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State v. United States Steel Corp.6/24/1996
be held liable in tort. To rule otherwise would be unduly restrictive of commerce, research and development, economic competition, and the roots of a free enterprise system. However, if a seller or manufacturer intentionally misrepresents or engages in fraud or deceit in representing the qualities, performance characteristics, or capabilities of a product and the product fails to perform accordingly causing economic damages only, the seller may be liable.
Construing the State's allegations of negligent misrepresentation in the light most favorable to it, the State cannot prevail on its negligent misrepresentation claim against defendant USX. Therefore, the motion is granted.
The only claims remaining for trial, therefore, were the causes of action based on breach of warranties, common law fraud, and unfair and deceptive trade acts or practices. Prior to submission of the case to the jury, the state withdrew its claims for breach of warranties, and the jury returned a verdict in favor of USX on the two remaining claims.
Thereafter, USX brought a motion for attorneys' fees, which the trial court denied, holding that "absent a specific statute, judicial decision, or agreement, a litigant may not recover attorneys' fees against the State."
The state then timely appealed from the adverse judgment, and USX timely cross-appealed from the trial court's denial of its motion for award of attorneys' fees.
II. Discussion
A. The State's Appeal
1. The Circuit Court's Dismissal of the State's Negligent Misrepresentation Claim
a. Standard of Review
Although USX's motion, prompting the order dismissing the state's negligent misrepresentation claim, was styled as a motion to dismiss, the motion was brought pursuant to Hawai'i Rules of Civil Procedure (HRCP) Rule 56, relating to summary judgment. Even if we were to consider the motion as a HRCP Rule 12 motion to dismiss, HRCP Rule 12(c) provides in pertinent part that:
If, on a motion for judgment on the pleadings, matters outside the pleadings are presented to and not excluded by the court, the motion shall be treated as one for summary judgment and disposed of as provided in Rule 56, and all parties shall be given reasonable opportunity to present all material made pertinent to such a motion by Rule 56.
Voluminous supporting materials were presented in support of USX's motion, and the materials were not excluded by the court. We therefore treat USX's "motion to dismiss" as seeking summary judgment pursuant to HRCP Rule 56, and, accordingly, apply the standard of review applicable to motions for summary judgment. It is well settled that:
We review circuit court's award of summary judgment de novo under the same standard applied by the circuit court. Amfac, Inc. v. Waikiki Beachcomber Inv. Co., 74 Haw. 85, 104, 839 P.2d 10, 22, reconsideration denied, 74 Haw. 650, 843 P.2d 144 (1992) (citation omitted). As we have often articulated,
summary judgment is appropriate if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.
Id. (emphasis added) (citation and internal quotation marks omitted); see Hawai'i Rules of Civil Procedure (HRCP) Rule 56(c) (1990). "A fact is material if proof of that fact would have the effect
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