Hawai`i Laborers' Trust Funds v. Maui Prince Hotel
| Decision Date | 18 June 1996 |
| Docket Number | Nos. 18266,s. 18266 |
| Citation | 918 P.2d 1143,81 Hawai'i 487 |
| Parties | Page 1143 918 P.2d 1143 81 Hawai'i 487, 20 Employee Benefits Cas. 2339, Pens. Plan Guide P 23923C HAWAI'I LABORERS' TRUST FUNDS, (Health & Welfare Trust Fund by James L. Tom, Lito Alcantra, John Murchison, Harry Ushijima, Mel Cremer, Larry Cadiz, Manuel Oliveira, and Benjamin Saguibo; Pension Trust Fund by Richard Hirano, Charles Miyata, Ernie Bello, Randall Ching, Wilton Ching, Kathy Yoshikami, Robert Sueda, Norman Janicki, Jr., Larry Cadiz, Mel Cremer, Norman Janicki, Sr., Benjamin Saguibo, Marilyn Tanaka, and Larry Sadaba; Training Trust Fund by Stanley Wada, Gilbert Ho, Richard Honjiyo, John Murchison, Manuel Oliveira, Alvis McCann, Benjamin Saguibo, and Ryan Tohara; Vacation & Holiday Trust Fund by Robert Sueda, Tamateru Kodama, Leonard Song, Salvador Ambrocio, Ismael Solis and Mitchell Kalilimoku; Annuity Trust Fund by Richard Honjiyo, Walter Arakaki, Tamateru Kodama, Robert Sueda, Salvador Ambrocio, Rick Pagatpatan, Mitchell Kalilimoku, and Clayton Saguibo), Lienors-Appellants, v. MAUI PRINCE HOTEL, a Hawai'i corporation, and Makena Resort Corp., formerly known as Seibu Hawai'i, Inc., a Hawai'i corporation, Owner/Developer-Appellees; and Greenscape, Ltd., a California corporation, Contractor-Appellee; and Hunnicutt International, Inc., a Hawai'i corporation, Contractor-Appellee. HAWAI'I LABORERS' TRUST FUNDS, (Health & Welfare Trust Fund by James L. Tom, Lito Alcantra, John Murchison, Harry Ushijima, Mel Cremer, Larry Cadiz, Manuel Oliveira, and Benjamin Saguibo; Pension Trust Fund by Richard Hirano, Charles Miyata, Ernie Bello, Randall Ching, Wilton Ching, Kathy Yoshikami, Robert Sueda, Norman Janicki, Jr., Larry Cadiz, Mel Cremer, Norman Janicki, Sr., Benjamin Saguibo, Marilyn Tanaka, and Larry Sadaba; Training Trust Fund by Stanley Wada, Gilbert Ho, Richard Honjiyo, John Murchison, Manuel Oliveira, Alvis McCann, Benjamin Saguibo, and Ryan Tohara; Vacation & Holiday Trust Fund by Robert Sueda, Tamateru Kodama, Leonard Song, Salvador Ambrocio, Ismael Solis and Mitchell Kalilimoku; Annuity Trust Fund by Richard Honjiyo, Walter Arakaki, Tamateru Kodama, Robert Sueda, Salvador Ambrocio, Rick Pagatpatan, Mitchell Kalilimoku, and Clayton Saguibo), Lienors-Appellants, v. WAILEA RESORT COMPANY, LTD., a Hawai'i corporation, Owner-Appellee; and Greenscape, Ltd., a California corporation, Contractor-Appellee; and Hunnicutt International, Inc., a Hawai'i corporation, Contractor-Appellee. HAWAI'I LABORERS' TRUST FUNDS, (Health & Welfare Trust Fund by James L. Tom, Harry Ushijima, Lito Alcantra, John Murchison, Mel Cremer, Benjamin Saguibo, Manuel Oliveira, and Larry Cadiz; Pension Trust Fund by Richard Hirano, Stanley Wada, Ernie Bello, Randall Ching, Wilton Ching, Robert Sueda, Louanne Kam, Norman Janicki, Jr., Benjamin Saguibo, Mel Cremer, Norman Janicki, Sr., Larry Cadiz, Marilyn Tanaka, and Larry Sadaba; Training Trust Fund by Richard Honjiyo, Ryan Y. Wada, Gilbert Ho, John Murchison, Benjamin Saguibo, Alvis McCann, Manuel Oliveira, and Ryan Tohara; Vacation & Holiday Trust Fund by Tamateru Kodama, Robert Sueda, Leonard Song, Salvador Ambrocio, Benjamin Saguibo and Ismael Solis; Annuity Trust Fund by Walter Arakaki, Richard Honjiyo, Tamateru Kodama, Robert Sueda, Melvin Kalama, Salvador Ambrocio, Clayton Saguibo, and Rick Pagatpatan), Plaintiffs-Appellants, v. WAILEA RESORT COMPANY, LTD., a Hawai'i corporation, Defendants-Appellees; and John Does, 1-10, Defendants. HAWAI'I LABORERS' TRUST FUNDS, (Health & Welfare Trust Fund by James L. Tom, Harry Ushijima, Lito Alcantra, John Murchison, Mel Cremer, Benjamin Saguibo, Manuel Oliveira, and Larry Cadiz; Pension Trust Fund by Richard Hirano, Stanley Wada, Ernie Bello, Randall Ching, Wilton Ching, Robert Sueda, Louanne Kam, Norman Janicki, Jr., Benjamin Saguibo, Mel Cremer, Norman Janicki, Sr., Larry Cadiz, Marilyn Tanaka, and Larry Sadaba; Training Trust Fund by Richard Honjiyo, Ryan Y. Wada, Gilbert Ho, John Murchison, Benjamin Saguibo, Alvis McCann, Manuel Oliveira, and Ryan Tohara; Vacation & Holiday Trust Fund by Tamateru Kodama, Robert Sueda, Leonard Song, Salvador Ambrocio, Benjamin Saguibo, and Ismael Solis; Annuity Trust Fund by Walter Arakaki, Richard Honjiyo, Tamateru Kodama, Robert Sueda, Melvin Kalama, Salvador Ambrocio, Clayton Saguibo, and Rick Pagatpatan), Plaintiffs-Appellants, v. MAUI PRINCE HOTEL CORP., a Hawai'i corporation, and Makena Resort Corporation, a Hawai'i corporation, Defendants-Appellees; and John Does 1-10, Defendants. * to 18269. Supreme Court of Hawai'i |
| Court | Hawaii Supreme Court |
Pablo P. Quiban (Reynaldo D. Graulty with him on the briefs of Graulty, Evangelista & Quiban), Honolulu, for lienors-appellants and plaintiffs-appellants Hawai'i Laborers' Trust Fund.
