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Factual and Procedural Background

This case involves an easement dispute between Consolidated Amusement Co., Ltd. (Consolidated), owner of the dominant estate, and Waikiki Business Plaza, Inc. (Plaza), owner of the servient estate. Consolidated owns Lots 2-C-1 and 2-E-1 and has a perpetual easement for ingress and egress over a 10-foot wide strip of land known as Easement "B," which lies within Plaza's Lot 259. The easement's width, length, and location were specifically defined in Land Court documents and maps.

In 1965, Consolidated and Plaza's predecessors entered into an agreement permitting Plaza to build a sidewalk and curb on the western 5-foot portion of Easement "B" for pedestrian use, while the eastern 5-foot portion remained a roadway. Consolidated ceased vehicular use of the roadway portion at an undisclosed date.

From 1971 to 1982, Plaza licensed a vendor to use the sidewalk area for commercial booths with Consolidated's consent. In January 1983, Plaza itself began placing ten commercial structures, each approximately four feet wide and six feet long, on the sidewalk portion of Easement "B." Consolidated objected and subsequently filed suit seeking an injunction against Plaza's obstruction of the easement, special damages, and costs.

The trial court granted summary judgment in favor of Plaza, concluding that the permanent carts did not constitute an obstruction of the easement. Consolidated appealed this adverse summary judgment.

Legal Issues Presented

  1. Whether the owner of the servient estate may erect and maintain structures on a portion of a specifically defined easement for ingress and egress without obstructing the dominant estate owner's use.

Arguments of the Parties

Defendant-Appellee's Arguments

  • As owner of the servient tenement, Plaza contends it is entitled to make all uses of its land, including commercial uses, provided they do not unreasonably interfere with Consolidated's easement rights.
  • Plaza relies on Baum v. Glen Park Properties, arguing that structures may be erected within an easement if they do not unreasonably interfere with ingress and egress.
  • Plaza cites Goo v. Young for the proposition that building over or under the surface of an easement is permissible if there is no interference with passage.

Plaintiff-Appellant's Arguments

  • Consolidated argues that the easement's width, length, and location are definite and fixed by Land Court documents, and therefore Plaza cannot erect any structures that encroach upon the specified easement area.
  • The 1965 Agreement was a license that did not diminish Consolidated's easement rights.
  • Consolidated contends that the eleven-year commercial use license did not constitute abandonment of the easement.
  • They reject Plaza's reliance on Baum, emphasizing the controlling general rule that specific easement terms govern and no encroachment is allowed.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Aladdin Petroleum Corp. v. Gold Crown Properties, Inc., 221 Kan. 579, 561 P.2d 818 (1977) Where the easement's width, length, and location are expressly set forth, the easement is specific and definite; no structures may encroach on the specified width regardless of present necessity or reasonableness. The court adopted this general rule, holding that the definitive terms of Easement "B" control and Plaza may not reduce the easement's width by erecting structures.
Andersen v. Edwards, 625 P.2d 282 (Alaska 1981) Supports the principle that specific easement dimensions control over reasonableness of present use. Referenced to reinforce the general rule favoring the express terms of easement grants.
Lindhorst v. Wright, 616 P.2d 450 (Okla. Ct. App. 1980) Confirms that definite easement descriptions admit no ambiguity and control usage rights. The court cited this case to emphasize the definiteness of Easement "B" and the controlling nature of its terms.
In re Fasi, 63 Haw. 624, 634 P.2d 98 (1981) A license in real property authorizes acts on another's land without creating an estate. The court held the 1965 Agreement was merely a license and did not diminish Consolidated's easement rights.
Suzuki v. Garvey, 39 Haw. 482 (1952) There is no duty of user on the dominant estate owner as a condition to retain easement rights. Used to reject Plaza's argument that Consolidated's prior license to a vendor constituted abandonment of the easement.
Baum v. Glen Park Properties, 660 S.W.2d 723 (Mo. App. 1983) Permits erection of structures within an easement provided they do not interfere with reasonable use for ingress and egress. The court declined to follow this case, finding it unpersuasive and inconsistent with the general rule governing specific easements.
Goo v. Young, 36 Haw. 132 (1942) Owner of servient estate may build over or under the easement if no interference with passage occurs. The court found Plaza's reliance misplaced because Goo did not address structures on the surface of the easement.
In re Estate of Magoon, 58 Haw. 345, 569 P.2d 884 (1977) Guidance on equitable remedies and damages in property disputes. Directed the lower court to determine appropriate equitable remedies and damages on remand consistent with this opinion.

