's unconstitutional actions." Plaintiffs argued that
On September 1, 2006, the circuit court entered an order granting Plaintiffs' amended motion for PSJ "insofar as Plaintiffs sought declaratory relief." No injunctive relief was granted. In its order, the circuit court held, in relevant part, as follows:
(1) [Act 73] represented a
sudden change in the common law and effected an uncompensated taking
of, and injury to, (a) littoral
owners' accreted
land, and (b) littoral owners' right to ownership of future accreted
land, insofar as Act 73 declared accreted
land to be "public
land" and prohibited
littoral owners from registering existing and future accretion under
[HRS] Chapter
501 and/or quieting
title under [HRS] Chapter 669.
On September 27, 2006, the State filed its Notice of Appeal.
DISCUSSION
The dispositive issue in this case is whether the circuit court correctly held that Act 73 "effected an uncompensated taking of, and injury to, (a) littoral owners' accreted land, and (b) littoral owners' right to ownership of future accreted land, insofar as Act 73 declared accreted land to be 'public land' and prohibited littoral owners from registering existing and future accretion under [HRS] Chapter 501 and/or quieting title under [HRS] Chapter 669."
A. Whether Plaintiffs Have Vested Property Rights in Future Accretions
The circuit court concluded that Act 73 "represented a sudden change in the common law and effected an uncompensated taking of littoral owners' right to ownership of future accreted land, insofar as Act 73 declared accreted land to be 'public land' and prohibited littoral owners from registering . . . future accretion under [HRS] Chapter 501 and/or quieting title under [HRS] Chapter 669."It is true that under Hawai‘i common law, land accreted to oceanfront property belongs to the oceanfront property owner, and under Act 73, all accreted lands (except those which restored eroded lands or were the subject of proceedings pending at the time Act 73 was enacted) now belong to the State. However, pursuant to HRS § 1-1 (1993):
(Emphases added.) Furthermore, the Hawai‘i Supreme Court has held that "our state legislature may, by legislative act, change or entirely abrogate common law rules through its exercise of the legislative power under the Hawai‘i State Constitution, but in the exercise of such power, the legislature may not violate a constitutional provision." Fujioka v. Kam, 55 Haw. 7, 9, 514 P.2d 568, 570 (1973).
In their underlying complaint, Plaintiffs claimed that Act 73 took their right to future accretions and thereby violated article I, section 20 of the Hawai‘i State Constitution, which states: "Private property shall not be taken or damaged for public use without just compensation." However, any claims that Plaintiffs may have to future accretions are purely speculative, and other courts have held that a riparian owner has no vested right to future accretions.
In Western Pac. Ry. Co. v. Southern Pac. Co., 151 F. 376 (9th Cir. 1907), for example, the Ninth Circuit Court of Appeals, in rejecting dictum in County of St. Clair v. Lovingston, 90 U.S. 46, 68 (1874), that "[t]he riparian right to future alluvion is a vested right[,]" held: "We cannot think that the court meant to announce the doctrine that the right to alluvion becomes a vested right before such alluvion actually exists." Western Pac. Ry. Co., 151 F. at 399. After distinguishing vested, expectant, and contingent rights, the court concluded: "Within that definition of vested rights, there can be no question, we think, that the right to future possible accretion could be divested by legislative action." Id. See also Cohen v. United States, 162 F. 364, 370 (C.C.N.D. Cal. 1908) ("The riparian owner has no vested right in future accretions. The riparian owner cannot have a present vested right to that which does not exist, and which may never have an existence.") (citations omitted); Latourette v. United States, 150 F. Supp. 123, 126 (D. Ore. 1957) (The "plaintiff had no vested right in the continuance of future accretions to his property by way of sands carried by the winds and in turn washed by the sea upon his lands.").
In a somewhat similar situation, the Hawai‘i Supreme Court held that it was not unconstitutional to terminate, by legislation, a statute that granted exclusive fishing rights in offshore fisheries to certain tenants of an ahupuaa. Damon v. Tsutsui, 31 Haw. 678, 693 (1930). The supreme court explained that as to these tenants, the repealed statute "amounted to nothing more than an offer to give them certain fishing rights when they should become tenants,--an offer which was withdrawn before they were in a position to accept it." Id. at 693. Additionally, the supreme court said:
Id. at 693-94.
It is instructive that article XI, section 1 of the Hawai‘i State Constitution, which was adopted in 1978, twenty-five years before the passage of Act 73, mandates that
All public natural resources are held in trust by the State for the benefit of the people.
