The Hawaii Supreme Court yesterday upheld a state board's decision to assess $4 million in penalties against retired auto dealer James Pflueger for runoff from his property that damaged a beach and coral reef on Kauai's north shore. The penalities were assessed in 2005. The board found the company's unauthorized grading and other work resulted in the 2001 mudflows into the ocean. In 2012 the state appeals court upheld the board's decision. The high court affirmed the court's ruling.