(a) Except as provided in section 486H-3, a petroleum distributor shall be liable to a gasoline dealer who sells the products of the petroleum distributor under a franchise from the distributor for damages and such equitable relief as the court deems proper resulting from the wrongful or illegal termination or cancellation of the franchise during its term or the petroleum distributor’s unreasonable refusal to renew the franchise.

Terms Used In Hawaii Revised Statutes 486H-2

  • Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
  • Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
  • Franchise: means :

    (1) Any agreement or related agreements between a petroleum distributor and a gasoline dealer under which the gasoline dealer is granted the right to use a trademark, trade name, service mark, or other identifying symbol or name owned by the distributor in connection with the retail sale of petroleum products supplied by the petroleum distributor; or

    (2) Any agreement or related agreements described in paragraph (1) and any agreement between a petroleum distributor and a gasoline dealer under which the gasoline dealer is granted the right to occupy the premises owned, leased, or controlled by the distributor, for the purpose of engaging in the retail sale of petroleum products supplied by the distributor. See Hawaii Revised Statutes 486H-1

  • Gasoline: includes gasoline, benzol, benzine, naphtha, and any other liquid prepared, advertised, offered for sale, sold for use as, or used for, the generation of power for the propulsion of motor vehicles, including any product obtained by blending together any one or more petroleum products with or without other products, if the resultant product is capable of the same use. See Hawaii Revised Statutes 486H-1
  • Gasoline dealer: means any person engaged in the retail sale of petroleum products in the United States under a franchise agreement entered into with a petroleum distributor. See Hawaii Revised Statutes 486H-1
  • Good faith: means the duty of a gasoline dealer and a petroleum distributor to act in a fair and equitable manner in the performance and in the demanding of performance of the terms and provisions of the franchise. See Hawaii Revised Statutes 486H-1
  • 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.
  • Petroleum distributor: means any person engaged in the sale, consignment, or distribution of petroleum products to retail outlets that it owns, leases, or otherwise controls. See Hawaii Revised Statutes 486H-1
(b) A gasoline dealer suffering damages as a result of the termination or cancellation of, or failure to renew, the dealer’s franchise may bring an action under this section against the petroleum distributor who wrongfully or illegally terminated, canceled, or unreasonably refused to renew the dealer’s franchise in the court of general jurisdiction in which such petroleum distributor has the distributor’s principal place of business, is found, or has an agent. The action may be brought without regard to the amount in controversy. If the gasoline dealer prevails in the action, the dealer may recover actual damages sustained, the costs of the suit, including reasonable attorneys’ fees, and such equitable relief as the court deems proper.

The court may also grant such temporary relief as it may deem necessary and proper.

(c) It shall be a defense to any action brought under this section that the franchise was terminated, canceled, or not renewed because:

(1) The gasoline dealer failed to comply substantially with essential and reasonable requirements of the franchise agreement;
(2) The gasoline dealer failed to act in good faith in carrying out the terms and provisions of the franchise; or
(3) Of any of the reasons enumerated in section 486H-3; or
(4) Of other legitimate business reasons; provided that a termination, cancellation, or failure to renew a franchise for the purpose of enabling the petroleum distributor to assume operation of the gasoline dealer’s business shall not be considered to be a legitimate business reason unless the gasoline dealer is paid reasonable compensation for the value of the dealer’s franchise, including goodwill.
(d) No action may be brought under this section for a cause of action which arose more than two years prior to the date on which the action is brought.

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