“The
Court held the State liable for failing to award homesteads to our
clients between 1959 and 1988,” Grande explained. “Some of our clients
waited more than thirty years or more for a homestead award and some
still are waiting,” Grande said.
The
case was filed in 1999 by Grande and co-counsel Carl Varady on behalf
of a group of Hawaiian Home Lands Trust beneficiaries. These
beneficiaries filed breach of trust claims with an administrative panel
set up by the State of Hawai'i in 1991. When the State did not complete the administrative process and shut down the panel in 1999, the lawsuit was filed.
Judge
Hifo found that “the primary reason for the trust was and is to award
eligible beneficiaries homesteads. Failure to do so constitutes breach
of the trust and applicable trust duties…” Kalima v. State, Civil No.
99-04771-12(EEH) November 3, 2009 Decision Regarding Liability and Legal
Causation Following Bifurcated Trial on Aforesaid issues (“Decision”) ¶
10 at 12.
Judge
Hifo also found that “By any measure and any method the clear and
convincing evidence proves the award of significantly more homesteads
would have occurred during the claims period if the Defendant State had
cured its own breaches and those of the predecessor trustee for which
the State became equally responsible as the successor
trustee..."Decision, ¶ 15 at 14.
Among the breaches of trust by the State were the following:
• DHHL
could not qualify to issue bonds to fund homesteads because DHHL
financial records were lost from 1962 to 1972 and DHHL did not meet
general accounting standards until 1985. Decision ¶ 4 at 6-7.
• “The
State took no action to identify the [DHHL] land inventory during most
or all of the claims period…Failure to ascertain the property within the
trust and to correct that same failure by the predecessor trustee [the
United States] constitution breach of trust by the State…” Decision ¶ 5
at 8.
• It
is undisputed that more than 29,000 acres of Hawaiian home lands were
withdrawn from the trust by executive orders or proclamations
[which]…provided no compensation to the trust” This land was valued at
more than $100 million. Decision ¶ 5 at 8.
“We
want to thank our clients for their support and their patience. We are
committed to seeing this case through to its successful conclusion,”
Grande noted.
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