Dw Aina Le'a Development, LLC v. State of Hawaii Land Use Comm ( 2019 )


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  •                   FOR PUBLICATION
    UNITED STATES COURT OF APPEALS
    FOR THE NINTH CIRCUIT
    DW AINA LE‘A                             No. 17-16280
    DEVELOPMENT, LLC,
    Plaintiff-Appellant,            D.C. No.
    1:17-cv-00113-SOM-
    v.                           RLP
    STATE OF HAWAI‘I LAND USE
    COMMISSION; DOES,                ORDER CERTIFYING
    Governmental Units, 1–10;         QUESTION TO THE
    STATE OF HAWAI‘I,                SUPREME COURT OF
    Defendants-Appellees.          HAWAI‘I
    Filed March 7, 2019
    Before: Richard C. Tallman, Jay S. Bybee,
    and N. Randy Smith, Circuit Judges.
    2   DW AINA LE‘A DEV. V. STATE OF HAWAI‘I LAND USE COMM’N
    SUMMARY*
    Civil Rights
    The panel certified the following question to the Hawai’i
    Supreme Court:
    What is the applicable statute of limitations
    for a claim against the State of Hawai’i
    alleging an unlawful taking of “[p]rivate
    property . . . for public use without just
    compensation,” Haw. Const. art. I, § 20?
    COUNSEL
    Sang J. Peter Sim, Sim & Record LLP, Bayside, New York,
    for Plaintiff-Appellant.
    Ewan Christopher Ravner, Deputy Solicitor General; Clyde
    J. Wadsworth, Solicitor General; Douglas S. Chin, Attorney
    General; Department of the Attorney General, Honolulu,
    Hawai‘i; for Defendants-Appellees.
    *
    This summary constitutes no part of the opinion of the court. It has
    been prepared by court staff for the convenience of the reader.
    DW AINA LE‘A DEV. V. STATE OF HAWAI‘I LAND USE COMM’N    3
    ORDER
    Pursuant to 
    Haw. Rev. Stat. § 602-5
    (a)(2) and Hawai‘i
    Rule of Appellate Procedure 13, we respectfully certify the
    following question to the Hawai‘i Supreme Court:
    What is the applicable statute of limitations
    for a claim against the State of Hawai‘i
    alleging an unlawful taking of “[p]rivate
    property . . . for public use without just
    compensation,” Haw. Const. art. I, § 20?
    This significant question of law is “determinative of the
    cause” in this court and is not answered by statute or any
    “clear controlling precedent in the Hawai‘i judicial
    decisions.” Haw. R. App. P. 13(a). We therefore respectfully
    ask the Hawai‘i Supreme Court to exercise its discretion to
    accept and decide it.
    Below we provide a “statement of facts showing the
    nature of the cause,” a “statement of prior proceedings in the
    case,” the “circumstances out of which the [certified]
    question arises,” and the “question of law to be answered.”
    Haw. R. App. P. 13(b).
    I. STATEMENT OF FACTS
    This appeal arises out of a dispute over the classification
    of approximately 1,060 acres of land in South Kohala on
    Hawai‘i Island. The facts of the underlying dispute are
    detailed in DW Aina Le‘a Development, LLC v. Bridge Aina
    Le‘a, LLC, 
    339 P.3d 685
    , 689–703 (Haw. 2014). We briefly
    review them here along with the factual allegations contained
    in the complaint, which we accept as true for purposes of this
    4   DW AINA LE‘A DEV. V. STATE OF HAWAI‘I LAND USE COMM’N
    appeal. See Wadsworth v. Talmage, 
    911 F.3d 994
    , 995 (9th
    Cir. 2018).
    In 1989, the State of Hawai‘i Land Use Commission
    (“Commission”) reclassified the land in South Kohala from
    “agricultural” use to “urban” use in order to allow for the
    development of a residential community. The reclassification
    was subject to several conditions, including a condition that
    a certain percentage of the newly constructed residential units
    be affordable. The Commission amended that condition over
    the years as ownership of the land changed hands, and by
    2005, the Commission required the landowner, Bridge Aina
    Le‘a, LLC (“Bridge”), to construct no fewer than
    385 affordable units, which constituted 20% of the total units
    to be constructed.
