The convoluted case of the Kakaako Land Co. LLC, and its disputed claim of ownership over several streets in Kakaako, came to a satisfying legal conclusion this week.
After reviewing the ownership history of a 65-acre parcel acquired by developer Charles Desky in 1896, Circuit Judge Jeffrey Crabtree ruled on Tuesday that the state — not KLC — owned the streets in question, which included whole or partial segments of Ward Avenue and Kawaiahao, Queen, Cooke, Cummins, Ilaniwai and Hustace streets.
It’s hoped that the decision will put to rest the years-long controversy that has swirled around the streets, located squarely in one of the most valuable and fastest-growing redevelopment districts on Oahu. The legal owner can now ensure that these public roads, some in crumbling condition, are properly maintained.
The fight over the streets was sparked in 2010 when brothers Calvert and Cedric Chun, sole members of KLC, began charging for parking on the street and towing away parked cars.
Business owners sued, and the city and state made weak, ineffective efforts to wrest control of the streets from the Chuns. House Speaker Scott Saiki, who represents the district, called KLC’s actions a “fraud.”
“They had no regard for the law and for residents and others who use those roads,” Saiki said.
Those challenging the Chuns were hampered by lack of a clear chain of title; a 1903 resolution by the Territory of Hawaii indicated that Desky intended to convey the streets to the territory, but no deed has been found.
In the absence of adequate records, the Chuns found an opportunity. They obtained a quitclaim deed from Desky’s last surviving heir, Adele M. Christian, in 1985, about 15 years before she died. For the bargain-basement price of $5,000 and a percentage of rental income, the Chuns obtained Christian’s interest in the entire 65 acres of land — worth many millions, of course — as well as some property in Waikiki.
Unfortunately for the Chuns, Crabtree ruled that Christian’s interest was zero. Neither Charles Desky nor his heirs did anything since 1903 to assert their control over the streets, and the judge concluded that as a matter of law, the streets were surrendered or abandoned to the state long ago.
And as the court dryly noted, “the terms of the 1985 Quitclaim Deed clearly demonstrate that Adele did not believe she was the true owner of Kakaako or its Streets. The court infers and finds that if Adele had any real belief she was or may be the true owner, it is highly unlikely she would accept a mere $5,000.00 for the land.”
