Given a planar set S of n points, maxdominance problems consist of computing, for every \(p\in S\), some function of the maxima of the subset of S that is dominated by p. A number of geometric and graph-theoretic problems can be formulated as maxdominance problems, including the problem of computing a minimum independent dominating set in a permutation graph, the related problem of finding the shortest maximal increasing subsequence, the problem of enumerating restricted empty rectangles, and the related problem of computing the largest empty rectangle. We give an algorithm for optimally solving a class of maxdominance problems. A straightforward application of our algorithm yields improved time bounds for the above-mentioned problems. The techniques used in the algorithm are of independent interest, and include a linear-time tree computation that is likely to arise in other contexts.