Opinion ID: 1186369
Heading Depth: 2
Heading Rank: 2

Heading: The Terms of KCP/Waimana's Lease

Text: State Defendants, as well as amici curiae James Growney and Mauna Kea Home-owners' Association (collectively Amici), argue that this court should decide the present appeal based on the provisions of the KCP/Waimana lease. They argue that regardless of whether HRS ch. 343 applies to Hawaiian home lands as a general proposition, KCP/Waimana is contractually bound to comply with HRS ch. 343 under the terms of their lease. Thus, they argue, it is unnecessary to decide whether HRS ch. 343 generally applies to Hawaiian home lands. Because the interlocutory appeal was granted in order to address the general applicability of HRS ch. 343, they suggest that this court dismiss the appeal. In the alternative, State Defendants argue that the circuit court's ruling that HRS ch. 343 applies to the land at issue in this case should be affirmed, but based on the terms of the lease rather than the general applicability of HRS ch. 343 to Hawaiian home lands. Although this argument is in many ways attractive, ultimately it is unsupported by the terms of the KCP/Waimana lease. State Defendants and Amici base their argument on article 2, section 7 of the lease: Compliance with laws. The lessee will at all times during said term perform the requirements of: (i) all laws, ordinances, rules, regulations, administrative requirements and governmental environmental standards now or hereafter made by any governmental authority for the time being applicable to the premises or any improvements thereon or use thereof, hereinafter collectively called Applicable Law, (ii) all covenants, conditions and restrictions of record as of the date hereof applicable to the premises; (iii) covenants and conditions of all insurance policies at any time duly issued or enforced which are applicable to the conduct of the Lessee's business in or about the premises or any part thereof; and (iv) prudent management of all Hazardous Material handled by the Lessee on the premises; and will indemnify the Lessor against all actions, suits, damages and claims by whomsoever brought or made by reason of the nonobservance or nonperformance of said Applicable Law, covenants, conditions, restrictions and standards or requirements of this covenant. Should the requirements imposed by any of said Applicable Law, covenants, conditions, restrictions and standards be inconsistent with each other, the Lessee shall comply with the most stringent requirements. (Emphases added.) It should be noted that this lease provision does not specifically require the lessee to comply with HRS ch. 343. Rather, it requires the lessee to comply with all laws ... applicable to the premises. (Emphasis added.) If HRS ch. 343 constitutes Applicable Law, then the lease contractually requires the lessee to comply with it. But it must still be decided whether HRS ch. 343 is applicable to the premises. Thus, the terms of the lease lead us back to the central issue in this casewhether HRS ch. 343 is applicable to Hawaiian home lands. In other words, examination of the terms of the lease merely begs the question. State Defendants and Amici also argue that the most stringent requirements language quoted above requires the lessee to comply with HRS ch. 343. However, the most stringent requirements language also refers to the Applicable Law. Therefore, the lease again leads us back to the question whether HRS ch. 343 is applicable to Hawaiian home lands. Moreover, the provision merely states that if there is a conflict between applicable law, covenants, conditions, restrictions, and standards, the most stringent of those requirements controls. The present case does not involve conflict between these requirements. Indeed, no other covenants, conditions, etc., are at issue in this case; instead, the central issue is determining what laws are applicable in the first place. Therefore, this case cannot be decided based on the terms of the KCP/Waimana lease. The terms of the lease lead us back to the question whether HRS ch. 343 is applicable to Hawaiian home lands.