Pofolk Aviation Hawaii, Inc. v. Department of Transportation for State of Hawai'i.Pofolk Aviation Hawaii, Inc. v. Department of Transportation for State of Hawai'i.
Jack A. Rosenzweig, Honolulu, for respondents.
RECKTENWALD, C.J., NAKAYAMA, McKENNA, POLLACK, and WILSON, JJ.
Opinion of the Court by RECKTENWALD, C.J.
This case involves the validity of airport landing fees imposed by the Department of Transportation Airport Division (DOT-A). DOT-A leases Dillingham Airfield on the island of O‘ahu (Dillingham Airfield) from the United States Army. Since DOT-A began leasing the airfield from the Army, DOT-A has imposed landing fees on commercial users, including Petitioners/Plaintiffs-Appellants Pofolk Aviation Hawaii, Inc., and Hale O‘Lele Corp. (collectively “Pofolk“).
In late 2012, DOT-A claimed that Pofolk owed DOT-A a total of $264,994.99 in unpaid landing fees. Pofolk paid a portion of this amount under protest. Pofolk also filed a lawsuit and sought temporary and permanent injunctions preventing DOT-A from imposing additional fees against Pofolk, and a declaration that an administrative rule of DOT-A was invalid to the extent it established the rate of landing fees at the airfield. Specifically, Pofolk claimed that DOT-A had violated
I. Background1
A. Dillingham Airfield
Dillingham Airfield is used primarily for commercial glider, sky diving, and flight training operations. DOT-A has operated Dillingham Airfield under a lease from the United States Army (Army Lease) continually since 1983. Clause 32 of the Army Lease, titled “Additional Site Conditions,” provides, in relevant parts:
b. That the lessee‘s use of Dillingham Airfield shall be limited to the construction, operation, repair, and maintenance of a public airport facility....
c. That the use of Dillingham Airfield is subject to the following operational provisions:
(I) That the primary purpose of the land and improvements within the leased area is for the operation of a joint-use-airport.
. . . .
DOT-A imposes fees on users of Dillingham Airfield, including Pofolk.
Two statutes at the heart of this dispute,
At all times pertinent to the instant dispute,
Powers to adopt. The director of transportation may perform such acts, issue and amend such orders, adopt such reasonable general or special rules and procedures,
... as the director deems necessary to carry out this chapter and to perform the duties assigned thereunder, all commensurate with and for the purpose of protecting and insuring the general public interest and safety, the safety of persons operating, using, or traveling in aircraft, and the safety of persons and property on land or water, and developing and promoting aeronautics in the State.
No rule of the director shall apply to airports or air navigation facilities owned or operated by the United States.
(Emphasis added).2
The department may fix and regulate, from time to time, reasonable landing fees for aircraft, including the imposition of landing surcharges or differential landing fees, and other reasonable charges for the use and enjoyment of the airports and the services and facilities furnished by the department in connection therewith, including the establishment of a statewide system of airports landing fees ... for the purpose of meeting the expenditures of the statewide system of airports....
. . .
If the director has not entered into contracts, leases, licenses, and other agreements with any or fewer than all of the aeronautical users of the statewide system of airports prior to the expiration of an existing contract, lease, license, or agreement, the director shall set and impose rates, rentals, fees, and charges pursuant to this subsection without regard to the requirements of chapter 91; provided that a public informational hearing shall be held on the rates, rentals, fees, and charges.... The director shall develop rates, rentals, fees, and charges in accordance with a residual methodology so that the statewide system of airports shall be, and always remain, self sustaining....
(Emphasis added).
DOT-A imposes fees on users of Dillingham Airfield through DOT-A Procedure 4.5.04 § E, which provides, in relevant part:
Any aircraft operator who is not a party to an Airport-Airline Lease, landing at a state airport shall pay airports system fees and charges as established by Hawai‘i Administrative Rules of the Department of Transportation.
Although this procedure directs airport users to pay fees for landing, the rates of such fees are specified in Hawai‘i Administrative Rules (HAR) § 19-16.1-3, which has been adopted pursuant to chapter 91:
There shall be imposed an airports system landing fee under this chapter for the purpose of recovering costs attributable to the airfield activity center; this fee shall be based on landings at an airport in the airports system. The airports system landing fee for an overseas landing at an airport in the airports system shall be $2.980 per one thousand pounds of approved maximum landed weight. The airports system landing fee for an interisland landing at an airport in the airports system shall be $0.954 per one thousand pounds of approved maximum landed weight.
