SB551

Report Title:

Gasoline Dealers; Prohibition of Legal Fee Shifting Agreements

 

Description:

Prohibits legal fee shifting provisions in gasoline dealer franchise agreements.

 

THE SENATE	S.B. NO.	551
TWENTY-FIRST LEGISLATURE, 2001
STATE OF HAWAII

A BILL FOR AN ACT

 

RELATING TO GASOLINE DEALERS.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Chapter 486H, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"486H-   Legal fee and expense shifting provisions. (a) Any provision in an agreement between a gasoline dealer and a manufacturer or petroleum distributor that provides for the shifting of legal fees and expenses to the prevailing party in the event of litigation shall be void to the extent it conflicts with this chapter.

(b) For the purposes of this section, "legal fees and expenses" includes attorneys' fees, expert witness fees, electronic research expenses, copying expenses, paralegal expenses, courier and messenger expenses, travel expenses, deposition expenses, postage and shipping expenses, overtime expenses, telephone and facsimile expenses, court services expenses, document services expenses, litigation support expenses, and consultant expenses."

SECTION 2. New statutory material is underscored.

SECTION 3. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________