Moore v. MC Architects Inc.

CourtDistrict Court, D. Hawaii
DecidedSeptember 26, 2025
Docket1:24-cv-00367
StatusUnknown

This text of Moore v. MC Architects Inc. (Moore v. MC Architects Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Hawaii primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Moore v. MC Architects Inc., (D. Haw. 2025).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF HAWAII

WILLIAM MARK MOORE, CIV. NO. 24-00367 JMS-KJM

Plaintiff, ORDER GRANTING DEFENDANTS’ MOTION TO v. DISMISS, ECF NO. 30, WITH LEAVE TO AMEND MC ARCHITECTS INC.; LITO T. PANIDA; and DOES 1 through 20,

Defendants.

ORDER GRANTING DEFENDANTS’ MOTION TO DISMISS, ECF NO. 30, WITH LEAVE TO AMEND I. INTRODUCTION Before the court is Defendants MC Architects Inc. (“MCA”) and Lito T. Panida’s (“Panida”) (collectively, “Defendants”) Motion to Dismiss Count 1 of Plaintiff William Mark Moore’s (“Moore”) Complaint (“Motion to Dismiss”), ECF No. 30. For the reasons that follow, the court GRANTS the Motion to Dismiss WITH LEAVE TO AMEND. II. BACKGROUND

A. General Factual Background1 This case arises from Moore’s unsuccessful effort to open a brewery in the Kakaʻako neighborhood of Honolulu. ECF No. 1 at PageID.3. Moore leased a commercial warehouse space in Kakaʻako from the Howard Hughes

Corporation (“HHC”) and then retained MCA—a Honolulu architecture firm—for design services. Id. at PageID.3–5. Throughout the relevant time period, Panida represented MCA. Id. at PageID.4.2 Moore informed Panida that his budget was $350,000. Id. Moore and MCA entered into a Design Agreement, Compl. Ex. A,

ECF. No. 1-1 at PageID.26–27, under which Moore paid MCA $65,668 for the design services. ECF No. 1 at PageID.5.3 After the Design Agreement was executed, Panida told Moore that

MCA “would need to inflate the proposed cost of [Moore’s] buildout by $300,000”

1 This summary of events is drawn from the factual allegations contained in the Complaint, ECF. No. 1 at PageID.3–17, which are taken as true at this motion-to-dismiss stage. See, e.g., Epstein v. Wash. Energy Co., 83 F.3d 1136, 1140 (9th Cir. 1996).

2 The Complaint does not clearly explain Panida’s relationship with MCA, alleging only that he was “an agent and/or employee” of the firm. ECF No. 1 at PageID.4. At the hearing, Defendants confirmed that Panida was an employee of MCA throughout the relevant time period.

3 The Complaint is inconsistent about the amount actually paid to MCA, at one point alleging that Moore paid $61,010 (the cost of the design services), id. at PageID.5, and at other points alleging that Moore paid $65,668 (the cost of the design services plus expenses and taxes). Id. at PageID.10, 20–23. The Complaint also does not clearly indicate whether the $65,668 was part of, or separate from, Moore’s $350,000 budget. because of “an unwritten ‘pay to play’ policy in the Victoria Ward / Kakaʻako neighborhood.” Id. Panida explained that the cost increase would consist of

$100,000 for demolition, $100,000 for air conditioning, and $100,000 for accessible restrooms. Id. at PageID.6–7. Panida told Moore that the inflated cost was necessary “‘to ensure you get your brewery’” and “insisted that in the Victoria

Ward area, ‘everybody pays.’” Id. at PageID.6. After drawing up the demolition plans, Panida told Moore that “there was ‘a cost for doing business in Victoria Ward.’” Id. at PageID.7. Moore responded that he would do the demolition himself. Id. Panida initially told

Moore that doing so would be illegal because a demolition permit was required. Id. But Panida abandoned that position after Moore instructed him to stop working until Moore could meet with HHC to discuss the issue. Id. at PageID.7–8. Moore

ultimately found a contractor on his own and paid $11,600 for the demolition work. Id. at PageID.8. Panida “called the circumvention of the $100,000 fee a ‘stunt’ and informed [Moore] he would ‘get it back as part of the finishings.’” Id. Moore then told Panida that he would not pay the $100,000 fee for air

conditioning, and began directly contacting air conditioning vendors. Id. Panida insisted that the choice of vendor “would be his and not [Moore’s],” and “reiterated that the $100,000 ‘fee’ [was] required and, without it, [Moore]

‘wouldn’t get his brewery.’” Id. at PageID.8–9. Moore responded that “if air conditioning requires a $100,000 ‘fee,’ then to remove the air conditioning” from the design. Id. at PageID.9. Panida countered that omitting air conditioning would

violate Moore’s lease. Id. Moore disputed that claim and produced a copy of the lease, but Panida “refused to remove the air conditioning” and told Moore that he would look for air conditioning vendors. Id.

