Fukuchi v. County of Hawai'i

NOT FOR PUBLICATION IN WEST'S HAWAI I REPORTS AND PACIFIC REPORTER

Electronically Filed
Intermediate Court of Appeals
CAAP-XX-XXXXXXX
21-FEB-2025
07:56 AM
Dkt. 90 SO
CAAP-XX-XXXXXXX

IN THE INTERMEDIATE COURT OF APPEALS

OF THE STATE OF HAWAI I

DEAN K. FUKUCHI, Appellant-Appellant, v.
COUNTY OF HAWAI I, DEPARTMENT OF FINANCE,
MOTOR VEHICLE REGISTRATION, Appellee-Appellee

APPEAL FROM THE DISTRICT COURT OF THE THIRD CIRCUIT
NORTH AND SOUTH HILO DIVISION
(CIVIL NO. 3RC191000596)

SUMMARY DISPOSITION ORDER
(By: Leonard, Acting Chief Judge, Wadsworth and McCullen, JJ.)
Self-represented Appellant-Appellant Dean Fukuchi

(Fukuchi) appeals from the October 1, 2021 Court's Decision and

Order Denying Appeal Finance Director's Decision and Police

Unsafe Condition Filed June 10, 2019 (Order Denying Appeal)

entered by the North & South Hilo Division of the District Court

of the Third Circuit (District Court).1

Fukuchi raises seven points of error on this appeal,

contending that: (1) the District Court erred in denying

Fukuchi's appeal and concluding that the May 30, 2019 letter

determination and notice (County's Determination and Notice)

issued on behalf of the Director of the Department of Finance

(Director), Vehicle Registration & Licensing Division, of the

1
The Honorable M. Kanani Laubach presided.
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Appellee-Appellee County of Hawai i (County), was in compliance

with applicable law; (2) the District Court erred in determining

that once the County received the April 25, 2019 Total Loss

Affidavit from Insurance Auto Auctions, Inc. (IAA) by Cassara

Nuufolau as Agent for Insurance Company (Total Loss Affidavit),

Hawaii Revised Statutes (HRS) 286-48 (2020) applies, and the

County was correct in sending the County's Determination and

Notice; (3) the District Court erred in finding and concluding

that Fukuchi's real dispute is with the insurance company, not

the County; (4) the County's decision to revoke Fukuchi's

certificates of title (Title) and vehicle registration

(Registration) pursuant to HRS § 286-22(c) (2020), was not

authorized by that statute and should have been withdrawn and

rescinded; (5) the County erred in determining that as a result

of the damage to Fukuchi's vehicle, it became subject to HRS

§ 286-48; (6) the County erred in claiming that an insurance

company properly notified it of the total loss of Fukuchi's

vehicle; and (7) the County erred in accepting IAA's

determination that Fukuchi's vehicle was a total loss pursuant to

HRS § 286-2 (2007).

Upon careful review of the record and the briefs

submitted by the parties, and having given due consideration to

the arguments advanced and the issues raised, we resolve

Fukuchi's points of error as follows:

We begin with Fukuchi's challenges to the County's

actions:

(1) Fukuchi argues that the County erred in the

County's Determination and Notice when it stated that his

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vehicle's Title and Registration were revoked pursuant to HRS

§ 286-22(c), because only a police officer may determine that a

vehicle is unsafe pursuant to that statute. HRS § 286-22

provides:
§ 286-22 Inspection by officers of the police
department. (a) The chief of police or any police officer
of any county may, at any time when the chief of police or
police officer has reasonable cause to believe that a
vehicle or moped is unsafe or not equipped as required by
law, require the owner or driver of the vehicle or moped to
submit the vehicle or moped to an inspection or make the
necessary corrections or repairs.

(b) If the vehicle or moped is found to be in an
unsafe condition or if any required part or equipment is not
present or if any required part or equipment is present but
not in proper repair, the officer shall issue a citation to
the owner or driver stating the reasons that the vehicle or
moped is deemed unsafe or is not equipped as required and
shall require that a new certificate of inspection as
provided in section 286-26 be obtained within five days or
that the defect be cured.

