(a) The same procedures, protections, rights, and remedies provided to a dealer under section 437-3.6, section 437-28(a)(21), and part II shall apply to a distributor that is not a manufacturer.
Terms Used In Hawaii Revised Statutes 437-28.5
Business: includes any activities regularly engaged in by any person or regularly caused to be engaged in by the person for the object of gain, benefit, or advantage, either direct or indirect. See Hawaii Revised Statutes 437-1.1
Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
Dealer: includes "auction" as defined in this section or any person or entity not expressly excluded by this chapter who sells three or more vehicles within a calendar year, or who is engaged in the business of selling, soliciting, offering, or attempting to negotiate sales, purchases, or exchanges of motor vehicles or any interest therein, including options to purchase motor vehicles. See Hawaii Revised Statutes 437-1.1
Fair market value: The price at which an asset would change hands in a transaction between a willing, informed buyer and a willing, informed seller.
Injunction: An order of the court prohibiting (or compelling) the performance of a specific act to prevent irreparable damage or injury.
Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
(b) Notwithstanding the terms, provisions, or conditions of any dealer or distributor agreement, franchise, or waiver and notwithstanding any other legal or administrative remedies available, any person who is licensed under this chapter and whose business or property is injured by a violation of section 437-28(a)(21) or part II may bring a civil action in a court of competent jurisdiction in the State to enjoin further violations and to recover any damages together with the costs of the suit. Laws of the State of Hawaii shall apply to any action initiated under this subsection.(c) Any person that brings or defends against a civil action under subsection (b) may be entitled to recover reasonable attorneys’ fees as a part of any damages or injunction; provided that the person substantially prevails in establishing or defending against a violation of section 437-28(a)(21) or part II.(d) Upon a cancellation or failure to renew a distributorship agreement, the party canceling or failing to renew the agreement, at the distributor’s option, shall either:
(1) Compensate the distributor at the fair market value of the distributor’s capital investment, which shall include but not be limited to the going business value of the business, goodwill, property, and improvement owned or leased by the distributor for the purpose of the distributorship; the distributor’s inventory of parts; the distributor’s dealer operations and franchise agreements with other dealers; and motor vehicles possessed by the distributor in connection with the distributorship plus reasonable attorney’s fees incurred in collecting compensation; provided that, to be eligible for compensation pursuant to this paragraph, an investment shall have been made with reasonable and prudent judgment for the purpose of the distributorship agreement; or(2) Compensate the distributor for damages including reasonable attorney’s fees incurred in collecting compensation resulting from the cancellation or failure to renew the distributorship agreement.
