Opinion ID: 1201887
Heading Depth: 1
Heading Rank: 2

Heading: The Tingcos' Lease

Text: On June 14, 1985, the Tingcos signed a ground lease with QEF for a vacant lot in the Makalapa subdivision to be used for residential purposes. On February 24, 1986, QEF executed an Amendment of Lease granting the Tingcos a lease with a fifty-five year term. Sometime after the execution of the lease, without prior written permission from the State or QEF, the Tingcos constructed a hollow tile wall in the easement area of their lot to prevent soil erosion and to secure the property. In April 1986, the State discovered the wall and notified the Tingcos that they were in violation of the lease provision which prohibited the Tingcos from building improvements into the easement. The State also notified QEF of the violation and QEF in turn contacted the Tingcos. In November 1989, the State threatened to commence litigation against QEF claiming that the encroachment posed a potential danger to the fuel pipeline. QEF urged the Tingcos to remove the wall, but the Tingcos failed to do so. In December 1989, as a result of the Tingcos' failure to abate the encroachment, QEF filed a complaint for summary possession in district court. Meanwhile, the Tingcos considered modifying the wall so they could retain the portion of the wall that was outside the easement. In August 1990, after numerous attempts were made to secure permission from the State to retain part of the wall, the Tingcos removed the entire wall. However, the Tingcos refused to reimburse QEF for the attorney's fees and costs they incurred prior to the Tingcos' removal of the wall. QEF therefore decided to pursue the instant summary possession action in district court. At a pretrial conference, QEF and the Tingcos stipulated to submit the case to the district court solely upon written memoranda and exhibits. In their written submission, the Tingcos argued that the district court did not have subject matter jurisdiction because the case involved a question of title to real estate. See Hawaii Revised Statutes (HRS) 604-5(d) (1985). [3] They further argued that the circuit court had jurisdiction pursuant to HRS § 603-21.7(a)(3) (1985). [4] The district court, nevertheless, assumed jurisdiction pursuant to HRS chapter 666 and ruled that the Tingcos had materially breached the lease. The court awarded QEF attorney's fees and costs under a provision in the lease, but refused to cancel the lease because the Tingcos had voluntarily removed the wall.