Zaloudek, et al., v. Haseko Homes, Inc., et al.

If you own a Hoakalei home, a class action lawsuit may affect your rights.

A Judge authorized the dissemination of the Notice. This is not a solicitation from a lawyer.

• Hoakalei homeowners have sued Haseko Homes, Inc.; Haseko Construction, Inc.; Haseko Construction Kamakana LLC; Haseko Development, Inc.; Hoakalei Residential, LLC; Ke Noho Kai Development, LLC; Haseko (Ewa), Inc.; and presently unnamed Doe Defendants (jointly “Haseko”) claiming that Haseko caused installation of and/or sold homes with defective shot pins at the foundation level of their Hoakalei homes. In particular, the Hoakalei homeowners claim that the shot pins are corroding. Haseko denies any and all liability and asserts that the shot pins installed in the Class homes are not defective.
• First Circuit Court Judge John M. Tonaki allowed this lawsuit to proceed as a class action. Judge Tonaki certified the Class. Your receipt of the Notice means that you may be a part of the Class, which, subject to certain exclusions set forth in FAQ No. 10 below, includes all individual and entity homeowners who purchased homes in the development known as Hoakalei, located in the District of Ewa, City and County of Honolulu, Island of O‘ahu, State of Hawai‘i, that were designed, developed, and constructed with shot pins. The Class claims do not include any claims for alleged building code violations related to the Class Homes.
• Neither the Court nor any potential arbitrator for this matter have decided whether the shot pins are in fact defective. There are no money damages available now and no guarantee that there will be money damages in the future. However, your rights are affected, and you have a choice to make now.

• Lawyers must prove the claims against Haseko in Court or at a potential arbitration. There is currently no date set for trial or a potential arbitration. Please check the Class website (www.HoakaleiShotPinClass.com) for updates. If money damages or benefits are obtained, those who do not opt out of the Class will be notified about how to participate in the recovery.
• Your rights and options—and the deadlines to exercise them—are explained in the Notice.

1. BASIC INFORMATION

1. Why was the Notice issued?

   The Notice was issued because a Court has allowed, or “certified,” this case to proceed as a class action lawsuit, and your rights may be affected. If you own a Hoakalei home in Ewa Beach, Hawaiʻi, you may have legal rights and options in this case before it is decided whether the claims being made against Haseko on your behalf are correct. The Notice explains all of these things.

   The case is known as Zaloudek, et al., v. Haseko Homes, Inc., et al., Civil No. 1CCV-21-0000993 JMT The homeowners who sued are called the Plaintiffs. The companies they sued, Haseko Homes, Inc.; Haseko Construction, Inc.; Haseko Construction Kamakana LLC; Haseko Development, Inc.; Hoakalei Residential, LLC; Ke Noho Kai Development, LLC; Haseko (Ewa), Inc.; and presently unnamed Doe Defendants, are called the Defendants.

2. What is this lawsuit about?

   This lawsuit is about the shot pins installed in Hoakalei homes. Plaintiffs claim that Haseko installed defective shot pins at the foundation level of their Hoakalei Homes, and that the shot pins are corroding. This lawsuit does not claim that the Class Homes violate the building code. The lawsuit asks that money be paid or other remedies be provided to homeowners for the alleged defective shot pins in their homes. Haseko denies any and all liability and asserts that the shot pins are not defective.

3. What is a class action?

   In a class action, a Class Representative or Class Representatives sue on behalf of all people who have similar claims. The people included in the class action are called a class and the Class consists of Class Members. The claims of the Class and Class Members are resolved together either by the court or in an arbitration. Class Members have the option to exclude themselves from (or opt-out of) the Class. If a Class Member elects to exclude himself, herself, or itself from the Class, that Class Member will not be bound by the results of this class action. More information regarding a Class Member’s ability to opt-out of the Class and the steps that need to be taken to opt-out of the Class are provided below.

   In this case, Becky Zaloudek, Clyde Pelekai, Jr., Jeana Pelekai, Cherlyn Jensen, Barbara Jackson, and Michael Jackson have been appointed by the Court as Class Representatives to represent the Class.

