The Hawaii Supreme Court has made it clear that warranty claims
against a lessor stand along with the claims for strict product
liability. Indeed, this has been specifically recognized by the
Hawaii Court of Appeals in the case of Torres v. Northwest
Engineering Co., 86 Haw. 383, 949 P.2d 1004 (Haw.App. 1997). As
stated in the Torres case:
"The Hawai'i Supreme Court has stated that 'where a
plaintiff seeks to recover for personal injury in warranty
the elements of the action should be governed by the same
policies which presently shape the elements of a tort strict
products liability claim.' Larsen v. Pacesetter Systems,
Inc., 74 Haw. 1, 22, 837 P.2d 1273, 1284 (1992). The reason
for applying the elements for tort strict products liability
is that 'the tort action for strict products liability is
the warranty action for tangible injury to persons and
property stripped of its contractual mask.' Id. at 22, 837
P.2d at 1284. Under the doctrine of strict products
liability as adopted in this jurisdiction, where a seller or
lessor, who is engaged in the business of selling or leasing
a product, sells or leases a defective product which is
dangerous to the user or consumer, and injury results from
its use or consumption, the seller or lessor will be held
strictly liable in tort for the injury." 86 Haw. at 398,
949 P.2d at 1019. [emphasis added]
Many jurisdictions have developed the law of warranties
applicable to leases through case law. Hawaii is no longer one
of those jurisdictions. HRS Chapter 490:2A "The Uniform
Commercial Code - Leases" sets forth the law of warranties
pertaining to leases for the State of Hawaii by statute.
HRS § 490:2A-103 defines various terms related to lease
agreements. Some of those definitions include:
"(10) 'Lease' means a transfer of the right to
possession and use of goods for a term in return
for consideration, but a sale, including a sale on
approval or a sale or return, or retention or
creation of a security interest is not a lease.
Unless the context clearly indicates otherwise,
the term includes a sublease.
"(14) 'Lessee' means a person who acquires the right to
possession and use of goods under a lease. Unless
the context clearly indicates otherwise, the term
includes a sublessee.
"(16) 'Lessor' means a person who transfers the right to
possession and use of goods under a lease. Unless
the context clearly indicates otherwise, the term
includes a sublessor.
"(20) 'Merchant lessee' means a lessee that is a
merchant with respect to goods of the kind subject
to the lease."
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