Linder v. Meadow Gold Dairies, Inc.

515 F.Supp. 2d 1154 (2007)

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Nature of the Case

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Facts

P is the fee simple owner of real property leased to Meadow Gold Dairies (D). On May 28, 1997, Meadow Gold exercised its renewal options, extending the Lease until September 30, 2013. A few months later, Meadow Gold assigned its interests and obligations to Southern Food Group (D). The downstream parcel was originally occupied by the Papa'a Bay Ranch. Four months before Meadow Gold exercised its right to a fifteen-year renewal of the Lease, the downstream parcel was sold to Mandalay Properties Hawai'i, Inc. and developed into the 'Tara Plantation,' a 15,000-square foot, 6 bedrooms, 8.5 bath, two-living room home with two separate 4,000 square foot guest bungalows, a spring-fed swimming pool, and an on-site yoga studio. Tara was originally developed as one of the personal homes of Peter Guber, principal of Mandalay and current chairman and owner of film production company Mandalay Entertainment. Mandalay complained of raw sewage and contamination of its downstream land and water and asserted D's liability. Mandalay provided notice that it intended to file a 'citizen's lawsuit' against D on the grounds that the operation of the Farm violated the Clean Water Act. SFG (D) contacted the Hawaii Department of Health (which administers the Clean Water Act in Hawaii) to inquire whether D was required to maintain facilities on all of its dairy fields -- and not just the Moloa'a Dairy plant itself -- which would be able to handle a continuous and catastrophic rainfall. The Hawaii Department of Health was not able to give D a firm opinion on the matter. D then announced the closure of the Moloa'a Dairy Farm, explaining in a press release that 'the decision to close the farm was driven by the realities of market and regulatory forces that have changed over the years.' D terminated the Lease almost thirteen years early. D requested that P waive the liquidated damages provision contained in the Lease. P filed suit seeking a lump sum cash liquidated damages payment. P filed a Motion for Partial Summary Judgment as to his claim for liquidated damages. D filed a Countermotion for Partial Summary Judgment.