A judge has ruled Newton-based HRPT Properties Trust does not need to lower rents for its industrial and commercial lands to abide by a new law.
Chief Judge Susan Oki Mollway of the U.S. District Court in Hawaii ruled that a law intended to lower rents HRP may charge for its industrial and commercial lands in Hawaii violates the U.S. Constitution and is unenforceable.
The law, known as Act 189, was passed by the Hawaii Legislature during its 2009 session and became effective in July 2009. HRPT brought suit in the U.S. District Court to have the law declared unconstitutional. A hearing seeking summary judgment was held in December 2009, but the court then determined to allow the parties to conduct discovery. After completion of discovery, a second hearing was held on May 10. Chief Judge Mollway’s decision is the result of that second hearing.
The court ruling finds that Act 189 violates the U.S. Constitution’s Contract Clause which prohibits state laws changing historical contract rights.
Chief Judge Mollway’s ruling also finds that Act 189 violates the U.S. Constitution’s Equal Protection Clause because it singles out and targets HRPT for the benefit of its lessees and does not serve any legitimate general public purpose.
HRPT stated that it does not know whether the defendants intend to appeal Chief Judge Mollway’s decision to the U.S. Court of Appeals for the Ninth Circuit.





