Kawakami v. Kahala Hotel Investors, LLC.
Kawakami v. Kahala Hotel Investors, LLC.
Opinion
OPINION OF THE COURT BY WILSON, J
This class action concerning Hawaii's hotel and restaurant service charge law returns to us for the second time.
See
Kawakami v. Kahala Hotel Inv'rs, LLC
,
I. Background
Jason Kawakami (Kawakami) 2 held his wedding reception at the Kahala Hotel and Resort (the hotel) in July 2007. 3 The hotel collected a 19% service charge on the purchase of food and beverages for his reception, but the hotel failed to distribute 100% of the funds from the service charge directly to its service employees as tip income. Instead, the hotel retained 15% of those funds as what it termed "the management share," then reclassified those funds and used them to pay for the banquet employees' "wages." The "event agreement," a contract used by the hotel for large group events, contained no disclosure that a portion of the service charge would be diverted to the hotel, rather than directly distributed to the banquet employees as tip income. A section of the event agreement, titled "Service Charge and Tax," stated only that "[a]ll food and beverage prices are subject to a 19% service charge." No other disclosure was made to Kawakami that a portion of the service charge would not *1282 be directly distributed to the banquet employees as tips.
Kawakami filed a lawsuit on behalf of himself and other customers who paid a service charge to the hotel in connection with the purchase of food or beverages. He claimed the hotel's conduct was an unfair or deceptive act or practice (UDAP) under HRS § 481B-14 and HRS § 480-2. Kawakami moved for summary judgment "on liability" because the undisputed facts established that the hotel violated HRS § 481B-14 and HRS § 480-2. The circuit court granted summary judgment as to liability only, not remedies or damages, ruling that under HRS § 481B-14 the hotel had "a duty to disclose" to Kawakami that a portion of the service charge would become the property of the hotel rather than paid to its employees as tip income. 4 A jury trial to determine damages followed. The jury found that the hotel was the legal cause of injury to the plaintiff class and awarded $269,114.73 to the class, corresponding to the amount of the combined service charges retained by the hotel as "the management share."
A little more than a month after the verdict, the hotel renewed its prior motions for JMOL, which had been denied by the circuit court. This time the circuit court granted the motion for JMOL on the theory there had been insufficient evidence the plaintiffs suffered injury as a result of the hotel's violation of HRS § 481B-14. The circuit court stated that it was "struggling to understand how the Management's Share ... constitutes financial or economic loss or harm to Plaintiffs." The court focused on the apparent lack of an economic loss to the plaintiffs relating to the hotel's failure to distribute the funds from the service charge in the manner required by the statute. That failure, the court stated, "did not cause Plaintiffs to pay any additional sums over and above their contractual obligation to pay the service charge or any other additional compensation." Yet, the court observed, the "jury awarded as damages to Plaintiffs a sum that appears to be equal to the amount of the Management's Share of the service charge."
On appeal the ICA vacated the circuit court's order granting Kawakami's motion for summary judgment and held instead that summary judgment should have been granted in favor of the hotel. The ICA reasoned that because the hotel ultimately distributed the management share of the service charge as wages, its actions were in compliance with the language of HRS § 481B-14 and no disclosure to Kawakami was required. Kawakami I , mem. op. at 4-5.
On certiorari in
Kawakami I
, we rejected the ICA's reasoning. Instead, we recognized "the well-settled duty of hotels and restaurants" under the statute "to either distribute the entirety of the service charge directly to non-management banquet employees who served the consumers as 'tip income,' or to disclose its practice of withholding the service charge[.]"
Kawakami I
,
a hotel or restaurant that applies a service charge for food or beverage services must either distribute the service charge directly as tip income to the non-management employees who provided the food or beverage services, or disclose to its customers that the service charges are not being distributed as tip income.
Kawakami I
,
On remand from our decision in
Kawakami I
, the ICA affirmed the circuit court's grant of JMOL to the hotel because, in the ICA's view, Kawakami "failed to establish that he was injured, financially or
otherwise
, as a result of Kahala Hotel's deceptive trade practices[.]"
Kawakami II
, mem. op. at 1. The ICA acknowledged that a plaintiff alleging an unfair or deceptive act or practice need not
*1283
show strictly "economic loss" in order to satisfy the consumer "injury" requirement of HRS § 480-13(b).
Kawakami II
, mem. op. at 3. The ICA nonetheless concluded that Kawakami failed to establish that he was injured even by the "less stringent standard" of non-economic injury.