4. Why is this lawsuit a class action?

   The Court decided that this lawsuit could proceed as a class action because it meets the requirements of Rule 23 of the Hawaiʻi Rules of Civil Procedure, which governs class actions in state court in the Circuit Court of the First Circuit, State of Hawaiʻi. For example, the Court found that the issues in the lawsuit are common among all the Class and that the claims of Plaintiffs are typical of the other Class Members. The Court also found that the Plaintiffs and the lawyers bringing this lawsuit would adequately represent the interests of the Class. More information about why this is a class action can be found in the Court’s Order Granting in Part and Denying in Part Plaintiff’s Motion for Class Certification, which is available on this website.

5. THE CLAIMS IN THE LAWSUIT

5. What does the lawsuit complain about?

   In general, the lawsuit claims that the shot pins are defective and corroding. The lawsuit does not claim that the Class Homes violate the building code. More information explaining what the lawsuit complains about can be found in the Plaintiffs’ operative Master Amended Class Action Complaint, which is available on this website.

6. How does Haseko answer?

   Haseko denies any and all liability and asserts that the shot pins are not defective. More information on Haseko’s answer to the claims can be found in Haseko’s Answer to Plaintiff’s Master Amended Class Action Complaint, which is available on this website.

7. Has the Court or any potential arbitrator decided who is right?

   No. There has been no decision whether the Plaintiffs or Haseko are right. By establishing the Class, ordering that the Notice be provided, the Court is not suggesting that Plaintiffs will win or lose this lawsuit. The lawyers for the Class must prove the claims at trial or in arbitration if the case is compelled to arbitration. There is currently no trial or arbitration hearing date. Please check the class website for updates.

8. What are the Plaintiffs asking for on behalf of the Class?

   The lawsuit asks for money to be paid and remedies to be provided to the Class for the alleged defects in the shot pins installed in the Class Homes. The lawsuit also asks for attorney fees and reimbursement of expenses.

9. Is there any money or are there any benefits available now?

   No money is available now and no benefits are available now because neither the Court nor a potential arbitrator has decided whether Haseko did anything wrong. There is no guarantee that money damages or benefits will ever be awarded or obtained. However, if they are, you will be notified about how to ask for your share or benefits.

10. MEMBERS OF THE CLASS

10. How do I know if I am a member of the Class?

    The Court has approved, or certified, the following “Class.” Everyone who fits the following description is a “Class Member.”

    The Class includes: All current individual and entity homeowners who purchased homes in the development known as Hoakalei, located in the District of Ewa, City and County of Honolulu, Island of O‘ahu, state of Hawai‘i, that were designed, developed, and constructed with shot pins in the State of Hawai‘i.

    A list of all Hoakalei Homes that are part of the Class can be found in the Court’s Order Granting in Part and Denying in Part Plaintiff’s Motion for Class Certification, which is available on this website.

    The Class excludes: (1) owners of homes subject to the settlement in Mitsuoka v. Haseko Homes, Inc., et al., State of Hawai‘i, First Circuit, Case No. 12-1-3020-11 JHA, but only as to their homes that are subject to that settlement; (2) judges who have presided or will preside over this case; and (3) persons and entities that Haseko has employed. The Class claims do not include any claims for alleged building code violations related to the Class Homes.

11. I’m still not sure if I am included. What should I do?

    If you are still not sure whether you are included in the Class, you can contact Class Counsel, LippSmith LLP by telephone at (213) 344-1820 or email at contact@lippsmith.com; or Kasdan Turner Thomson Booth LLLC by telephone at (808) 369-8393.

12. YOUR RIGHTS AND OPTIONS

    You have a choice about whether to stay in the Class, or to exclude yourself by following the procedures described below no later than July 7, 2022.