(c) If upon inspection, the chief of police or any
police officer determines that any vehicle or moped is in
such unsafe condition as to constitute a menace to the
public or is not equipped as required and cannot reasonably
be restored to a safe condition as required in this part,
the chief of police or police officer shall remove the
sticker which signifies the certificate of inspection and
inform the director of finance who shall immediately suspend
the registration of the vehicle or moped and give notice of
the suspension to its owner. Whenever the director of
finance has suspended the registration of any vehicle or
moped under this part, the owner of the vehicle or moped
shall immediately surrender and forward to the director of
finance the certificate of registration and the license
plates last issued upon registration of the vehicle for the
current year.

(d) Any person aggrieved by this section shall have
the right to a hearing before a district judge of the
circuit in which the person is cited within five days. The
judge shall determine whether the chief of police or any
police officer reasonably performed the chief of police's or
police officer's duties hereunder and shall make any
appropriate order.

(Emphasis added).
The County's Determination and Notice states in

reference to Fukuchi's vehicle, as identified by its License and

Vehicle Identification numbers:
An insurance company has notified the Vehicle
Registration & Licensing Division that you are retaining
your vehicle which they have declared a total loss pursuant
to Section 286-2, [HRS]. Since the insurance company has

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stated that your vehicle has sustained material damage to
its frame, unitized structure or suspension system, your
vehicle's certificates of title and registration are revoked
pursuant to Section 286-22(c), HRS. You are required to
immediately surrender the vehicle's certificate of title,
certificate of registration and license plates to this
Division.

As a result of the damages to your vehicle, it is now
subject to Section 286-48, HRS, and you will be issued new
certificates of title and registration upon the surrender of
the aforementioned items. In order to restore your vehicle
for operation on public roads, you will be required to
submit a new safety inspection, a notarized certificate of
inspection, and your newly issued certificate of
registration. The notarized certificate of inspection is a
signed statement by the State of Hawaii licensed bonded
registered or certified SALVAGE motor vehicle repair dealer
attesting that the vehicle was rebuilt/restored by the same
licensed salvage rebuilder as the one certifying that the
vehicle was rebuilt in accordance with recognized vehicle
manufacturer's established repair procedures or
specifications and allowable tolerances for the particular
model and year. You may obtain information concerning
bonded registered or certified SALVAGE motion vehicle repair
dealers from the State Motor Vehicle Repair Dealers Board in
Honolulu at 1-808-586-2698.

Bonded registered or certified salvage motor vehicle
repair dealers in the County of Hawaii will not issue a
notarized Certificate of Inspection unless the work is
performed by them. We will not register a salvaged car
without this certification.

Any questions relating to the declaration of the
vehicle being a total loss and the extent of damage to your
vehicle should be discussed with the insurance company who
settled your claim. If you have sold the subject vehicle,
please forward a copy of this letter to the buyer so they
are advised of the above requirements.

Fukuchi's argument has merit. 2 HRS § 286-22(a) permits

inspection by a county police officer. If upon inspection the

police officer makes an "unsafe condition" determination as

described in HRS § 286-22(c), then the police officer shall

remove the vehicle's safety inspection sticker and notify the

Director of Finance. Then, pursuant to HRS § 286-22(c), the

Director of Finance shall immediately suspend the registration of

the vehicle and give notice of the suspension to the vehicle

2
The County later conceded that its citation to HRS § 286-22(c) was
in error and it would not be proceeding on the charging section of the
statute, which the County acknowledged could only be enforced by a police
officer. The County did not, however, withdraw the County's Determination and
Notice purporting to revoke the vehicle's Title and Registration.

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owner, triggering a requirement that the owner immediately

surrender and forward the registration and license plates to the

Director of Finance.