(Emphases added.) The Hawai‘i Supreme Court has stated that the foregoing provision adopts "the public trust doctrine as a fundamental principle of constitutional law in Hawai‘i," In re Water Use Permit Applications, 94 Hawai‘i 97, 132, 9 P.3d 409, 444 (2000), and that "[t]he public trust is a dual concept of sovereign right and responsibility." Id. at 135, 9 P.3d at 447. The foregoing constitutional provision clearly diminishes any expectation that oceanfront owners in Hawai‘i had and may have in future accretions to their property.Here, Plaintiffs have no vested right to future accretions that may never materialize and, therefore, Act 73 did not effectuate a taking of future accretions without just compensation.
B. Whether Act 73 Effectuated an Uncompensated Taking of Littoral Owners' Existing Accreted Lands
On appeal, the State classifies accreted lands into three categories: (1) Class I accreted lands--those lands that accreted before the effective date of Act 221, i.e., before June 4, 1985; (2) Class II accreted lands--those lands that accreted after the effective date of Act 221 but before the effective date of Act 73, i.e., between June 4, 1985 and May 19, 2003; and (3) Class III accreted lands--those lands that accreted on or after the effective date of Act 73, i.e., on or after May 20, 2003.
The State then argues that (1) "Act 221 was prospective and did not affect Class I accreted lands" but "essentially prohibited littoral landowners from claiming any interest in Class II accreted lands unless and until they became permanent, i.e., until they stayed in existence for 20 years"; (2) before any Class II accreted land could become permanent, Act 73 was enacted, "which denied non-State oceanfront landowners ownership of accreted lands (except to the extent the accretion restored previously eroded land) and made it all State land"; (3) neither Act 221 nor Act 73 affected littoral owners' interest in Class I accretions and, therefore, no taking of Class I accretions has occurred; (4) because Class II accretions, by definition, did not form until June 4, 1985, none of these accretions could have been in existence for twenty years at the time Act 73 became effective and, therefore, littoral owners had no vested property right in the Class II accretions that could be taken away by Act 73; they just had a hope that sometime in the future they might be able to assert control and dominion over Class II accretions; and (5) Act 73 did not effect a taking of Class III accretions, as those accretions did not physically exist at the time Act 73 became effective.
Contrary to the State's argument, however, Act 221, on its face, did not affect the common-law rights of a littoral owner to accreted lands. Indeed, the legislative history of Act 221 expressly mentions that the legislature did "not intend to affect the existing law in regard to ownership of and other rights relating to land created by accretion[.]" H. Stand. Comm. Rep. No. 346, in 1985 House Journal at 1142-43. As discussed above, Act 221 merely established a burden of proof and clear standards for registering or quieting title to accreted lands. More specifically, Act 221 provided that in order to register or quiet title to accreted lands, a littoral owner was required to prove, by a preponderance of the evidence, that the accretion was natural and permanent (i.e., in existence for twenty years). Act 221 did not change the supreme court's precedent that accreted land above the high-water mark belongs to the littoral owner of the land to which the accretion attached. Act 221 also did not provide that all accreted land above the high-water mark was public or state land until the littoral owner proves that the accretion was natural and permanent.
The State is also mistaken that littoral owners had no ownership interest in Class II accretions at the time Act 73 was enacted. As discussed above, at the time Act 73 was enacted, it was Hawai‘i common law that shoreline property from the sea to the high-water mark was owned by the State, and any oceanfront accretions above the high-water mark belonged to the adjoining property owner, irrespective of whether a metes-and-bounds description of the accreted lands was included in the deed of the oceanfront property owner. Act 73 clearly changed the common law by declaring that all accreted lands "not otherwise awarded" and not previously recorded or the subject of a then-pending registration or quiet-title proceeding was now state or public property. Therefore, littoral owners who had such accreted lands when Act 73 became effective on May 20, 2003 had their ownership rights in their accreted lands taken from them by the passage of Act 73. See Loretto v. Teleprompter Manhattan CATV Corp., 458 U.S. 419 (1982).
In Loretto, the United States Supreme Court held:
2.
The parties do not dispute that there was a legitimate public purpose for the passage of Act 73. Since the parties stipulated to an appeal of the circuit court's declaratory judgment, the circuit court did not decide Plaintiffs' claim that Plaintiffs and the class they represent were entitled to damages for the taking of their property. On remand, the circuit court must do so.