    In December 2008, the Commission issued a show cause
    order requiring Bridge to explain why the land should not
    revert to its former agricultural use classification. The
    Commission believed that Bridge and its predecessors-in-
    interest had failed “to perform according to the conditions
    imposed and to the representations and commitments made to
    the [Commission] in obtaining reclassification” of the
    property. In addition to responding to the show cause order,
    Bridge informed the Commission in February 2009 that it had
    entered into a purchase agreement with DW Aina Le‘a
    Development, LLC (“DW”) that gave DW the right to
    develop the residential community. DW then invested more
    than $28 million developing the property, constructing more
    than a dozen townhouses and grading the site for roads,
    utilities, and additional townhouses.
    Nevertheless, in April 2009, the Commission voted
    unanimously to return the land to its former agricultural use
    DW AINA LE‘A DEV. V. STATE OF HAWAI‘I LAND USE COMM’N              5
    classification. Bridge sought reconsideration, with DW now
    on board as a co-petitioner before the Commission, but those
    efforts failed. Following numerous hearings, the Commission
    issued a final, written order on April 25, 2011, reclassifying
    the property as agricultural. Shortly thereafter, Bridge and
    DW sought judicial review of the Commission’s order in state
    court. The Hawai‘i Supreme Court ultimately vacated the
    Commission’s order, concluding that, because use of the
    property had “substantially commenced,” the Commission
    improperly reclassified the property without complying with
    certain statutory requirements for doing so. DW Aina Le‘a,
    339 P.3d at 711–14 (discussing the requirements set forth in
    
    Haw. Rev. Stat. § 205-4
    ).1
    II. STATEMENT OF PRIOR PROCEEDINGS
    On February 23, 2017, DW filed a complaint in Hawai‘i
    state court against the Commission and the State of Hawai‘i
    asserting takings claims under both the United States
    Constitution and the Hawai‘i Constitution. DW alleged that
    the Commission’s reclassification of the property as
    1
    After the Commission entered its written order, Bridge also filed a
    second lawsuit against the Commission alleging, among other things, that
    the reclassification of the land constituted an unconstitutional taking
    without just compensation. That lawsuit, which the State removed to
    federal court, was stayed pending the Hawai‘i Supreme Court’s review of
    the Commission’s reclassification order. See Bridge Aina Le‘a, LLC v.
    Haw. Land Use Comm’n, 
    125 F. Supp. 3d 1051
    , 1057 (D. Haw. 2015).
    Once that decision came down, Bridge’s takings claims proceeded to trial,
    where a “jury found that the State had taken [Bridge’s] property without
    just compensation.” Bridge Aina Le‘a, LLC v. Haw. Land Use Comm’n,
    No. 1:11-cv-00414-SOM-KJM, 
    2018 WL 3149489
    , at *1 (D. Haw.
    June 27, 2018). Bridge was awarded only nominal damages. See 
    id.
     For
    reasons that remain largely unexplained, DW never sought to become a
    party in Bridge’s takings suit.
    6   DW AINA LE‘A DEV. V. STATE OF HAWAI‘I LAND USE COMM’N
    agricultural constituted a regulatory taking of DW’s property
    without just compensation. Specifically, DW alleged that the
    reclassification increased the purchase price of the property
    after DW had agreed to purchase it, destroyed DW’s
    “sophisticated funding arrangement [with] Asia” for
    developing the property, and caused DW to sustain other
    increased costs and losses in business opportunities. The
    State removed the case to federal court and moved to dismiss
    the complaint as barred by the applicable statute of
    limitations.
    The district court granted the State’s motion to dismiss.2
    The parties agreed that DW’s takings claims accrued when
    the Commission issued its order on April 25, 2011.
    Regarding the federal takings claim, the court determined
    that, although this claim was not (and could not be) brought
    against the State under 
    42 U.S.C. § 1983
    , see Will v. Mich.
    Dep’t of State Police, 
    491 U.S. 58
    , 71 (1989), the statute of
    limitations that ordinarily governs § 1983 actions—the statute
    of limitations for general personal injury torts, see Wilson v.