On certiorari, Kawakami argues that the ICA erred by holding that no contract-based or UDAP-based injury occurred. He also argues that the ICA erred in affirming the circuit court's order denying plaintiffs' motion in limine no. 1, which sought to preclude the admission of certain evidence.
II. Standards of Review
A. Motions for Judgment as a Matter of Law
"It is well settled that a trial court's rulings on motions for judgment as a matter of law are reviewed
de novo
. When we review the granting of a motion for judgment as a matter of law, we apply the same standard as the trial court. A motion for judgment as a matter of law may be granted only when after disregarding conflicting evidence ... and indulging every legitimate inference which may be drawn from the evidence in the non-moving party's favor, it can be said that there is no evidence to support a jury verdict in his or her favor."
Miyamoto v. Lum
,
B. Motions in Limine
Because "the granting or denying of a motion in limine is within the trial court's inherent power to exclude or admit evidence, we review the court's ruling for the abuse of discretion standard."
State v. Kealoha
,
C. Statutory Interpretation
Appellate courts review questions of statutory interpretation de novo.
Bhakta v. Cty. of Maui
,
III. Discussion
We consider first the issue of Kawakami's contract-based damages, then the issue of Kawakami's UDAP-based damages, and finally the issue whether Kawakami's motion in limine no. 1 was properly denied by the circuit court.
A. Kawakami and the Class Sustained Contract-based Damages
"Contract law is designed to enforce the expectancy interests created by agreement between the parties[.]"
Ass'n of Apartment Owners of Newtown Meadows ex rel. its Bd. of Directors v. Venture 15, Inc.
,
Once a court concludes a breach of contract has occurred, the court ordinarily "enforces the broken promise by protecting the expectation that the injured party had when he made the contract." Restatement (Second) of Contracts § 344 cmt. a. Thus, contract damages generally attempt to give the injured party "the benefit of the bargain" by awarding a sum of money that will, to the extent possible, put the injured party "in as good a position as he [or she] would have been in had the contract been performed." Restatement (Second) of Contracts § 347 cmt. a;
1. The statutory requirements of Hawaii's hotel and restaurant service charge law are incorporated as implied terms into the event agreement or other contract between the purchaser and the hotel or restaurant, and those requirements set the purchasers' expectation interest in the contracts
When a hotel or restaurant applies a service charge for the sale of food or beverage services, the requirements of HRS § 481B-14
6
govern and are incorporated as implied terms into the contracts between the hotel or restaurant and the purchasers of the food and beverage services. That is because a "contract is presumed to include all applicable statutes and settled law relating to its subject matter."
Gabriel v. Island Pac. Acad., Inc.
,
The requirements of HRS § 481B-14 are, then, implied terms in the relevant contracts.
HRS § 481B-14 's requirements set the expectancy or performance interest for the purchasers of food or beverage services to which a hotel or restaurant applies a service charge. Under the statute, those purchasers are entitled to expect that the service charge will be distributed directly and entirely to service employees as tip income. That
*1285
expectancy interest can be overcome or negated only if the hotel or restaurant clearly discloses to those purchasers that the hotel or restaurant follows a pattern of distributing the proceeds of a service charge in a way that diverges from the distribution pattern specified by the statute.
Id.
;
Kawakami I
,
Here, it is undisputed that the hotel neither distributed the proceeds from the service charges directly and entirely to the service employees as tip income, nor clearly disclosed that it failed to do so. See HRS § 481B-14.
2. A hotel or restaurant's violation of the implied terms imposed by HRS § 481B-14 is a breach of contract
The requirements and expectations imposed by the implied terms incorporated into contracts from HRS § 481B-14 are clear. In Kawakami I , we held that under HRS § 481B-14,
a hotel or restaurant that applies a service charge for food or beverage services must either [a] distribute the service charge directly as tip income to the non-management employees who provided the food or beverage services, or [b] disclose to its customers that the service charges are not being distributed as tip income.
Kawakami I
,
In essence, HRS § 481B-14 gives legal force and form to the ordinary consumer expectation that service charges are to be distributed in their entirety to service personnel and not diverted to other uses by the hotel or restaurant. HRS § 481B-14 authorizes a departure from the distribution pattern based on the ordinary consumer expectation only where the hotel or restaurant "clearly disclose[s]" that its pattern of distributing service charges diverges from the pattern specified by the statute.
specifically sought to meet consumer expectations 'that service charges applied to the sale of food and beverages by hotels and restaurants are levied in lieu of voluntary gratuity, and are distributed to the employees providing the service'; an expectation that resulted in 'most consumers not tipping for services over and above the amounts they pay as a service charge.'
