Justia Hawaii Supreme Court Opinion Summaries

This case arose from a dispute over the adequacy of concrete work Nordic PCL Construction, Inc. performed on a condominium construction project as a subcontractor to LPIHGC, LLC. The parties proceeded to arbitration. An arbitrator selected by the parties issued an arbitration award in favor of LPIHGC. LPIHGC moved to confirm, and Nordic moved to vacate, the arbitration award. The circuit court denied the motion to vacate and granted the motion to confirm. The Intermediate Court of Appeals (ICA) vacated the arbitration award on the grounds that the arbitrator failed to disclose various relationships with the law firms of LPIHGC’s attorneys. The Supreme Court vacated the ICA’s judgment on appeal and the circuit court’s final judgment, thereby vacating the associated orders granting LPIHGC’s motion to confirm the arbitration award and denying Nordic’s motion to vacate the arbitration award, holding that because the factual and/or legal bases upon which the circuit court denied the motion to vacate were unascertainable, the Supreme Court was unable to appropriately review the circuit court’s ruling. Remanded for an evidentiary hearing and entry of findings of fact and conclusions of law on Nordic’s motion to vacate. View "In re Arbitration of Nordic PCL Constr., Inc. v. LIPHGC, LLC" on Justia Law

After a bench trial, the district court found Defendant guilty of harassment. Defendant attended his sentencing hearing without his lawyer. After a brief colloquy with Defendant, the district court found that Defendant had validly waived his right to counsel. The court then sentenced Defendant to the maximum five-day jail term allowed for a term of probation for the harassment offense. The Intermediate Court of Appeals (ICA) upheld Defendant’s sentence, concluding that Defendant waived his right to counsel. The Supreme Court vacated Defendant’s sentence and remanded the case for a new sentencing hearing, holding that the record did not support a finding that Defendant’s waiver of counsel was knowingly and intelligently made. View "State v. Phua" on Justia Law

Since 1993, Defendant claimed lawful ownership of a property that was fraudulently transferred to him as part of a conspiracy to prevent Plaintiffs from collecting on a judgment. After two remands, a third jury found that the transfer of certain property was fraudulent and awarded $253,000 in special damages and $1,642,857 in punitive damages. Defendant appealed, arguing that the punitive damages award was grossly excessive and in violation of his rights under the Fourteenth Amendment. The intermediate court of appeals (ICA) vacated the punitive damages award. The Supreme Court vacated the ICA’s judgment, holding that the punitive damages awarded by the third jury was justified and did not violate Defendant’s federal due process rights. View "Kekona v. Bornemann" on Justia Law

VP & PK purchased an insurance policy from Lexington Insurance Company for work on a construction site. Kila Kila, one of VP & PK’s subcontractors, purchased an insurance policy from Nautilus Insurance Company. Both policies contained an “other insurance” provision and included duties to defend and indemnify. When VP & PK and Kila Kila were sued for damages resulting from the construction, Nautilus funded the defense of both Kila Kila and VP & PK. Lexington satisfied the judgment against VP & PK but did not contribute to the defense costs. Nautilus filed a complaint seeking (1) a declaration that Lexington owed VP & PK a duty to defend, which it breached; and (2) equitable contribution from Lexington for defense costs. The U.S. district court granted summary judgment for Lexington, holding that Lexington’s policy was in excess to Nautilus’s policy, and therefore, Lexington’s duty to defend was not triggered. The Hawaii Supreme Court accepted certified questions from the court of appeals and held, inter alia, that (1) an “other insurance” clause purporting to release an otherwise primary insurer of the duty to defend if the insurer becomes excess as to liability is enforceable, but only as between two or more insurers seeking to allocate or recover defense costs; and (2) an otherwise primary insurer who becomes an excess insurer by operation of an “other insurance” clause has a duty to defend as soon as a claim is tendered to it and there is the mere possibility that coverage of that claim exists under its policy. View "Nautilus Ins. Co. v. Lexington Ins. Co." on Justia Law

Plaintiff filed a complaint against his former employer and supervisors, alleging that he suffered discriminatory conduct while employed as a car salesman. Plaintiff asserted claims for state harassment and retaliation, federal harassment and retaliation, unlawful termination as against public policy, and breach of his employment contract. The circuit court granted summary judgment in favor of Defendants. The intermediate court of appeals (ICA) (1) vacated the grant of summary judgment in favor of the employer and one of Defendant’s supervisors on the state harassment and retaliation claims and vacated the grant of summary judgment in favor of the employer on the federal harassment and retaliation claims and the public policy claim, and (2) otherwise affirmed. The Supreme Court (1) vacated the ICA’s judgment on the state harassment and retaliation claims with respect to Plaintiff’s supervisor, holding that individual employees are not liable as employers under Haw. Rev. Stat. 378-2(1)(A) and 378-2(2); and (2) otherwise affirmed. View "Lales v. Wholesale Motors Co." on Justia Law