Contrary to the first paragraph of the County's

Determination and Notice, HRS § 286-22(c) does not provide for

the revocation of a vehicle's Title. Nor does HRS § 286-22(c)

provide for the Director's suspension, revocation, and/or demand

for surrender of a vehicle's Title, Registration, and license

plates based on an insurance company's declaration and notice to

the County that a vehicle is a total loss pursuant to HRS

§ 286-2.3

(2) Fukuchi argues that the County erred in deciding

that, as a result of the damages to Fukuchi's vehicle, the

vehicle was subject to HRS § 286-48. Fukuchi submits that

pursuant to HRS § 286-48(a) & (b), an application for a salvage

certificate must be submitted by an insurance company or its

authorized agent, which was not what happened in this case. HRS

§ 286-48 includes a number of requirements and procedures

applicable to salvaged vehicles and states as follows:
§ 286-48 Certificates of ownership of salvaged motor
vehicles. (a) Whenever a motor vehicle subject to
registration under this part is sold as salvage or conveyed
to an insurance company, in the ordinary course of business
or as the result of a total loss insurance settlement where
the insurance company receives the certificates of
registration and ownership, the purchaser or, if an
insurance company its authorized agent, shall within ten

3
This appears to be a reference to the definition of "Rebuilt
vehicle" in HRS § 286-2, which states as follows:

"Rebuilt vehicle" means any vehicle which has been
declared a total loss by an insurer and has been rebuilt or
repaired to operate on public highways. For the purpose of
this definition, a vehicle is a total loss only if there is
material damage to the vehicle's frame, unitized structure,
or suspension system, and the projected cost of repairing
the damage exceeds the market value of the vehicle at the
time of the incident causing it to be declared a total loss.

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days from the purchase, or the settlement of the insurance
loss, forward the motor vehicle's endorsed certificate of
ownership or other evidence of title, certificate of
registration, license plates, and an application for a
salvage certificate as provided for in section 286-44.5, to
the director of finance. If the certificate of registration
or one or both license plates are lost, an affidavit, duly
notarized and signed by the party responsible for the
compliance of this section stating that the party has no
knowledge of the location of the certificate of registration
or the license plates, shall be filed with the director of
finance of the county having jurisdiction over the vehicle.
In any event the certificate of ownership or other evidence
of title shall be forwarded to the director of finance.

(b) Upon receipt of the certificate of ownership,
certificate of registration, license plates, and application
for a salvage certificate, the director of finance shall
issue a salvage certificate in the name of the purchaser or
insurance company.

(c) Upon resale of the salvage vehicle, the seller
or, if the seller is an insurance company, its authorized
agent shall transfer the salvage certificate and issue a
bill of sale to the purchaser which shall be on a form
prescribed by the director of finance. The seller shall
notify the purchaser, in writing, of the requirements of
this chapter regarding the recertification of salvage
vehicles. The seller shall sell the salvage vehicle only to
a person licensed pursuant to chapter 437B, sections 289-4,
or 445-232, or any person who executes an affidavit which
states whether or not the salvage vehicle would be used to
construct a rebuilt vehicle as defined in section 286-2 and
that if the salvage vehicle is to be rebuilt, the purchaser
will register the rebuilt vehicle as required by this
chapter.

(d) In the event the salvage vehicle is rebuilt so as
to be capable of again operating on the highways of this
State, the motor vehicle shall not be licensed for such
operation, nor shall the ownership thereof be transferred
until there is submitted to the director of finance:

(1) The prescribed bill of sale;

(2) An appropriate application for registration of
the rebuilt or restored motor vehicle along with
the salvage certificate and a certificate of
inspection signed by the registered or certified
motor vehicle repair dealer who is bonded as
required by section 437B-26, and who rebuilt the
vehicle, attesting that the original recognized
vehicle manufacturer's established repair
procedures or specifications and allowable
tolerances for the particular model and year
were utilized and adhered to; and

(3) Any other document and fee required by the
director of finance.

The counties may, by ordinance, establish the fee to be
charged for the inspection of rebuilt motor vehicles.

