521 F.Supp.3d 978
D. Haw.2021Background
- In April 2018 heavy rains and flooding on Kauai caused multiple landslides that rendered Kuhio Highway—the only road into the Lumahai–Wainiha–Haena area—impassible and isolated communities.
- The Kauai mayor declared an emergency under HRS ch. 127 and issued Mayor’s Emergency Rule No. 1 (effective May 4, 2018), which barred visitors and prohibited operation of transient vacation rentals (TVRs) in the distressed area to protect safety and facilitate road repairs.
- The Rule was extended and remained in effect until April 29, 2019 (just under one year); during the period the County taxed affected properties at the residential rate and eased TVR permitting requirements for the following year.
- Plaintiffs Susan and Geoffrey Flint owned a nonconforming-use TVR in the area, lost rental income, canceled reservations, and sold the property in February 2019 (alleging a slight loss); they sued the County asserting takings, due process, equal protection, Contract Clause, HRS §127A-21, and equitable estoppel/vested-rights claims.
- The County moved for summary judgment on all counts; the court granted the County’s motion and denied Plaintiffs’ partial summary judgment motion, rejecting each constitutional and statutory claim.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Takings (federal & state) | Emergency Rule deprived Plaintiffs of use of their TVR and effected a taking without just compensation. | The temporary, emergency regulation caused minimal diminution in value, did not destroy investment-backed expectations, and served a paramount public safety purpose. | Grant D.J.: No taking. Economic loss was minor (<10% even with claimed lost rents), expectations not unreasonably impaired, and governmental interest outweighed harm. |
| Procedural due process | Plaintiffs were deprived of property without notice or hearing. | The Rule was legislative/emergency in nature, affecting a class of properties; general notice suffices in that context. | Grant D.J.: No violation. Rule applied generally to ~80 TVRs; individual notice/hearing unnecessary. |
| Substantive due process | The Rule arbitrarily discriminated by allowing residents/workers but excluding vacationers. | The classification was rationally related to legitimate emergency objectives (safety, repairs, reducing at-risk individuals). | Grant D.J.: No violation. County action was rational and not arbitrary or abusive of power. |
| Equal protection | TVR owners were treated differently from other property users. | Differential treatment had a rational basis tied to public-safety and repair-efficiency needs. | Grant D.J.: No violation. Classification met rational-basis review. |
| Contract Clause | The Rule impaired Plaintiffs’ rental contracts with guests. | Even if impairment occurred, the Rule served a significant legitimate public purpose and was reasonably tailored. | Grant D.J.: No violation. Emergency public purpose justified the temporary restriction. |
| HRS §127A-21 (requisition) | County requisitioned property without compensation. | Mayor did not invoke §127A-21; County did not requisition or occupy Plaintiffs’ real property. | Grant D.J.: No violation. Statute inapplicable; no evidence of requisition or use. |
| Vested rights / zoning estoppel | Plaintiffs had vested nonconforming-TV R rights and relied on County conduct. | Doctrines typically do not permit damages for temporary emergency measures; rule was lifted and relief was available. | Grant D.J.: No relief. Doctrines do not support damages and equitable relief unnecessary after Rule’s termination. |
Key Cases Cited
- Tahoe-Sierra Preservation Council, Inc. v. Tahoe Reg’l Planning Agency, 535 U.S. 302 (determining regulatory‑takings framework for temporary restrictions)
- Penn Central Transp. Co. v. New York City, 438 U.S. 104 (establishing multi-factor regulatory takings test)
- Lingle v. Chevron U.S.A. Inc., 544 U.S. 528 (clarifying regulatory‑takings analysis and rejecting "substantially advances" as takings test)
- Colony Cove Props., LLC v. City of Carson, 888 F.3d 445 (9th Cir.) (economic‑impact comparison in takings analysis)
- Bridge Aina Leʻa, LLC v. Land Use Comm’n, 950 F.3d 610 (9th Cir.) (discussing Penn Central factors and investment‑backed expectations)
- Keystone Bituminous Coal Ass’n v. DeBenedictis, 480 U.S. 470 (upholding regulation that served significant public welfare interest)
- Lucas v. South Carolina Coastal Council, 505 U.S. 1003 (total regulatory takings doctrine)
- Loretto v. Teleprompter Manhattan CATV Corp., 458 U.S. 419 (physical permanent‑occupation takings)
- First English Evangelical Lutheran Church v. County of Los Angeles, 482 U.S. 304 (temporary takings and just compensation principles)
- Village of Euclid v. Ambler Realty Co., 272 U.S. 365 (plenary police‑power deference in land‑use regulation)
- Spannaus v. Allied Structural Steel Co., 438 U.S. 234 (Contract Clause analysis and public‑purpose considerations)
- Energy Reserves Group, Inc. v. Kansas Power & Light Co., 459 U.S. 400 (Contract Clause balancing and deference to legislative judgment)
- Sveen v. Melin, 138 S. Ct. 1815 (modern two‑step Contract Clause framework)
- Village of Willowbrook v. Olech, 528 U.S. 562 (equal protection — arbitrary differential treatment)
