Kalima Lawsuit

Settlement Overview

1. What is the Settlement?

   The parties reached a proposed settlement that resolves all claims against the State of Hawai'i that were brought or could have been brought in this lawsuit. The Settlement required the State to pay $328 million, which is being used to pay the valid claims of Settlement Class Members, as well as pay claims administration and special master expenses, attorneys’ fees to Class Counsel, and Incentive Awards to the Class Representatives.

   The Court certified the Settlement Class for settlement purposes only, so that members of the Settlement Class could be sent notice and have the opportunity to participate in the Settlement, or exclude themselves from the Settlement Class, to express their support or opposition to Final Approval of the Settlement, and to receive the payment offered by the Settlement.

   Class Members received several written notices from the Claims Administrator.

   First, Living Class Members were asked to update their contact information, and relatives of Deceased Class Members were asked to appoint a representative for their family and provide their contact information and the names and addresses of the deceased Class Member’s spouse and children. If you have not appointed a representative for your family’s Estate, you may do so by filing out a Deceased Information Request Form here.

   Second, Class Members and representatives received written notice of whether they were entitled to a Settlement Payment and, if so, how their payment was computed. For those Class Members entitled to a payment, Settlement Payments were calculated using a Fair Market Rental Value formula approved by the Court during the litigation. Class Members had an opportunity to correct the starting and ending dates of the payment period.

   Class Members who are not entitled to payment received written notice that they did not qualify for a Settlement Payment for one or more of the following reasons:

   1. Individuals who did not file a claim with the Panel on or before August 31, 1995.
   2. Individuals who filed a timely claim with the Panel but the claim did not assert an individual breach of trust which occurred between August 21, 1959, and June 30, 1988.
   3. Individuals who filed a timely claim with the Panel but the claim asserted an individual breach of trust that occurred after June 30, 1988.
   4. Individuals who filed a timely claim with the Panel but the claim was not a valid HRS Chapter 674 claim.
   5. Individuals who filed a timely claim with the Panel but settled their claim.
   6. Individuals who opted out of the Lawsuit in response to the 2007 class notice.
   7. Individuals who opted out of the Lawsuit in response to the 2012 class notice.
   8. Individuals who opt out of the Settlement Class and this Settlement by sending a valid and timely Opt-Out Letter to the Claims Administrator.

   Class Members who do not qualify for a Settlement Payment had the right to opt out of the settlement to pursue their own claim.

   A third notice was sent to Class Members in June 2023 informing them of the estimated amount of their payment and the amount of attorney’s fees Class Counsel that was requested.

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Probate Process FAQs

2. How were the probate fees calculated?

   The probate fees include attorney fees, case administration fees, and processing fees. These costs were calculated pro-rata, based on the award amount and on the complexity of the petition. More information about probate fees and costs can be found in the Court’s order located here.

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3. Will I be taxed on this payment?

   The tax treatment of this payment may vary based upon the individual circumstances and tax status of each beneficiary. We cannot provide advice on tax related matters regarding heir payments; however, a tax opinion was provided for this settlement and can be found here. Please consult with your tax professional on whether this payment affects your tax status.

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4. I am a family member of an heir, but I was excluded from payment. Can I still receive payment?

   When a Petition for Instructions is filed, the Probate Court determines how the settlement proceeds will be distributed.

   You are able to appeal an order up to 30 days after the order is finalized. Once this period has passed, the breakdown of payments and its recipients are final.

   After the Court issues an Order on the Petitions for Instructions, and 30 days have passed without an appeal, the payments are finalized and the opportunity to contest an order will expire.

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Tax FAQs

2. Will you be sending me a 1099 for the Settlement Payment?

   No, we will not be sending a 1099. Each individual’s tax obligations are unique. Please review the Tax Letter here explaining the general tax status of Settlement Payments. A copy of the tax opinion on which the Tax Letter is based can be viewed here. We are unable to provide tax advice regarding the Settlement Payment and you should consult with a tax professional about any possible tax implications for your specific situation.

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3. Was there an IRS ruling or determination regarding the tax implications of this Settlement Payment?

   The Claims Administrator is not aware of any IRS ruling or determination that has been issued or requested.

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4. I need to provide a breakdown of my award. Where can I get that information?