(e) Whenever a certificate of registration and
certificate of ownership is issued for a motor vehicle with
respect to which a salvage certificate has been previously

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issued, the new certificates shall conform to the requirements of
section 286-47 and:

(1) Bear the words "Rebuilt Vehicle"; and

(2) Appear in such a manner as to distinguish them
from the certificate of registration and
certificate of ownership for motor vehicles
other than rebuilt or restored motor vehicles.

(f) In the event a total loss insurance settlement
between an insurance company and its insured or a claimant
for property damage caused by its insured results in the
retention of the salvage vehicle by the insured or claimant,
as the case may be, then in such event, the insurance
company or its authorized agent shall notify, within ten
days from the date of settlement, the director of finance of
such retention by its insured or claimant, as the case may
be, and shall notify its insured, or claimant as the case
may be, in writing, of the requirements of this chapter
regarding the recertification of salvage vehicles. The
notification shall be on a form prescribed by the director
of finance.
Although the County's Determination and Notice just

cites HRS § 286-48 generally, upon conceding that HRS § 286-22(c)

did not authorize its actions here, the County pointed to HRS

§ 286-48(f) as authority for its revocation and demand for the

surrender of the Title, Registration, and license plates for

Fukuchi's vehicle. However, this statute does not support the

County's action.

As alluded to in Fukuchi's arguments, HRS § 286-48(a)

provides detailed instructions related to Title, Registration and

license plates when a vehicle is sold as salvage or conveyed to

an insurance company, including requirements for the purchaser or

insurer to forward Title, Registration, license plates, and an

application for a salvage certificate to the Director. HRS

§ 286-48(a) only applies to a vehicle that is sold as salvage or

conveyed to an insurer; it does not apply to a vehicle that is

retained by its owner. It is undisputed that Fukuchi's vehicle

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was neither sold as salvage nor conveyed to an insurance company.

Therefore, HRS § 286-48(a) does not apply to Fukuchi's vehicle. 4

HRS § 286-48(f) arguably applies to Fukuchi's vehicle, 5

but it does not authorize or support the County's revocation of

Fukuchi's Title and Registration here. Under HRS § 286-48(f),

when a total loss settlement results in the insured's retention

of the salvage vehicle, then the insurance company or its agent

must notify the Director of such retention, and the insurance

company or its agent must notify the insured – in this case

Fukuchi – of the requirements for recertification of a salvage

vehicle. HRS § 286-48(f) provides no authority to the Director

to take action against a vehicle owner upon receipt of the notice

from the insurance company or its agent.

Reading HRS § 286-48 as a whole, particularly in light

of other provisions in HRS chapter 286, it is clear that

Fukuchi's ability to renew his Registration, sell the vehicle, or

lawfully operate it on State highways is restricted and subject

to numerous requirements. HRS § 286-48 does have applications to

Fukuchi's vehicle. However, none of the statutory provisions

relied on by the County support its revocation of Title and

Registration, and/or its demand for immediate surrender of Title,

Registration, and license plates.

4
HRS § 286-48(b) follows from a sale under HRS § 286-48(a), and
instructs the Director to issue a salvage certificate in the name of the
purchaser or insurance company.
5
Fukuchi's insurer, State Farm Mutual Automobile Insurance Company,
declared the vehicle a total loss and tendered a check to Fukuchi, which he
refused to accept because he did not agree that the vehicle was a total loss.
A motor vehicle insurance policy may provide for the adjustment and settlement
of a total loss, consistent with statutory requirements, and subject to either
party's rights under the insurance contract or at common law. See Hawai i
Motor Vehicle Insurance Law, HRS chapter § 431:10C, including, inter alia, HRS
§§ 431:10C-309 to 311 (2019).

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(3) Fukuchi argues that the County erred in claiming

that an insurance company properly notified it of the total loss

of Fukuchi's vehicle. This argument lacks merit. As set forth

in footnote 3 above, the plain language of the statutory

definition of "Rebuilt vehicle" in HRS § 286-2 establishes that

the insurer is solely responsible for declaring a vehicle a total

loss when there is material damage to the vehicle's structure and

the projected cost of repairs exceeds its market value. See HRS

§ 286-2 ("'Rebuilt vehicle' means any vehicle which has been

declared a total loss by an insurer and has been rebuilt or

repaired to operate on public highways." (emphasis added)). In

addition, HRS § 286-48(f) specifically provides for an agent of

the insurance company to provide notice to the Director. Fukuchi

provides no authority for his argument that IAA cannot act as an

insurance company's agent.

