Honolulu Rapid Transit Company, Limited v. Lorrin M. Dolim

Honolulu Rapid Transit (HRT) is a Hawaii corporation that provides public transportation services in the City of Honolulu. It was formed in 1898, when it received its first franchise from the Territory of Hawaii to operate a public street railway. With expiration of the franchise due within a few years the Legislature of Hawaii in 1921 enacted a new franchise, Act 186 Session Laws of Hawaii, 1921, which was duly approved by the Congress and submitted to HRT for its acceptance. On recommendation of the board of directors, the shareholders voted to accept the franchise and HRT has since operated under it.

The franchise, by § 20, permits the City of Honolulu to purchase HRT’s property. Respecting the purchase price, it provides:

In 1970 the City resolved to purchase HRT’s property and applied to the Hawaii Public Utilities Commission for valuation pursuant to the franchise terms.

HRT then • brought this suit seeking (1) a declaration that § 20 is unconstitutional since it provides for the taking of HRT’s property for public use without payment of just compensation, and (2) an injunction against further proceedings before the Public Utilities Commission. The suit was dismissed by…