Lemon Law Demand Letter — Hawaii

HAWAI'I LEMON LAW DEMAND

Motor Vehicle Express Warranty Enforcement Act — HRS Chapter 481I

SENT VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
(Recommended by DCCA to document delivery of the written notice required under HRS § 481I-3(d); the statute requires "written notification"/a "written report" but does not itself mandate a specific delivery method)
AND OVERNIGHT DELIVERY — SIGNATURE REQUIRED

Date: [__/__/____]

To Manufacturer:
[________________________________]
ATTN: Customer Relations / Legal Department / Warranty Claims
[________________________________]
[________________________________] (City, State ZIP)

To Selling/Servicing Dealer:
[________________________________]
ATTN: General Manager / Service Director
[________________________________]
[________________________________], Hawai'i [____]
Island: [________________________________]

RE: HAWAI'I LEMON LAW STATUTORY NOTICE — HRS § 481I-3(d)
THIS LETTER CONSTITUTES THE WRITTEN NOTIFICATION REQUIRED BEFORE THE STATUTORY PRESUMPTION MAY BE INVOKED

Consumer/Owner: [________________________________]
Vehicle: [____] [________________________________] [________________________________] [________________________________] (Year / Make / Model / Trim)
VIN: [________________________________]
Purchase/Lease Date: [__/__/____]
Current Odometer: [________________________________]
Delivering Dealer: [________________________________] — [________________________________] (Island)

Dear Sir or Madam:

This firm represents [________________________________] ("Consumer") regarding the above-identified motor vehicle. The vehicle qualifies as a "lemon" under the Hawai'i Motor Vehicle Express Warranty Enforcement Act, HRS §§ 481I-1 through 481I-4, and the federal Magnuson-Moss Warranty Act, 15 U.S.C. § 2301 et seq.

This letter constitutes the written notification required by HRS § 481I-3(d) before the statutory presumption of a reasonable number of repair attempts may be invoked; it is being sent by certified mail to document delivery, though the statute itself does not mandate that specific delivery method. Upon receipt, the manufacturer must be given a reasonable opportunity to repair the nonconformity before Consumer pursues arbitration and/or litigation.

I. HAWAI'I LEMON LAW — STATUTORY FRAMEWORK

A. Coverage — HRS § 481I-2

Hawai'i's lemon law covers self-propelled motor vehicles primarily designed for the transportation of persons or property over public streets and highways and used primarily for personal, family, or household purposes (including demonstrators, and certain individually-registered business-use vehicles). Motorcycles ARE covered (HRS § 481I-2's "motor vehicle" definition expressly includes motorcycles as defined in HRS § 286-2). The statute excludes only mopeds and motor scooters (as defined in HRS Chapter 286) and vehicles with a gross vehicle weight rating exceeding 10,000 pounds. (HRS § 481I-2, definition of "motor vehicle")

The "lemon law rights period" is the earlier of:

• The term of the manufacturer's express warranty; or
• Two (2) years or 24,000 miles from the date of original delivery to the consumer, whichever occurs first. (HRS § 481I-2, definition of "lemon law rights period")

B. Rebuttable Presumption of Lemon Status — HRS § 481I-3(d)

A rebuttable presumption that a reasonable number of repair attempts have been undertaken arises when any one of three thresholds is met during the lemon law rights period:

Hawai'i's 3-repair threshold is lower than most states (many require 4 attempts), giving consumers earlier access to relief.

Important: Hawai'i counts business days — defined by statute as any day the manufacturer's authorized dealer service departments are normally open — for the 30-day out-of-service threshold. The lemon law rights period and the 30-business-day period are each extended for time repair service is unavailable due to war, invasion, strike, fire, flood, or other natural disaster. These presumptions do not apply unless the manufacturer has received a written report of the nonconformity from the consumer and has had a reasonable opportunity to repair it. (HRS § 481I-3(d))

C. Required Written Notice — HRS § 481I-3(d)

Before the presumption may be invoked, the consumer must have provided the manufacturer a written report of the nonconformity, and the manufacturer must have had a reasonable opportunity to repair the nonconformity alleged. (HRS § 481I-3(d)) The statute does not itself require certified mail as the delivery method — certified mail, return receipt requested, is the method DCCA/RICO's own model notice letter recommends to document delivery, not a separate statutory mandate.

D. Manufacturer's Remedies — HRS § 481I-3(b)

If the manufacturer cannot conform the vehicle to the express warranty after a reasonable number of documented attempts, the manufacturer must provide the consumer with either:

☐ Refund — the full purchase price, including all collateral and incidental charges (e.g., taxes, license/registration fees, finance charges, dealer preparation, transportation), less a reasonable offset for the consumer's use; OR

☐ Replacement — a comparable new motor vehicle acceptable to the consumer.