B. Pofolk‘s Unpaid Landing Fees
Pofolk is a Hawai‘i corporation whose commercial sky diving and parachuting operations are based out of Dillingham Airfield. Pofolk is a “non-signatory carrier,” i.e., it is not party to an Airport-Airline Lease that specifies rates and fees for its activities at Dillingham Airfield. In late 2012, a dispute arose between DOT-A and Pofolk over Pofolk‘s unpaid landing fees.
By letter dated December 17, 2012, Pofolk, through counsel, agreed to file all required reports and pay all past and future landing fees that were lawfully owed subject to an agreement that the fees would be paid under protest. Pofolk also stated that if DOT-A would resolve Pofolk‘s outstanding permit issues, allow it to construct a hangar at Dillingham Airfield, and allow it to use Hana Airport, Pofolk would continue paying the landing fees and not pursue litigation.
In a letter dated February 20, 2013, DOT-A claimed that Pofolk had not reported any landings since the end of November 2012. DOT-A also informed Pofolk that it owed DOT-A a total of $264,994.99, and demanded payment for the full amount owed.
C. Circuit Court Proceedings
On March 14, 2013, Pofolk filed a complaint in the Circuit Court of the First Circuit of Hawai‘i (circuit court) against DOT-A.3 Pofolk prayed for the following relief: (1) the return of landing fees of $50,837.99 paid under protest, and interest on that sum; (2) a declaration that HAR § 19-16.1-3 is invalid to the extent that DOT-A seeks to impose landing fees for flights landing at Dillingham Airfield, because such fees conflict with DOT-A‘s limited statutory authority in
On April 8, 2013, DOT-A filed an answer and counterclaim, alleging that the imposition of landing fees is lawful and authorized by DOT-A procedure, and Pofolk‘s landing fees are immediately due. Also on April 8, 2013, Pofolk moved for a preliminary and permanent injunction to prevent DOT-A from imposing “illegal and unauthorized” landing fees for landings at Dillingham Airfield and/or taking any actions to collect, enforce, or otherwise execute upon any such purportedly outstanding fees.
On May 9, 2013, at the conclusion of a hearing on Pofolk‘s motion for preliminary and permanent injunctions, the circuit court4 orally concluded that Pofolk had not shown any irreparable injury because it could be compensated financially (i.e., it could cover the fees through charging customers to their commercial sky diving operation, or recover them later from DOT-A), and that the public interest weighed in favor of not granting an injunction because the public would be better served by having the airfield available, and taxpayers would be burdened if DOT-A could not collect landing fees.
On August 1, 2013, the circuit court entered an order denying Pofolk‘s motion. The circuit court concluded that pursuant to
Pursuant to a stipulation and order of the parties approved by the trial court on September 20, 2013, the trial court entered an order on September 23, 2013: (1) ruling that the hearing already held shall be considered a hearing on the merits of Pofolk‘s cause of action for a permanent injunction, and based on the reasoning of the August 1, 2013 Order, Pofolk‘s claim for a permanent injunction was denied; and (2) dismissing all other claims, counterclaims, and defenses of the parties without prejudice.5 Accordingly, on September 23, 2013, the trial court entered judgment for DOT-A denying Pofolk‘s claims for relief.
