§481G-4 - Wrongful or illegal termination; unreasonable nonrenewal; damages; defenses. - Hawaii Statutes

     [§481G-4]  Wrongful or illegal termination; unreasonable nonrenewal; damages; defenses.  (a)  Except as provided in section 481G-5, a distributor shall be liable to a dealer who sells the products of the distributor under a dealership 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 dealership during its term or the distributor's unreasonable refusal to renew the dealership.

     (b)  A dealer suffering damages as a result of the termination or cancellation of, or failure to renew, the dealership may bring an action under this section against the distributor who wrongfully or illegally terminated, canceled, or unreasonably refused to renew the dealership in the court of general jurisdiction of the dealer's principal place of business.  The action may be brought without regard to the amount in controversy.  If the dealer prevails in the action, the dealer may recover actual damages sustained, the costs of the suit, including reasonable attorney's 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 dealership was terminated, canceled, or not renewed because:

     (1)  The dealer failed to comply substantially with essential and reasonable requirements of the dealership;

     (2)  The dealer failed to act in good faith in carrying out the terms and provisions of the dealership; or

     (3)  Of any of the reasons enumerated in section 481G-5; or

     (4)  Of other legitimate business reasons; provided that a termination, cancellation, or failure to renew a dealership for the purpose of enabling the distributor to assume operation of the dealer's business shall not be considered to be a legitimate business reason unless the dealer is paid reasonable compensation for the value of the dealership, including good will.

     (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. [L 1983, c 285, pt of §1]