Kawakami I
,
*1286 If a hotel or restaurant neither follows the specified service charge distribution pattern nor clearly discloses that it does not, it violates the contract's implied terms, thereby breaching the contract, and the purchaser "receives something substantially less or different from that for which he or she bargained." Williston on Contracts § 63:3 (4th ed.) (discussing material breach of a contract). The benefit of the bargain for a purchaser such as Kawakami is that 100% of the service charge paid by the purchaser to the hotel as a service charge goes directly to the service personnel as tip income in lieu of a voluntary gratuity.
Here, the hotel failed to perform its contractual obligation, mandated by the implied terms, to follow the baseline distribution pattern. 7 Nor did the hotel opt out of the implied terms requiring the baseline distribution pattern by following the statutorily-required route of clearly disclosing to Kawakami or the members of the class the fact that the hotel follows a different distribution pattern. 8 Instead, the hotel retained for itself a percentage of the service charge, an amount that, had the purchaser been given the benefit of his bargain, would have been distributed entirely to the service personnel who assisted at his wedding reception.
3. Giving Kawakami the benefit of the bargain requires the hotel to pay in damages the portion of the service charge that was retained by the hotel rather than distributed to the service employees
A party "who sustains a loss by the breach of another is entitled to compensation that will 'actually or as precisely as possible compensate the injured party.' "
Hi Kai Inv., Ltd. v. Aloha Futons Beds & Waterbeds, Inc.
,
Here, Kawakami had a statutory and contractual right to expect that the service charge he paid to the hotel would be distributed directly and entirely to the service personnel as tip income and not retained in part by the hotel. HRS § 481B-14. The extent to which the hotel failed to deliver 100% of the proceeds from the service charge to the service employees in the manner required by the statute and the implied terms represents the extent of the breach.
See
Zanakis-Pico v. Cutter Dodge, Inc.
,
*1287
Restatement (Second) of Contracts § 235(2)("When performance of a duty under a contract is due any non-performance is a breach.");
The hotel's retention of 15% of the proceeds from the 19% service charge violated HRS § 481B-14, the implied terms of contracts subject to the statute, and Kawakami's expectancy (or performance) interest. It is true, as the circuit court observed in granting the JMOL, that Kawakami and the class did not appear to suffer any additional out-of-pocket loss as a result of the hotel's failure to distribute 100% of the service charge proceeds directly to the service personnel as tip income. That failure, the court noted, "did not cause Plaintiffs to pay any additional sums over and above their contractual obligation to pay the service charge or any other additional compensation." As the court explained, it was "struggling to understand how the Management's Share of the service charge constitutes financial or economic loss or harm to the Plaintiffs." The court was puzzled by the fact that the "jury awarded as damages to Plaintiffs a sum that appears to be equal to the amount of the Management's Share of the service charge." However, viewed in light of the class's expectancy or performance interest, the jury award reflects the fact that "the injured party has a right to damages based on his expectation interest as measured by ... the loss in the value to him of the other party's performance caused by its failure or deficiency[.]" Restatement (Second) of Contracts § 347(a) (emphasis added).
The hotel contends that Kawakami's complaint does not, in fact, challenge the event contracts themselves. However, Kawakami specifically alleged that he paid the hotel a 19% service charge, and that "the final bill" for his reception banquet services failed to disclose that the service charge was not distributed in its entirety to service employees. He attached a copy of the final bill as an exhibit to the complaint. He alleged that the hotel "did not distribute all of the service charge to the employees who provided that service" but instead retained a portion of Kawakami's service charge for itself, and that the hotel had "a policy and practice of retaining for itself a portion of those service charges." In addition, Kawakami alleged that the hotel's actions "are in direct violation of Hawai'i Revised Statutes § 481B-14." He alleged as well that the hotel's conduct constituted unfair or deceptive acts or practices in violation of HRS § 480-2.
To satisfy Hawai'i Rule of Civil Procedure (HRCP) 8(a)(1),
9
"the complaint must contain either direct allegations on every material point necessary to sustain a recovery
on any legal theory
, even though it may not be the theory suggested or intended by the pleader, or contain allegations from which an inference fairly may be drawn that evidence on these material points will be introduced at trial."
