History of the Hawaiian Islands|
Date: Sat, 11 Jan 97 10:37:18 CST
From: NY Transfer News Collective <firstname.lastname@example.org>
Subject: Hawaii: Kingdom law used to challenge ownership
Via NY Transfer News Collective * All the News that Doesn't Fit
From email@example.com Fri Jan 10 13:42:22 1997
A company uses Hawaiian Kingdom law to challenge property
By Rob Perez, in the Honolulu Star-Bulletin
Wednesday, January 8 1997
The findings of a controversial title company that traces land ownership
using 19th century Hawaiian Kingdom law are starting to gum up property
sales in the state.
Though only a few cases have surfaced, experts fear the problem will
spread, becoming a major headache for Hawaii's real estate industry.
The recent sale of a Big Island parcel is on hold because of a report filed
with the state by Perfect Title Co., which claims the registered owners
don't really own the land.
The Big Island case is the first indication that Perfect Title's work - widely
dismissed as absurd by established title insurers, lenders,
attorneys and others in the industry - is beginning to hamper property
John Jubinsky, attorney for Title Guaranty of Hawaii, the largest title
insurance agency in the state, said the problem will worsen as Perfect
Title investigates more claims and files its findings at the Bureau of
Perfect Title already has completed about 100 reports, is working on
another 100 and is continuing to get additional requests for the $1,500
searches, company officials say.
In all the cases it has investigated thus far, Perfect Title has found
existing titles to be invalid. Often, it cites treasonous acts committed
against the kingdom or the 1893 overthrow of the monarchy to argue that the
property ownership chains were broken, rendering meaningless all subsequent
transfers of title.
In the Big Island case, the chain broke in 1887 when King David Kalakaua
illegally appointed a ministry official to manage and dispose of Hawaiian
government land, including the parcel in Kona, the company contends. Any
subsequent transfers involving that land were thus invalid, Perfect Title
concluded in an August report filed at the bureau.
That report came to light when the 5.8-acre parcel was put up for sale at
an auction last year.
Title Guaranty refused to issue a policy to the would-be buyer because of
the cloud created by the report. Such insurance protects the interests of a
lender or property owner if a defect is discovered in the title. The agency
won't provide insurance until Perfect Title's report is expunged or dealt
with through the courts, Jubinsky said.
A second case in which a policy won't be issued for the same reason is
pending - and more are expected, he said.
"What's everybody afraid of?" countered David Keanu Sai, a partner of
Perfect Title owner Donald Lewis. "These are just reports."
All the industry has to do to solve the problem is prove the title searches
are wrong - something that can't be done because they're based on fact, Sai
said. "If we're such a scam like everyone says, why doesn't (Title
Guaranty) just issue the insurance" and ignore the reports.
A group of co-owners of the Big Island parcel are taking a different tack.
They have sued Perfect Title and asked a Big Island judge to have the
company's report expunged. The lawsuit is pending.
Until the issue is resolved, the sale of the property - a buyer was
selected last week - can't go through, said Arnold Lum, a Native Hawaiian
Legal Corp. attorney representing the co-owners.
Lum's clients are heirs of Henry Haiha, who was awarded a land patent grant
for the Kona parcel and five adjacent acres in 1920.
Other Haiha heirs who opposed the sale hired Perfect Title to do the title
search. Those heirs and Perfect Title were named as defendants in the
lawsuit. Those heirs also were issued a deed to the property by Sai - an
act contested in the lawsuit as well.
Lum and Jubinsky, who helped with the lawsuit, are hoping the court rules
that Perfect Title's reports are frivolous and fines the company up to
$5,000, the maximum allowed by state law. Enough of those judgments should
stem such filings, Jubinsky said. "I don't know how else to stop them."
Jubinsky said the problem involving the Haiha land was created when some of
the owners brought Perfect Title into the picture. But similar problems can
arise even if an owner isn't involved, he said.
Jubinsky referred to a case in which someone leasing Bishop Estate land
arranged to have a title search done by Perfect Title. The company
concluded that Bishop Estate didn't own the land and filed its findings at
"There's nothing that says they can't do a search on your property,"
Sai said Perfect Title's intent is not to create havoc in the industry but
to help correct all the erroneous titles in Hawaii.
"We're not ogres," he said. "We're here to fix the problem. . . . But the
more you stick your head in the sand, the more the problem gets bigger and
bigger and bigger."
(c) 1997 Honolulu Star-Bulletin
PERFECT TITLE COMPANY: Hawaiian Land and Title Search Company that
researches and verifies land title to the beginning with Kamehameha I in
feudal holding, then Kamehameha III and the distribution of allodial (fee
simple) title on December 10, 1845, to the present day.
Sam & Julie Monet
P.O. Box 309
Haleiwa, Hawai'i 96712
Sam: Ph (808) 638-8934
Julie: Ph (808 638-7299)