D. ICA Proceedings
On October 24, 2014, the ICA affirmed the circuit court‘s denial of Pofolk‘s motion for temporary and permanent injunctions. Pofolk Aviation Hawaii, Inc. v. Dep‘t of Transp., 134 Hawai‘i 255, 339 P.3d 1056 (App.2014). The ICA relied almost exclusively on DOT-A‘s construction of
In the instant case, the DOT‘s employee, Hayakawa, declared
HRS § 261-12(a) empowered the DOT to “adopt such reasonable general or special rules and procedures ... as the director deems necessary to carry out this chapter and to perform duties assigned thereunder[.]” Hayakawa represented that at Dillingham Airfield, revenues generated from landing fees and other charges from aircraft operators, pursuant to the DOT procedures, are part of a calculation of rates and fees in compliance “with the statutory mandate that the statewide system of airports be financially self-sustaining.” [ ]The DOT interpreted the limitation of
HRS § 261-12(a) (2007 Repl.) on the DOT‘s authority to apply its rules to a federally owned airport as inapposite to DOT‘s authority to impose landing fees at Dillingham Airfield pursuant to the DOT procedures. Hayakawa declared the DOT had established its written procedures “[s]eparate and apart from creating rules pursuant to [HRS] Chapter 91” andHRS § 261-12 “has never been interpreted by [the DOT] as prohibiting [the DOT] from operating it as a state airport facility, collecting fees, charges and rents imposed by its Procedures....”In assessing the DOT‘s construction of
HRS § 261-12(a) , we note that “[a]lthough not controlling, the uniform practical construction of a statute by those charged with carrying out the statute is entitled to much weight.” Chun v. Employees’ Ret. Sys., 61 Haw. 596, 602, 607 P.2d 415, 419 (1980) (citing Keller v. Thompson, 56 Haw. 183, 532 P.2d 664 (1975); Territory v. Honolulu Rapid Transit & Land Co., 23 Haw. 387 (1916)); see also Fratinardo v. Employees’ Ret. Sys., 129 Hawai‘i 107, 115-16, 295 P.3d 977, 985-86 (App.2013).Our assessment of the DOT‘s practices is further informed by Hayakawa‘s declarations that the DOT “has always exercised control” over Dillingham Airfield operations, users, and tenants; its users “regularly paid the assessed landing fees[;]” and “[t]his litigation is the first time Plaintiffs, or anyone else has claimed that they are not obligated to pay such fees because the Airfield is owned by the federal government.” Hayakawa‘s declaration constituted evidence of the DOT‘s consistent and generally unchallenged practice of assessing landing fees and charges against users of Dillingham Airfield. Hawai‘i courts will not overturn administrative agency practices that have been
consistent and generally unchallenged ... except for very cogent reasons if the scope of the command is indefinite and doubtful.... The practice has peculiar weight when it involves a contemporaneous construction of a statute by the men charged with the responsibility of setting its machinery in motion, of making the parts work efficiently and smoothly while they are yet untried and new.
Treloar v. Swinerton & Walberg Co., 65 Haw. 415, 424, 653 P.2d 420, 426 (1982) (quoting Norwegian Nitrogen Prods. Co. v. U.S., 288 U.S. 294, 315, 53 S.Ct. 350, 77 L.Ed. 796 (1933)).
According much weight to the DOT‘s construction of
HRS § 261-12(a) and in light of its consistent practice of assessing landing fees at Dillingham Airfield, we conclude Plaintiffs’ contention does not establish the DOT‘s interpretation was palpably erroneous and the circuit court did not err by determining that the DOT‘s assessment of landing fees at Dillingham Airfield against Plaintiffs did not constitute a violation ofHRS § 261-12(a) ‘s prohibition against applying the DOT “rules” to federally owned or operated airports.
134 Hawai‘i at 262-63, 339 P.3d at 1063-64 (footnote omitted noting DOT-A‘s reference to and quoting
II. Standard of Review
Hawai‘i appellate courts generally review[] questions of statutory interpretation de novo, but, in the case of ambiguous statutory language, the applicable standard of review regarding an agency‘s
When interpreting two different statutes that relate to the same subject matter, this court has adopted the following standards:
First, legislative enactments are presumptively valid and should be interpreted in such a manner as to give them effect. Second, laws in pari materia, or upon the same subject matter, shall be construed with reference to each other. What is clear in one statute may be called in aid to explain what is doubtful in another. Third, where there is a plainly irreconcilable conflict between a general and a specific statute concerning the same subject matter, the specific will be favored. However, where the statutes simply overlap in their application, effect will be given to both if possible, as repeal by implication is disfavored.
Id. (alterations, quotation marks, and citations omitted).
III. Discussion
On certiorari, Pofolk presents the following question:
Whether the ICA erred in stretching
HRS § 261-12(a) beyond its plain meaning in concluding that the DOT-A‘s setting and imposition of landing fees at Dillingham Airfield, which is owned by the United States, does not constitute a violation ofHRS § 261-12(a) .
(Emphasis in original).
Thus, we must determine whether the last sentence of
Pofolk explicitly acknowledges that DOT-A has the authority to impose landing fees at Dillingham Airfield. Based on
The director of transportation may perform such acts, issue and amend such orders, adopt such reasonable general or special rules and procedures, and establish such minimum standards, consistent with this chapter, as the director deems necessary to carry out this chapter and to perform the duties assigned thereunder, all commensurate with and for the purpose of protecting and insuring the general public interest and safety, the safety of persons operating, using, or traveling in aircraft, and the safety of persons and property on land or water, and developing and promoting aeronautics in the State. No rule of the director shall apply to airports or air navigation facilities owned or operated by the United States.
(Emphasis added).
