## Facts

- Honolulu Book Shops, Ltd. (HBS) entered into a ten-year commercial lease in 1986 for certain premises later acquired by Hi Kai Investment, Ltd. and Marshall Realty, Ltd. (Landlords) in 1991.
- In September 1992, HBS assigned its leasehold interest to Aloha Futons Beds & Waterbeds, Inc. (Aloha Futons).
- After the assignment, Aloha Futons failed to pay rent as required.
- On April 2, 1993, Landlords filed a summary possession action under HRS chapter 666 seeking possession, rent arrearages through March 31, 1993, and additional damages including interest, costs, future rent, and attorney’s fees.
- The district court issued writs of possession against HBS and Aloha Futons and awarded damages for rent arrearages up to the dates the writs issued, but denied damages for future rent accruing after issuance of the writs for the remainder of the lease term.
- HBS pursued a cross-claim against Aloha Futons; the district court entered a default judgment on the cross-claim.

## Issues

1. Whether HRS chapter 666 bars a landlord who regains possession through summary possession from bringing a separate common-law breach-of-lease action seeking damages measured by future rent for the unexpired term.

## Decision

- The Supreme Court of Hawaiʻi held that HRS chapter 666 does not preclude a landlord who obtains possession through summary possession from pursuing a separate common-law contract action for damages measured by future lost rent.
- The court vacated the district court’s judgment limiting damages to arrearages through issuance of the writs of possession.
- The court also vacated the default judgment entered on HBS’s cross-claim against Aloha Futons.
- The case was remanded for further determination of damages.

## Legal Principles

- HRS chapter 666 provides a summary, expedited procedure primarily directed to restoring possession and addressing amounts due in connection with that proceeding; it is not an exclusive remedial scheme that displaces common-law contract remedies.
- A landlord may pursue statutory summary possession to recover the premises and, in a separate action, seek expectation damages for breach of lease, including future rent for the remaining lease term.
- Future-rent damages are subject to ordinary contract limitations, including credit for amounts obtained through re-renting (mitigation) when applicable.

## Conclusion

Hawaiʻi’s summary possession statute does not limit a landlord to recovery of possession and past-due rent; after regaining possession under HRS chapter 666, the landlord may still sue separately for breach of lease and seek future rent damages for the balance of the term, with damages determined on remand under common-law contract principles.


Hi Kai Inv., Ltd. v. Aloha Futons Beds & Waterbeds, Inc., 929 P.2d 88 (Haw. 1996)