High court backs dismissal of native blood quantum suit

The Hawaii Supreme Court has upheld the dismissal of a lawsuit contending that the Office of Hawaiian Affairs should spend its trust funds on people with 50 percent or more Hawaiian blood.

The high court’s ruling on Tuesday affirms OHA’s use of funds for the benefit of those with any amount of Hawaiian blood.

The 49-page unanimous opinion written by Chief Justice Mark Recktenwald is the latest development in the years-long litigation by Samuel Kealoha and four other individuals.

"This is a landmark decision," OHA Chairwoman Colette Machado said. "This issue has now been decided in both state and federal court. This is a great day for all Hawaiians."

The ruling, OHA attorney Robert Klein said, "settles once and for all whether OHA can create or fund programs to serve Hawaiians with any level of (Hawaiian) blood quantum."

Walter Schoettle, lawyer for Kealoha and the others, declined to comment on the ruling but said he is considering options involving court action.

The plaintiffs maintained that OHA spending diminishes the money available to those with 50 percent or more Hawaiian blood. They challenged OHA funding for Akaka Bill lobbying and programs that include the Native Hawaiian Legal Corp.

OHA trustees argued that they have the discretion under trust law to decide how to benefit Hawaiians with the 50 percent blood quantum and all Hawaiians.

The high court upheld Circuit Judge Karl Saka­moto’s dismissal of the lawsuit last year.

The justices cited rulings by a federal judge in 2008 and the U.S. 9th Circuit Court of Appeals in 2010 dismissing similar challenges.

The case involves revenue to OHA from ceded lands that once belonged to the Hawaiian kingdom.

Kealoha and the others contended that OHA improperly spent the money on Hawaiians regardless of the amount of Hawaiian blood in violation of state laws, the Hawaii Admission Act and the state Constitution.

They cited the Hawaiian Homes Commission Act, which provides benefits to Native Hawaiians with 50 percent or more Hawaiian blood.

The justices traced the history of those ceded-land funds, noting that the state gave the money mostly to the Department of Education before a 1978 state constitutional amendment created OHA.

Under the amendment, OHA was to hold and manage the lands in trust for "for native Hawaiians and Hawaiians," the decision said.

"This ruling is important validation for our efforts to improve conditions for Hawaiians," Kamana‘opono Crabbe, OHA chief executive officer, said.

"In our experience, favorable rulings don’t benefit only one class of Hawaiians, but benefit everyone."