The U.S. Supreme Court will likely rule next year on whether the state can transfer or sell lands that once belonged to the Hawaiian monarchy.

At least four of the nine high-court justices granted the state's request yesterday to hear an appeal of a Hawaii Supreme Court ruling that blocked the transfer of what are known as crown or ceded lands for a housing development on Maui.

The state high court ruled that the lands should not be transferred or sold until a settlement is reached of native Hawaiian claims to the ceded property.

The ruling by the U.S. Supreme Court, which is expected before the end of its term in June, will be considered significant. Ceded lands make up 1.2 million acres throughout Hawaii, or about 29 percent of the total land in the state.

The state maintains that states have a sovereign right to sell or transfer lands without interference by the federal government. Twenty-nine states joined the state attorney general's office in urging the high-court justices to take the case.

“;We believe that prudent management of those lands for the benefit of all of Hawaii's citizens must include, on occasion, the right to sell or exchange land,”; Attorney General Mark Bennett said.

But the Office of Hawaiian Affairs, which filed a lawsuit seeking to block the transfer, believes the preservation of the land is critically important to native Hawaiians.

“;Each piece of land is unique and irreplaceable,”; said Office of Hawaiian Affairs lawyer Sherry Broder.

OHA officials say they believe the U.S. Supreme Court will uphold the state court's ruling.

“;We firmly stand behind the state Supreme Court's opinion, which says the state should keep the ceded land trust intact until native Hawaiian claims to these lands are settled,”; said OHA board Chairwoman Haunani Apoliona.

The case involves the state's attempt to transfer ceded lands for low-cost housing on Maui.

The ceded lands were transferred to the federal government following the overthrow of the Hawaiian monarchy in 1893 and later given to Hawaii upon statehood in the 1959 Admission Act.

The state holds the land in trust for public purposes and the betterment of native Hawaiians.

In 1992 the state transferred 500 acres to the predecessor of the state Housing and Community Development Corp. for the low-cost housing development at Leialii on Maui.

The corporation tried to give OHA a check for $5.6 million, 20 percent of the land's worth, but OHA refused to accept the money because it did not want to give up any claims to the property.

OHA later filed a lawsuit to block the transfer.

On Jan. 31 the Hawaii Supreme Court agreed with OHA in a 93-page unanimous decision. The state court interpreted Congress' 1993 apology resolution as preventing the transfer or sale of ceded lands until native Hawaiian claims to those lands are resolved.

The U.S. Supreme Court grants only an estimated 1 percent of all requests to review cases, and agreed yesterday, without comment, to review the Hawaii Supreme Court decision.

Bennett said he was pleased.

“;We believe that the Hawaii Supreme Court was incorrect in its holding that the Congress, in the Apology Resolution, barred the state of Hawaii from selling or transferring ceded lands,”; he said.

He said Congress gave the state that right by the Admission Act.

Apoliona noted that the Hawaii Supreme Court cited the Apology Resolution, which said the overthrow of the Hawaii monarchy was “;illegal”; and apologized to native Hawaiians for the U.S. military's participation.

In the state high court's decision, Chief Justice Ronald Moon wrote that the state justices believe the Apology Resolution mandated that the state has a duty to preserve the ceded lands “;until such time as the unrelinquished claims of the native Hawaiians have been resolved.”;

Bennett said he believes he has a “;strong case”; and hopes the other states will also file briefs with the high court urging it to overturn the Hawaii Supreme Court decision.

Broder also said they have “;strong arguments”; in upholding the state high court's ruling.

There are no other pending attempts to sell or transfer ceded lands because the administrations of former Gov. Ben Cayetano and Gov. Linda Lingle refrained from any such moves until the issue involving the Maui land transfer is resolved, according to Bennett.

Broder said it shows the sale of ceded lands is not that critical to the state because it has been “;able to continue doing its business without selling any ceded lands.”;