Plaintiff, a Hawaii non-profit corporation, entered into a lease agreement with Defendant, the trustee of a trust. Plaintiff subsequently began renting cabins on the property to the public. After a dispute arose between the parties regarding the terms of the lease, Plaintiff filed a complaint in the circuit court seeking a declaratory judgment that its commercial uses of the property and rental of cabins to the public was permitted under the lease, among other things. The circuit court granted summary judgment in favor of Defendant on Plaintiff's claim regarding cabin rentals but granted summary judgment in favor of Plaintiff on Defendant's counterclaims for breach of contract and unjust enrichment. The intermediate court of appeals (ICA) vacated summary judgment as to the issue of cabin rentals. The Supreme Court (1) affirmed the ICA regarding cabin rentals, holding that the portion of the lease delineating permissible uses of the property was ambiguous; and (2) reversed the ICA's judgment regarding Defendant's counterclaims for breach of contract and unjust enrichment because the issue of whether Plaintiff was prohibited by the lease from renting cabins to the general public had yet to be resolved on remand. Remanded.View "Hawaiian Ass'n of Seventh-Day Adventists v. Wong" on Justia Law

The Waikoloa Beach Villas condominium project was developed by Respondent, Sunstone Waikoloa, LLC. Petitioner, the Association of Apartment Owners of the Waikoloa Beach Villas, contacted Respondent to resolve issues resolving purported construction defects. Petitioner then filed a motion to compel mediation and arbitration. Respondent argued that it could not request arbitration because it had failed to comply with the requirements of the Declaration of Condominium Property Regime for the Villas. The Declaration imposed numerous requirements that Petitioner must meet before initiating arbitration or litigation proceedings against Respondent. The lower court granted Petitioner's motion. The intermediate court of appeals (ICA) reversed. The Supreme Court vacated in part and affirmed in part the judgment of the ICA, holding that section R.4(c) of the Declaration violated Haw. Rev. Stat. 514B-105(a) because it imposed limitations on Petitioner in arbitration or litigation more restrictive than those imposed on other persons. Remanded.View "Ass'n of Apartment Owners of Waikoloa Beach Villas v. Sunstone Waikoloa, LLC" on Justia Law

Because of a property dispute, Petitioner filed a complaint against Respondents. The trial court granted Respondents judgment as a matter of law (JMOL) on Petitioner’s breach of fiduciary duty claim. The jury then rendered a special verdict against Petitioner on the remainder of Petitioner's claims. After the verdict was read into the record and the jury was discharged, the trial court recalled the jury. The jurors were polled, and one juror responded that the verdict as read did not reflect his verdict. The intermediate court of appeals (ICA) sustained the verdict, holding that a jury cannot be recalled following an order discharging the jury. The Supreme Court affirmed in part and vacated in part the judgment of the ICA, holding (1) a court may recall a jury following a formal discharge if the jury is subject to the control of the court; (2) the jurors’ statements that they misunderstood the legal effect of their answers to a special verdict question did not provide a basis for overturning the jury’s verdict in favor of Respondents; and (3) JMOL was correctly granted on Petitioner’s breach of fiduciary duty claim. View "Lahaina Fashions, Inc. v. Bank of Hawai’i" on Justia Law

Petitioner was a passenger in an uninsured vehicle that was in an accident. At the time, Petitioner had a certificate policy issued by the Department of Human Services through its Joint Underwriting Program (JUP). The JUP Bureau determined Petitioner was entitled to receive benefits under the JUP and assigned Petitioner's claim to Respondent. Respondent, however, denied Petitioner's request for coverage because Petitioner's certificate policy did not include uninsured motorist coverage. Petitioner sued Respondent, alleging claims of, inter alia, bad faith. The circuit court entered summary judgment for Respondent. The intermediate court of appeals (ICA) affirmed, concluding that an underlying insurance contract was required to assert a claim of bad faith against an insurer. The Supreme Court vacated the judgments of the lower courts, holding (1) under the JUP, the insurer assigned to a claim owes the same rights to the person whose claim is assigned to it as the insurer would owe to an insured to whom the insurer had issued a mandatory motor vehicle insurance policy; (2) the insurer's good faith covenant implied in such motor vehicle policies applies to claimants under the assigned claim procedure despite the absence of an insurance policy; and (3) accordingly, Respondent owed Petitioner a duty of good faith.View "Willis v. Swain " on Justia Law

Respondent awarded Petitioner a contract to develop an affordable housing development project. The parties entered into a development services agreement (DSA) that contained a provision stating that the parties would proceed to arbitration under state law in the event of a dispute. Petitioner was subsequently terminated from the project. Respondent filed a complaint against Petitioner asserting several causes of action, including intentional misrepresentation and negligence. Petitioners counterclaimed. Petitioners later filed an arbitration motion, which the circuit granted. The intermediate court of appeals denied Petitioners' motion to dismiss for lack of jurisdiction. The Supreme Court affirmed in part and vacated in part, holding (1) the order compelling arbitration in this case was sufficiently final under the collateral order doctrine to be appealable under the general civil matters appeal statute; (2) the scope of the arbitration clause contained in the DSA encompassed all claims of Respondent and counterclaims of Petitioners; and (3) the circuit court correctly granted the motion to compel alternative dispute resolution and to stay proceedings. Remanded.View "County of Hawaii v. UniDev, LLC" on Justia Law