Island Holidays, Inc. v. Fitzgerald

574 P.2d 884, 58 Haw. 552, 1978 Haw. LEXIS 151
CourtHawaii Supreme Court
DecidedJanuary 31, 1978
DocketNO. 5914
StatusPublished
Cited by23 cases

This text of 574 P.2d 884 (Island Holidays, Inc. v. Fitzgerald) is published on Counsel Stack Legal Research, covering Hawaii Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Island Holidays, Inc. v. Fitzgerald, 574 P.2d 884, 58 Haw. 552, 1978 Haw. LEXIS 151 (haw 1978).

Opinion

*553 OPINION OF THE COURT BY

KOBAYASHI, J.

Plaintiffs, counterclaim defendants, Island Holidays, Inc., and Kaanapali Beach Hotel, Inc., Hawaii corporations (hereinafter collectively Island Holidays), filed a complaint in the Lahaina Division of the District Court of the Second Circuit for summary possession of certain leased premises situated in the lobby of the Kaanapali Beach Hotel on the Island of Maui, and for back rent, against defendants, counterclaim plaintiffs, Glenn Fitzgerald, dba Kaanapali Hotel Camera and Gift Shop and Kaanapali Picture and Gift Corporation, a Hawaii corporation (hereinafter collectively called Fitzgerald). A demand for a jury trial on all issues was made to the court and the case was duly transferred to circuit court. Fitzgerald filed a counterclaim, naming Amfac, Inc., a Hawaii corporation, as an additional counterclaim *554 defendant. 1 Fitzgerald prayed for general, special, and punitive damages for an alleged breach of a lease contract.

Although Island Holidays’ initial motion for summary judgment on the complaint for summary possession was denied, a renewed motion was granted.

Thereafter, at trial, the jury denied Island Holidays’ claim for back rent and awarded Fitzgerald $41,636.00 in damages for breach of the 1964 written lease contract. Island Holidays moved for a judgment notwithstanding the verdict, for a new trial, and for remittitur. The circuit court denied all three motions.

Both parties have appealed. Fitzgerald has appealed the order granting summary judgment on the complaint for summary possession in favor of Island Holidays. Island Holidays has appealed from the denial of its motions and from the judgment of damages. 2

STATEMENT OF THE CASE

On October 23, 1974, Island Holidays filed a motion for summary judgment on the complaint for summary possession of the leased premises alleging that Fitzgerald’s lease term had expired as of September 30, 1974. After a hearing was held the circuit court judge dismissed the motion as inappropriate. On April 23,1975, Island Holidays renewed its motion for summary judgment and it was granted. The court premised its ruling on the finding that Fitzgerald’s lease term had expired and no “new promise” to lease beyond 1974 had been made. 3

*555 In a written order filed on May 22, 1975, the trial court granted Island Holidays’ motion and denied Fitzgerald’s oral motion for allowance to appeal from the summary judgment order. The order issued by the court specifically stated that the order did not constitute a determination and direction for the entry of a final judgment within the meaning of Rule 54(b), H.R.C.P., and that, therefore, the proceedings were not terminated between the parties. 4

Following a trial on Island Holidays’ claim for back rent and Fitzgerald’s counterclaim for damages, the jury returned the following verdict in special verdict form:

1. Did Defendant Island Holidays breach the existing lease? Yes
2. (Answer 2 only if your answer to 1 was “yes”.) What damages did Plaintiff Fitzgerald suffer as a result of the breach of the existing lease? $41,636.00
3. Did Plaintiff Fitzgerald and Defendant Island Holidays enter upon a valid and binding contract to make a new lease? No
*556 4. (Answer 4 only if your answer to 3 was “yes”.) Did Defendant Island Holidays breach the contract to make a new lease?
5. (Answer 5 only if your answers to both 3 and 4 were “yes”.) What damages did Plaintiff Fitzgerald suffer as a result of the breach of the contract to make a new lease?
6. Did Plaintiff Fitzgerald owe any rental on the existing lease? No
7. (Answer 7 only if your answer to 6 was “yes”.) What is the amount of the unpaid rental?

From this verdict Island Holidays has appealed. Concurrently, Island Holidays moved for a dismissal of Fitzgerald’s appeal from the summary judgment on the complaint for summary possession on the grounds that the supreme court lacked jurisdiction to hear the appeal.

STATEMENT OF FACTS

In a written lease dated October 16, 1964, Fitzgerald entered into a lease agreement for five years with an option to renew for an additional five years with Kaanapali Hotel Corporation to operate a camera and gift shop on the ground floor of the Kaanapali Hotel (Hotel). This lease agreement was signed by Mr. Glenn Fitzgerald, President-Treasurer of the Kaanapali Picture and Gift Corporation, and by Mr. Leonard Goldman, President of Kaanapali Hotel Corporation.

