Porter v. Hu

169 P.3d 994, 116 Haw. 42, 26 I.E.R. Cas. (BNA) 1253, 2007 Haw. App. LEXIS 595
CourtHawaii Intermediate Court of Appeals
DecidedOctober 4, 2007
Docket26438, 26602
StatusPublished
Cited by72 cases

This text of 169 P.3d 994 (Porter v. Hu) is published on Counsel Stack Legal Research, covering Hawaii Intermediate Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Porter v. Hu, 169 P.3d 994, 116 Haw. 42, 26 I.E.R. Cas. (BNA) 1253, 2007 Haw. App. LEXIS 595 (hawapp 2007).

Opinion

Opinion of the Court by

FOLEY, J.

In this consolidated appeal, Defendants/ Counterclaimants/Appellants Joseph Hu, Wayne Wehr, William F. Schnitzer, Michele Clark, Serveo Pacific Inc., and American Insurance Agency appeal from the January 29, 2004 Final Judgment (No. 26438) and the May 4, 2004 First Amended Final Judgment (No. 26602), both filed in the Circuit Court of the Third Circuit. 1

I.

In a contract dispute between independent insurance agents and their former employer, Plaintiffs/Counterclaim Defendants/Appellees Gay Porter (Porter), Motoyoshi Abe (Abe), Mark Rodrigues (Rodrigues), Glenn Santos (Santos), and Duane Sugihara (Sugihara) (collectively, Plaintiffs) were independent insurance agents working in Hilo, Hawai'i for American Insurance Agency (AIA). Serveo Pacific Inc. (Serveo) was the parent company of AIA, and Joseph Hu (Hu), Wayne Wehr (Wehr), William F. Schnitzer (Schnitzer), and Michele Clark (Clark) were employees of AIA (Hu, Wehr, Schnitzer, Clark, AIA, and Serveo are collectively referred to as Defendants).

In the early-to-mid 1990’s, Plaintiffs entered into individual contracts with AIA under which Plaintiffs agreed to work as independent insurance agents for AIA. Plaintiffs brought with them numerous clients and insurance accounts that generated commissions (books of business). Plaintiffs’ respective contracts provided that either Plaintiffs or AIA could terminate any contract by giving the other party prior written notice of the termination within a certain minimum number of days in advance of the termination date.

In May 2001, Plaintiffs communicated to Hu and Wehr that Plaintiffs were considering the possibility of leaving AIA to work for Business Insurance Service, Inc. (BIS). Plaintiffs gave AIA written notice on June 11, 2001 that they were terminating their contracts with AIA as of September 1, 2001, after which they would begin worldng for BIS. On July 2, 2001, without prior written notice as required under the contracts, AIA terminated Plaintiffs’ employment. AIA retained the books of business generated by Plaintiffs.

On November 9, 2001, Plaintiffs filed a Complaint against Defendants. Plaintiffs’ Complaint alleged breach of contract, tor-tious interference with contractual relations, tortious interference with prospective business advantage, violations of Hawaii Revised Statutes (HRS) Chapter 481A (Uniform Deceptive Trade Practice Act), common law unfair competition, reliance and promissory estoppel, negligent misrepresentation, conversion, and unjust enrichment/aceounting. On January 16, 2002, Defendants filed their answer and a Counterclaim against Plaintiffs. Plaintiffs filed their answer to the Counterclaim on February 7, 2002.

Trial began on May 27, 2003, and the jury returned a detailed Special Verdict on June 25, 2003. On Count I of the Complaint (breach of contract), the jury awarded damages to each Plaintiff from AIA in the sum of one dollar. The jury found both Serveo and *47 AIA liable on Count III (tortious interference with prospective business advantage), but awarded collective damages of $50,859 in favor of Plaintiffs and against only Servco. As to Count IV (violation of HRS Chapter 481A), the jury found in favor of Plaintiffs and ordered injunctive relief. As to Count IX (unjust enrichment), the jury found in favor of Plaintiffs and against AIA in the following amounts: Porter-$22,960, Abe-$4,138, Rodrigues-$23,798, Santos-$23,696, and Sugihara-$12,368. The jury found in favor of AIA and Servco on Counts VII (negligent misrepresentation) and VIII (conversion). As to Count X (punitive damages), the jury awarded $5,000 in punitive damages to each Plaintiff from AIA and the same amount to each Plaintiff from Servco.

As to the Counterclaim, the jury found that Plaintiffs had not breached their agency contracts with AIA, Santos had not breached the Purchase of Assets and Affiliation Agreement with AIA, and Plaintiffs had not breached their duty of loyalty. 2

The circuit court entered its Final Judgment on January 29, 2004. On February 6, 2004, Plaintiffs filed a (1) Motion to Amend Final Judgment to Correct Clerical Mistakes, (2) Motion for Partial Stay of Injunctive Relief Pending Appeal, and (3) Motion for Order Conditionally Staying Execution of Money Judgment Pending Appeal.

On February 27, 2004, Defendants filed a Notice of Appeal from the Final Judgment (No. 26438).

On April 2, 2004, the circuit court entered an Order Granting in Part Defendants’ Motion for Partial Stay of Injunctive Relief Pending Appeal, in which the court vacated the injunctive relief language in paragraph 4(a) and (c) of the Final Judgment and ordered that revised language in the order replace the vacated language. The circuit court also granted Defendants’ motion to stay the money judgment portion of the Final Judgment on the condition that Defendants post security. On May 4, 2004, the circuit court granted Plaintiffs’ motion to amend the Final Judgment to correct the clerical mistakes.

On May 4, 2004, the circuit court entered its First Amended Final Judgment, 3 which disposed of the claims in Plaintiffs’ Complaint as follows:

Count I (breach of contract): pursuant to Special Verdict, judgment entered in favor of each Plaintiff; $1 awarded to each Plaintiff from AIA; Plaintiffs to forgo this remedy in favor of their unjust enrichment award.

Count II (tortious interference with contractual relations): dismissed as to all Defendants by July 23, 2003 “Order Granting in Part and Denying in Part Defendants’ Motion for Directed Verdict Filed on June 12, 2003” (Order Granting Directed Verdict).

Count III (tortious interference with prospective business advantage): dismissed against Hu, Wehr, Schnitzer, and Clark pursuant to Order Granting Directed Verdict; pursuant to Special Verdict, judgment entered in favor of AIA and against Plaintiffs (non-monetary) and in favor of Plaintiffs and against Servco in the following amounts:

*48 PORTER $14,647
ABE 171
RODRIGUES 17,667
SANTOS 15,786
SUGIHARA 2,588
Total $50,859

Count TV (violation of HRS Chapter 481A): dismissed against Hu, Wehr, Schnitzer, and Clark pursuant to Order Granting Directed Verdict; judgment entered in favor of Plaintiffs and against Serveo and AIA; AIA to publish newspaper advertisements with Plaintiffs’ current business addresses; AIA and Serveo to disclose to any person requesting such information Plaintiffs’ whereabouts and to remove Plaintiffs’ names from all AIA’s and Serveo’s correspondence, bills, and insurance-related documents sent to any of Plaintiffs’ former customers, to the extent such documents implied that Plaintiffs remained associated with AIA.

Count V (common law unfair competition): dismissed against all Defendants pursuant to Order Granting Directed Verdict.

Count VI

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Cite This Page — Counsel Stack

Bluebook (online)
169 P.3d 994, 116 Haw. 42, 26 I.E.R. Cas. (BNA) 1253, 2007 Haw. App. LEXIS 595, Counsel Stack Legal Research, https://law.counselstack.com/opinion/porter-v-hu-hawapp-2007.