Richardson v. City of Honolulu

In these consolidated cases we are asked to determine the constitutionality of two land reform ordinances passed by the City Council for the City and County of Honolulu (the “City”). Ordinance 91-95 provides a mechanism for converting leasehold interests in condominium units to fee interests, through the use of the City’s condemnation power. Ordinance 91-96 is a rent control measure that limits increases in ground rent due the owner of the land under the condominium units. The trustees of the Bishop Estate (“Bishop Estate”) brought an action before District Judge Ezra contesting the constitutionality of both ordinances. The Small Landowners of Oahu (“Small Landowners”) brought a separate action before District Judge Fong. Judges Ezra and Fong each entered summary judgments upholding Ordinance 91-95. Judge Ezra also entered a summary judgment holding Ordinance 91-96 (the rent control ordinance) unconstitutional. We have jurisdiction under 28 U.S.C. § 1291 and we affirm.

I. BACKGROUND

Prior to American acquisition, Hawaii developed an extensive feudal land ownership system that has proved remarkably resistant to change. Although Hawaiian leaders and *1154 American…

concurring in part and dissenting in part.

I join the court’s opinion regarding the constitutionality of Ordinance 91-96. With respect to Ordinance 91-95, I concur in the court’s conclusion in Part II-B that there is no violation of the Public Use Clause, but write separately to express concern about Hawaii Housing Authority v. Midkiff, 467 U.S. 229 , 104 S.Ct. 2321 , 81 L.Ed.2d 186 (1984). I respectfully dissent from Part IIC, however, because I believe that the challenge to Ordinance 91-95’s compensation provision is ripe, and that the provision does not provide just compensation.

I

In Part II-B the court concludes that Ordinance 91-95 does not violate the Public Use Clause and relies heavily on Hawaii Housing Authority v. Midkiff.

A

The Fifth Amendment to the Constitution states: “... nor shall private property be taken for public use without just compensation.” U.S. Const., amend V. The Public Use Clause is an explicit limit on the power of the government to take private property for, as the Supreme Court has long recognized, a taking must be for public use; a taking for a purely private use is unconstitutional. See Thompson v. Consolidated Gas Corp., 300 U.S. 55, 80 , 57…