12. What happens if I do nothing at all?

    If you are a Class Member and you do nothing, you are choosing to stay in the Class. If you stay in the Class, you will be legally bound by all decisions that the Court and/or any potential arbitrator makes. This means that if the Class Representatives obtain money or benefits from Haseko – either from a judgment or a settlement – you will be eligible for a share and/or those benefits. This also means that regardless of whether the Class Representatives win or lose the lawsuit or potential arbitration of this lawsuit, you will not be able to start a new lawsuit, continue with a lawsuit, or be part of any other lawsuit against Haseko for the legal claims and issues pursued in this lawsuit ever again.

13. What happens if I exclude myself from the Class?

    If you exclude yourself from the Class, you will not be legally bound by the Court’s or any potential Court orders, Court judgments, arbitrator’s orders, and/or settlement, and you may be able to keep any rights you may have to sue Haseko for the same claims in a different lawsuit, now or in the future. However, if you exclude yourself from the Class, you will not be able to get any money or benefits from this lawsuit if any are awarded or obtained as a result of trial, potential arbitration, or any settlement, and your rights may be affected by potentially applicable statutes of limitations and/or statutes of repose. You will also not be represented by Class Counsel but may independently pursue your claims with or without your own counsel.

14. How do I ask to be excluded from the Class?

    To exclude yourself from the Class, send a letter that says you want to be excluded from the Class in Zaloudek, et al., v. Haseko Homes, Inc., et al., Civil No. 1CCV-21-0000993 JMT to Zaloudek, et al., v. Haseko Homes, Inc., et al. Notice Administrator, P.O. Box 58220, Philadelphia, PA 19102. Your letter must provide your (a) name; (b) address for your Hoakalei home; (c) contact address if different than the address of your Hoakalei home; (d) telephone number; (e) statement you currently own your Hoakalei home; (f) statement that you wish to be excluded from the Class; and (g) signature.

    You must mail your exclusion request so that it is postmarked by no later than July 7, 2022.

15. THE LAWYERS REPRESENTING YOU

15. Do I have a lawyer in this case?

    Yes. The Court appointed LippSmith LLP and Kasdan Turner Thomson Booth LLLC to represent you and other Class Members as “Class Counsel.” These lawyers have experience handling similar cases. Contact information for these law firms can be found on this website.

16. Should I get my own lawyer?

    If you do not exclude yourself from the Class, you do not need to hire your own lawyer because Class Counsel is representing you and all the other Class Members. You can hire your own lawyer, who may ask to appear in Court or arbitration for you in this case, but you will have to pay that lawyer.

17. How will Class Counsel be paid?

    If Class Counsel obtain money or benefits for the Class, they will ask the Court or arbitrator for fees and reimbursement of expenses. If the Court or arbitrator grants their request, the fees and reimbursement of expenses will either be deducted from any money obtained for the Class or paid separately by Haseko. You will not individually have to pay any of these fees and expenses.

18. TRIAL OR POTENTIAL ARBITRATION

18. How and when will the Court or potential arbitrator decide the case?

    Unless the parties agree to a settlement, the case, or a portion thereof, will be decided in a Court trial or at a potential arbitration hearing. Neither a Court trial nor potential arbitration hearing has been scheduled yet. Please check the Class website for updates.

19. Do I have to come to the trial or potential arbitration?

    You don’t have to come to the Court trial or potential arbitration unless you want to or you are asked to by the Court or potential arbitrator. Class Counsel will present the case for the Class, and the lawyers for Haseko will present Haseko’s defenses. You and/or your own lawyer may appear in Court or arbitration for this case at your own expense, but it’s not necessary.

20. Will I get money or benefits after the trial or potential arbitration?

    If Class Counsel obtain money and/or benefits from trial, arbitration, or a settlement, you will be notified about how to ask for a share, about how to participate in any benefits, and/or about any other options you may have at that time.

21. GETTING MORE INFORMATION

21. Is more information about the lawsuit available?

    The Notice summarizes the lawsuit. More information is available by visiting this website. You can view a copy of the Order Granting in Part and Denying in Part Plaintiff’s Motion for Class Certification, the Plaintiffs’ Master Amended Class Action Complaint, and Haseko’s Answer to Plaintiffs’ Master Amended Class Action Complaint at the website.