Eminent Domain: State Owes $7M and Counting for Maalaea Boatyard

from Pacific Legal Foundation, April 13, 2026

Hawaii took Don Williams' property through eminent domain for $3 million less than it was worth. Then, the State lowered its offer, claiming Don now owes them $1.5 million. After a 13-year legal battle, a trial court agreed that Hawaii owed $7 million for his land.

Don bought a coastal property in 1994 as an investment in his son Sebastian's future. The state leased it for harbor parking. Then, 20 years into a 30-year contract, Hawaii broke the lease without notice, stopped paying rent, and seized the land through eminent domain.

When the government takes private property, it must pay just compensation. But Hawaii offered $4.1 million for Don’s property, independently appraised at $7 million. After he fought back, the state lowered the offer to $2.7 million and tried to bill him for $1.5 million.

In July 2025, the Maui trial court sided with Williams, ruling the property was worth $7 million and ordering the state to pay what it owed, plus interest for years of delay. Hawaii responded with an appeal to the ICA, so we’ll keep fighting.

In an April 10, 2026 motion, Pacific Legal Foundation attorney Robert Thomas is requesting the appeal be taken out of the ICA backlog and transferred directly to the State Supreme Court. 

ECourtKokua: SCAP-25-0000562