Pofolk argues that the reference in DOT-A Procedure 4.5.04 § E to “fees and charges as established by [HAR] of [DOT-A]” constitutes an application of a ‘rule of the director’ to an airport ‘owned or operated by the United States,’ in violation of the last sentence of
Pofolk further argues that
However,
Nevertheless, Pofolk‘s claim does reveal an ambiguity. The reference to “rules” in
“Statutory analysis begins by examining the plain language of the statute at issue.” Chung Mi Ahn v. Liberty Mut. Fire Ins. Co., 126 Hawai‘i 1, 11, 265 P.3d 470, 480 (2011) (citations omitted). “When there is doubt, doubleness of meaning, or indistinctiveness or uncertainty of an expression used in a statute, an ambiguity exists.” Gillan, 119 Hawai‘i at 117, 194 P.3d at 1079 (quotation marks and citations omitted). “[I]n construing an ambiguous statute, the meaning of the ambiguous words may be sought by examining the context, with which the ambiguous words, phrases, and sentences may be compared, in order to ascertain their true meaning.” Kewalo Ocean Activities v. Ching, 124 Hawai‘i 313, 317, 243 P.3d 273, 277 (2010).
Furthermore, “[d]eparture from the literal construction of a statute is justified if such a construction yields an absurd and unjust result obviously inconsistent with the purposes and policies of the statute.” Schmidt v. HSC, Inc., 131 Hawai‘i 497, 508, 319 P.3d 416, 427 (2014) (internal quotation marks and citation omitted).
According to DOT-A‘s interpretation,
The ICA, “[a]ccording much weight to the DOT‘s construction of
While we agree with the ICA that the administrative agency‘s interpretation is entitled to deference when we construe an ambiguous statute that the agency is charged with administering, nevertheless, we emphasize that the court must still independently analyze the ambiguous statute to determine whether the agency‘s interpretation is palpably erroneous. See Chun, 61 Haw. at 600-02, 607 P.2d at 419 (indicating that the court first analyzes the plain language of the statute, and then noting that “our reading of the statute is also consistent
A comparison of
Indeed, there is also no mention whatsoever of “rules” in
Furthermore, Pofolk‘s literal interpretation would produce an absurd result that is inconsistent with the purposes and policies of
Pofolk‘s interpretation would also be inconsistent with the policies behind
Moreover, in considering DOT-A‘s broad general rule-making authority under chapter 261, together with the stated intent in
For example, chapter 261 authorizes DOT-A to adopt rules regarding, among other
As Pofolk acknowledges, the authority granted by
Furthermore, one apparent rationale of the last sentence of
Thus, through Act 32, the legislature intended to make users of an airport leased to and operated by the commission—but owned by the United States—subject to reasonable landing fees “fix[ed] and regulate[d]” by the commission. Moreover, because Dillingham Airfield is leased to DOT-A under a lease that allows DOT-A to control and operate Dillingham Airfield as a public airfield for commercial skydiving and parachuting activities, and DOT-A is not attempting to impose its rules or fees on any federal operations, any concern about state operational rules interfering with federal operations is not implicated here.
In sum, as Pofolk acknowledges, DOT-A has the authority to impose and set landing fees at Dillingham Airfield.
IV. Conclusion
The ICA‘s November 21, 2014 judgment on appeal is affirmed, as clarified by this opinion.
Notes
(Emphasis added).To the fullest extent possible within the State‘s authority to act in the area of airport and air traffic safety, the department of transportation shall be responsible for promoting safe operating conditions and alleviating safety hazards due to air traffic congestion at airports under its control.
....
Pursuant to sections 261-12 and 261-13, the director shall adopt such rules and standards which may include the assignment of particular runways for particular uses, the establishment of the number and types of aircraft allowed to use each public airport, and the use of similar measures where such actions may contribute to the segregation of different types of aircraft and to the reduction of peak air traffic usage at airports under state control.
1947 Haw. Sess. Laws Act 32, § 13(a) at 174.The commission may perform such acts, issue and amend such orders, make promulgate, and amend such reasonable general or special rules, regulations and procedures and establish such minimum standards, consistent with the provisions of this chapter, as it shall deem necessary to carry out the provisions of this chapter and to perform its duties hereunder: all commensurate with and for the purpose of protecting and insuring the general public interest and safety, the safety of persons operating, using or traveling in aircraft, and the safety of persons and property on land or water, and developing and promoting aeronautics in the Territory. No rule or regulation of the commission shall apply to airports or air navigation facilities owned or operated by the United States.