   The check stub sent along with the check contains a breakdown of the amount of the payment between agricultural, residential, pastoral, and construction. In addition, notices were previously sent to all Class Members with specific dates for each type of claim along with the amount attributed to each claim.

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November 2023 Disbursement FAQs

8. My address is wrong, how can I update it?

   If you have moved recently, you may submit an Information Request Form with your updated address. Additionally, you may request USPS to redirect your mail to your new address. This is a service offered by USPS. Visit https://moversguide.usps.com/mgo/disclaimer for additional information.

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9. Where is my payment?

   Initial Payments for living Class Members were mailed on November 21, 2023. While payments were sent USPS Priority Mail, please allow 7 to 10 business days for delivery. Payments for Deceased Class Members are required to go through the Probate Plan process. A time frame for payments for estates of Deceased Class Members is not currently available.

   For living Class Members whose awards are less than $25K, checks were sent USPS Priority Mail.

   For living Class Members whose awards are greater than $25K AND went to a street address, checks were sent USPS Priority Mail with an adult signature required.

   For living Class Members whose awards went to a PO Box, checks were sent USPS Priority Mail, without signature required.

   If you requested information or assistance with a special needs trust, your payment will be made after the requirements for the trust have been completed.

   If it has been more than 10 business days from November 21, 2023, and you have not received your check, please contact the Claims Administrator at info@Kalima-Lawsuit.com or call 1-808-650-5551 or 1-833-639-1308 (Toll-Free). Please do not call the Court or Class Counsel.

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10. How can I get my check reissued?

    If you need your check reissued for any reason, please contact the Claims Administrator at info@Kalima-Lawsuit.com or call 1-808-650-5551 or 1-833-639-1308 (Toll-Free) for information on further steps.

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June 2023 Notice FAQs

11. What was in the Third Notice?

    The Third Notice contains (1) your estimated settlement payment, (2) instructions for all Settlement Class Members, (3) special instructions for relatives of deceased Class Members and a Deceased Class Member Information Request Form, (4) a Tax Letter, and (5) Declaration in Support of Settlement.

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12. What is the next step?

    The Court granted Final Approval to the Settlement on July 21, 2023. Checks were mailed to Living Class Members on November 21, 2023.

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13. Are Settlement Payments taxable?

    Please review the Tax Letter here explaining the general tax status of Settlement Payments. Each individual’s tax obligations are unique. A copy of the tax opinion on which the letter is based can be viewed here. We are unable to provide tax advice regarding this payment and you should consult with a tax professional.

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14. I receive public benefits, and I am entitled to a Settlement Payment. Will the Settlement Payment impact my public benefits?

    Maybe. Contact the programs that administer your benefits immediately.

    Certain public assistance programs, including, but not limited to, the Supplemental Nutrition Assistance Program (sometimes called “SNAP” or “food stamps"), subsidized housing/housing assistance (such as public housing or a voucher program sometimes called “Section 8”), some state‐issued health insurance policies, some college tuition/grant programs, some Medicaid programs (sometimes known as “Quest” or “Med‐Quest”), some VA benefits, Social Security Disability Insurance, or Supplemental Security Income, may be affected by your receipt of a Settlement Payment.

    Each of these programs has complicated rules. Advice about your specific circumstances and public benefits are beyond the scope of this Settlement, and we cannot advise you about these issues. Please comply with all program rules and requirements for these programs, especially including any rule or requirement that you disclose changes in financial status to the relevant public assistance program. Certain program agencies may provide additional information about their unique rules. The loss or limitation of certain benefits can sometimes be avoided by having payment made into a special type of trust called a “Special Needs Trust.”

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15. What is a Special Needs Trust?

    A Special Needs Trust is a trust that can preserve a person’s eligibility for certain public benefits. The Special Needs Trust will hold the person’s settlement payment so the person can remain eligible for benefit programs that have an asset limit and can apply the trust funds for the benefit of that person.

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16. My public benefits program has said that I will lose benefits once I receive my Settlement Payment. What should I do?

    This is a very complicated issue and will differ from person to person. We cannot advise as to what you should do. You may want to hire your own private lawyer (at your own cost) to advise you about these complicated programs and/or a Special Needs Trust. If you want to hire a private attorney to counsel you about the Special Needs Trust, you should make sure that the attorney is familiar with the public benefit programs and Special Needs Trusts. Please notify the Claims Administrator if you hire a private attorney to assist you with a Special Needs Trust.

