When a car crash hospitalized Honolulu homeowner Sandra May, the last thing on her mind was her rental listing. She had been in and out of the hospital for months before she discovered that a website error had allowed would-be renters to inquire about short-term rentals. That error caused her to unknowingly run afoul of a local ordinance that prohibits renting out any part of your property for fewer than 30 days.
Under that prohibition, the City and County of Honolulu charge property owners a staggering $10,000 a day for even advertising short-term rentals.
By the time Sandra caught the error on her rental listing, the City had slapped her with $600,000 in fines, placed a lien on her home, and prohibited her from accessing any City services, even essential services like driver’s license renewal and vehicle registration.
Sandra May outside her home in Honolulu. Photo Credit: Michelle Mishina Kunz.
When the government imposes fines, they must be proportionate to the alleged offense—not crushing fines exceeding half a million dollars.
Represented at no cost by Pacific Legal Foundation, Sandra filed a lawsuit to challenge the City’s attempt to impose excessive fines in violation of her constitutional rights.
“The City and County of Honolulu are using this ordinance as a revenue-generating scheme and violating property owners’ constitutional rights,” said Loren Seehase, an attorney with Pacific Legal Foundation. “These exorbitant fines are not remotely proportionate to Sandra’s alleged offense. All Americans deserve due process when facing unjust punishments like excessive fees, and I am proud to represent Sandra as she holds the City accountable for denying her rights.”
What’s At Stake?
- Government fines must be proportional to the alleged offense, not weaponized as revenue-generating tools.
- Property owners challenging unjust civil fines have a constitutional right to a jury trial and due process under the law.