The Hotel was subsequently sold by the Kaanapali Hotel Corporation to A.I.T.S. and A.I.T.S. sold the Hotel to Sonesta Hotel Corporation. In 1969, after the initial 5-year lease term provided for in the 1964 lease had expired, Fitzgerald renewed the lease for another 5-year period with Sonesta Hotel Corporation.

In 1970 Island Holidays, Inc., purchased the Hotel from Sonesta. The evidence is sparse as to any significant commu *557 nication between Fitzgerald and Island Holidays between 1970 and prior to 1973.

Some time in the summer of 1973, Island Holidays decided to renovate and enlarge the lobby of the Hotel to accommodate an increased number of hotel guests. Mr. Fitzgerald and another lessee of the Hotel met with Mr. Ronald Barr, executive vice-president of Island Holidays, Inc., and Mr. Robert Sewell, manager of the Hotel, and were shown the plans for two “new shops” in the proposed renovated lobby. The lessees were told they would have “first option” to lease these new shops.

On December 18, 1973, Mrs. Janet Higa, real estate manager for Island Holidays, notified Fitzgerald that lobby renovations at the Hotel would begin on January 7, 1974. Fitzgerald packed the contents of his gift shop, hired movers to move the goods to a storage place, and completed vacating the premises on January 4, 1974, as instructed. At a meeting at the Hotel on January 7, 1974,- Fitzgerald and Mrs. Higa discussed Fitzgerald’s new location in the Hotel and lobby and certain lease rental terms. According to Fitzgerald, it was at this time that he was promised a new lease on the basis of an increased rental of $1,000 minimum per month or 12% of the gross receipts. Fitzgerald testified that he informed Mrs. Higa that he had a current lease with the Hotel and “assumed” that alease similar to this one for an additional 5-year term would be renegotiated with him. According to Mrs. Higa’s testimony, although a 12% lease rental was discussed as the rental normally negotiated on all Island Holidays’ leases, no minimum rent was discussed with Fitzgerald and negotiations for a new lease remained incomplete. Mrs.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Fyffe v. Hue
Hawaii Intermediate Court of Appeals, 2010
Contrades v. Reis
145 P.3d 910 (Hawaii Intermediate Court of Appeals, 2006)
Gepaya v. State Farm Mutual Automobile Insurance Co.
14 P.3d 1043 (Hawaii Supreme Court, 2000)
Otani v. State Farm Fire & Casualty Co.
927 F. Supp. 1330 (D. Hawaii, 1996)
Ho v. State Farm Mutual Automobile Insurance
926 F. Supp. 964 (D. Hawaii, 1996)
Weinberg v. Mauch
890 P.2d 277 (Hawaii Supreme Court, 1995)
Richardson v. Sport Shinko (Waikiki Corp.)
880 P.2d 169 (Hawaii Supreme Court, 1994)
S. Utsunomiya Enterprises, Inc. v. Moomuku Country Club
866 P.2d 951 (Hawaii Supreme Court, 1994)
Henderson v. Professional Coatings Corp.
819 P.2d 84 (Hawaii Supreme Court, 1991)
Resco, Inc. v. Founders Title Group, Inc.
751 F. Supp. 1442 (D. Hawaii, 1990)
Asada v. Sunn
666 P.2d 584 (Hawaii Supreme Court, 1983)
Hawaiian Trust Co., Ltd. v. Cowan
663 P.2d 634 (Hawaii Intermediate Court of Appeals, 1983)
Quedding v. Arisumi Bros., Inc.
661 P.2d 706 (Hawaii Supreme Court, 1983)
Price v. Christman
629 P.2d 633 (Hawaii Intermediate Court of Appeals, 1981)
Employees' Retirement System v. Big Island Realty, Inc.
627 P.2d 304 (Hawaii Intermediate Court of Appeals, 1981)
Sturkie v. Han
627 P.2d 296 (Hawaii Intermediate Court of Appeals, 1981)
Dowsett v. Cashman
625 P.2d 1064 (Hawaii Intermediate Court of Appeals, 1981)
Au v. Au
626 P.2d 173 (Hawaii Supreme Court, 1981)
Chung v. Kaonohi Center Co.
618 P.2d 283 (Hawaii Supreme Court, 1980)
Jordan v. Hamada
616 P.2d 1368 (Hawaii Supreme Court, 1980)

Cite This Page — Counsel Stack

Bluebook (online)
574 P.2d 884, 58 Haw. 552, 1978 Haw. LEXIS 151, Counsel Stack Legal Research, https://law.counselstack.com/opinion/island-holidays-inc-v-fitzgerald-haw-1978.