Marsland v. Pang
,
Kawakami's complaint put the hotel on notice that Kawakami alleged the hotel repeatedly violated the requirements of HRS § 481B-14, that the violations constituted unfair or deceptive acts or practices, that the final bill contained evidence of the violations, and that Kawakami suffered damages as a *1288 result. In addition, as the attorneys for the class asserted in the motion for class certification, "Defendant entered into form contracts with the class members for banquets, events, meetings, room service and other events in which Defendant added a pre-set 'service charge' to customers' bills for food and beverage provided by the hotel and/or its restaurants." "In this case, the same contract forms were used for all members." "There are also common questions of fact relating to the service charge charged to Plaintiff and the putative Class members, in terms of the Hotel's policy of distribution and the content of the Hotel's contract form. "
Accordingly, we hold that the allegations in the plaintiffs' complaint gave the hotel fair notice that the hotel's pattern and practice of violating HRS § 481B-14 was at issue "on any legal theory."
Marsland
,
4. Disposition of the judgments below in light of Kawakami's contract-based damages
We now apply the principles of contract law explained above to the various judgments entered below, beginning with the JMOL. We review de novo a trial court's rulings on motions for judgment as a matter of law.
Miyamoto
,
The circuit court granted partial summary judgment to Kawakami on the liability issue prior to the damages trial. Subsequent to the jury's award of damages, the circuit court reversed its prior denials of the hotel's motions for JMOL and granted JMOL to the hotel, ruling that Kawakami failed to establish the hotel's liability. Because we hold the JMOL was improperly granted and accordingly vacate it, we now consider the validity of the prior grant of partial summary judgment to Kawakami on the liability issue. "This court may affirm a grant of summary judgment on any ground appearing in the record, even if the circuit court did not rely on it."
Reyes v. Kuboyama
,
Finally, we reinstate the jury's findings on legal causation and the amount of damages. The special verdict asked two questions. The first was, "Did the defendant's failure to disclose to plaintiffs that not all of the service charge was to be distributed directly to its employees as tip income legally cause injury to plaintiffs?" The jury's answer was "yes." As a matter of law and undisputed fact, that answer is correct. Under the implied terms of those contracts, a hotel or restaurant is contractually required either to follow the tip distribution pattern specified by the statute or to clearly disclose to the purchasers of food or beverage services that it does not. Here, it is undisputed that the hotel did neither , and that failure caused injury to the class.
The special verdict also asked, "What are the total damages for the entire plaintiff class?" The jury's answer was "$269,114.73." The total service charges collected by the hotel for the relevant period amounted to $1,697,884.73. The amount actually distributed to service employees as tip income was $1,428,770.00. The total of the "management's share" was $269,114.73. 10 In other words, the jury awarded for damages a sum exactly equal to the "management's share" of the combined service charges; that is, the jury awarded to Kawakami and the class that portion of the total service charges collected that the hotel diverted to its own use rather than distributing directly as tip income.
Our analysis of the relevant principles of contract law above led us to hold that Kawakami's damages for breach of contract based on his expectation interest are properly measured by the 15% of the total 19% service charge which the hotel retained for itself rather than directly distributing as tip income to service employees. The jury in the damages trial considered the factual evidence regarding the total service charges collected over the relevant period. The jury awarded $269,114.73 to the class, corresponding to the amount of the combined service charges retained by the hotel as "the management share." That amount is 15% of the total 19% service charge and corresponds to the amount retained by the hotel. The jury's award is supported by substantial evidence.
Mehau v. Reed
,
B. Kawakami and the Class Sustained Damages under the Unfair or Deceptive Acts or Practices (UDAP) Statute.
To recover damages for a violation of the UDAP statute's prohibition on unfair or deceptive acts or practices, a consumer must prove (1) either that the defendant violated the UDAP statute (or that its actions are deemed to violate the UDAP statute by another statute), (2) that the consumer was injured as a result of the violation, and (3) the amount of damages sustained as a result of the UDAP violation. HRS § 480-2(d) (Supp. 2006); 11 HRS § 480-13(b) 12 (Supp.