    Garcia, 
    471 U.S. 261
    , 276–79 (1985)—applies. The
    2
    The district court also addressed several threshold issues, none of
    which is at issue in this appeal. First, the court concluded that DW’s
    federal takings claim was not barred by the exhaustion requirement set
    forth in Williamson County Regional Planning Commission v. Hamilton
    Bank, 
    473 U.S. 172
    , 192–97 (1985), noting that the State removed the case
    to federal court and raised no jurisdictional or ripeness argument in doing
    so. Second, the court concluded that the State waived its Eleventh
    Amendment sovereign immunity from suit in federal court by voluntarily
    removing the case to federal court. See Lapides v. Bd. of Regents of Univ.
    Sys. of Ga., 
    535 U.S. 613
    , 618–20 (2002). And third, the court concluded
    that it could retain supplemental jurisdiction over DW’s state takings
    claim despite having dismissed the federal takings claim. See 
    28 U.S.C. § 1367
    . The parties do not challenge any of those conclusions on appeal,
    and we accordingly express no opinion on them.
    DW AINA LE‘A DEV. V. STATE OF HAWAI‘I LAND USE COMM’N                  7
    limitations period for personal injury torts in Hawai‘i is two
    years. 
    Haw. Rev. Stat. § 657-7
    . The court thus concluded
    that DW’s federal takings claim is time-barred. The court
    also concluded in the alternative that DW’s federal takings
    claim is time-barred under 
    Haw. Rev. Stat. § 661-5
    , which
    provides a two-year limitations period for “[e]very claim
    against the State, cognizable under [Part I of Chapter 661].”
    In light of these two statutes, the court rejected DW’s reliance
    on the six-year “catch-all” statute of limitations, 
    Haw. Rev. Stat. § 657-1
    (4). Finally, the court concluded that, like the
    federal takings claim, DW’s state takings claim under the
    Hawai‘i Constitution is time-barred under either 
    Haw. Rev. Stat. §§ 657-7
     or 661-5. The court thus dismissed this action
    in its entirety, and DW filed a timely notice of appeal.
    III. LEGAL CIRCUMSTANCES
    On appeal, the parties do not dispute the relevant dates for
    limitations purposes—DW’s takings claims accrued on
    April 25, 2011, and DW filed its complaint on February 23,
    2017, more than five years later. The only issue is identifying
    the applicable statute of limitations. And although the parties
    focus on DW’s federal takings claim, DW’s state takings
    claim remains at issue, and the applicable limitations period
    may control its federal takings claim as well.3 Accordingly,
    3
    There is no federal statute of limitations for federal takings claims
    brought against a state. When, as here, there is no “controlling federal
    limitations period, the general rule is that a state limitations period for an
    analogous cause of action is borrowed and applied to the federal claim,
    provided that the application of the state statute would not be inconsistent
    with underlying federal policies.” County of Oneida v. Oneida Indian
    Nation, 
    470 U.S. 226
    , 240 (1985). In this case, the most analogous cause
    of action would be an inverse condemnation action under state law. And
    even if we, like the district court, were to accept the State’s argument that
    8   DW AINA LE‘A DEV. V. STATE OF HAWAI‘I LAND USE COMM’N
    in all events, determining the correct statute of limitations for
    DW’s state takings claim is outcome determinative for some,
    and perhaps all, of DW’s claims.
    Under the Hawai‘i Constitution, “[p]rivate property shall
    not be taken or damaged for public use without just
    compensation.” Haw. Const. art. I, § 20. Although
    proceedings for the condemnation of private property are
    governed by statute, see 
    Haw. Rev. Stat. § 101-1
     et seq., an
    “inverse condemnation” action—i.e., an action by a property
    owner “to recover the value of property that has been taken
    by the government . . . without exercising the power of
    eminent domain”—is “not specifically provided by statute,”
    Leone v. County of Maui, 
    284 P.3d 956
    , 962 (Haw. Ct. App.
    2012). Nor do the Hawai‘i statutes prescribe a limitations
    period for bringing an inverse condemnation action. DW
    argues that the six-year “catch-all” limitations period in 
    Haw. Rev. Stat. § 657-1
    (4) applies, while the State argues that the
    two-year limitations periods in either 
    Haw. Rev. Stat. §§ 657-7
     or 661-5 applies.
    The Hawai‘i Supreme Court has not had occasion to
    decide this issue, and other states that have addressed it have
    taken various approaches in doing so. See, e.g., Klumpp v.
