HONOLULU (CN) – Banquet servers have standing to sue Hawaii hotels for retaining customer service charges, but they did not state a proper case for unfair competition, the Hawaii Supreme Court ruled.
Daryl Davis and five other servers filed a federal class action lawsuit against the Four Seasons hotels in Maui and Hualalai.
They claimed that the hotels were unfairly retaining mandatory service charges for banquets. Four Seasons argued that the servers lacked standing.
Justice Mark Recktenwald ruled that the servers did have standing under Hawaii law.
“Employees are ‘any persons’ within the meaning of (Hawaii law) … and are within the category of plaintiffs who have standing to bring a claim,” Recktenwald wrote.
However, Recktenwald also added that the servers “have not sufficiently alleged the nature of the competition, which is required to bring a claim for unfair methods of competition.”