*1290
2006);
Compton v. Countrywide Fin. Corp
,
The first element for a UDAP claim is established if the act or practice in question is either proven to be a violation of HRS § 480-2 or deemed to be a violation ("declared unlawful") under HRS § 480-2. HRS § 480-13(a) (noting that any consumer injured by an unfair or deceptive act or practice that is "forbidden or declared unlawful by section 480-2" may "sue for damages sustained by the consumer[.]"). Here, the UDAP statute declares that violations of Hawaii's hotel and restaurant service charge law are deemed unlawful under HRS § 480-2. HRS § 481B-4 ("Any person who violates
this chapter shall be deemed
to have engaged in an ... unfair or deceptive act or practice in the conduct of any trade or commerce within the meaning of
section 480-2
." (emphases added) ); HRS § 481B-14 (containing Hawaii's hotel and restaurant service charge law).
See
also
Davis v. Four Seasons Hotel Ltd.
,
The second element of a UDAP violation requires injury to the consumer caused by such a violation.
See
HRS § 480-13(b). The UDAP statute does not expressly define the term "injury."
See
Zanakis-Pico v. Cutter Dodge, Inc.
,
The third element of a UDAP violation is proof of the amount of damages. Here, the requisite proof of the amount of damages was supplied by proof at the trial on damages of the "management's share" of 15% of the combined service charges-found by the jury to amount to $269,114.73-which was diverted by the hotel to its own use rather than distributed directly and entirely to the service employees as tip income. Because the hotel did not clearly disclose that its distribution pattern differed from the baseline set by the statute, the hotel violated both HRS § 481B-14 and the implied terms of its contract with Kawakami, causing damage in an amount that was proved at trial.
A violation of Hawaii's hotel and restaurant service charge law, HRS § 481B-14, is deemed to also be an "unfair or deceptive act or practice in the conduct of any trade or commerce within the meaning of *1291 [HRS] section 480-2"; 13 the injury to Kawakami's legally-protected interest was caused by the hotel's breach of contract; and the amount of damages was proved at trial. Because Kawakami has met the elements for a UDAP claim, we remand to the circuit court for an award of treble damages and attorney's fees. HRS § 480-13(b)(1).
C. The Circuit Court Properly Denied Kawakami's Motion in Limine No. 1.
Less than two weeks before the trial on damages, Kawakami moved in limine for an order barring the admission of any evidence of damages other than the sums representing the full 19% paid by consumers for their service charge. He contended that any other evidence concerning damages would be irrelevant, immaterial, and unnecessarily confusing, including any evidence that the hotel diverted 15% of the proceeds to itself. Kawakami's theory was that the entire service charge was "illegal," not just the 15% diverted by the hotel to its own use. Kawakami anticipated that the hotel would argue that the damages were limited to the 15% of the service charge "based on their [sic] theory that this is the proper measure of damages." Kawakami argued that any evidence regarding the 15% was irrelevant. The trial court denied Kawakami's motion. The ICA affirmed the trial court's ruling. Kawakami II , mem. op. at 6.
We review an evidentiary decision based upon relevance under the right/wrong standard.
Ass'n of Apt. Owners of Wailea Elua
,
The hotel was entitled to present evidence relevant to its theory that Kawakami's economic injury was limited to the 15% of the total service charge not paid to those employees who were servers at his event. The fact that the hotel retained 15% of the total service charges tended to make the hotel's theory of damages more likely and was therefore relevant.
Moreover, Kawakami's motion in limine no. 1 is akin to a motion for partial summary judgment regarding damages. In general, such a motion must be served and filed no less than 50 days before the date of the trial. HRCP Rule 56(a). The practice of framing a motion for partial summary judgment as a motion in limine in order to avoid the time limitation of HRCP Rule 56 has been rightly rejected. "The use of motions in limine to summarily dismiss a portion of a claim has been condemned, and the trial courts are cautioned not to allow motions in limine to be used as unwritten and unnoticed motions for summary judgment or motions to dismiss." 75 Am. Jur. 2d
Trial
§ 44 (2018).
IV. Conclusion
For the foregoing reasons, we vacate the circuit court's grant of judgment as a matter of law (JMOL) and the Intermediate Court of Appeals' affirmance of the JMOL. Having vacated the JMOL, we reinstate the circuit court's earlier grant of partial summary judgment to Kawakami (as to liability). We also reinstate the jury's special verdict on legal causation and the amount of damages in the trial on damages that followed the grant of partial summary judgment, as the special verdict is supported by substantial evidence. We remand to the circuit court for determination of treble damages and reasonable attorney's fees and costs under Hawaii's statute governing unfair or deceptive acts or practices. HRS § 480-13(b)(1).