Court's Reasoning and Analysis

The court began by recognizing that the material facts were undisputed, including Plaza's occupation of four feet of the ten-foot wide Easement "B," leaving six feet unobstructed for ingress and egress. Despite this, the court concluded Plaza was not entitled to judgment as a matter of law.

The court rejected Plaza's argument that as servient estate owner it could make any use of the land that did not unreasonably interfere with the easement. Instead, it applied the general rule that when an easement's width, length, and location are specifically defined in the grant, those terms control absolutely. The court emphasized that the easement was definite and unambiguous, and the terms of the grant must be honored rather than considerations of present necessity or reasonableness.

The court clarified that the 1965 Agreement was a license, not an estate, and did not diminish Consolidated's easement rights. The prior commercial use license did not amount to abandonment because the dominant estate owner has no duty of user as a condition to retain easement rights.

The court declined to follow the Missouri case Baum v. Glen Park Properties, finding it inconsistent with the controlling general rule. It also found Plaza's reliance on Goo v. Young misplaced because that case addressed building over or under the easement but not on the surface.

Ultimately, the court held that Plaza had no legal right to erect structures that encroached on the clearly defined easement area and thus was not entitled to summary judgment.

Holding and Implications

REVERSED AND REMANDED

The court reversed the summary judgment in favor of Plaza and remanded the case. It directed the lower court to enter summary judgment in favor of Consolidated after determining the appropriate equitable remedies and damages. This decision enforces the principle that specific easement grants must be respected in their exact dimensions and disallows encroachments by the servient estate owner, even if ingress and egress are not completely obstructed. No new legal precedent was established beyond reaffirming established easement law principles.

CONSOLIDATED AMUSEMENT CO., LTD., a Hawaii corporation, Plaintiff-Appellant, v. WAIKIKI BUSINESS PLAZA, INC., a Hawaii corporation, Defendant-Appellee

OPINION OF THE COURT BY TANAKA, J.

In this case involving easement rights, plaintiff Consolidated Amusement Co., Ltd. (Consolidated), the owner of the dominant estate, appeals from an adverse summary judgment in favor of defendant Waikiki Business Plaza, Inc. (Plaza), the owner of the servient estate. The dispositive issue is whether the owner of the servient estate can erect and maintain structures on a portion of an easement for ingress and egress which is of a specified width and length and with definite boundaries, where the structures do not "obstruct" the dominant estate owner's use of the easement. We answer no and reverse.

The other issues raised on appeal do not merit discussion.

I.

To facilitate a better understanding of the facts in this case, we include a map as a part of the opinion.

The map was appended to an agreement dated September 3, 1965, between William Koon Hee Mau and Jean Rachael Mau (collectively Maus), the predecessors in title to Waikiki Business Plaza, Inc. (Plaza), and Consolidated Amusement Co., Ltd. (Consolidated). Because of the reduction in size of the map, the scale of 1" = 50' is not applicable.

Consolidated is the owner of Lots 2-C-1 and 2-E-1 of Land Court

All lots involved in this case are Land Court registered land under Hawaii Revised Statutes Chapter 501, the statute establishing the Torrens title system in Hawaii. See In re Will Estate of Campbell, 66 Haw. 354, 662 P.2d 206 (1983).

TOGETHER with the perpetual right of ingress and egress over the 10-foot strip of land on the Ewa [western] side of [Lots 2-C-1 and 2-E-1], known and designated as Lot 2-B on said Map No. 20, and subject to any prior easements created and existing upon said Lot 2-B.

Consolidated has been operating a movie theater, now known as Waikiki No. 3, on these lots since 1936.

Consolidated also owns and operates two other movie theaters known as Waikiki No. 1 and No. 2 just north of Lot 259 owned by Plaza.

Plaza is the owner of Lot 259 on which stands the multi-story Waikiki Business Plaza building (Plaza Building). The transfer certificate of title which evidences Plaza's ownership provides that Lot 259 is encumbered by Easement "B" which is subject to:

Perpetual right of way in favor of the owners of Lots 2-C-1, 2-E-1, . . . as granted in Document Nos. 31617, . . . .

Easement "B" is a portion of Lot 2-B and was established by Land Court Order No. 22297 filed March 18, 1964, upon the consolidation of Lots 2-B, 117, 146, and 147 and their resubdivision into Lots 257, 258, and 259 and the designation of Easement "B," as shown on Land Court Map 56 of Application 551. Ten-foot wide Easement "B" abuts a portion of the west boundary of Consolidated's Lot 2-E-1 from Kalakaua Avenue northward for approximately 216 feet and lies within and adjoins the east boundary of Plaza's Lot 259.