Next, Moore told Panida that “if he continued to demand a $100,000 ‘fee’” for accessible restrooms, Moore would switch the brewery to a classification that would not allow on-site consumption and therefore would not require accessible restrooms. Id. Panida insisted that “‘we are not switching’” the

brewery’s classification. Id. Moore then told Panida that “he wanted out of his contract with [MCA] and wanted to hire a different architect.” Id. at PageID.10. Panida said

“that would be fine, however [MCA] would not refund” Moore’s $65,668 payment and would not give him access to any design work that had been completed. Id. Panida also told Moore that “the same $300,000 ‘pay to play’ fee would be required regardless of which architect [he] hired.” Id. Moore said that other local

brewery owners had told him they had not paid such a fee. Id. Panida responded that “‘they aren’t building in Victoria Ward.’” Id. Moore did not back out of his contract with MCA, and after a

“cooling-off period,” he resumed discussions with Panida. See id. at PageID.10– 11. Panida “began visiting the brewery property almost daily and asked [Moore] to send him emails documenting each element of the brewery in detail,” including

drawings of “fermenters, floor drains, production areas, customer areas, materials, equipment, and everything else [Moore] could think of.” Id. at PageID.11. Moore expressed concern that these features would push the project over budget, but

Panida “instructed [Moore] to submit it all now” and said “‘if bids come in too high, we can value engineer.’” Id. Moore complied, believing that “many of the expensive items” could be removed from the final drawings. Id. Panida then asked Moore to “approve and sign off on all the finishings

proposed by [MCA] during an impromptu meeting in a parking lot.” Id. at PageID.12. Moore refused. Id. at PageID.13. Stephen Larson, a tenant coordinator at HHC and Panida’s “friend,” reviewed MCA’s plans and “offered

costly additions and alternative design suggestions.” Id. Moore again “refused and did not acknowledge those costly additions.” Id. Soon after, Panida presented Moore with permit applications. Id. Moore asked Panida to “slow down and explain what was happening,” but “ultimately signed the permit applications upon

repeated assurances” from Panida “‘that this is how we get construction estimates’ and ‘if bids come in too high, we can value engineer.’” Id. Around that time, Panida made a series of visits to Moore’s home. Id.

During those visits, Panida tried “to persuade [Moore] to accept the $650,000 buildout cost and come up with the $300,000 needed to execute the highly over- budget plans,” including through a business loan, “‘crowdfunding,’” and

borrowing from relatives. Id. at PageID.13–14. Panida “continually repeated ‘everybody pays’ and ‘if you don’t come up with the money you won’t get your brewery.’” Id. at PageID.14.

Bids were solicited from general contractors, and all bids “came back at $650,000 or more.” Id. at PageID.14–15. Moore asked Panida to begin the “‘value engineering,’” but Defendants “refused to reduce the scope of the project and said they could try a different contractor.” Id. at PageID.15. A subsequent bid

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

Related

Hemi Group, LLC v. City of New York
559 U.S. 1 (Supreme Court, 2010)
United States v. Turkette
452 U.S. 576 (Supreme Court, 1981)
Papasan v. Allain
478 U.S. 265 (Supreme Court, 1986)
Reves v. Ernst & Young
507 U.S. 170 (Supreme Court, 1993)
Bell Atlantic Corp. v. Twombly
550 U.S. 544 (Supreme Court, 2007)
Boyle v. United States
556 U.S. 938 (Supreme Court, 2009)
Ashcroft v. Iqbal
556 U.S. 662 (Supreme Court, 2009)
New Hampshire Insurance Company v. Albert Vieira
930 F.2d 696 (Ninth Circuit, 1991)
James Brown v. Electronic Arts, Inc.
724 F.3d 1235 (Ninth Circuit, 2013)
State v. Ontai
929 P.2d 69 (Hawaii Supreme Court, 1996)
The Depot, Inc. v. Caring for Montanans, Inc.
915 F.3d 643 (Ninth Circuit, 2019)
Lopez v. Smith
203 F.3d 1122 (Ninth Circuit, 2000)
Nutrition Distribution LLC v. Custom Nutraceuticals LLC
194 F. Supp. 3d 952 (D. Arizona, 2016)
Hyun Ju Park v. City of Honolulu
292 F. Supp. 3d 1080 (D. Hawaii, 2018)
Ryan v. Salisbury
380 F. Supp. 3d 1031 (D. Hawaii, 2019)
Starr v. Baca
652 F.3d 1202 (Ninth Circuit, 2011)

Cite This Page — Counsel Stack

Bluebook (online)
Moore v. MC Architects Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/moore-v-mc-architects-inc-hid-2025.