    You can contact the Hawai‘i State Bar Association Lawyer Referral and Information Service to seek assistance from an attorney for this purpose:

    Hawaii State Bar Association
    Lawyer Referral and Information Service
    Monday – Friday 8:30 a.m. – 4:30 p.m.
    Phone: 1-808-537-9140
    Email: LRIS@hsba.org
    www.hawaiilawyerreferral.com

    You may also contact community legal service providers that may (but also may not) be able to provide free or low-cost legal services, depending on their availability and other factors. These service providers include the following:

    Volunteer Legal Services of Hawai'i: 1-808-528-7046
    Legal Aid Society of Hawai'i: 1-808-696-6322
    University of Hawai'i Elder Law Program: 1-808-956-6544

    Please note that this is not an endorsement of any services or attorneys.

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17. I want my settlement payment held in a Special Needs Trust. What do I need to do?

    If you would like to have your Settlement Payment held for you and managed in a Special Needs Trust, please contact the Claims Administrator to request more information about the Special Needs Trust. The Claims Administrator will then send you information about Special Needs Trusts, including contact information for a Hawai‘i‐based trustee. You must notify the Claims Administrator prior to receiving any Settlement Payment if you are interested in a Special Needs Trust. If you request such information, your Settlement Payment will be held by the Claims Administrator until the time set by the Court for you to decide whether you want your Settlement Payment to be held for you and managed in a Special Needs Trust.

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18. My deceased relative was a Settlement Class Member. How do heirs get paid?

    Relatives of deceased Class Members should complete a Deceased Class Member Information Request Form and a Detailed Family Information Form.

    Please click here for more information.

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January 2023 Notice FAQs

19. What is the start date for my claim?

    Under distribution rules adopted by the Court, August 21, 1959, is the start date for all applications made before that date. The start date for claims is the date you applied or tried to apply for a homestead.

    If you are a successor to a homestead application, your start date is the date you succeeded to the homestead application.

    If the person whom you succeeded is also a Class Member, that person will receive payment from the date they applied until you succeeded. Your start date would run from the date you succeeded.

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20. What is the end date for my claim?

    The end date for claims will be the earliest of 1) date of an award of a lease to land you could occupy; 2) date of a Class Member’s death: or 3) date of settlement, April 14, 2022.

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21. How was my claim amount calculated

    Payment for waiting list claims were calculated based on a formula approved by the Hawai'i Supreme Court.

    The yearly Fair Market Rental Value (“FMRV”) approved by the Court for each type of lot—residential, agricultural, and pastoral—can be viewed here. These values were used to calculate Settlement Payments for each year of the claim period. These matrices contain FMRV amounts for each entire year.

    The claim period is the date a Class Member applied or attempted to apply (the “Start Date”) and the date s/he received an award or, if there was no award, the date the Class Member died, or the date of the settlement (4/14/2022), whichever date is earliest (the “End Date”). Each individual claim period was calculated from the Start Date to End Date, not by the year.

    For Construction Claims, the estimated Settlement Payment was calculated using the reasonable cost of repair at the time the claim was submitted, based on the Court-appointed construction expert’s analysis and recommendation, which was approved by the Court.

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22. What is "Fair Market Rental Value"?

    "Fair Market Rental Value" is the amount a person would typically have paid on the open market to rent the same type of lot(s) with infrastructure, minus $1 per year that would have been paid for the DHHL lease. FMRV DOES NOT INCLUDE THE COST/VALUE OF HOUSING because housing is not included in the DHHL lease, only the land itself.

    This formula was approved by the Hawai‘i Supreme Court. The values for each year are based on average rental costs of land. They are not the actual rental amounts paid by any Class Member.

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23. The Claims Panel denied my claim. Am I still a part of this lawsuit, and do I get a Settlement Payment?

    The Claims Panel decisions dismissing or denying claims did not bar your claim in this lawsuit.

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24. I received an award amount from the Claims Panel. Do I get that amount from this Settlement?

    No, the Claims Panel only made recommendations on claims; they did not make awards. The Panel’s recommendations on awards were based on a different analysis and will not be used in this case.