Land Court Map 56 shows Easement "B" to be 10 feet wide and approximately 216 feet in length. The map referred to in note 2, supra, is based on Map 56.

In the course of construction of the Plaza Building, William Koon Hee Mau and Jean Rachael Mau (Maus), Plaza's predecessors in title to Lot 259, and Consolidated executed an agreement dated September 3, 1965 (1965 Agreement). The 1965 Agreement provided, inter alia, as follows:

1. The Maus were permitted to build a sidewalk and curb in the 5-foot wide western portion of Easement "B" (Area 1 on the map) for "pedestrian passageway" use by both parties in conjunction with the Plaza Building.

2. The remaining 5-foot wide eastern portion of Easement "B" (Area 2 on the map), together with a portion of Lot 2-E-1 (Area 3 on the map), were to be used as "a roadway" by both parties.

3. If and when Consolidated ceased using Area 2 for "vehicular roadway purposes," (a) the "right and license" of both parties to use Areas 2 and 3 as a roadway would "cease and terminate," (b) the use of Area 1 as a "pedestrian passageway" would continue, and (c) the "rights and privilege to use Area 2 for pedestrian, but not vehicular, traffic by the parties" would remain unaffected.

Subsequently, from a date undisclosed in the record, Consolidated ceased using Areas 2 and 3 for vehicular traffic.

In June 1971, Plaza entered into a license agreement with Michael Ambler (Ambler), doing business as Taiwan Shop. The agreement permitted the use of the sidewalk area of Easement "B" (Area 1) by Ambler to set up vendors' booths. After Consolidated's objection, in September 1971, Ambler executed a license agreement with Consolidated promising to pay it a monthly fee of $1,000. This arrangement continued until 1982 when Ambler vacated the area because he was delinquent in the payment of the monthly fees to Consolidated and also because the license had expired.

Plaza was aware of Consolidated's objection and even sought to negotiate with Consolidated on Michael Ambler's behalf.

In January 1983, Plaza commenced commercial activities on the sidewalk area of Easement "B." Plaza caused to be placed in the area ten structures, each approximately four feet wide and six feet long, on which merchandise was displayed and sold. Consolidated objected to these activities to no avail.

On October 26, 1983, Consolidated filed a complaint seeking (1) an injunction restraining Plaza "from closing, obstruction [sic], constructing or allowing commercial carts and counters" on Easement "B," (2) special damages, and (3) costs and attorney's fees.

On May 22, 1985, concluding that Plaza's occupation of "4 feet by 216 feet of the easement by having permanent carts located therein" was "not an obstruction thereof," the lower court granted Plaza's motion for summary judgment. Upon denial of its motion for reconsideration, Consolidated timely appealed.

II.

A motion for summary judgment should be granted if the record discloses that "there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law." Rule 56(c), Hawaii Rules of Civil Procedure (1981). See Hulsman v. Hemmeter Development Corp., 65 Haw. 58, 647 P.2d 713 (1982); Leary v. Poole, 5 Haw. App. 596, 705 P.2d 62 (1985).

Here, the material facts set forth above are not in dispute. Neither party disagrees with the lower court's finding that Plaza occupied four feet in width of the 10-foot wide Easement "B" leaving six feet of the easement area unobstructed for ingress and egress by theater goers to Consolidated's theaters.

However, based on the undisputed facts, we conclude that Plaza was not entitled to a judgment as a matter of law.

A.

Plaza justifies the reduction of the width of Easement "B"'s right of way from ten feet to six feet, by contending that "as owner of the servient tenement, [it] is entitled to make all uses of its land, including commercial uses, which do not unreasonably interefere with Consolidated's easement of ingress and egress." We do not agree.

The general rule is stated in Aladdin Petroleum Corp. v. Gold Crown Properties, Inc., 221 Kan. 579, 561 P.2d 818 (1977), as follows:

[W]here the width, length and location of an easement for ingress and egress have been expressly set forth in the instrument the easement is specific and definite. The expressed terms of the grant or reservation are controlling in such case and considerations of what may be necessary or reasonable to a present use of the dominant estate are not controlling. If, however, the width, length and location of an easement for ingress and egress are not fixed by the terms of the grant or reservation the dominant estate is ordinarily entitled to a way of such width, length and location as is sufficient to afford necessary or reasonable ingress and egress.
Id. 221 Kan. at 584, 561 P.2d at 822 (emphasis added). Accord, Andersen v. Edwards, 625 P.2d 282 (Alaska 1981); Lindhorst v. Wright, 616 P.2d 450 (Okla. Ct. App. 1980). See also 3 H. Tiffany, The Laws of Real Property § 805 (3d ed. 1939). It therefore follows that where the grant or reservation specifies "the way must be of a certain width, no structures can be erected which encroach on the width stated." 28 C.J.S. Easements § 97 at 779 (1941). See also Aladdin Petroleum Corp., supra.

