A judge in Honolulu has ordered mediation in the legal dispute over the Skyline rail project. The order requires the Honolulu Authority for Rapid Transportation and contractor Hitachi Rail Honolulu JV to try to resolve their claims and counterclaims through talks instead of going straight to a jury trial.
Judge orders mediation and sets a deadline
According to the Star-Advertiser, 1st Circuit Court Judge Kevin T. Morikone ordered the parties into mediation and set a hard deadline of December 31, 2026, to get it done. The court’s Jan. 20 minutes also show that Morikone granted HART’s motion to dismiss two of Hitachi’s claims and carved out allegations tied to Segment 3 from the current case. The schedule gives both sides months to spar across a conference table before they square off in a courtroom.
Trial date looms if talks fail
HART has announced that the 1st Circuit Court has slated a jury trial for Aug. 9, 2027, and the agency said the trial could last roughly four to six weeks if mediation falls apart. Yahoo reported the trial calendar and noted that Hitachi declined to comment on the pending litigation. The looming date keeps pressure on both sides and on Honolulu taxpayers who are ultimately watching the bill.
What each side is asking for
Hitachi Rail Honolulu JV’s complaint, filed in November, seeks at least $320 million, accusing HART of coordination and scheduling failures that it says drove up costs substantially. HART fired back in December with a counterclaim alleging breach of contract and asserting that Hitachi submitted false or misleading schedules. Civil Beat reported that HART is seeking more than $20 million in liquidated damages and is invoking Hawaii’s False Claims Act. Those dueling demands now form the core of the mediation talks.
Legal stakes and past settlement efforts
HART argues that if it proves Hitachi knowingly used false records in support of its claim, Hawaii’s False Claims Act could open the door to treble damages and civil penalties, significantly raising the financial stakes. Hawaii News Now has outlined how costly that could become. The two sides already tried to hash things out in a three-day mediation in October 2024, but those sessions ended without a deal, according to reporting on the complaint. Railway Age detailed that earlier attempt at settlement and Hitachi’s explanation for why it ultimately went to court.
What to watch next
All eyes now turn to whether the parties can reach a deal by the court-ordered mediation deadline of Dec. 31, 2026, and avoid the Aug. 9, 2027, trial. The Star-Advertiser reported that HART board member Sharon V. Lovejoy told colleagues at a recent meeting that earlier settlement efforts were not quite comparable because “the litigation itself had not yet been filed.” For more background on HART’s legal strategy, see our December coverage detailing HART’s counterclaim against Hitachi.
