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Pavsek v. Sandvold, No. 29179 (Haw. Ct. App. June 13, 2012)

Pavsek v. Sandvold, No. 29179 (Haw. Ct. App. June 13, 2012)

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FORPUBLICATIONINWEST'SHAWAI'IREPORTSANDPACIFICREPORTER
ElectronicallyFiledIntermediateCourtofAppeals2917913-JUN-201209:34AM
INTHEINTERMEDIATECOURTOFAPPEALSOFTHESTATEOFHAWAI'I
---000---
JOSEPHPAVSEKandIKUYOPAVSEK,Plaintiffs-Appellants,vs.TODDW.SANDVOLDiJUILIANAC.SANDVOLD;KENTSATHER;JOANSATHER;WAIALUAOCEANVIEWLLC;HAWAIIBEACHHOMES,INC.;HAWAIIBEACHTRAVEL,INC.;ANDHAWAIIONTHEBEACH,INC.,Defendants-Appellees,andJOHNDOES1-10;JANEDOES1-10;DOEPARTNERSHIPS1-10;DOECORPORATIONS1-10andDOEENTITIES1-10,Defendants.NO.29179APPEALFROMTHECIRCUITCOURTOFTHEFIRSTCIRCUIT(CIVILNO.08-1-0131)JUNE13,2012NAKAMURA,C.J.,andFUJISEandREIFURTH,JJ.OPINIONOFTHECOURTBYNAKAMURA,C.J.Thiscasearisesoutofadisputeovertheallegedillegalrentalanduseofresidentialpropertiesasbedandbreakfasthomesortransientvacationunits.Plaintiffs-
 
FORPUBLICATIONINWEST'SHAWAI'IREPORTSANDPACIFICREPORTER
AppellantsJosephPavsekandIkuyoPavsek(collectively,thePavseks)liveonPapailoaRoadontheNorthShoreofO'ahu.ThePavseksfiledalawsuitintheCircuitCourtoftheFirstCircuit(CircuitCourt)againsttheownersofthreeresidentialpropertiesonPapailoaRoadandcompaniesinvolvedinmanagingandarrangingrentalsforthoseproperties.Intheircomplaint,thePavseksallegedthatthethreepropertieswerebeingusedforshort-termrentalsinviolationoftheLandUseOrdinance(LUO)oftheCityandCountyofHonolulu(City),andsoughtinjunctivereliefanddamages.TheCircuitCourtdismissedthecomplaintwithprejudice.YThisappealpresentsthequestionofwhetherHawaiiRevisedStatutes(HRS)
§
46-4(a)(Supp.
2011)~1
createsaprivaterightofactionthatauthorizesa"directlyaffected"privaterealestateownertoseekjudicialenforcementoftheLUO,withoutfirstbringinghisorherclaimbeforetheadministrativeagencychargedwithenforcingtheLUO.Weholdthat:(1)HRS
§
46-4(a)doescreateaprivaterightofactioninfavorofarealestateownerdirectlyaffectedbyanallegedLUOzoningviolation,butthattheowner'sactionissubjectto,thedoctrineofprimaryjurisdiction;(2)underthedoctrineofprimaryjurisdiction,thePavseksarerequiredtoseekanadministrativedeterminationoftheirclaimthattheirneighborshavebeenviolatingtheLUObeforeproceedingwiththeirsuittoobtainjudicialenforcementoftheLUO;(3)thenuisanceclaimsraisedbythePavseksintheircomplaintwerederivedfromtheirclaim
!/
TheHonorableVictoriaA.Markspresided.~/HRS
§
46-4(a)providesinrelevantpart:Thecouncilofanycountyshallprescriberules,regulations,andadministrativeproceduresandprovidepersonnelitfindsnecessarytoenforcethissectionandanyordinanceenactedinaccordancewiththissection.Theordinancesmaybeenforcedbyappropriatefinesandpenalties,civilorcriminal,orbycourtorderatthesuitofthecountyortheownerorownersofreal.estatedirectlyaffectedbytheordinances.
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FORPUBLICATIONINWEST'SHAWAI'IREPORTSANDPACIFICREPORTER
oftheLUOviolationandthereforearealsosubjecttotheprimaryjurisdictiondoctrine;(4)theCircuitCourtproperlydismissedtheclaimsallegingbreachoffiduciarydutyandunjustenrichmentforfailuretostateaclaimforrelief;and(5)theCircuitCourt'sremedyofdismissal
withprejudice
oftheclaimssubjecttotheprimaryjurisdictiondoctrineisnotconsistentwiththeremediesapplicabletothatdoctrine.Accordingly,wevacatetheCircuitCourt'sdismissaloftheclaimsthataresubjecttotheprimaryjurisdictiondoctrine;weremandthecasewithinstructionsthatastothoseclaims,theCircuitCourtconsidertheappropriateremedyundertheprimaryjurisdictiondoctrine;andweaffirmtheCircuitCourt'sdismissaloftheclaimsforbreachoffiduciarydutyandunjustenrichment.BACKGROUND
I.
ThePavseksareowner-occupantsofaresidenceonPapailoaRoad.PapailoaRoadrunsparalleltothebeachandisneartwotouristattractions,LaniakeaBeach,knownforthepresenceofseaturtles,andthebeachthatservedasthesetoftheABCtelevisionshow"Lost."Defendants-AppelleesToddW.SandvoldandJulianaC.Sandvold(Sandvolds),KentSatherandJoanSather(Sathers),andWaialuaOceanviewLLC(WaialuaOceanview)(collectively,OwnerDefendants)ownresidencesonPapailoaRoad.Intheircomplaint,thePavseksallegedthatDefendant-AppelleeHawaiiBeachHomes,Inc.(HBH)"actsasabookingagentand/orpropertymanagerforrentals"oftheSandvolds'andtheSathers'properties,andthatDefendants-AppelleesHawaiiBeachTravel,Inc.(HBT)andHawaiiontheBeach,Inc.(HOB)act,respectively,as"abookingagentforrentals"and"abookingagentandpropertymanagerforrentals"ofWaialuaOceanview'sproperty.llThePavseks'propertyis
l/WewillcollectivelyrefertotheSandvolds,theSathers,WaialuaOceanview,HBH,HBT,andHOBas"Defendants."
3

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