(4) Fukuchi argues that the County erred in accepting

IAA's determination that Fukuchi's vehicle was a total loss. It

appears that Fukuchi disputes that his vehicle was a total loss.

However, Fukuchi provides no authority for the proposition that

the County has an obligation to independently determine or verify

that a vehicle is a total loss and we find none. This argument

is without merit.

We now turn to Fukuchi's challenges to the District

Court's Order Denying Appeal:

(1) & (2) Fukuchi argues, inter alia, that the

District Court erred in denying Fukuchi's appeal and concluding

that the County's Determination and Order complied with HRS

chapter 286 and is lawful. Some of the statements in the

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County's Determination and Order were merely informative, such as

the requirements to lawfully operate the vehicle on public roads

if it is rebuilt, including who can certify that the vehicle was

properly rebuilt. However, as discussed above, the Director's

revocation of Title and Registration, and demand for immediate

surrender of the vehicle's Title, Registration, and license

plates, were not authorized by the statutory provisions relied on

by the County. Therefore, the District Court erred in part in

concluding that the County was correct in sending Fukuchi the

County's Determination and Notice.

(3) Fukuchi argues that the District Court erred in

finding and concluding that Fukuchi's "real dispute [is] with the

insurance company and not [the County]." As the District Court

recognized, Fukuchi disagrees with the determination that his

vehicle is a total loss. However, as noted above, that

determination was made by the insurer, not the County, and the

County is not required to independently determine or verify

whether the vehicle is a total loss. On that issue, Fukuchi's

dispute is with the insurance company, as correctly concluded by

the District Court.

However, as discussed above, Fukuchi raised a

meritorious challenge to the County's actions in revoking his

Title and Registration and demanding immediate surrender of

Fukuchi's Title, Registration, and license plates.

Accordingly, the District Court's October 1, 2021 Order

Denying Appeal is affirmed in part and vacated in part; this case

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is remanded to the District Court for further proceedings

consistent with the Summary Disposition Order. 6

DATED: Honolulu, Hawai i, February 21, 2025.

On the briefs: /s/ Katherine G. Leonard
Acting Chief Judge
Dean K. Fukuchi,
Appellant-Appellant pro se. /s/ Clyde J. Wadsworth
Associate Judge
Ryan K. Thomas,
Mark D. Disher /s/ Sonja M.P. McCullen
Deputy Corporations Counsel, Associate Judge
for Appellee-Appellee.

6
We note that HRS § 286-59 (2020) provides:

§ 286-59 Appeal; procedure. Upon appeal, the
district court shall hold a hearing de novo, and shall have
power to enter such judgment or order as in its reasonable
judgment may be warranted by all of the circumstances. In
making the judgment or order, the court may waive defects or
irregularities in the current or previous registrations
which, in its opinion, have been satisfactorily explained on
the part of the appellant, or may order registration of the
vehicle subject to reasonable conditions to be then or
thereafter, within a reasonable time fixed by the court,
complied with by the appellant, upon noncompliance with
which conditions the director of finance may cancel such
registration. The conditions may include the furnishing of
a bond in a reasonable amount, to be fixed by the court, to
insure compliance with other conditions or to indemnify the
director of finance and any other person in the event it is
thereafter held or found that the registration was wrongful.
Any certificate of registration issued subject to any such
condition shall bear thereon an appropriate notation
referring to the condition or the words "conditional
registration". A copy of the court's order as to the
conditional registration shall be served upon the director
of finance and retained in the file relating to the
registration, and shall constitute notice to the world of
the condition therein stated, provided the certificate of
registration contains a notation of conditional registration
as hereinabove provided.

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