E. Reasonable Allowance ("Offset") for Use — HRS § 481I-2 (definition of "reasonable offset")

Hawai'i's offset is 1% of the purchase price for every 1,000 miles of use attributable to the consumer — equivalent to a 100,000-mile denominator, not 120,000:

Allowance = (Purchase Price) × (Attributable Miles ÷ 100,000)

Mileage is measured up to whichever occurs first: the date of the third repair attempt of the same nonconformity, the date of the first repair attempt of a nonconformity likely to cause death or serious bodily injury, or the date of the thirtieth cumulative business day out of service. (HRS § 481I-2)

F. State Certified Arbitration Program (SCAP) — HRS § 481I-4

The Hawai'i Department of Commerce and Consumer Affairs (DCCA) administers the State Certified Arbitration Program (SCAP) through its Regulated Industries Complaints Office (RICO). Manufacturers must give consumers written notice of SCAP's terms and their statutory rights at the time of purchase. (HRS § 481I-3(g)-(h))

• An arbitration decision must be rendered within 45 days of invocation. (HRS § 481I-3(i))
• Arbitration is nonbinding by default: either party may demand a trial de novo within 30 days after the award is served; if neither party does, the decision becomes binding on both parties. (HRS § 481I-4(d))
• A party who demands a trial de novo but fails to improve its position by at least 25% must pay the other side's reasonable trial costs and attorney's fees. (HRS § 481I-4(d))
• The prevailing party in a SCAP arbitration may be awarded reasonable attorney's fees. (HRS § 481I-4(c))

II. VEHICLE AND PURCHASE INFORMATION

III. WARRANTY INFORMATION

The defects described below arose during the lemon law rights period and remain unresolved.

IV. NONCONFORMITY DESCRIPTION

Under HRS § 481I-2 (definition of "nonconformity"), a nonconformity is a defect, malfunction, or condition that does not conform to the vehicle's applicable express warranty and that substantially impairs its use, market value, or safety (excluding defects resulting from accident, abuse, neglect, or unauthorized modification).

Primary Nonconformity

Additional Nonconformity(ies)

V. REPAIR HISTORY

Repair Attempt #1

Repair Attempt #2

Repair Attempt #3

(Attach additional repair attempts on separate sheet if needed.)

Repair History Summary

VI. LEMON LAW QUALIFICATION ANALYSIS

Our Client's vehicle meets the lemon law presumption under HRS § 481I-3(d) because:

☐ 3+ Repair Attempts for Same Nonconformity (§ 481I-3(d)(1)): The same nonconformity has been subject to repair [____] times (threshold: 3) without resolution.

☐ Serious Safety Defect — 1+ Attempt (§ 481I-3(d)(2)): A nonconformity likely to cause death or serious bodily injury has been subject to repair [____] time(s) without resolution.

☐ 30+ Business Days Out of Service (§ 481I-3(d)(3)): The vehicle has been out of service for [____] business days (threshold: 30).

VII. DEMAND FOR RELIEF

Pursuant to HRS § 481I-3(b), we demand the following:

☐ Option A — Refund (HRS § 481I-3(b))

The manufacturer must also pay off any outstanding loan/lease balance to the lienholder.

☐ Option B — Replacement (HRS § 481I-3(b))

A comparable new motor vehicle acceptable to the Consumer, including payment of all taxes, fees, and registration costs.

Additional Relief

• Attorney's Fees and Costs: HRS Chapter 481I provides for a prevailing party's reasonable attorney's fees only in a SCAP arbitration proceeding (HRS § 481I-4(c)); it does not contain a general fee-shifting provision for civil litigation. Fee-shifting for a court action would need to rest on a separate claim (e.g., HRS Chapter 480, Unfair and Deceptive Acts or Practices) or the Magnuson-Moss claim below.
• Magnuson-Moss Claims: Attorney's fees and costs under 15 U.S.C. § 2310(d)(2).

VIII. FINAL REPAIR OPPORTUNITY — HRS § 481I-3(d)

HRS § 481I-3(d) conditions the statutory presumption on the manufacturer having had a reasonable opportunity to repair the nonconformity after receiving this written report; the statute does not specify a fixed number of days for this opportunity. As a matter of practice (not a statutory deadline), please contact the undersigned within ten (10) business days to schedule the repair attempt. If the nonconformity is not cured, Consumer will proceed with:

☐ DCCA State Certified Arbitration Program (SCAP), if manufacturer has a certified program; and/or
☐ Civil action in Hawai'i Circuit Court or the U.S. District Court for the District of Hawai'i.

IX. DOCUMENT PRESERVATION DEMAND

You are directed to immediately preserve all documents and electronically stored information relating to this vehicle and the nonconformity, including:

• All repair orders, warranty claims, and parts records
• Technical Service Bulletins (TSBs) related to the nonconformity
• Customer complaints and field reports for similar defects in same make/model
• Communications between dealer and manufacturer
• Engineering analyses, recalls, and investigations
• The vehicle itself — do not destroy, sell, auction, or alter

Failure to preserve evidence may result in sanctions, adverse inferences, and separate spoliation claims.

