In August 1994, Don Howard Williams Jr. paid $1.35 million for roughly 1.137 acres of waterfront property beside Maui’s Maalaea Small Boat Harbor.
asserted
Jr. → pay → Harbor
Four weeks later, he entered into a 30-year lease with the State of Hawaii.
asserted
he → enter → Hawaii
More than three decades later, that property remains at the center of a prolonged legal battle over how much the state should pay after seeking to take the land through eminent domain.
asserted
state → remain → domain
On September 30, 2026, the Intermediate Court of Appeals of the State of Hawaii vacated a 2025 Circuit Court order and final judgment that had granted Williams’ motion for summary judgment and determined that he was entitled to $7 million in just compensation based on the evidence before the lower court, according to court document published on Justia.
uncertain
he → vacate → Justia
The appeals court did not rule that Williams was not entitled to compensation.
asserted
Williams → rule → compensation
Instead, it found that the Circuit Court had improperly excluded evidence from the state’s expert appraiser and had erred in resolving the valuation dispute through summary judgment while competing evidence remained.
The case was sent back to the Circuit Court for further proceedings.
A $1.35 million purchase becomes a decades-long legal fight
Williams purchased the Maalaea property on August 4, 1994, from FSO Oklahoma Investments Corp.,
an entity connected to the Church of Scientology’s Flag Service Organization.
The land had a complicated ownership history stretching back more than a decade before Williams’ purchase.
In the late 1970s, two of the parcels that eventually became part of Williams’ property were acquired by Maalaea Landing Inc., which planned to develop a condominium project there.
asserted
which → find → project
The development plans never came to fruition.
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plans → come → fruition
After financial difficulties, the property was transferred to Pioneer Federal in 1981.
asserted
property → transfer → 1981
It subsequently changed hands through a series of transactions involving private investors, Oceanfront Associates and entities connected to the Church of Scientology.
asserted
It → change → Scientology
By 1992, FSO Oklahoma Investments Corp. had acquired the parcels that would eventually form part of Williams’ property.
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that → acquire → property
Williams bought the land for $1.35 million in August 1994.
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Williams → buy → August
Four weeks later, on September 1, the State of Hawaii entered into a 30-year lease with him.
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State → enter → him
The state initially agreed to pay rent for the property
The long-running eminent-domain dispute over Williams’ Maui property has been sent back for further proceedings.
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dispute → agree → proceedings
The lease provided Williams with a long-term income stream from the waterfront property.
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lease → provide → property
State payments began at approximately $150,000 a year in 1994 and had increased to around $350,000 annually by 2013.
asserted
payments → begin → 2013
The arrangement changed in June 2013, when the State filed a complaint seeking to condemn the property rather than continue making lease payments.
asserted
State → change → payments
The state said it sought the property in connection with improvements to the adjacent Maalaea Small Boat Harbor.
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it → say → Harbor
That condemnation action transformed the property’s lease into a legal dispute over how its value should be calculated.
asserted
value → transform → dispute
The central question became whether the value of Williams’ interest in the existing lease should be taken into account when determining the compensation owed to him.
asserted
value → become → him
The state’s position on the lease changed
The State of Hawaii initially argued that the value of the lease should be considered when determining just compensation.
asserted
value → change → compensation
When the condemnation case was filed in 2013, the state deposited approximately $4.17 million based on its estimated compensation for the property.
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state → file → property
The state’s appraisal at the time included the land and the value of the lease.
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appraisal → include → lease
But the state later changed its position and argued that the lease income should not be presented to the jury when determining the property’s value.
asserted
income → change → value
The dispute became especially important because the lease was producing hundreds of thousands of dollars annually.
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lease → become → dollars
Williams argued that excluding the economic value of the lease could prevent him from receiving the full compensation required when private property is taken by the government.
uncertain
property → argue → government
2018 agreement set compensation at $4.165 million - subject to appeal
In June 2018, before trial, the parties entered into a stipulation agreeing that just compensation for the property was $4.165 million.
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compensation → set → property
However, Williams expressly retained the right to appeal earlier rulings in the case.
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Williams → retain → case
The agreement also stated that the parties would remain bound by trial-court rulings that were not subsequently reversed or vacated by an appellate court.
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that → state → court
That provision became central to the latest appeals court decision.
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provision → become → decision
Earlier appeals court ruling reopened the valuation dispute
The case reached the Intermediate Court of Appeals previously.
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case → reopen → Appeals
In April 2024, the appeals court ruled that the Circuit Court had abused its discretion by excluding evidence concerning the leased interest.
asserted
Court → rule → interest
The court held that evidence relating to possible future lease income could be presented in determining the property's value.
uncertain
evidence → hold → value
The Hawaii Supreme Court later rejected applications from both the state and Williams seeking further review.
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Court → reject → review
The case then returned to the Circuit Court.
asserted
case → return → Court
Williams sought $7 million in compensation
Back in the Circuit Court, Williams filed a motion for summary judgment in February 2025.
asserted
Williams → seek → February
He argued that the property interest he owned on June 27, 2013, the statutory valuation date, was worth $7 million.
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he → argue → June
Williams relied on an appraisal by his expert, R.W. Spangler, and argued that the income-capitalization method was the appropriate way to value the leased property interest.
asserted
method → rely → interest
The state filed its own motion for partial summary judgment in March 2025.
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state → file → March
It argued that the comparable-sales approach should be used instead.
asserted
approach → argue → ?
The Circuit Court ultimately granted Williams’ motion and denied the state’s motion.
asserted
Court → grant → motion
…and 39 more, not listed.
The Aporia
