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MATSUKAWA: My name is Michael Matsukawa. IÓm an attorney in Kona. I represent the
<br />owner of Lot, Units B and D.
<br />GIFFIN: A and B?
<br />MATSUKAWA: We agreed to consolidate A and B.
<br />GIFFIN: Okay.
<br />MATSUKAWA: I just wanted to bring to the CommissionÓs attention just in case you run into
<br />other issues with Hlualoa, that weÓve, in February we just finished a series of litigation
<br />concerning the partition roads. It ran from one litigant asking the judge to appoint a new
<br />commissioner and clean up the road issue. I know someone at the legislature thought of
<br />introducing a bill of some kind, but you know, none of these solutions really are practical.
<br />But the background is simply this: In the late 1900Ós, no, late 1800Ós, the old Hlualoa hui,
<br />which was formed by a lot of local Hawaiian people as a means to
<br />withstanding what was going on in society at the time. Huis were formed all over the state. This
<br />was one of those huis that originally was Victoria KammaluÓs interests, and the local guys
<br />formed a hui to hang onto their properties; they had their own bylaws, etc. I think in my opinion
<br />the plantation dominated court, then said, no, huis are illegal, and so they were just tenants in
<br />common. So as a result what happened is they had to partition the property Î just like five
<br />people own a piece of land, youÓve got to cut it up to pay your bills, etc. So the partition was
<br />done in Honolulu by a Honolulu judge Î seems like a common recur
<br />commissioner who was appointed laid out all the lots, but never conveyed the roadways. And
<br />there are some remnant parcels that were never conveyed. In comparison, in Maui there was a
<br />similar incident, but the commissioner, with the approval of the powers that be Î I guess Maui
<br />runs a little differently Î conveyed the roads of the subdivision partition to a clerk of the court
<br />temporarily until such time as the clerk could dump it off on somebody else. But at least
<br />ownership was consolidated in a single name. And on KauaÒi they have the same situation with
<br />the MoloaÒa partition. ItÓs still in a court clerkÓs name, so if you need to do something, at least
<br />you see the local judge and say, we need you to sign off something. So in this instance, we donÓt
<br />have a consolidation. If I remember, there are 2,000 lots plus in Hlualoa hui partition. So you
<br />know, you run into this idea, well, maybe the ownership is from AliÒi Drive to Kuakini Highway,
<br />that segment would be just those owners; the guys up in Hlualoa at Nakagawa Service Station
<br />should have no interest in the road down there. But some people own mauka and makai partition
<br />lots, and it becomes a problem.
<br />Like I said, the last effort was Michael Gibson from the Ashford firm; he tried to convince the
<br />judge to re-appoint a new commissioner to clean this mess up, and the judge said, no, the case is
<br />closed, unless someone wants to bring a new case, he canÓt touch it. Legislature has informed
<br />the solution. So to the credit of the property owners, they have been on their own, like Stardust
<br />Lane, taking responsibility for what is running to their properties and doing the best they can.
<br />And yes, issues of liability, maintenance, what can government flush them to do, all come to
<br />surface. But like the property we were litigating, just finished, to the south, again, the property
<br />owners, including the County, have reached agreement of how weÓre going to maintain the
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<br />EXHIBIT B
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