Water Management Dispute Reaches New Heights After PGA Cancels Its Tournament at The Plantation Course at Kapalua

By: Olivia Bassetti*                                                                          Posted: 10/24/2025

While many are recovering in the cold from the chaos of the holiday season, the PGA Tour begins their January by defrosting in sunny, warm Hawaii.[1]  The Sentry Tournament of Champions (“The Sentry”) marks the beginning of the PGA season as the first signature tournament of the year.[2]  It is a highly competitive and anticipated tournament, fielded by the top fifty players from the FedEx Cup from the previous year as well as the most recent winners of PGA Tour events.[3]  Held at The Plantation Course at Kapalua (“The Plantation”) in Maui since 1999, the PGA Tour announced on September 14, 2025 that it would not be able to hold the 2026 Sentry tournament at The Plantation Course.[4]  This decision was made due to the significant toll that a severe prolonged drought in Hawaii took on the course.[5]

The Plantation Course draws its water from a plantation diversion ditch originally created to provide water for pineapple fields, but the ditch is still owned and operated by the private company Maui Land and Pineapple Company (“Maui Land and Pineapple”) to this day.[6]  Before the tournament was officially canceled, The Plantation’s owners, TY Management, filed a lawsuit against Maui Land and Pineapple alleging that their improper maintenance of the drainage ditch, not the drought, caused the golf course to experience a water shortage that was killing the grass.[7]  Maui Land and Pineapple responded that they made required repairs in accordance with the Commission on Water Resource Management’s directions after 2018 flooding damaged parts of the ditch.[8]  TY Management’s lawsuit stemmed from a breach of contract claim that Maui Land and Pineapple sold the land on which the golf course was built with a guarantee of sufficient water supply.[9]  To prevail in a breach of contract claim, TY Management will have to establish there was a valid contract between them and Maui Land and Pineapple, TY Management upheld their side of the contract, Maui Land and Pineapple failed to perform their obligation under the contract, and that TY Management suffered actual damages from Maui Land and Pineapple’s breach of the contract.[10]

Approximately a month after TY Management filed its breach of contract lawsuit, Maui Land and Pineapple countersued for defamation, alleging a smear campaign by TY Management.[11]  They also allege The Plantation has not been following state-mandated water restrictions aimed at ensuring residents are prioritized in receiving water.[12]  Maui has experienced varying levels of drought severity throughout recent years, and there were many days in the summer of 2025 when Maui stream levels were recorded at their lowest points ever observed.[13]  Despite this, Maui Land and Pineapple says The Plantation was caught irrigating their course on June 25, 2025, when the area was under a drought restriction that prevented all irrigation.[14]  To prevail in a defamation lawsuit, Maui Land and Pineapple will have to establish TY Management made a false statement of fact, the statement was published to the public, TY Management acted with “actual malice,” and the statement caused actual damage to Maui Land and Pineapple’s economic interests.[15]  Maui Land and Pineapple maintains in their countersuit that TY Management negotiated easements from them over fifteen years ago to develop its own well source and storage use but failed to realize those plans.[16]

The outcomes of this lawsuit and countersuit are still pending, but in the interim, Maui Land and Pineapple has reported they are undergoing a “comprehensive strategic review” of the company and are looking into selling or leasing the company’s water source and infrastructure.[17]  In light of this announcement, the County of Maui has expressed interest in acquiring the drainage ditch in the hopes of strengthening water security for the community.[18]  As for the fate of The Sentry, given the large economic impact the tournament typically brings to Maui, state officials are working to salvage the event by moving the tournament to a different golf course on Maui.[19]

Based on the facts and the official record of extensive ongoing droughts plaguing Hawaii, it is likely that Maui Land and Pineapple would be able to prevail against the breach of contract claim by asserting that the drought in this instance made it impossible for Maui Land and Pineapple to fulfill their contract with The Plantation.[20]  Additionally, because there was at least one time during the alleged breach of contract period where the State of Hawaii banned any water use for irrigation, Maui Land and Pineapple may also argue that they were simply following state mandates by withholding water.[21]  Even if The Plantation is able to produce evidence that a lack of proper maintenance of the water ditch created their shortage of water, they would likely not fare well in front of a jury of Hawaiian citizens.[22]  A jury of Hawaiian citizens would likely not be sympathetic to the golf course because they also experienced the severe drought and were subject to the water restrictions of the past summer alongside the golf course, especially if Maui Land and Pineapple is able to introduce into evidence the video of The Plantation watering their course despite the state’s no-irrigation mandate.[23]  The Plantation’s best hope would be a bench trial to avoid the emotionality of a jury.[24]  Still, it would be a difficult task to prove that the shortage of water was due to the negligence of Maui Land and Pineapple when such severe and historic droughts were simultaneously plaguing the island.[25]

The outcome of the breach of contract lawsuit would also likely be used to decide the outcome of the defamation counterclaim because central to both suits is whether Maui Land and Pineapple properly maintained their ditch.[26]  If Maui Land and Pineapple can prove they properly maintained their ditch in accordance with state requirements, that information can be used to prove the false information and actual malice—elements of their defamation case.[27]  As it is likely that Maui Land and Pineapple will be able to defeat The Plantation’s breach of contract claim, it is also likely they will be able to prevail in their defamation counterclaim.[28]

*Staff Writer, Jeffery S. Moorad Sports Law Journal, J.D. Candidate, May 2027, Villanova University Charles Widger School of L

[1] See PGA Tour Announces The Sentry Will Not Be Contested at Kapalua in 2026, The Sentry (Sep. 16, 2025) https://thesentry.com/news/2025/09/15/the-sentry-2026-update-pga-tour (reporting that The Sentry would take place from January 5 to 11, 2026).