    Borough of Avalon, 
    997 A.2d 967
    , 977 (N.J. 2010)
    (describing the divergent views among states in which “there
    is no statute of limitations on point” for inverse condemnation
    the two-year limitations period for personal injury claims, 
    Haw. Rev. Stat. § 657-7
    , applies to DW’s federal takings claim based on the reasoning in
    Wilson, 
    471 U.S. at
    275–79, and Van Strum v. Lawn, 
    940 F.2d 406
    ,
    408–10 (9th Cir. 1991), the timeliness of DW’s state takings claim would
    remain at issue. We accordingly do not address the limitations period
    applicable to DW’s federal takings claim at this time.
    DW AINA LE‘A DEV. V. STATE OF HAWAI‘I LAND USE COMM’N     9
    actions); see also 27 Am. Jur. 2d Eminent Domain § 732
    (Feb. 2019); Charles C. Marvel, Annotation, State Statute of
    Limitations Applicable to Inverse Condemnation or Similar
    Proceedings by Landowner to Obtain Compensation for
    Direct Appropriation of Land Without the Institution or
    Conclusion of Formal Proceedings Against Specific Owner,
    
    26 A.L.R.4th 68
     (1983 & Supp. 2018). Ordinarily, “[w]hen
    the highest court of a state has not directly spoken on a matter
    of state law,” we “use [our] ‘own best judgment in predicting
    how the state’s highest court would decide the case.’”
    T-Mobile USA Inc. v. Selective Ins. Co. of Am., 
    908 F.3d 581
    ,
    586 (9th Cir. 2018) (quoting Fiorito Bros. v. Fruehauf Corp.,
    
    747 F.2d 1309
    , 1314 (9th Cir. 1984)). But given the sparse
    Hawai‘i case law and the variety of approaches taken in other
    jurisdictions, we are unable to conclude with any certainty
    which statute of limitations the Hawai‘i Supreme Court
    would apply.
    A. Section 657-1(4)
    According to DW, the applicable statute of limitations is
    
    Haw. Rev. Stat. § 657-1
    (4), which imposes a six-year
    limitations period on “[p]ersonal actions of any nature
    whatsoever not specifically covered by the laws of the State.”
    But for this “catch-all” provision to apply, the claim must not
    be “governed by a specific limitations period.” Au v. Au,
    
    626 P.2d 173
    , 179 (Haw. 1981). In this case, the State has
    identified two specific statutes of limitations that it claims
    govern DW’s takings claim—
    Haw. Rev. Stat. §§ 661-5
     and
    657-7. We accordingly address each statute in turn.
    10 DW AINA LE‘A DEV. V. STATE OF HAWAI‘I LAND USE COMM’N
    B. Section 661-5
    The State argues that the applicable limitations period is
    
    Haw. Rev. Stat. § 661-5
    , which provides: “Every claim
    against the State, cognizable under this part, shall be forever
    barred unless the action is commenced within two years after
    the claim first accrues.” Chapter 661 is titled “Actions by and
    Against the State,” and Part I vests state courts with
    jurisdiction to hear “[a]ll claims against the State founded
    upon any statute of the State; upon any rule of an executive
    department; or upon any contract, expressed or implied, with
    the State, and all claims which may be referred to any such
    court by the legislature.” 
    Id.
     § 661-1(1). Although DW’s
    takings claim is a claim “against the State,” the State does
    very little to explain how this claim, brought under the
    Hawai‘i Constitution, is “founded upon” a state “statute,”
    executive “rule,” or “contract.”
    The State advances two primary arguments. First, the
    State relies on a footnote in Maunalua Bay Beach Ohana 28
    v. State, 
    222 P.3d 441
    , 458 n.12 (Haw. Ct. App. 2009), a
    decision from the Hawai‘i Intermediate Court of Appeals that
    the State offers as “the only Hawai‘i case addressing the
    limitations period for takings claims.” In that case, the
    plaintiffs filed an “inverse-condemnation lawsuit” against the
    State challenging a statute governing ownership of future
    accreted land. 
    Id.
     at 442–43. The plaintiffs claimed that the
    statute constituted a taking of their “right to future accretions”
    without just compensation “and thereby violated article I,
    section 20 of the Hawai‘i State Constitution.” 
