2010-04-15_County_of_Hawaii_Motion_to_Dismiss_Counter_Claim_to_Expunge_Lis_Pendens

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that Defendants are able to prove their fraudulent conveyance cause of action, the County will be able to satisfy the judgment by paying money. There is no reason a "cloud"must be placed on the title which may delay or jeopardize the affordable housing project. The film; of a lis pendens against 1►u111 ic land is contrary t(, the very purpose which municipalities exist, i.e., for the public good. In order to act in the public good, municipalities, such as the County have the power of eminent domain.16 Therefore, regardless of any interest an individual may have in a property, the County has the right to take the property for a public purpose. If individuals could simply file a lis pendens and place a"cloud" on the title,this would obviously negate the power of the government to carry out its functions. In fact, HRS § 46-1.5(16) states the following: Each county shall have the power to purchase and otherwise acquire, lease, and hold real and personal property within the defined boundaries of the county and to dispose of the real and personal property as the interests of the inhabitants of the county may require... Therefore, the legislature expressly permits the County to acquire and dispose of real property for the public good. Permitting a lis pendens against public land is contradictory to the express provisions of HRS § 46-1.5 because it obstructs the County ability to dispose of property for the public good. Furthermore,permitting a lis pendens on public land would make the innocent taxpayers and citizens of Hawaii County suffer. Such a result is prohibited by sound public policy. Courts, including Hawaii, have refused to apply remedies if they violate public policy. For example, in Lauer v. YMCA of Honolulu, 57 Haw. 390, 557 P.2d 1334 (1976), the Hawaii Supreme Court held that municipalities cannot be held liable for punitive damages. The Court noted that the "innocent taxpayers...should not be made to suffer." Id. at 402, 557 P.2d at 1342. The United States Supreme Court reached a similar conclusion. See City of Newport v. Fact 16 The County's power to condemn power is provided by HRS§46-1.5(6). 18