    The Panel required Class Members to prove individual out of pocket expense for housing. The Supreme Court rejected that method for calculating claims payments. Class Members will typically receive payment based on the Fair Market Rental Value formula adopted by the Supreme Court. Construction claims will be measured individually by a Construction Expert who will make recommendations based on reasonable estimated repair costs.

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25. I have a construction claim. How was my claim calculated?

    Construction claims were based on the reasonable estimated repair cost of the damaged house and were decided by a Construction Expert appointed by the Court.

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26. I am the successor to my parent’s homestead, and we have construction problems. Do I have a claim?

    Successors who have construction claims and succeeded to a parent’s homestead between August 21, 1959, and June 30, 1988, have valid claims in this Settlement. Successors who succeeded after June 30, 1988, do not have valid claims in this Settlement. If the damage occurred between August 21, 1959, and June 30, 1988, claims for the estate of the person you succeeded in will be considered.

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27. I submitted a claim for a deceased parent. Will my deceased parent’s estate receive a Settlement Payment?

    Claims made on behalf of deceased parents or other deceased relatives may be a part of this Settlement if they are valid under the Settlement Agreement and statute. Payments to potential heirs of deceased class members are required to go through the Probate Plan. A Probate Notice was mailed with additional information on further steps.

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28. My parent submitted a claim but is deceased. What should I do?

    If your deceased parent submitted a claim, you may fill out an Information Request Form online here or download a copy of the form here so that we have your contact and other information. You have the option of retaining private counsel (at your own cost) or participating in the Probate Special Administration (part of the Settlement Payment will be allocated to fees and costs associated with the Probate Special Administration).

    If you wish to retain your own attorney and need assistance finding an attorney, please contact the Hawaii State Bar Association Lawyer Referral and Information Service. Please tell them you are a Kalima Class Member.

    Hawaii State Bar Association
    Lawyer Referral and Information Service
    Monday – Friday 8:30 a.m. – 4:30 p.m.
    Phone: 1-808-537-9140
    Email: LRIS@hsba.org
    www.hawaiilawyerreferral.com

    You may also contact community legal service providers that may (but also may not) be able to provide free or low-cost legal services, depending on their availability and other factors. These service providers include the following:

    Volunteer Legal Services of Hawai'i: 1-808-528-7046
    Legal Aid Society of Hawai'i: 1-808-696-6322
    University of Hawai'i Elder Law Program: 1-808-956-6544

    Please note that this is not an endorsement of any services or attorneys.

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29. My parent died without a trust or a will. We cannot afford an attorney. What should we do?

    If your deceased parent submitted a claim, you may fill out an Information Request Form online here or download a copy of the form here so that we have your contact and other information. While you have the option of hiring a private attorney, you are not required to do so. Payment will be made under the terms of the Probate Plan approved by the Court. The Probate Plan is intended to effectively distribute settlement proceeds to the proper parties. Part of any Settlement Payment will be used to offset the fees and costs for the probate services under the Probate Plan.

    If you wish to retain your own attorney, refer to the information in here.

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30. My parent submitted a claim but is deceased. Who will get the payment?

    If your deceased parent’s claim is eligible for an award, the award payment will be made pursuant to the terms of the Probate Plan. A Probate Notice was sent on December 4, 2023, which contains more information on this subject. The estate will also have to pay fees and costs for probate services.

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June 2022 Notice FAQ’s

31. What is this lawsuit about?

    Kalima v. State of Hawai‘i was filed in 1999 when the State eliminated the Hawaiian Claims Office that reviewed breaches of trust by the State of Hawai‘i regarding the Hawaiian Home Lands Trust that occurred between 1959 and 1988.

    The Class Members for this Settlement are “All persons who filed claims with the Hawaiian Home Lands Trust Individual Claims Review Panel on or before August 31, 1995.”

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32. Why is this a class action?

    A class action is a lawsuit in which an individual called a “Class Representative” brings a single case on behalf of other people who have similar claims. All of these people together are a “Class” or “Class Members.” Once a Class is certified, a class action settlement finally approved by the Court resolves the issues for all Settlement Class Members, except for those who exclude themselves from the Settlement Class.

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33. Who is in the Settlement Class?

    “All persons who filed claims with the Hawaiian Home Lands Trust Individual Claims Review Panel on or before August 31, 1995.”

