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Dao v. Zoning Bd. of Appeals

Citation: 434 P.3d 1223Docket: NO. CAAP-15-0000565

Court: Hawaii Intermediate Court of Appeals; January 30, 2019; Hawaii; State Appellate Court

Narrative Opinion Summary

The case involves an appeal by Leland H. Dao, M.D., contesting the Circuit Court's judgment that upheld the decisions by the Zoning Board of Appeals (ZBA) and the Director of the Department of Planning and Permitting (DPP) regarding violations of the Honolulu Land Use Ordinance (LUO) for operating transient vacation rentals without a nonconforming use certificate. The central legal issues pertain to the sufficiency of evidence supporting the violation notices and the appropriateness of imposed fines. Dao challenged two Notices of Order, arguing that the violations were based on insufficient evidence and that the fines were unjustified. The court concluded that the initial violation notice (NOO #1) lacked credible evidence and was vacated. However, the second notice (NOO #2) was found to lack evidence of a continuing violation, resulting in the vacating of the Circuit Court's judgment and the ZBA order. The case was remanded for re-evaluation of the violation period and fines. The ruling emphasized the necessity of reliable evidence to substantiate land use violations and underscored the appellant's burden to prove compliance once notified of a violation.

Legal Issues Addressed

Assessment of Penalties and Fines

Application: The Director must justify deviations from standard fine schedules, and fines should align with administrative rules.

Reasoning: The fines against Dao are vacated on separate grounds, and the case is remanded for a reassessment of fines, rendering the question of whether the fines were arbitrary or an abuse of discretion moot.

Burden of Proof in Violation Claims

Application: Dao had the burden to prove that the violation did not occur or was rectified, consistent with the presumption of validity of agency decisions.

Reasoning: It is emphasized that once a notice of violation is issued, it is Dao's responsibility to prove the absence of a violation or its correction, consistent with the established presumption of validity in agency decisions under Hawai'i law.

Evidence Requirement for Violation Confirmation

Application: A violation cannot be substantiated solely on an inspector's report without reliable evidence or identification of involved individuals.

Reasoning: Key rulings include: (1) a violation cannot be confirmed solely based on an inspector's report from an unidentified individual; (2) an agency's determination of a violation must be supported by reliable evidence.

Land Use Ordinance Violation

Application: The court found that despite written rental agreements for 30 days or more, the actual intent and usage demonstrated transient occupancy in violation of the LUO.

Reasoning: Despite written rental agreements for thirty days or more, actual intent and usage indicated that Dao rented to transient occupants for less than thirty days.

Mootness of Fines

Application: The court deemed the issue of fine appropriateness moot as they were vacated on other grounds.

Reasoning: The issue of the appropriateness of the fines is rendered moot as they are vacated on other grounds.