Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Transportation, Military Affairs and Government Operations, to which was referred S.B. No. 1484 entitled:

begs leave to report as follows:

The purpose of this measure is to allow administrative agencies to award attorney's fees to a party forced to defend a frivolous claim in a contested case hearing seeking monetary damages or injunctive relief.

Your Committee received testimony in support of this measure from Hawaiian Electric Company, Inc. The Consumer Lawyers of Hawaii submitted comments on this measure.

Your Committee finds that this measure is similar to Rule 11 of the Hawaii Rules of Civil Procedure, which is modeled after a similar provision in the federal rules. Allowing the imposition of attorney's fees deters frivolous claims and is often the fairest solution for parties forced to defend against meritless claims.

Several administrative agencies are authorized by law to hold hearings in contested cases; those hearings are similar to lawsuits in that they can be expensive to defend, and can harm the reputation of the defendant. Therefore, your Committee supports this measure as a means of minimizing the number of meritless administrative claims.

As affirmed by the record of votes of the members of your Committee on Transportation, Military Affairs and Government Operations that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1484 and recommends that it pass Second Reading and be referred to the Committee on Judiciary.