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The Honolulu Advertiser
Posted on: Saturday, June 7, 2008

Ruling likely to favor OHA aid to all Hawaiians

By Gordon Y.K. Pang
Advertiser Staff Writer

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A federal judge said in a court document made public yesterday that she is "inclined" to rule in favor of the Office of Hawaiian Affairs' policy of assisting all Native Hawaiians, not just those with 50 percent or more Hawaiian blood.

U.S. District Judge Susan Oki Mollway issued a two-page "inclination" statement yesterday stating how she is inclined to rule on a motion dismissing the Day v. Apoliona lawsuit which is scheduled to be heard in her court Monday morning.

The statement is non-binding and has no effect of law and Mollway could change her mind after hearing the arguments on Monday. But the judge made it clear that with the information she has so far, "the court is inclined to grant summary judgment in favor of the OHA trustees."

The lawsuit was filed by five men each with 50 percent or more Hawaiian blood who say OHA has too many beneficiaries and that money from what's known as the Public Land Trust, which was established under the federal act that admitted Hawai'i as a state, can only be used to benefit those who have at least 50 percent Hawaiian blood.

OHA said its mandate is to assist all Hawaiians, regardless of blood quantum.

The case comes down to an interpretation of the Hawai'i Admissions Act of 1959.

"The court is inclined to rule that, in expending public trust funds in support of the Akaka Bill, the Native Hawaiian Legal Corporation, the Na Pua No'eau Education Program, and Alu Like, the OHA trustees are exercising their reasonable fiduciary judgment as to how to further the public trust's purposes," the judge's inclination said.

Mollway pointed out that the Admissions Act has five stated purposes for use of the money and that "the trustees have broad discretion in determining how to further the five trust purposes."

The case was originally filed in 2005 by Virgil Day, Mel Ho'omanawanui, Josiah Ho'ohuli, Patrick Kahawaiola'a and Samuel Kealoha. After Mollway rejected the case in 2006, a panel of the 9th U.S. Circuit Court of Appeals in San Francisco in August 2007 ordered her to hear the case.

Walter Schoettle, attorney for the Day plaintiffs, said he had not seen Mollway's statement and said he would not comment on it even if he did.

Robert Klein, an attorney hired by OHA, said he was pleased with Mollway's inclination.

"The judge got it right," Klein said. "Mr. Schoettle is going to have to do some talking when he gets to the hearing because it's very favorable to OHA as the defendants."

Reach Gordon Y.K. Pang at gpang@honoluluadvertiser.com.