The 9th U.S. Circuit Court of Appeals ruled yesterday against a group of Hawaii taxpayers who say that the state unconstitutionally discriminates against non-Hawaiians by giving money to programs that only benefit Hawaiians.

The federal appeals court stopped short of dismissing the 2002 lawsuit but overturned its own earlier decision by finding the 14 taxpayers lack legal standing to challenge state funding of the Office of Hawaiian Affairs. The court sent the case back to U.S. District Court in Honolulu to determine if any of the plaintiffs are eligible "in any other capacity."

State and OHA attorneys said they expect the decision will put an end to the suit.