    Id. at 460
    . In
    the “Procedural History” section of the decision, the court
    noted that the plaintiffs filed their lawsuit “one day shy of
    two years from the date of [the statute’s] enactment.” 
    Id. at 458
     (capitalization altered). And following that observation,
    DW AINA LE‘A DEV. V. STATE OF HAWAI‘I LAND USE COMM’N 11
    the court inserted a footnote: “Pursuant to [§ 661-5], ‘[e]very
    claim against the State, cognizable under this chapter, shall be
    forever barred unless the action is commenced within two
    years after the claim first accrues.’” Id. at 458 n.12 (second
    alteration in original) (quoting 
    Haw. Rev. Stat. § 661-5
    (1993)).4
    We are skeptical of the State’s reliance on Maunalua Bay.
    The State is correct that, although we are not bound by
    “decisions of [a] state’s intermediate appellate court” when
    deciding an unresolved issue of state law, we can look to such
    decisions “as guidance” in “predict[ing] how the highest state
    court would decide the issue.” In re NCAA Student-Athlete
    Name & Likeness Licensing Litig., 
    724 F.3d 1268
    , 1278 (9th
    Cir. 2013) (citation omitted). But Maunalua Bay provides
    very little guidance, as the timeliness of the lawsuit was not
    at issue in that case. The court thus had no occasion to
    explain how a takings claim based on the Hawai‘i
    Constitution is “founded upon” a state “statute,” executive
    “rule,” or “contract,” 
    Haw. Rev. Stat. § 661-1
    (1), such that it
    is “cognizable under” Part I of Chapter 661, 
    id.
     § 661-5.
    In fact, a decision from the Hawai‘i Supreme Court seems
    to reject that conclusion. In Kaho‘ohanohano v. State,
    
    162 P.3d 696
     (Haw. 2007), the plaintiffs argued that a statute
    reducing contributions to a state employee retirement system
    was “unconstitutional as being violative of article XVI,
    section 2 of the Hawai‘i Constitution,” 
    id. at 732
     (emphasis
    4
    In 2016, the Hawai‘i State Legislature amended § 661-5 by
    replacing the phrase “cognizable under this chapter” with the phrase
    “cognizable under this part.” 
    2016 Haw. Sess. Laws 109
    . This technical
    amendment makes no difference here, as the only other “part” of Chapter
    661 governs false claims actions.
    12 DW AINA LE‘A DEV. V. STATE OF HAWAI‘I LAND USE COMM’N
    and internal alterations omitted), which provides that
    membership in an employee retirement system “shall be a
    contractual relationship, the accrued benefits of which shall
    not be diminished or impaired,” Haw. Const. art. XVI, § 2.
    The Hawai‘i Supreme Court held that the two-year limitations
    period in § 661-5 did not apply to these “constitutional
    claims,” as they were “plainly not ‘founded upon any statute
    of the State; or upon any regulation of an executive
    department; or upon any contract,’” and thus “not ‘cognizable
    under [Chapter 661].’” Kaho‘ohanohano, 
    162 P.3d at 732
    (citations omitted); see also Kaleikini v. Yoshioka, 
    304 P.3d 252
    , 266 (Haw. 2013) (“[C]laims based on the constitution
    are not ‘founded upon any statute of the State.’” (internal
    alteration omitted) (quoting Kaho‘ohanohano, 
    162 P.3d at 732
    )). And although the State correctly observes that
    Kaho‘ohanohano did not involve a constitutional takings
    claim, the reasoning in that decision does not appear to be
    based on the type of constitutional claim but on the fact that
    constitutional claims are “plainly not ‘founded upon’” a state
    statute, rule, or contract. 
    162 P.3d at 732
     (quoting 
    Haw. Rev. Stat. § 661-1
    (1)).
    Second, the State argues that DW’s takings claim should
    be “characterized as premised upon an implied contract
    between the State and the landowner.” But the State does not
    support this argument with Hawai‘i law; instead, the State
    relies on cases from other jurisdictions that characterize
    takings claims as contractual in nature for statute-of-
    limitations purposes. See Hager v. City of Devils Lake,
    
    773 N.W.2d 420
    , 432 (N.D. 2009); Richmeade, L.P. v. City
    of Richmond, 
    594 S.E.2d 606
    , 608–10 (Va. 2004); State ex
    rel. R.T.G., Inc. v. State, 
    780 N.E.2d 998
    , 1005 (Ohio 2002);
    Hunter v. City of Mobile, 
    13 So. 2d 656
    , 659 (Ala. 1943).