Here, the width, length, and location of Easement "B" for ingress and egress were clearly set forth in the Land Court documents and on the pertinent Land Court maps. The description of Easement "B" is definite and "admits of no ambiguity." Lindhorst v. Wright, 616 P.2d at 454. Consequently, the terms of the grant of the right of way to Consolidated's predecessor in title control rather than necessity and reasonableness relative to Consolidated's present use of Easement "B."

The 1965 Agreement did not adversely affect Consolidated's right of ingress and egress in Easement "B." The 1965 Agreement was a license, and a license in real property "is an `authority to do a particular act or series of acts upon another's land without possessing any estate therein.'" In re Fasi, 63 Haw. 624, 629 n. 8, 634 P.2d 98, 102, n. 8 (1981) (quoting McCandless v. John Ii Estate, 11 Haw. 777, 789 (1899)). See also, 25 Am.Jur.2d Easements and Licenses § 123 (1966). The sidewalk constructed in Area 1 of Easement "B" by the then owners of the servient estate pursuant to the 1965 Agreement in no way diminished the use of the easement area as a right of way for ingress and egress.

Moreover, Consolidated's agreement to permit Plaza's licensee to use a portion of Easement "B" for commercial purposes for a period of approximately eleven years did not result in a partial abandonment of the easement area. The law is clear "that where an easement is created by grant, deed, or reservation no duty of user devolves upon the owner of the dominant estate as a condition of his right to retain and assert his interest therein." Suzuki v. Garvey, 39 Haw. 482, 486 (1952). See also 25 Am.Jur.2d Easements and Licenses § 105 (1966).

B.

Nonetheless, relying heavily on Baum v. Glen Park Properties, 660 S.W.2d 723 (Mo. App. 1983), Plaza insists that it may erect structures within Easement "B" if they do not unreasonably interfere with Consolidated's right of ingress and egress. In Baum, the plaintiff sold a portion of her tract of land to the defendant and reserved in the deed "an easement for road purposes over a strip of land forty (40) feet wide lying northwest and adjacent to [a certain] described line." Id. 660 S.W.2d at 724. Subsequently, the defendant erected a sign, installed curbing, and planted trees in the easement area. The Missouri Appellate Court held that the defendant "was entitled to erect any structure on the easement as long as that structure did not interfere with the reasonable use by respondent for purposes of ingress and egress to and from her land." Id. 660 S.W.2d at 726.

We are not persuaded by the Baum opinion and choose to follow the general rule as set forth in Aladdin Petroleum Corp., supra.

In reaching its conclusion, the appellate court in Baum v. Glen Park Properties, 660 S.W.2d 723 (Mo. App. 1983), cited the cases of Amitin v. Izard, 252 S.W.2d 635 (Mo. App. 1952), and Reutner v. Vouga, 367 S.W.2d 34 (Mo. App. 1963). However, both Amitin and Reuter do not appear to be cases on point. In Amitin, the court construed the instrument creating the "private road" as not benefiting plaintiff's land. Reutner basically involved the construction of structures below the surface of the easement area and a temporary obstruction of the surface of the easement area during construction.

Plaza's reliance on Goo v. Young, 36 Haw. 132 (1942), is misplaced. The issue in Goo was whether there was an abandonment of the whole or a portion of an easement of right of way created by a deed or grant. The court did state that the owner of the servient estate may build over or under the surface of the easement area "if there is no interference with the passageway." Id. 36 Haw. at 150. The court made no reference to erection of structures on the surface of the easement area.

III.

We hold that since the right of way over Easement "B" was acquired by grant to Consolidated's predecessor in title and the width, length, and location of the easement were specific and definite in the grant documents, Plaza had no legal right to reduce the width of Easement "B" by any obstruction. Therefore, Plaza was not entitled to a summary judgment as a matter of law.

It is foreordained that Consolidated will be entitled to a judgment on remand. Consequently, we direct the lower court to enter a summary judgment in Consolidated's favor after determining the appropriate equitable remedy and damages, if any, to be awarded to Consolidated. See In re Estate of Magoon, 58 Haw. 345, 569 P.2d 884 (1977); 6-Pt.2J. Moore J. Wicker, Moore's Federal Practice ¶ 56.27[3] (2d ed. 1985).

Reversed and remanded for further proceedings consistent with this opinion.

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CONSOLIDATED AMUSEMENT v. WAIKIKI BUSINESS PLAZA
(May 28, 1986)