As mentioned earlier, the circuit court's Class Certification Order was not certified as a final judgment for appeal purposes and is not before us. While certification of a class for purposes of determining generically whether Act 73 effectuated a taking of littoral owners' future accretions might have been appropriate, we have questions about whether the class certification was proper for determining whether Act 73 effectuated a taking of those accretions existing as of the effective date of Act 73, since each littoral owner's factual situation regarding existing accretions would be different and not conducive to class adjudication.
Moreover, the United States Supreme Court has held that a court should not decide an inverse-condemnation claim where a party does not identify specific property that has allegedly been taken by the government. In Hodel v. Virginia Surface Mining and Reclamation Ass'n, 452 U.S. 264 (1981), the plaintiff challenged the constitutionality of the Surface Mining Control and Reclamation Act of 1977, a federal act that placed restrictions and conditions on mining operations. The district court found these restrictions and conditions to be unconstitutional takings. Id. at 294. On appeal, the Supreme Court held that
"this Court has generally 'been unable to
develop any 'set formula' for determining when 'justice and fairness'
require that economic injuries caused
by public action be compensated by the government, rather than remain
disproportionately concentrated on a few persons.' Rather, it has
examined
the 'taking' question by engaging in essentially ad hoc, factual
inquiries that have identified several factors--such as the economic
impact of the
regulation, its interference with reasonable investment backed
expectations, and the character of the government action--that have
particular
significance."
These "ad hoc, factual inquiries" must be conducted with respect to specific property, and the particular estimates of economic impact and ultimate valuation relevant in the unique circumstances.
Id. at 294-95.
The Supreme Court further stated in Penn Central Transportation Co. v. City of New York, 438 U.S. 104, 124 (1978), that "we have frequently observed that whether a particular restriction will be rendered invalid by the government's failure to pay for any losses proximately caused by it depends largely upon the particular circumstances in that case." (Citations, internal quotation marks, and brackets omitted.) The Penn Central Court identified "several factors that have particular significance" in "engaging in these essentially ad hoc, factual inquiries[.]" Id. According to the Supreme Court,
Id. (citations omitted.)
Notably absent from Plaintiffs' complaint is any allegation that Plaintiffs have ownership rights in accreted lands that existed at the time Act 73 was enacted. Moreover, the deeds by which Plaintiffs acquired the beach-reserve lots suggest that there were seawalls built on the lots, raising questions concerning the existence of any accretions. Because Plaintiffs have not alleged specific accretions which the State has taken from them by the enactment of Act 73 and, more damagingly, have not alleged that any accreted land even exists, the circuit court, on remand, must determine whether Plaintiffs have been injured by the enactment of Act 73.
CONCLUSION
We conclude that (1) Plaintiffs and the class they represented had no vested property rights to future accretions to their oceanfront land and, therefore, Act 73 did not effect an uncompensated taking of future accretions; and (2) Act 73 effectuated a permanent taking of littoral owners' ownership rights to existing accretions to the owners' oceanfront properties that had not been registered or recorded or made the subject of a then-pending quiet-title lawsuit or petition to register the accretions.
Accordingly, we vacate that part of the PSJ order which concluded that Act 73 took from oceanfront owners their property rights in all future accretion that was not proven to be the restored portion of previously eroded land. We remand this case to the circuit court for a determination of whether Plaintiffs have accreted lands that existed when Act 73 was enacted and, if so, for a determination of the damages they incurred as a result of the enactment of Act 73.
Girard D. Lau,1. Plaintiffs are three Hawai‘i non-profit corporations that were formed by homeowners in the Portlock area of Oahu. The oceanfront lots underlying the Portlock homes were originally owned and developed in leasehold by the Trustees of the Estate of Bernice Pauahi Bishop (Bishop Estate). The lease for each oceanfront lot described the lot by specific metes and bounds. The leases did not include a narrow strip of land between the lot and the ocean, which Bishop Estate reserved for itself (beach-reserve lot). In the late 1980's or early 1990's, Bishop Estate sold its fee interest in the oceanfront lots to the Portlock homeowners but reserved its fee interest in the beach-reserve lots. On May 6, 2005, Bishop Estate sold to Plaintiffs the beach-reserve lots that adjoined the lots of Plaintiffs' respective homeowner members. Pursuant to the deeds for the beach-reserve lots, Bishop Estate reserved access and utility easements for itself, together with the right to grant easements over the lots to government agencies and public utilities; Plaintiffs agreed to continue to allow the public to use the beach-reserve lots "for access, customary beach activities and related recreational and community purposes"; and Plaintiffs accepted numerous restrictive covenants that ran with the lots.