    Although these cases might support the State’s proposed rule,
    DW AINA LE‘A DEV. V. STATE OF HAWAI‘I LAND USE COMM’N 13
    that rule has not been uniformly adopted. Indeed, at least one
    state supreme court has expressly rejected it, reasoning that
    “the right to recover damages for property taken does not rest
    solely upon a contract . . . but rests primarily upon a vested
    constitutional right.” Hiji v. City of Garnett, 
    804 P.2d 950
    ,
    958 (Kan. 1991).
    If anything, the State’s implied-contract theory is in
    significant tension with Kaho‘ohanohano, which concluded
    that the plaintiffs’ constitutional claims were “not ‘founded
    upon . . . any contract,’” 
    162 P.3d at 732
     (quoting 
    Haw. Rev. Stat. § 661-1
    (1)), even though the constitutional provision at
    issue in that case expressly refers to “a contractual
    relationship,” Haw. Const. art. XVI, § 2. Thus, although the
    Hawai‘i Supreme Court could decide—as Maunalua Bay
    suggests—that constitutional takings claims are governed by
    the two-year limitations period in § 661-5, the reasoning in
    Kaho‘ohanohano seems to counsel against that conclusion.
    C. Section 657-7
    The State argues in the alternative that the applicable
    statute of limitations is 
    Haw. Rev. Stat. § 657-7
    , which
    provides a two-year limitations period for “[a]ctions for the
    recovery of compensation for damage or injury to persons or
    property.” According to the State, the fact that the word
    “compensation” appears in both § 657-7 and the Takings
    Clause of the Hawai‘i Constitution “alone is enough to show
    that the statute is applicable to claims under the takings
    clause.”
    The State’s focus on the word “compensation” ignores the
    remainder of § 657-7’s text. That a plaintiff is seeking “just
    compensation” for the taking of private property, Haw. Const.
    14 DW AINA LE‘A DEV. V. STATE OF HAWAI‘I LAND USE COMM’N
    art. I, § 20, does not necessarily mean that the plaintiff is
    seeking “compensation for damage or injury to persons or
    property,” 
    Haw. Rev. Stat. § 657-7
     (emphasis added). The
    relevant question is whether an unconstitutional taking of
    private property without just compensation amounts to
    “damage or injury to . . . property.”
    The Hawai‘i Supreme Court has interpreted § 657-7 to
    apply to “claims for damages resulting from physical injury
    to persons or physical injury to tangible interests in property,”
    but not to claims involving a “nonphysical injury to an
    intangible interest of [the] plaintiff.” Au, 
    626 P.2d at 178
    (emphasis added) (quoting Higa v. Mirikitani, 
    517 P.2d 1
    , 3
    (Haw. 1973)). Thus, with respect to real property, the statute
    has been applied to actions alleging “trespass quare clausum
    fregit,”5 Chin Kee v. Kaeleku Sugar Co., 
    30 Haw. 17
    , 19–21
    (1927); Kauha v. Palolo Land & Improvement Co., 
    20 Haw. 237
    , 239 (1910), actions alleging physical damage to land due
    to the negligence of a neighboring property owner, Mauian
    Hotel, Inc. v. Maui Pineapple Co., 
    481 P.2d 310
    , 312 & n.1
    (Haw. 1971); Basque v. Yuk Lin Liau, 
    441 P.2d 636
    , 637
    (Haw. 1968), and an action alleging physical destruction of
    crops due to the diversion of a water source necessary for
    irrigation, Wong Nin v. City & Cty. of Honolulu, 
    33 Haw. 379
    , 380 (1935).
    DW’s takings claim, by contrast, is predicated on the
    State’s improper reclassification of DW’s property from
    urban use to agricultural use. The injury is the State’s
    regulatory taking of property without just compensation, not
    5
    This is a tort action “to recover damages resulting from another’s
    unlawful entry on one’s land that is visibly enclosed.” Trespass Quare
    Clausum Fregit, Black’s Law Dictionary (10th ed. 2014).
