The Hawaii Intermediate Court of Appeals has upheld a lower court's decision to dismiss a lawsuit filed by RCA Trade Center, Inc., and MP Unit 21, LLC, against Wayne and Tara Hu. The court ruled that the case fell under the protections of the Hawaii Public Expression Protection Act (HPEPA), which is designed to safeguard individuals from lawsuits that aim to deter their free speech and petitioning rights.
This ruling, issued on June 23, 2026, affects not only the parties involved but also sets a precedent regarding the application of HPEPA in similar disputes across Hawaii. The court's decision emphasizes the importance of protecting individuals' rights to express concerns about public issues, particularly in the context of environmental and zoning matters.
Background
The dispute began when the Hus, who purchased a unit in the Marconi Point Condominiums in Kahuku, Oahu, expressed concerns about activities they believed were illegal and harmful to the environment. These activities included the construction of eight large warehouses by RCA, which the Hus claimed were being used for non-agricultural purposes, in violation of zoning laws.
In 2016, the Hus acquired their condominium unit in a project aimed at developing agricultural condominiums. However, over the years, they observed what they described as numerous questionable activities that altered the nature of the project. In response, the Hus hired an attorney who sent a detailed letter to RCA and various government agencies, outlining their concerns about the activities at the project.
RCA, in turn, filed a lawsuit against the Hus in October 2023, seeking declaratory relief, tortious interference, and injunctive relief. The lawsuit was a response to the letter sent by the Hus, which RCA claimed had caused its lender to put a hold on loan proceeds necessary for construction.
The Ruling
The Hawaii Intermediate Court of Appeals affirmed the lower court's ruling that dismissed RCA's complaint. The court found that the Hus had good cause for the late filing of their motion to dismiss under HPEPA, stating that the Hus were exercising their constitutional rights to petition the government regarding the activities at the Marconi Point Condominiums.
The court ruled, "the claims asserted in the [Hus'] letter fall under the scope of [Hawaiʻi] Revised Statutes chapter 634G," which relates to public expression protections.
The court also noted that RCA failed to demonstrate a prima facie case for its claims and did not prove that its causes of action fell under any exceptions to HPEPA. The judges involved in this ruling were Presiding Judge Leonard, and Judges McCullen and Guidry.
Impact
This ruling has significant implications for future cases involving HPEPA in Hawaii. It reinforces the legal protections for individuals who express concerns about public issues, particularly in contexts involving environmental impacts and zoning regulations. By upholding the dismissal, the court has sent a clear message that attempts to silence public expression through litigation may not succeed.
The decision may encourage more individuals and groups to voice their concerns about developments that could affect their communities without fear of retaliatory lawsuits. It also clarifies the application of HPEPA, indicating that communications regarding public concerns, especially those involving government regulations, are protected under the law.
What's Next
RCA Trade Center has the option to appeal the ruling to the Hawaii Supreme Court. However, there is no indication in the court filing that any related cases are pending at this time. The outcome of this case may influence similar disputes in the future, as it sets a precedent for how HPEPA is interpreted and applied in legal contexts.