Susan Oki Mollway of Cades Schutte Fleming & Wright, on the briefs, Honolulu, for owner/developer-appellees Maui Prince Hotel and Makena Resort Corp., contractor-appellee Greenscape, Ltd., and defendants-appellees Wailea Resort Company, Ltd.
Before MOON, C.J., and KLEIN, LEVINSON, NAKAYAMA and RAMIL, JJ.
We are called upon to determine whether the Hawai'i State Mechanic's and Materialman's Lien Law, 1 in collecting delinquent trust fund contributions, is preempted by the Employee Retirement Income Security Act of 1974 (ERISA). 2 Specifically, we are faced with the question of whether Hawai'i Revised Statutes (HRS) § 507-42 (1993) 3 may be used to effectuate the judgment of a federal district court, in order to recover delinquent ERISA contributions due the Hawai'i Laborers' Trust Fund (HLTF) on behalf of laborers who performed labor and improvements on the subject lien property. We hold that HRS § 507-42 is not preempted by ERISA and, accordingly, HRS § 507-42 may be used by trust funds to collect delinquent trust fund contributions.
This action arises out of the construction of the Makena and Wailea golf courses, which are owned by defendants-appellees Maui Prince Hotel Corporation and Wailea Resort Company, Ltd. (collectively, "Owners") respectively. For both projects, defendant-appellee Greenscape, Ltd., ("General Contractor") was the general contractor; and on both projects, General Contractor subcontracted with defendant-appellee Hunnicutt International, Inc. ("Subcontractor") to provide landscape and construction work for the golf courses. On both of these projects, labor was furnished by members of the Laborers' International Union of North America, Local 368, AFL-CIO ("Union"). Subcontractor contracted with Union for work to be performed on each of the projects. As part of their agreement, Subcontractor executed and delivered to Union certain labor agreements covering landscape and construction laborers in the State of Hawai'i. Under these agreements, Subcontractor promised to make certain contributions to the HLTF for each hour of work performed by the laborers.
The dispute in this action arose when Subcontractor, who paid the laborers for their work, failed to make the agreed upon contributions to the laborers' ERISA trust fund as required by the labor agreements. 4
Upon completion of the projects, HLTF instituted civil actions against Subcontractor in the United States District Court for the District of Hawai'i (Case No. 92-00590 DAE and Civil No. 92-00463 HMF), to recover the unpaid trust fund contributions. On October 14, 1992, a default judgment was entered in favor of HLTF and against Subcontractor, in the amount of $39,076.56, for Subcontractor's failure to answer or otherwise plead.
Upon receiving this favorable judgment from the federal district court, HLTF proceeded to enforce the judgment against Owners in the Second Circuit Court of the State of Hawai'i. Although Owners were not parties to the labor agreement between HLTF and Subcontractor, HLTF asserted that, under HRS § 507-42 (1993), 5 Owners were liable for Subcontractor's failure to pay the trust fund contributions because labor and improvements were furnished on their property.
HLTF's action to enforce the federal court judgment in the circuit court consisted of two separate applications for mechanic's and materialman's liens in accordance with the provisions of HRS § 507-42. The lien actions were sought by HLTF to collect on the federal district court's judgment by attaching liens on Owners' real properties and improvements including both golf course projects. On April 21, 1993, an order directing a lien to attach was entered against both projects. On June 16, 1993, HLTF, asserting its right to foreclose on the liens that it had obtained, filed two separate actions to foreclose its mechanic's and materialman's liens.
Although they are not ERISA parties, 6 Owners filed separate motions to dismiss or, in the alternative, for summary judgment, on ERISA preemption grounds, to defeat the foreclosure action. Owners argued that HRS § 507-42 "related to" employee benefit plans, and was therefore preempted by ERISA. Concluding that the actions were preempted by ERISA, the circuit court granted Owners' motions.
The circuit court also considered and granted a motion made by HLTF to strike the affidavit of Gerald T. Johnson, who supported Owners' motion for summary judgment. In its order, the court concluded that the affidavit did not conform to Hawai'i Rules of Civil Procedure (HRCP) Rule 56(e) because the attached exhibits were not properly authenticated.
HLTF thereafter timely appealed. On September 6, 1994, all four appeals (Supreme Court Nos. 18266, 18267, 18268, and 18269) were consolidated into the present case.
We review the circuit court's grant of dismissal for want of subject matter jurisdiction 7 according to the standard set forth in Norris v. Hawaiian Airlines, Inc., 74 Haw. 235, 842 P.2d 634 (1992), aff'd 512 U.S. 246, 114 S.Ct. 2239, 129 L.Ed.2d 203 (1994). Reviewing an order granting a motion to dismiss on the ground that a claim was preempted by the Railway Labor Act, 45 U.S.C. §§ 151-188 (1988), this court...
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