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The Honolulu Advertiser
Posted on: Thursday, December 24, 2009

HRPT rent dispute fight will continue


BY Rick Daysog
Advertiser Staff Writer

A lawsuit seeking to overturn a new state law giving more leverage to commercial tenants in rent disputes is headed for further hearings under a ruling by a federal judge.

U.S. District Judge Susan Oki Mollway on Tuesday rejected Massachusetts-based landowner HRPT Properties Trust's request to declare the law unconstitutional.

But Mollway also declined to grant a motion by the state and Citizens for Fair Valuation, a commercial tenants group, to dismiss HRPT's lawsuit on the issue of whether the landowner has standing to pursue the suit.

"Before this court can address the merits of the constitutional challenges to the law, this court must determine whether HRPT has standing to bring its challenges," Mollway wrote.

HRPT is the largest private owner of industrial land in Hawai'i. Its holdings include nearly 10 million square feet of commercial property in Māpunapuna and the Honolulu airport area.

Earlier this year, the state Legislature passed a new law giving 180 businesses that lease land from HRPT more leverage in lease rent renegotiations.

The law requires that a unique phrase in HRPT's Hawai'i leases referring to "fair and reasonable" rent be construed as being fair and reasonable to the lessor and the lessee.

Gov. Linda Lingle allowed the measure become law without her signature.

In August, HRPT sued to overturn the law, saying the legislation interferes with its rental contracts in violation of the U.S. Constitution and will result in tenants paying less rent than they now do.