X. RESPONSE DEADLINE

Please respond in writing within fourteen (14) days with:

1. Your position on lemon law qualification;
2. Your offer for refund or replacement;
3. Scheduling of the final repair opportunity, if desired;
4. Identification of any DCCA-certified arbitration program.

If no satisfactory response is received, Consumer will:

☐ File a complaint with DCCA — Regulated Industries Complaints Office (RICO)
☐ Submit to State Certified Arbitration Program (if applicable)
☐ File suit in the appropriate Hawai'i court
☐ Report to the Motor Vehicle Industry Licensing Board

XI. RESERVATION OF RIGHTS

This letter is without prejudice to all of Consumer's rights under HRS Chapter 481I, the Magnuson-Moss Warranty Act, HRS Chapter 480 (Unfair and Deceptive Acts or Practices), and common law, all of which are expressly reserved.

Respectfully submitted,

[________________________________] (Law Firm Name)

By: _________________________________
[________________________________] (Attorney Name)
Hawai'i Bar No. [________________________________]
[________________________________] (Address)
[________________________________] (City, Hawai'i ZIP)
[________________________________] (Telephone)
[________________________________] (Email)

Attorneys for [________________________________]

ENCLOSURES:
☐ Copies of all repair orders
☐ Purchase / lease agreement
☐ Warranty booklet
☐ Vehicle registration
☐ Photographs / video of nonconformity
☐ Prior correspondence with manufacturer and dealer
☐ Rental car and incidental damage receipts

cc: [________________________________] (Consumer)
[________________________________] (Lienholder, if applicable)
DCCA — Regulated Industries Complaints Office (RICO)
Hawai'i Office of Consumer Protection

HAWAI'I-SPECIFIC NOTES

Island Logistics and Limited Dealer Networks

Hawai'i presents unique challenges for lemon law warranty service that exist in no other state:

1. Limited Dealer Network Per Island. Most outer islands (Maui, Hawai'i Island, Kaua'i) have one or zero authorized dealers for many brands. A consumer on Lāna'i or Moloka'i may need to ship the vehicle to O'ahu or Maui for warranty service, adding significant cost and time.

2. Inter-Island Vehicle Transport. Shipping a vehicle between islands typically costs $300–$800+ per trip and takes 3–7 days each way. These transportation costs and additional days out of service should be included in:

• The business day count toward the 30-day threshold;
• Incidental damages in any refund calculation.

3. Rental Vehicle Costs. Rental car rates in Hawai'i significantly exceed mainland averages, especially on outer islands and during peak tourist seasons. Document all rental expenses as incidental damages.

4. Business Days Count (HRS § 481I-3(d)(3)). "Business day" is statutorily defined (HRS § 481I-2) as any day the manufacturer's authorized dealer service departments are normally open. As a practical matter this excludes weekends and days dealers close for state holidays under HRS § 8-1, such as Kamehameha Day (June 11), Statehood Day (third Friday in August), and Prince Kūhiō Day (March 26).

5. Three-Repair Threshold. Hawai'i requires only 3 repair attempts (not 4) for the same nonconformity before the presumption attaches — fewer than most states.

6. One Attempt for Safety Defects. If the defect is likely to cause death or serious bodily injury, a single failed repair attempt triggers the presumption.

7. 100,000-Mile Use Offset Denominator. Hawai'i's "reasonable offset" is defined as 1% of the purchase price per 1,000 miles of use (HRS § 481I-2) — equivalent to a 100,000-mile denominator, not 120,000.

8. DCCA Oversight. The DCCA Motor Vehicle Industry Licensing Board oversees dealer licensing, and RICO administers the State Certified Arbitration Program. Consumer complaints: RICO Consumer Resource Center at 1-844-808-3222 or email [email protected].

Sources and References

• HRS §§ 481I-1 through 481I-4 — Motor Vehicle Express Warranty Enforcement Act
• HRS § 8-1 — State Holidays
• HRS Chapter 437 — Motor Vehicle Industry Licensing
• DCCA Lemon Law Information: https://cca.hawaii.gov/rico/lemon-law/
• DCCA Motor Vehicle Industry Licensing Board: https://cca.hawaii.gov/pvl/boards/motorvehicle/
• RICO Consumer Resource Center: 1-844-808-3222
• DCCA Consumer Handbook on Lemon Law and SCAP: https://files.hawaii.gov/dcca/rico/scap_llaw/lemon_law_handbook_consumers.pdf
• 15 U.S.C. § 2301 et seq. — Magnuson-Moss Warranty Act

This template is for informational purposes only and does not constitute legal advice. Hawai'i lemon law requires written notice to the manufacturer (certified mail is DCCA's recommended, not statutorily mandated, delivery method) and may involve manufacturer arbitration before suit. Consult a licensed Hawai'i attorney before use.