Tran v. Department of Planning For the County of Maui
CAAP-21-0000580
Haw. App.Mar 20, 2025Background
- Thinh Tran and Sean Kading owned homes in Kaanapali Golf Estates (KGE) on Maui, Hawaii.
- KGE’s 1990 supplemental Declaration permitted 30-day rentals, but in 2012 the County adopted an ordinance (Ord. 3941) restricting rentals under 180 days without a short-term rental home (STRH) permit.
- Tran claimed he rented his homes for 30-day periods before the ordinance; Kading purchased his lot in 2012 intending to do the same, relying on the Declaration.
- Kading applied for an STRH permit (denied by the Maui Planning Commission, currently under agency appeal); Tran did not apply, believing he would also be denied.
- Tran and Kading sued, alleging unconstitutional taking (Count I) and seeking to estop the County from enforcing Ord. 3941 against them (Count II).
- The trial court dismissed the complaint for lack of subject matter jurisdiction; Tran and Kading appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Requirement to Exhaust Administrative Remedies | Not required, as seeking compensation, not review | Plaintiffs failed to exhaust administrative remedies | Not required; exhaustion doctrine does not apply to takings/equitable estoppel claims |
| Regulatory Taking Claim – Ripeness | Takings claim was ripe; regulation effectively barred use | Claims not ripe; no final decision on nonconforming use | Not ripe; neither plaintiff got a final decision, so dismissal valid but should be without prejudice |
| Estoppel Against Enforcing Ordinance | Relied on prior County approval allowing 30-day rentals | KGE not zoned for short-term rentals; prior approval irrelevant | Dismissal improper; claim should be heard on the merits |
| Subject Matter Jurisdiction Over Equitable Estoppel | County lacks authority to enforce new ordinance due to earlier reliance | Court lacks jurisdiction due to ripeness and exhaustion | Court does have jurisdiction over equitable estoppel claim |
Key Cases Cited
- Leone v. Cnty. of Maui, [citation="128 Hawai'i 183, 284 P.3d 956"] (Haw. Ct. App. 2012) (ripeness and exhaustion standards for regulatory takings claims)
- Davis v. Bissen, [citation="154 Hawai'i 68, 545 P.3d 557"] (Haw. 2024) (subject matter jurisdiction review for Rule 12(b)(1) and supporting standards)
- Maria v. Freitas, 73 Haw. 266, 832 P.2d 259 (Haw. 1992) (elements and application of equitable estoppel in Hawaii)