Windward Partners, a Registered Hawaii Partnership v. George Ariyoshi, Governor of the State of Hawaii

Windward Partners seeks damages arising out of the purchase by the state of Hawaii, under threat of condemnation, of property on which plaintiffs held an option to purchase. The state’s purchase was expressly made subject to the option. Defendants are the owner of the purchased property, her attorney, and various state officials.

Windward’s complaint alleges five causes of action. Three of these causes are based in contract and are directed to property owner Marks and attorney Kay. Both compensatory and punitive damages are sought under these claims. Another cause of action is directed primarily to the state defendants and alleges deprivation of civil rights under color of state law, redressable under 42 U.S.C. § 1983 in connection with an alleged taking of appellants’ option rights. The remaining cause of action *929 alleges a conspiracy between the governor and Marks and Kay to announce the state’s purchases under threat of condemnation in order to prevent appellants from obtaining financing to exercise the option. Plaintiff alleges that the defendants are liable under section 1983 for conspiracy to deprive plaintiff of a federally protected property interest.

We address the…

dissenting:

I respectfully dissent from the portion of the opinion that holds that it was not error for the District Court to dismiss the “fourth Cause of Action” for failing to state a claim. Because I believe that if Hawaii recognizes an option to purchase land as a compensable property interest, a claim has been stated under 42 U.S.C. § 1983 ,1 would remand for the trial court to determine initially that question of state law. If the option to purchase is held to be such a property interest, the court would also have jurisdiction over the pendent state claims.

Since this appeal comes to us on a dismissal for failure to state a claim we must accept the allegations of the complaint, which we have summarized below, as true. Halet v. Wend Investment Co., 672 F.2d 1305, 1309 (9th Cir.1982) (as amended). Windward secured the rights to a multi-mil-lion dollar option executed by Marks to purchase certain parcels of her land. On November 2, 1976, Windward’s managing partner, for the benefit of the partnership, loaned Marks $1,000,000 to secure an extension of time to exercise the option for parcel 2, and a reduction of its purchase price to $6,000,000. The agreement provided that…

693 F.2d 928 WINDWARD PARTNERS, a registered Hawaii Partnership, et al., Plaintiffs-Appellants, v. George ARIYOSHI, Governor of the State of Hawaii, et al., Defendants-Appellees. No. 80-4509. United States Court of Appeals, Ninth Circuit. Argued and Submitted April 22, 1982. Decided Dec. 1, 1982. Ronald G.S. Au, Honolulu, Hawaii, for plaintiffs-appellants. Wesley W. Ichida, Edwin P. Watson, Michael W. Gibson, Honolulu, Hawaii, argued, for defendants-appellees; Russell N. Fukumoto, Clinton R. Ashford, Honolulu, Hawaii, on brief. Appeal from the United States District Court for the District of Hawaii. Before SCHROEDER, NELSON and BOOCHEVER, Circuit Judges. SCHROEDER, Circuit Judge: 1 Windward Partners seeks damages arising out of the purchase by the state of Hawaii, under threat of condemnation, of property on which plaintiffs held an option to purchase. The state's purchase was expressly made subject to the option. Defendants are the owner of the purchased property, her attorney, and various state officials. 2 Windward's complaint alleges five causes of action. Three of these causes are based in contract and are directed to property owner Marks and attorney Kay. Both compensatory…