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The Honolulu Advertiser
Updated at 3:25 p.m., Sunday, August 31, 2008

Lawsuit: Molokai utilities must continue

Associated Press

WAILUKU, Hawai'i — Maui County is asking a judge to bar Molokai Properties Ltd. from ever shutting down its water and sewage treatment services.

The county's civil lawsuit filed Friday claims that Molokai Properties and its predecessors signed contracts requiring them to maintain utility services. The suit says service obligations were required when the owners of the company, known as Molokai Ranch, were granted development rights at Kaluakoi, Kualapuu and Maunaloa. Molokai Properties Chief Executive Peter Nichols said earlier this week the company would continue to operate the three utilities after the state approved temporary rate hikes to keep them afloat.But he says the company can't be required to operate the three utilities indefinitely.