[2] See id. (noting that The Sentry tournament was kickoff tournament for PGA Tour season from 1986 to 2013).  The tournament resumed as the first tournament of the season in 2024 when the PGA Tour went back to a calendar-based season.  See id. (noting that The Sentry was not always first tournament of season).

[3] See id. (noting that The Sentry tournament draws top rated players worldwide with most recent winner being from Japan).

[4] See id. (detailing history of The Sentry tournament and positive impact that tournament has on local community by supporting local nonprofits); see also, Michael Brestovansky & Stephanie Salmons, Drought Cancels Maui PGA Tournament, Aloha State Daily (Sep. 16, 2025) https://alohastatedaily.com/2025/09/16/drought-cancels-maui-pga-tournament/ (noting that general manager of Kapalua Golf was only notified minutes before decision was made public).

[5] See PGA Tour Announces The Sentry Will Not Be Contested at Kapalua in 2026, supra note 1 (reporting that PGA tour’s agronomy team visited The Plantation in early September and concluded that Hawaii’s drought impacted course so significantly that it was not likely to be up to Tour-standard playing conditions in time for tournament).

[6] See Daryl Huff, Maui Golf Courses Sue over Water Shortage, Hawaii News Now (Aug. 20, 2025, at 01:25 EDT) https://www.hawaiinewsnow.com/2025/08/20/maui-golf-courses-sue-over-water-shortage/ (reporting that The Plantation golf course is not solely reliant on water from drainage ditch, as homeowners and farmers also rely on water controlled by Maui Land and Pineapple as well).

[7] See id.  (explaining that water flowing through drainage ditch is provided by Hawaii Water Service, but The Plantation alleged Maui Land and Pineapple actually caused water shortage).  Hawaii’s Commission on Water Resource Management reported that there were several areas with damage from the floods seven years ago in 2018.  See id. (noting the recent floods in Hawaii); See also Hawaii News Now, Golf Course Sue Maui Land and Pine over Water Shortage, at 01:50–02:00 (YouTube, Aug. 20, 2025) https://www.youtube.com/watch?v=Ysn4fCQl8I0 (showing images comparing photos of drainage ditch from July 7, 2017, with drainage ditch from May 23, 2025).

[8] See Huff, supra note 6 (stating that Maui Land and Pineapple assert that their repairs and actions are consistent with contract between them and The Plantation).

[9] See id. (reporting that multiple neighborhood subdivisions and farm have joined The Plantation in their lawsuit and their land was also sold to them by Maui Land and Pineapple under similar conditions); see also Associated Press, Kapalua Won’t Host PGA Tour Opener As It Deals with Drought, ESPN (Sep. 16, 2025, at 15:09 EDT) https://www.espn.com/golf/story/_/id/46283684/kapalua-host-pga-tour-opener-deals-drought (reporting that lawsuit against Maui Land and Pineapple claims “disrepair, not any act of God, or force of nature, or other thing, is why users who need it are currently without water”).

[10] See J. Stephen Hunnicutt, The Four Elements of a Breach of Contract Claim, The Hunnicut Law Group (Sep. 7, 2024) https://www.hunnicuttlaw.com/breach-of-contract-elements/ (explaining four required elements to make out prima facie case for breach of contract claim in court).  One defense to a breach of contract claim is the impossibility of performance based on uncontrollable external circumstances.  See id. (noting there are recognized ways to avoid liability for breaching contract).

[11] See KHON2 News, Maui Land and Pineapple Files Countersuit Against TY Management, Citing Defamation, at 00:33–00:44 (YouTube, Sep. 23, 2025) https://www.youtube.com/watch?v=SxsZXWW4hYg (explaining basis of each side’s lawsuit and that TY Management said countersuit was only distraction from underlying issues).

[12] See Hawaii News Now, supra note 7, at 01:09–01:15 (displaying notices sent out to local community prohibiting non-potable water usage to retain enough water for safety and firefighting needs).

[13] See Island News, Maui Land and Pineapple Countersues in Water Rights Clash with Maui County, at 01:30–01:39 (YouTube, Sep. 24, 2025) https://www.youtube.com/watch?v=C19qUemEzco (interviewing Ciara Kahahane, Deputy Director Commission on Water Resources, who states that these summer days were lowest they have seen in Honokōhau stream in 107 years of record keeping); see also Brestovansky & Salmons, supra note 4 (reporting that Maui has been in least “Stage 1” water shortage due to drought since 2022).

