Bill > HB981

This bill aims to limit attorneys' fees in construction defect cases to 25% of the total recovery amount, ensuring that plaintiffs retain more of their settlement or award to cover repair costs. The legislation defines a "construction defect" as a deficiency in design, specifications, planning, construction, supervision, or observation of a building or structure. It applies to both settled disputes and court actions, preventing attorneys from charging more than 25% in fees and costs. The bill's purpose is to protect property owners by ensuring they have sufficient funds to address construction problems after legal proceedings, recognizing that high attorney fees can sometimes leave plaintiffs in a worse financial position. The bill includes provisions that prevent it from retroactively impacting existing contracts and does not affect rights, penalties, or proceedings that began before its effective date. While the bill shows a future effective date of July 1, 3000 (which is likely a typo), it is intended to provide immediate relief for property owners facing construction defect challenges by limiting the financial burden of legal representation.

Business and Industry, Justice

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=981&year=2026