In 2007, the statute required that any hotel or restaurant "that applies a service charge for the sale of food or beverage services ... shall distribute the service charge directly to its employees as tip income or clearly disclose to the purchaser of the services that the service charge is being used to pay for costs or expenses other than wages and tips of employees." HRS § 481B-14. The statute's requirements were later extended to hotels that apply a service charge for porterage services. HRS § 481B-14 (2015).
Kawakami is the class representative. Except where the context requires, when we refer to him, we refer also to the class.
For more extended recitations of the facts, see our prior opinion,
Kawakami
,
The Honorable Gary W.B. Chang presided over the circuit court proceedings.
The expectation interest is one of three interests generally recognized in the law of contracts; the other two are the reliance interest and the restitution interest. Restatement (Second) of Contracts § 344 (explaining that judicial remedies under the Restatement "serve to protect one or more" of three interests of a promisee, the "expectation interest," the "reliance interest," and the "restitution interest");
For the period relevant to this class action, the statute required that any hotel or restaurant "that applies a service charge for the sale of food or beverage services ... shall distribute the service charge directly to its employees as tip income or clearly disclose to the purchaser of the services that the service charge is being used to pay for costs or expenses other than wages and tips of employees." HRS § 481B-14.
Thus, we agree with Kawakami's argument that the statute-based implied terms of the contract were breached resulting in a violation of Kawakami's expectation interest. By the same token, we reject Kawakami's alternative damages theory that the contract itself was a void or illegal agreement. The contract itself was not illegal; it was simply a valid contract whose implied terms were breached by the hotel resulting in damages to Kawakami.
The hotel admits it never disclosed to purchasers that its practice was to retain a portion of the proceeds from the service charge rather than "distribute the service charge directly to its employees as tip income[.]" HRS § 481B-14. The ICA was therefore mistaken in rejecting Kawakami's breach of contract argument on the basis that "the required disclosure under HRS § 481B-14 need not take the form of a written provision in an event contract, nor must it necessarily occur before parties enter into the contract[.]" Kawakami II , mem. op. at 5. The issue of the exact form or timing the disclosure must take under HRS § 481B-14 was not before the ICA, since the hotel failed to make the required disclosure in any form or at any time.
" Claims for relief . A pleading which sets forth a claim for relief, whether an original claim, counterclaim, cross-claim, or third-party claim, shall contain (1) a short and plain statement of the claim showing that the pleader is entitled to relief, and (2) a demand for judgment for the relief the pleader seeks." HRCP 8(a).
The total distributed as tip income to service employees, added to the total of the "management's share," equals the total service charges collected by the hotel. However, the total "management's share" is not precisely equal to 15% of the combined total service charges collected because for some events the hotel imposed a 20% service charge as opposed to the usual 19% service charge.
HRS § 480-2(d) provides that "[n]o person other than a consumer, the attorney general or the director of the office of consumer protection may bring an action based upon unfair or deceptive acts or practices [UDAP] declared unlawful by this section." Here, it is undisputed that Kawakami and the class were "consumers" within the meaning of HRS chapter 480. In addition, there is no dispute that the hotel's acts or practices occurred in trade or commerce. HRS § 480-2(a).
HRS § 480-13(b) allows a consumer to sue for damages based on any violation of HRS § 480-2 and provides for treble damages and attorney's fees. It provides in relevant part:
(a) Any consumer who is injured by any unfair or deceptive act or practice forbidden or declared unlawful by section 480-2 :
(1) May sue for damages sustained by the consumer, and, if the judgment is for the plaintiff, the plaintiff shall be awarded a sum not less than $1,000 or threefold damages by the plaintiff sustained, whichever sum is the greater, and reasonable attorney's fees together with the costs of suit ...
HRS § 481B-4 ("Any person who violates
this chapter
shall be deemed
to have engaged in an ... unfair or deceptive act or practice in the conduct of any trade or commerce within the meaning of
section 480-2
." (emphases added) ). When a statute deems a violation of the statute to also be a violation of HRS § 480-2, the "deeming" satisfies the first element of a UDAP claim (conduct) but not the second element (requiring injury to the consumer caused by the conduct).
Cf.
Davis
,
Reference
- Full Case Name
- Jason KAWAKAMI, Individually and on Behalf of All Others Similarly Situated, Petitioner/Plaintiff-Appellant/Cross-Appellee v. KAHALA HOTEL INVESTORS, LLC, Dba Kahala Hotel and Resort, Respondent/Defendant-Appellee/Cross-Appellant.
- Cited By
- 18 cases
- Status
- Published