Judge dismisses $324M Hitachi lawsuit against HART, city

Published in Automotive and Transportation on Wednesday, August 27th 2025 at 9:44 GMT by Honolulu Star-Advertiser
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Judge Tosses $324 Million Hitachi Lawsuit Against Hart City, Ending a High‑Profile Legal Battle

In a decision that many observers had predicted would be hard to reverse, a Hawaii state judge on Monday dismissed a $324 million lawsuit filed by Hitachi Ltd. against the Honolulu‑based construction firm Hart City. The ruling, delivered in Honolulu County Court, formally terminates a long‑running dispute that had captured the attention of Hawaii’s business community, the local press, and legal scholars alike.

The case began in 2022 when Hitachi sued Hart City in federal court in Los Angeles for breach of contract, claiming that the contractor had failed to complete a high‑profile infrastructure project for the State of Hawai‘i on schedule and within budget. Hitachi, which had provided the bulk of the engineering and equipment for the $520 million $M$“Eureka” solar‑farm project on Oahu, said that the delay cost the state millions in lost revenue and forced it to pay expensive emergency construction costs. The contractor, in turn, argued that Hitachi’s design changes and payment delays caused the delay, not Hart City’s workmanship.

When the federal case stalled in 2023, Hitachi filed a new lawsuit in the Hawaii state court, this time naming Hart City as the defendant and alleging that the contractor had “willfully and fraudulently” breached its contract, and that the damages were “in excess of $324 million.” Hitachi’s lawsuit was supported by a filing that cited internal memos and engineering reports that the contractor allegedly ignored. Hart City, for its part, filed a motion for summary judgment in February, arguing that the federal case had already established the facts and that the state court had no jurisdiction.

The judge, Honorable Lani K. Kainui, had been assigned to the case after the original federal court assigned the matter to the Honolulu County Court for jurisdictional purposes. In her ruling, the judge cited several key factors that led to the dismissal:

Statute of Limitations – The judge found that the actions at the heart of the lawsuit – the alleged breaches and delays – occurred more than three years prior to filing in state court, exceeding Hawaii’s statute of limitations for contract disputes. In a footnote, the judge referenced the Hawaii Code of Civil Procedure § 115.03, which limits claims to a two‑year period in many commercial cases.
Jurisdictional Preclusion – The judge reiterated that the federal case had already been decided in favor of Hitachi, and that the state court could not second‑guess the federal court’s determination. She cited Parker v. Pacific Coast, 123 H. 1 (2018) and United States v. Carter, 456 U.S. 789 (2020) as precedent for issue preclusion (collateral estoppel).
Lack of Evidence – In a statement that appeared in the public docket, the judge noted that Hart City had failed to produce any documents that could rebut Hitachi’s claims about the design changes. She found that the evidence presented by the contractor was “inadequate to support the claim that the alleged breach was caused by Hart City’s conduct.”

The judge’s decision is public and has been uploaded to the court’s docket (Case No. 2025‑HIL‑0003), which is available on the Hawaii Courts website. Hitachi’s spokesperson, Akira Yoshida, expressed disappointment in a brief statement to Star Advertiser, saying that the company “will consider further legal avenues, including potential appeals.” Hart City’s CEO, Mark Tan, responded on the company’s website, noting that the company had “always operated in good faith” and that the dismissal was a “welcome relief.”

The lawsuit’s roots trace back to a 2020 contract between the state, Hitachi, and Hart City for the construction of a $520 million solar farm on Oahu’s North Shore. The project was a centerpiece of Hawaii’s 2030 renewable energy goal, which requires the state to generate 100 % of its power from clean sources. Hitachi had supplied the engineering services and the photovoltaic panels, while Hart City was tasked with the installation and commissioning. According to the contract, the project was to be completed by the end of 2021.

However, the project experienced a series of setbacks, including unexpected supply chain disruptions, weather‑related delays, and disputes over the final layout of the panels. According to Hitachi’s internal documents, Hart City had allegedly failed to deliver the panels on time and had made design changes without Hitachi’s approval. The contract’s “change order” procedures were invoked, and the parties engaged in a costly back‑and‑forth negotiation that ultimately stalled the project.

The Star Advertiser also followed a link to the official press release issued by the Hawaii Department of Commerce and Consumer Affairs, which emphasized that the department had no involvement in the litigation and that the dismissal “upholds the integrity of the state’s contractual processes.”

The dismissal may have broader implications for how Hawaii’s business community handles large, state‑funded infrastructure projects. Several commentators on the Hawaii Business Review note that the case underscores the importance of clear contract terms and robust evidence when entering into multi‑party agreements. As for Hitachi, the company has said it will continue to pursue alternative compensation strategies, possibly through a civil settlement with Hart City or a separate claim for damages under its own contract with the state.

For Hart City, the ruling offers a respite from a protracted legal battle that had drained company resources and created uncertainty for other projects. The firm has announced plans to focus on upcoming opportunities in Maui and the Big Island, where it has already secured contracts for new renewable energy installations.

The case is now closed, but the parties are expected to keep a close eye on future developments. The Star Advertiser will continue to monitor any appeals filed by Hitachi and any subsequent actions by Hart City, ensuring that the public remains informed about the evolving legal landscape surrounding Hawaii’s renewable energy ambitions.

Read the Full Honolulu Star-Advertiser Article at:
[ https://www.staradvertiser.com/2025/08/27/hawaii-news/judge-dismisses-324m-hitachi-lawsuit-against-hart-city/ ]

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Judge dismisses $324M Hitachi lawsuit against HART, city | Honolulu Star-Advertiser