2. The Honorable Eden Elizabeth Hifo presided.
3. The re-emergence doctrine typically applies to the following fact pattern:
9 Powell on Real Property
§ 66.03[1], at 66-25 - 66-26.
4. Section 387 of the
Compiled Laws of the Hawaiian Kingdom provided:
1884 Compiled Laws of the Hawaiian Kingdom
§ 387, at 92-93. A "konohiki" is the "[h]eadman of an ahupuaa land
division under the chief; land or fishing rights under control of the konohiki; such rights are sometimes
called konohiki
rights." Mary K. Pukui and Samuel H. Elbert, Hawaiian
Dictionary 166 (1986). An "ahupuaa" is a "[l]and division
usually extending from the uplands to the sea, so called because the
boundary was marked by a heap (ahu)
of stones
surmounted by an image of a pig (puaa),
or because a pig or other tribute was laid on the alter as tax to the
chief." Id. at 9.
5. A "kamaaina" is defined
as "[n]ative-born, one born in a place, host[.]" Hawaiian Dictionary at 124.
6. The supreme court noted in
Banning that HRS
§ 501-33 required that
Id., 832 P.2d at 727
(bolded emphasis and brackets in original).
7. HRS § 205A-43(a)
(2001) provides in part that "[s]etbacks along shorelines are
established of not less than twenty feet
and not more than forty feet inland from the shoreline."
8. The bill was subsequently
amended to delete the word "clear" before the phrase "preponderance of
the evidence[.]" S.
Stand. Comm. Rep. No. 899, in 1985 Senate Journal, at 1292.
9. See footnote 8.
10. As noted earlier, the word "clear"
was subsequently deleted from the bill that was enacted as Act 221.
11. Act 73 states, in relevant part:
SECTION 1. Section 171-1, [HRS], is amended by adding a new definition to be appropriately inserted and to read as follows:
""Accreted lands" means lands formed by the gradual accumulation of land on a beach or shore along the ocean by the action of natural forces."
SECTION 2. Section 171-2, [HRS], is amended to read as follows:
"(c) The office [of environmental quality control] shall inform the public of:
. . . .(4)
An
application for the registration of land by accretion pursuant to
section 501-33 or 669-1(e) for any land accreted
along the ocean."
SECTION
4. Section 501-33, [HRS], is amended to read as follows:
"§ 501-33 Accretion to land. An applicant for registration of land by accretion shall prove by a preponderance of the evidence that the accretion is natural and permanent[.]; provided that no applicant other than the State shall register land accreted along the ocean, except that a private property owner whose eroded land has been restored by accretion may file an accretion claim to regain title to the restored portion. The applicant shall supply the office of environmental quality control with notice of the application, for publication in the office's periodic bulletin in compliance with section 343-3(c)(4). The application shall not be approved unless the office of environmental quality control has published notice in the office's periodic bulletin.
["Permanent"]
As used in this section,
"permanent" means that the accretion has been in existence for at least twenty years.
The accreted portion of the land shall be state land except as otherwise
provided in this section and shall be considered
within the conservation district [unless designated otherwise by
the land use commission under chapter 205]. Prohibited
uses are governed by section 183-45."
SECTION
5. Section 669-1, [HRS], is amended by amending subsection (e) to read
as follows:"(e) Action may be brought by any person to quiet title to
land by accretion[.];provided that no action shall be
brought by
any person other than the State to quiet title to land accreted along
the ocean, except that a private property owner whose
eroded land has been restored by accretion may also bring such an
action for the restored portion. The person bringing the
action shall prove by a preponderance of the evidence that the
accretion is natural and permanent. The person bringing the
action shall supply the office of environmental quality control with
notice of the action for publication in the office's
periodic bulletin in compliance with section 343-3(c)(4). The quiet
title action shall not be decided by the court unless the
office of environmental quality control has properly published notice
of the action in the office's periodic bulletin.
["Permanent"] As used in this section, "permanent" means that the accretion has been in existence for at least twenty years. The accreted portion of land shall be state land except as otherwise provided in this section and shall be considered within the conservation district [unless designated otherwise by the land use commission under chapter 205]. Prohibited uses are governed by section 183-45."
SECTION 7. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
12. Pursuant to HRS §
661-5 (1993), "[e]very claim against the State, cognizable under this
chapter, shall be forever barred
unless the action is commenced within two years after the claim first
accrues[.]"