    A. My claim was dismissed by the Panel. Am I still a part of this case?

    This case was filed on behalf of all persons who filed claims with the Panel. You are still a part of this case even if the Panel dismissed your claim.

    B. I got a recommended award from the Panel. Will I be getting that amount as a Settlement Payment?

    You will not receive the amount of damages that was calculated by the Individual Claims Review Panel. If you received a recommended award from the Panel, it is not binding in this case.

    All Class Members will have their Settlement Payment calculated by a method that will be used only for purposes of this Settlement.

    C. Can I claim a Settlement Payment based on my out-of-pocket expense for alternate housing?

    All Class Members will have their Settlement Payment calculated the same way. If you want to seek damages based on a different method, you must exclude yourself from the Settlement and file a separate lawsuit.

    D. I filed a claim for my deceased parents. Will my parents’ claim be considered?

    Claims made on behalf of deceased parents or grandparents will be considered like any other claim.

    E. My wife and I filed one claim. We will each get a Settlement Payment?

    Claims on behalf of married couples who suffered individual breaches of trust will be considered like any other claim.

    F. Which Settlement Class Members are not entitled to a Settlement Payment?

    1. Individuals who did not file a claim with the Panel on or before August 31, 1995.
    2. Individuals who filed a timely claim with the Panel but the claim did not assert an individual breach of trust which occurred between August 21, 1959, and June 30, 1988.
    3. Individuals who filed a timely claim with the Panel but the claim asserted an individual breach of trust that occurred after June 30, 1988.
    4. Individuals who filed a timely claim with the Panel but the claim was not a valid HRS Chapter 674 claim.
    5. Individuals who filed a timely claim with the Panel but settled their claim.
    6. Individuals who opted out of the Lawsuit in response to the 2007 class notice.
    7. Individuals who opted out of the Lawsuit in response to the 2012 class notice.
    8. Individuals who opt out of the Settlement Class and this Settlement by sending a valid and timely Opt-Out Letter to the Claims Administrator.
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34. What does the Settlement provide?

    The State of Hawai'i created a $328 million Settlement Fund for the Class Members.

    The Claims Administrator has issued a check to each Living Class Member who had a valid claim following the Final Approval of the Settlement. All checks issued to Living Class Members will expire and become void 120 days after they are issued.

    Additionally, the attorneys who brought this lawsuit asked the Court to award attorneys’ fees between eight percent (8%) and twelve percent (12%) of the Settlement Fund for the substantial time, expense, and effort spent investigating the facts, litigating the case, and negotiating the Settlement, over more than 22 years. The Class Representatives also applied to the Court for a payment of up to $25,000 for their time, effort, and service in this matter.

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35. Who represents the class?

    The Court has approved the following attorneys to represent the Settlement Class. They are called “Class Counsel.” If you want to be represented by your own lawyer instead, you may hire one at your own expense.

    Carl M. Varady Law Office of Carl M. Varady Pauahi Tower, Suite 1730 1003 Bishop Street Honolulu, Hawai‘i 96813

    Thomas R. Grande Grande Law Offices 41-859 Kalaniana'ole Highway, #271 Waimānalo, Hawai'i 96795

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Additional Information

36. Where can I get additional information?

    This website is only a summary of the proposed Settlement of this lawsuit. More details are in the Settlement Agreement which, along with other documents, can be obtained here. If you have any questions, you can also call the Claims Administrator at 1-808-650-5551 or toll-free at 1-833-639-1308, or contact Class Counsel listed in FAQ 37. In addition to the documents available on this website, all pleadings and documents filed in court may be reviewed or copied in the Office of the Clerk. Please do not call the Judge or the Clerk of the Court about this case. They will not be able to give you advice on your options.

    PLEASE DO NOT CONTACT THE COURT DIRECTLY FOR INFORMATION REGARDING THE SETTLEMENT. THE COURT IS UNABLE TO PROVIDE YOU WITH INFORMATION OR ADVICE.

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37. When and where are Talk Stories with Attorneys being held?

    Talk Stories with Attorneys are being held via Zoom at these times:

    Monday, April 28, 2025, 5:00 p.m. – 6:00 p.m.

    You may join a Talk Story by:

    • Clicking here or
    • Calling the following number and enter the Zoom meeting ID when prompted if you prefer to participate by phone.
      Phone: +1 669 444 9171
      Meeting ID: 835 6682 6336
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