    DW AINA LE‘A DEV. V. STATE OF HAWAI‘I LAND USE COMM’N 15
    physical damage to the property or trespass upon it. This
    distinction has led courts in other jurisdictions to conclude
    that a “statute of limitations for ‘injuries to persons and
    property’ is not applicable to inverse condemnation actions.”
    Hart v. City of Detroit, 
    331 N.W.2d 438
    , 444 (Mich. 1982);
    see also Marvel, Annotation, 
    26 A.L.R.4th 68
    , § 7[b]
    (collecting cases in which “statutes of limitation pertaining
    generally to trespass actions or actions for injury to property
    were held inapplicable to actions for compensation for the
    taking of property without compensation”). In light of the
    Hawai‘i Supreme Court’s insistence on a “physical injury to
    tangible interests in property,” Au, 
    626 P.2d at 178
     (emphasis
    added) (citation omitted), the Hawai‘i Supreme Court could
    reasonably conclude that § 657-7 does not apply to a
    regulatory takings claim brought in an inverse condemnation
    action.
    *     *    *
    The State may be correct in its assertion that either
    § 661-5 or § 657-7 provides the applicable limitations period
    for DW’s state takings claim under the Hawai‘i Constitution.
    But we believe that the best course of action is to certify that
    question to the Hawai‘i Supreme Court.6 Not only is the
    question dispositive in this case and unanswered by Hawai‘i
    authority, see Haw. R. App. P. 13(a), but it is also a
    significant question of state law that could “have far-reaching
    consequences for the people and businesses of Hawai‘i,”
    Apana v. TIG Ins. Co., 
    574 F.3d 679
    , 684 (9th Cir. 2009). In
    our view, allowing the Hawai‘i Supreme Court to resolve this
    question after analyzing the competing considerations as well
    6
    Although the parties do not request certification, we may “certify a
    question sua sponte.” T-Mobile, 908 F.3d at 587 n.6.
    16 DW AINA LE‘A DEV. V. STATE OF HAWAI‘I LAND USE COMM’N
    as the views of other jurisdictions—rather than to trying “to
    predict uncertain [state] law” in the first instance—will foster
    the “cooperative judicial federalism” that the certification
    procedure is designed to promote. Lehman Bros. v. Schein,
    
    416 U.S. 386
    , 391 (1974).
    IV. CERTIFIED QUESTION
    In light of the foregoing, we respectfully certify the
    following question to the Hawai‘i Supreme Court:
    What is the applicable statute of limitations
    for a claim against the State of Hawai‘i
    alleging an unlawful taking of “[p]rivate
    property . . . for public use without just
    compensation,” Haw. Const. art. I, § 20?
    We do not intend our phrasing of the question to restrict
    the Hawai‘i Supreme Court’s consideration of the relevant
    issues. If the Hawai‘i Supreme Court accepts review of the
    certified question, “it may reformulate the [question] in light
    of the parties’ contentions or other relevant considerations.”
    Apana, 
    574 F.3d at 684
    .
    V. ORDER
    The clerk of our court is hereby ordered to transmit a
    copy of this order to the Hawai‘i Supreme Court under
    official seal of the United States Court of Appeals for the
    Ninth Circuit. See Haw. R. App. P. 13(c). The clerk is also
    ordered to provide “original or copies of all or any portion of
    the record” in this case as “[t]he Hawai‘i Supreme Court may,
    in its discretion, require.” 
    Id.
    DW AINA LE‘A DEV. V. STATE OF HAWAI‘I LAND USE COMM’N 17
    Further proceedings in this court are stayed pending the
    Hawai‘i Supreme Court’s decision. This case is withdrawn
    from submission and the clerk is directed to administratively
    close this docket, pending further order from this court. The
    parties shall file a joint notice in this court within one week
    of the Hawai‘i Supreme Court’s decision to accept or reject
    certification. If the Hawai‘i Supreme Court accepts the
    certified question, the parties shall file a joint status report to
    this court every six months after the date of acceptance, or
    more frequently if circumstances warrant. This panel retains
    jurisdiction over further proceedings in this court.
    SO ORDERED.
    FOR THE COURT:
    Jay S. Bybee, Presiding Judge
    U.S. Court of Appeals for the
    Ninth Circuit