City & Cnty. of Honolulu v. Vict. Ward, Ltd.

541 P.3d 1225

CITY AND COUNTY OF HONOLULU, acting BY AND THROUGH the HONOLULU AUTHORITY FOR RAPID TRANSPORTATION, Plaintiff/Counterclaim Defendant-Appellee/Cross-Appellant,

v.VICTORIA WARD, LIMITED, a Delaware Corporation; 988 Halekauwila, LLC, a Delaware limited liability company; 1001 Queen, LLC, a Delaware limited liability company; 1118 Ala Moana, LLC, a Delaware limited liability company; 1108 Auahi, LLC, a Delaware limited liability company; 1100 Ala Moana, LLC, a Delaware limited liability company; and ‘A‘ali‘i, LLC, a Delaware limited liability company, Defendants/Counterclaim Plaintiffs-Appellants/Cross-Appellees,and1240 Ala Moana, LLC, a Delaware limited liability company; The Howard Hughes Corporation, a Delaware corporation; Victoria Ward Entertainment Center, L.L.C., a Delaware limited liability company; Association of Unit Owners of 1001 Queen, a Hawai‘i nonprofit corporation; Association of Unit Owners of ‘A‘ali‘i, an unincorporated association; Association of Unit Owners of 988 Halekauwila, an unincorporated association; and Ward Village Owners Association, a Hawai‘i nonprofit corporation, Defendants-Appellants/Cross-Appellees,

and

Wells Fargo Bank, National Association, a national banking association; Bank Ozk, fka Bank of the Ozarks, an Arkansas state-chartered bank; General Electric Company, a New York corporation, as successor by merger to General Electric Capital Corporation, a Delaware corporation; Bank of Hawaii, a Hawai‘i corporation, as trustee under (a) that certain Land Trust Agreement and Conveyance dated October 21, 2004 (Trust No. 89433) and filed as Land Court Document No. 3188119, and (b) that certain Land Trust Agreement and Conveyance dated October 21, 2004 (Trust No. 89434) and filed as Land Court Document No. 3188118; First Hawaiian Bank, a Hawai‘i corporation, as trustee under (a) that certain unrecorded Land Trust Agreement dated September 20, 2006 (Trust No. FHB-TRES 200601), and (b) that certain unrecorded Land Trust Agreement dated September 20, 2006 (Trust No. FHB-TRES 200602); Hi 120 Real Estate Company, Inc., a Hawai‘i corporation, fka Consolidated Amusement Theatres, Inc., a Hawai‘i corporation; Consolidated Entertainment, Inc., a Nevada corporation, fka Consolidated Amusement Theatres, Inc., a Nevada corporation; Consolidated Entertainment, LLC, a Nevada limited liability company; Longs Drug Stores California, L.L.C., a California limited liability company; Dave & Buster's of Hawaii, Inc., a Hawai‘i corporation; Ward Court Development, LLC, a Hawai‘i limited liability company; Ross Dress for Less, Inc., a Virginia corporation; CG Family, Inc., a Hawai‘i corporation; and WFM Hawaii, LLC, a Hawai‘i limited liability company, Defendants-Appellees/Cross-Appellees.

(CAAP-22-0000335, CAAP-22-0000336, CAAP-22-0000337, CAAP-22-0000340, CAAP-22-0000341, CAAP-22-0000343, CAAP-22-0000344, and CAAP-22-0000345)

City and County of Honolulu, acting by and through the Honolulu Authority for Rapid Transportation, Plaintiff/Counterclaim Defendant-Appellee/Cross-Appellant,

v.Victoria Ward, Limited, a Delaware Corporation; 988 Halekauwila, LLC, a Delaware limited liability company; 1001 Queen, LLC, a Delaware limited liability company; 1118 Ala Moana, LLC, a Delaware limited liability company; 1108 Auahi, LLC, a Delaware limited liability company; 1100 Ala Moana, LLC, a Delaware limited liability company; and ‘A‘ali‘i, LLC, a Delaware limited liability company, Defendants/Counterclaim Plaintiffs-Appellants/Cross-Appellees,and1240 Ala Moana, LLC, a Delaware limited liability company; The Howard Hughes Corporation, a Delaware corporation; Victoria Ward Entertainment Center, L.L.C., a Delaware limited liability company; Association of Unit Owners of 1001 Queen, a Hawai‘i nonprofit corporation; Association of Unit Owners of ‘A‘ali‘i, an unincorporated association; Association of Unit Owners of 988 Halekauwila, an unincorporated association; and Ward Village Owners Association, a Hawai‘i nonprofit corporation, Defendants-Appellants/Cross-Appellees,

and

Wells Fargo Bank, National Association, a national banking association; Bank Ozk, fka Bank of the Ozarks, an Arkansas state-chartered bank; General Electric Company, a New York corporation, as successor by merger to General Electric Capital Corporation, a Delaware corporation; Bank of Hawaii, a Hawai‘i corporation, as trustee under (a) that certain Land Trust Agreement and Conveyance dated October 21, 2004 (Trust No. 89433) and filed as Land Court Document No. 3188119, and (b) that certain Land Trust Agreement and Conveyance dated October 21, 2004 (Trust No. 89434) and filed as Land Court Document No. 3188118; First Hawaiian Bank, a Hawai‘i corporation, as trustee under (a) that certain unrecorded Land Trust Agreement dated September 20, 2006 (Trust No. FHB-TRES 200601), and (b) that certain unrecorded Land Trust Agreement dated September 20, 2006 (Trust No. FHB-TRES 200602); Hi 120 Real Estate Company, Inc., a Hawai‘i corporation, fka Consolidated Amusement Theatres, Inc., a Hawai‘i corporation; Consolidated Entertainment, Inc., a Nevada corporation, fka Consolidated Amusement Theatres, Inc., a Nevada corporation; Consolidated Entertainment, LLC, a Nevada limited liability company; Longs Drug Stores California, L.L.C., a California limited liability company; Dave & Buster's of Hawaii, Inc., a Hawai‘i corporation; Ward Court Development, LLC, a Hawai‘i limited liability company; Ross Dress for Less, Inc., a Virginia corporation; CG Family, Inc., a Hawai‘i corporation; and WFM Hawaii, LLC, a Hawai‘i limited liability company, Defendants-Appellees/Cross-Appellees.