[14] See Island News, supra note 13, at 00:18–00:31 (showing footage of sprinklers with expansive range operating in middle of the day); see also id. at 00:31–0:45 (depicting graph comparing water use of The Plantation with rest of local population that drainage ditch serves).  Maui Land and Pineapple asserts that two Kapalua golf courses, including The Plantation, used over eleven million gallons of water in June 2025 during the drought while Maui County residents only used 80,000 gallons, and Maui Land and Pineapple’s agricultural tenants used none.  See id. (noting that The Plantation was still largest user of water in June 2025 despite severe water restrictions).

[15] See Elements of a Business Defamation Claim, Bona L. (June 1, 2020) https://www.bonalaw.com/insights/legal-resources/elements-of-a-business-defamation-claim (explaining elements of defamation claim when statements are made about company and not individual).  Businesses are generally held to actual malice standard instead of negligence standard.  See id. (noting that plaintiffs who accuse business of defamation have higher standard of proof to meet than plaintiffs who accuse individual of defamation).

[16] See Island News, supra note 13, at 2:25 – 2:30 (citing Maui Land and Pineapple CEO’s revelation about past deal with The Plantation, saying that by failing to develop their own well source and storage facilities, The Plantation failed to prepare for drought conditions).

[17] See Brestovansky & Salmons, supra note 4 (reporting that Maui Land and Pineapple CEO Race Randle expressed hope that selling their assets may increase water security across their island).

[18] See KHON2 News, supra note 11, at 02:32–02:47 (reporting that Maui County mayor is exploring potential opportunities to bring more water management system under public control).

[19] See Daryl Huff, State Hopes Change in Course Will Salvage Sentry Golf Tournament on Maui, Hawaii News Now (Sep. 18, 2025) https://www.hawaiinewsnow.com/2025/09/18/state-hopes-change-course-will-salvage-sentry-golf-tournament-maui/ (reporting that The Sentry brings in approximately $50 million in economic activity to Maui).  James Tokioka, director of Hawaii’s Department of Business, Economic Development and Tourism also said that he is hopeful that because PGA did not say the tournament was canceled, they will be able to move it to another golf course on Maui.  See id. (reporting that Tokioka has initially suggested tournament move to King Kamehameha Golf Course south of Wailuku, although he has not talked to club’s management yet).  He is hopeful that PGA will be open to moving the tournament to another golf course because it would be economically efficient as another PGA golf tournament is already scheduled in Hawaii shortly after The Sentry.  See id. (noting that PGA is for-profit business and if The Sentry is cancelled, it will increase overall cost of having Sony Open few days later in Hawaii).

[20] See Island News, supra note 13, at 01:30–01:39 (reporting that there were multiple days over past summer where water levels of streams were lowest ever recorded); see also Hunnicutt, supra note 10 (reporting that impossibility of performance based on uncontrollable circumstances is acceptable defense to breach of contract claim).

[21] See Hawaii News Now, supra note 7 (reporting that there was period where non-potable uses of water were banned entirely in Maui).

[22] See Hawai’i Doesn’t Want Visitors Right Now, or Ever. Here’s Why., Tai Swim (Apr. 1, 2023) https://taiswim.co/blogs/bikini-blog/why-you-should-not-come-to-hawaii-for-your-next-vacation?srsltid=AfmBOoqeY9DBP6LzwDQvo1v7aKAHX7-c3z1K0BLrnyybiJuxebFOuSfE (listing reasons that Hawaiians are pushing back against large scale tourism in Hawaii, citing disrespect for their environment and economic disparities).

[23] See Island News, supra note 13, at 00:31–00:45 (highlighting that golf course used significantly more water than residents did during drought).

[24] See Wex Definitions Team, Jury Nullification, Legal Info. Inst. (Oct. 2022) https://www.law.cornell.edu/wex/jury_nullification (explaining that juries can reject evidence or refuse to apply law if they want to send message about social issue); see also Wex Definitions Team, Judgment Notwithstanding The Verdict (JNOV), Legal Info. Inst. (June 2020) https://www.law.cornell.edu/wex/judgment_notwithstanding_the_verdict_(jnov) (explaining that if judge believes no reasonable jury could have come to conclusion that jury did, judge can set aside judgment and issue their own ruling or order new trial).

[25] See Island News, supra note 13, at 01:05–01:11 (noting severe drought plaguing Hawaii).

[26] See Hunnicutt, supra note 10 (explaining that required element for breach of contract is that one side did not uphold their side of contract); see also Elements of a Business Defamation Claim, supra note 15 (explaining that required element of defamation is that statement made had to have been false).

[27] See Elements of a Business Defamation Claim, supra note 15 (explaining that false statement and actual malice are required elements of defamation claim).

[28] See Island News, supra note 13 at 00:31–00:45 (noting that golf course used more water than residents during period of severe drought and that they continued to try to water their courses despite temporary ban on irrigation in attempt to save water).