Note 12 - Commitments and Contingencies

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

1 2 . COMMITMENTS AND CONTINGENCIES

On

December 31, 2018,

the State of Hawaii Department of Health (“DOH”) issued a Notice and Finding of Violation and Order (“Order”) for alleged wastewater effluent violations related to the Company’s Upcountry Maui wastewater treatment facility. The facility was built in the

1960’s

to serve approximately

200

single-family homes developed for workers in the Company’s former agricultural operations. The facility is made up of

two

1.5

-acre wastewater stabilization ponds and surrounding disposal leach fields.

The Order resulted from an inspection by DOH officials in

June 2018.

The Order includes, among other requirements, payment of a

$230,000

administrative penalty and development of a new wastewater treatment plant, which become final and binding – unless a hearing is requested to contest the alleged violations and penalties. The Company has requested such a hearing, which has been deferred pending the outcome of ongoing discussions and negotiations with various governmental and private entities to resolve the matter.

The Company is presently unable to estimate the amount, or range of amounts, of any probable liability, if any, related to the Order and

no

provision has been made in the accompanying consolidated financial statements.

In addition, from time to time, the Company is the subject of various other claims, complaints and other legal actions which arise in the normal course of the Company’s business activities. The Company believes the resolution of these other matters, in the aggregate, is

not

likely to have a material adverse effect on the Company’s consolidated financial position or operations.