(CAAP-22-0000338)

City and County of Honolulu, acting by and through the Honolulu Authority for Rapid Transportation, Plaintiff/Counterclaim Defendant-Appellant,

v.Victoria Ward, Limited, a Delaware Corporation; 988 Halekauwila, LLC, a Delaware limited liability company; 1001 QUEEN, LLC, a Delaware limited liability company; 1118 Ala Moana, LLC, a Delaware limited liability company; 1108 Auahi, LLC, a Delaware limited liability company; 1100 Ala Moana, LLC, a Delaware limited liability company; and ‘A‘ali‘i, LLC, a Delaware limited liability company, Defendants/Counterclaim Plaintiffs-Appellees,and1240 Ala Moana, LLC, a Delaware limited liability company; The Howard Hughes Corporation, a Delaware corporation; Victoria Ward Entertainment Center, L.L.C., a Delaware limited liability company; Association of Unit Owners of 1001 Queen, a Hawai‘i nonprofit corporation; Association of Unit Owners of ‘A‘ali‘i, an unincorporated association; Association of Unit Owners of 988 Halekauwila, an unincorporated association; and Ward Village Owners Association, a Hawai‘i nonprofit corporation, Defendants-Appellees,

and

Wells Fargo Bank, National Association, a national banking association; Bank Ozk, fka Bank of the Ozarks, an Arkansas state-chartered bank; General Electric Company, a New York corporation, as successor by merger to General Electric Capital Corporation, a Delaware corporation; Bank of Hawaii, a Hawai‘i corporation, as trustee under (a) that certain Land Trust Agreement and Conveyance dated October 21, 2004 (Trust No. 89433) and filed as Land Court Document No. 3188119, and (b) that certain Land Trust Agreement and Conveyance dated October 21, 2004 (Trust No. 89434) and filed as Land Court Document No. 3188118; First Hawaiian Bank, a Hawai‘i corporation, as trustee under (a) that certain unrecorded Land Trust Agreement dated September 20, 2006 (Trust No. FHB-TRES 200601), and (b) that certain unrecorded Land Trust Agreement dated September 20, 2006 (Trust No. FHB-TRES 200602); Hi 120 Real Estate Company, Inc., a Hawai‘i corporation, fka Consolidated Amusement Theatres, Inc., a Hawai‘i corporation; Consolidated Entertainment, Inc., a Nevada corporation, fka Consolidated Amusement Theatres, Inc., a Nevada corporation; Consolidated Entertainment, LLC, a Nevada limited liability company; Longs Drug Stores California, L.L.C., a California limited liability company; Dave & Buster's of Hawaii, Inc., a Hawai‘i corporation; Ward Court Development, LLC, a Hawai‘i limited liability company; Ross Dress for Less, Inc., a Virginia corporation; CG Family, Inc., a Hawai‘i corporation; and WFM Hawaii, LLC, a Hawai‘i limited liability company, Defendants-Appellees.

(CAAP-22-0000352)

SCAP-22-0000335 (

C/w SCAP-22-0000336, SCAP-22-0000337, SCAP-22-0000338, SCAP-22-0000340, SCAP-22-0000341, SCAP-22-0000343, SCAP-22-0000344, SCAP-22-0000345, SCAP-22-0000352)

Supreme Court of Hawai‘i.

December 29, 2023

David A. Battaglia,^* Tiaunia N. Henry,^* Courtney M. Johnson,^* Mark M. Murakami, Gregory W. Kugle, Joanna C. Zeigler, Honolulu, Nicholas K. Ernst, for appellants

Terence J. O'Toole, Sharon V. Lovejoy, Lindsay E. Orman, Honolulu, Richard E. Rayl,^* Ronald M. Cole,^* Dana M.O. Viola, Paul S. Aoki, Honolulu, Rozelle A. Agag, for appellee

^* pro hac vice

RECKTENWALD, C.J., McKENNA, AND EDDINS, JJ., CIRCUIT JUDGE BROWNING, IN PLACE OF NAKAYAMA, J., RECUSED, AND CIRCUIT JUDGE KAWASHIMA, ASSIGNED BY REASON OF VACANCY

OPINION OF THE COURT BY RECKTENWALD, C.J.

I. INTRODUCTION

This case concerns the amount of just compensation the Honolulu Authority for Rapid Transportation ("HART") must pay for approximately two acres worth of easements on property previously owned by Victoria Ward, Limited ("Victoria Ward"). That property is located in Victoria Ward's multi-billion dollar Ward Village development in the Kaka‘ako neighborhood of O‘ahu. HART obtained the easements to construct portions of its fixed rail system and a proposed Kaka‘ako Station.

Victoria Ward seeks just compensation from HART for the takings. Victoria Ward's claimed damages are comprised of the fair market value of easements on Victoria Ward's property, plus between $65 million and over $100 million for alleged severance damages.

Severance damages compensate property owners for devaluation of non-taken portions of property. In addition to seeking damages for lost development...