RCA Trade Center, Inc. v. Hu

CourtHawaii Intermediate Court of Appeals
DecidedJune 23, 2026
DocketCAAP-24-0000380
StatusPublished

This text of RCA Trade Center, Inc. v. Hu (RCA Trade Center, Inc. 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
RCA Trade Center, Inc. v. Hu, (hawapp 2026).

Opinion

FOR PUBLICATION IN WEST'S HAWAIʻI REPORTS AND PACIFIC REPORTER

Electronically Filed Intermediate Court of Appeals CAAP-XX-XXXXXXX 23-JUN-2026 03:44 PM Dkt. 66 OP

NO. CAAP-XX-XXXXXXX

IN THE INTERMEDIATE COURT OF APPEALS

OF THE STATE OF HAWAIʻI

---o0o---

RCA TRADE CENTER, INC., a Hawaii corporation; and MP UNIT 21, LLC, a Texas limited liability company, Plaintiffs-Appellants, v. WAYNE MASAO MUN KEONG HU, TARA LEIKO HU, Defendants-Appellees, and DOES 1–10, Defendants.

APPEAL FROM THE CIRCUIT COURT OF THE FIRST CIRCUIT (CASE NO. 1CCV-XX-XXXXXXX)

JUNE 23, 2026

LEONARD, PRESIDING JUDGE, MCCULLEN AND GUIDRY, JJ.

OPINION OF THE COURT BY MCCULLEN, J.

Plaintiffs-Appellants RCA Trade Center, Inc., and MP

Unit 21, LLC, (collectively, RCA) appeal from the Circuit Court

of the First Circuit's May 20, 2024 order granting Defendants-

Appellees Wayne and Tara Hu's (together, the Hus) motion to

dismiss brought pursuant to Hawaiʻi Revised Statutes (HRS) FOR PUBLICATION IN WEST'S HAWAIʻI REPORTS AND PACIFIC REPORTER

Chapter 634G, the Hawaiʻi Public Expression Protection Act

(HPEPA), and May 21, 2024 Final Judgment. 1

On appeal, RCA challenges the circuit court's

(1) finding of good cause for the Hus' untimely filing of their

HPEPA motion to dismiss, (2) dismissal of its complaint, and

(3) award of fees and costs. We affirm.

We hold that the circuit court did not (1) abuse its

discretion by finding good cause for the Hus' untimely filing or

(2) err by dismissing RCA's complaint under HPEPA. We further

hold that (3) RCA waived any challenge to the circuit court's

award of attorney's fees.

I. BACKGROUND

A. Factual Background

In 2016, the Hus acquired a unit within Marconi Point

Condominiums, an agricultural condominium project (the Project)

located in Kahuku, Oʻahu, Hawaiʻi. The Project comprises "two

(2) lots totaling 96 acres of AG-2 zoned lands" that were

"'condominiumized' by the developer into 32 units." "The

Project aims to develop agricultural condominiums for active

farming and other agricultural operations" and "is not a

residential development." "However, zoning laws allow 'farm

dwellings' to be constructed within the Project to house

individuals engaged in the Project's agricultural operations,

1 The Honorable John M. Tonaki presided.

2 FOR PUBLICATION IN WEST'S HAWAIʻI REPORTS AND PACIFIC REPORTER

consistent with what is permitted under applicable zoning

ordinances."

In 2017, RCA applied for and received multi-building

permits from the City and County of Honolulu's Department of

Planning and Permitting (DPP) to construct eight pre-fabricated

steel warehouses on their various units within the Project.

Believing the "Project would remain a quiet

agricultural condominium project, with few farm dwellings and

neighbors" at the time they purchased the unit, the Hus became

concerned about "numerous questionable and possibly unlawful

activities occurring within the Project" over the next eight

years.

These activities — which the Hus believed

"substantially changed the nature and character of the Project[]

and[] . . . impacted the North Shore Community and the interest

of the public with respect to protecting both agricultural lands

from non-compliant uses as well as activities that adversely

affected the environment" — included (1) the "construction of

eight (8) massive metal warehouses . . . on the AG-2 zoned

lands[] . . . for the purpose of advertising and leasing spaces

. . . to the public for non-agricultural uses";

(2) noncompliance with DPP's special management area and

building permit requirements; (3) "hosting illegal and

noncompliant uses on AG-2 lands such as 'non-compliant farmers'

3 FOR PUBLICATION IN WEST'S HAWAIʻI REPORTS AND PACIFIC REPORTER

markets', 'pop-up markets', weddings, craft fairs, and other

social gatherings, some of which utilized [RCA's] warehouse

spaces"; and (4) "allowing people vehicular access to the beach

areas for 'four-wheeling' in sensitive environmental areas

having endangered species."

As to the eight warehouses, RCA "applied for and

received a United States Department of Agriculture Rural

Development Business and Industrial Guaranteed Loan of

$7,883,000" (the Loan) to "finance the construction of the

warehouses." According to RCA, the "program does not provide

direct funding but only a federal guaranty to secure repayment

obligations in the event of a borrower's default." North Avenue

Capital was RCA's lender under the program.

Meanwhile, as discussed in more detail below, the

Hawaiʻi Legislature adopted the Uniform Law Commission's model

Uniform Public Expression Protection Act (UPEPA) as HPEPA in

2022. 2022 Haw. Sess. Laws Act 96, § 1 at 215-16.

Concerned "that the questionable activities put the

Project in danger of being investigated and cited by various

federal, state and county governmental agencies," the Hus hired

Peter J. Lenhart, Esq., to draft a letter to RCA addressing

these and other issues.

On August 29, 2023, Lenhart transmitted the "52-page

letter . . . together with Exhibits '1' through '17'" (the

4 FOR PUBLICATION IN WEST'S HAWAIʻI REPORTS AND PACIFIC REPORTER

Letter) to RCA, its counsel, and ten additional governmental

entities, including DPP, the State of Hawaiʻi Department of Land

and Natural Resources, the State of Hawaiʻi Department of

Agriculture, and the U.S. Department of Agriculture (USDA).

On September 1, 2023, North Avenue Capital contacted

RCA for more information about the Letter, which it received

from the USDA. Following the USDA's inquiry into the Letter,

North Avenue Capital "informed [RCA] that [it] would be putting

a hold on draws from the loan proceeds, which were needed to pay

for ongoing construction costs."

Although RCA attempted to assuage North Avenue

Capital's concerns, in part by filing the instant lawsuit, North

Avenue Capital ultimately "declared [RCA] to be in default of

[its] obligations under the loan." "Since December 2023, [RCA

has] been able to resolve [North Avenue Capital]'s concern,

pending USDA consent to the loan modification." 2

B. Procedural Background

On October 25, 2023, less than two months after

receiving the Letter, RCA filed a three-count complaint against

the Hus, asserting causes of action for Declaratory Relief,

Tortious Interference, and Injunctive Relief.

Count I (Declaratory Relief) sought a "declaratory

ruling that the warehouses may remain on [RCA's] Units, that

2 RCA does not explain how or why the Loan was modified.

5 FOR PUBLICATION IN WEST'S HAWAIʻI REPORTS AND PACIFIC REPORTER

[RCA is] not required to remove the warehouse[s] that have

already been constructed, and that [RCA] may continue with

construction of the warehouses as intended":

COUNT I DECLARATORY RELIEF

59. Plaintiffs incorporate by reference each of the allegations in all previous paragraphs.

60.

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