HOUSE OF REPRESENTATIVES H.B. NO. 981 THIRTY-THIRD LEGISLATURE, 2025 H.D. 1 STATE OF HAWAII A BILL FOR AN ACT RELATING TO ATTORNEYS' FEES. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
HOUSE OF REPRESENTATIVES H.B. NO. 981
THIRTY-THIRD LEGISLATURE, 2025 H.D. 1
STATE OF HAWAII
HOUSE OF REPRESENTATIVES
H.B. NO.
981
THIRTY-THIRD LEGISLATURE, 2025
H.D. 1
STATE OF HAWAII
A BILL FOR AN ACT
RELATING TO ATTORNEYS' FEES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that attorney's fees can cost a prevailing party a significant portion of their settlement amount or monetary award. In some cases, a prevailing party may only receive sixty to sixty-five per cent of the settlement amount or monetary award after attorney's fees and costs are deducted. For a plaintiff that is suing for construction defects, a significant reduction in the settlement amount or monetary award may not leave the plaintiff with enough money to cover the necessary repair costs. In that situation, the plaintiff may end up in a worse position than before they initiated the lawsuit and publicly disclosed the existence of the construction defects. A property with known construction defects may become significantly devalued, which will impact the plaintiff's ability to sell or refinance the property. The purpose of this Act is to limit the attorneys' fees and costs in settlement agreements relating to, or actions brought as a result of, construction defects to ensure that plaintiffs can better afford the repair costs. SECTION 2. Chapter 605, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows: "§605- Attorney's fees in disputes relating to construction defects; settlements; limitation. (a) Notwithstanding any other law to the contrary, in matters arising from a dispute relating to construction defects that are settled, practitioners representing plaintiffs shall be entitled to their accrued attorney's fees and costs not to exceed twenty-five per cent of the recovery amount. (b) For the purposes of this section, "construction defect" means a deficiency in, or arising out of, the design, specifications, surveying, planning, construction, supervision, or observation of construction of a building or structure." SECTION 3. Chapter 607, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows: "§607- Attorney's fees in actions alleging construction defects; prevailing plaintiff; limitation. (a) Notwithstanding any other law to the contrary, in actions alleging construction defects, the court shall deny the awarding of accrued attorney's fees and costs to a prevailing plaintiff's attorney in excess of twenty-five per cent of the recovery amount. (b) For the purposes of this section, "construction defect" has the same meaning as in section 605- ." SECTION 4. This Act shall not be applied so as to impair any contract existing as of the effective date of this Act in a manner violative of either the Constitution of the State of Hawaii or Article I, section 10, of the United States Constitution. SECTION 5. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date. SECTION 6. New statutory material is underscored. SECTION 7. This Act shall take effect on July 1, 3000.
SECTION 1. The legislature finds that attorney's fees can cost a prevailing party a significant portion of their settlement amount or monetary award. In some cases, a prevailing party may only receive sixty to sixty-five per cent of the settlement amount or monetary award after attorney's fees and costs are deducted. For a plaintiff that is suing for construction defects, a significant reduction in the settlement amount or monetary award may not leave the plaintiff with enough money to cover the necessary repair costs. In that situation, the plaintiff may end up in a worse position than before they initiated the lawsuit and publicly disclosed the existence of the construction defects. A property with known construction defects may become significantly devalued, which will impact the plaintiff's ability to sell or refinance the property.
The purpose of this Act is to limit the attorneys' fees and costs in settlement agreements relating to, or actions brought as a result of, construction defects to ensure that plaintiffs can better afford the repair costs.
SECTION 2. Chapter 605, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§605- Attorney's fees in disputes relating to construction defects; settlements; limitation. (a) Notwithstanding any other law to the contrary, in matters arising from a dispute relating to construction defects that are settled, practitioners representing plaintiffs shall be entitled to their accrued attorney's fees and costs not to exceed twenty-five per cent of the recovery amount.
(b) For the purposes of this section, "construction defect" means a deficiency in, or arising out of, the design, specifications, surveying, planning, construction, supervision, or observation of construction of a building or structure."
SECTION 3. Chapter 607, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§607- Attorney's fees in actions alleging construction defects; prevailing plaintiff; limitation. (a) Notwithstanding any other law to the contrary, in actions alleging construction defects, the court shall deny the awarding of accrued attorney's fees and costs to a prevailing plaintiff's attorney in excess of twenty-five per cent of the recovery amount.
(b) For the purposes of this section, "construction defect" has the same meaning as in section 605- ."
SECTION 4. This Act shall not be applied so as to impair any contract existing as of the effective date of this Act in a manner violative of either the Constitution of the State of Hawaii or Article I, section 10, of the United States Constitution.
SECTION 5. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.
SECTION 6. New statutory material is underscored.
SECTION 7. This Act shall take effect on July 1, 3000.
Report Title: Settlements; Civil Actions; Attorney's Fees and Costs; Construction Defects Description: Limits the accrued attorneys' fees and costs in matters relating to, or actions brought as a result of, construction defects to twenty-five per cent of the recovery amount. Effective 7/1/3000. (HD1) The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
Report Title:
Settlements; Civil Actions; Attorney's Fees and Costs; Construction Defects
Description:
Limits the accrued attorneys' fees and costs in matters relating to, or actions brought as a result of, construction defects to twenty-five per cent of the recovery amount. Effective 7/1/3000. (HD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.