Businessman to sue for losses due to APEC

Asia-Pacific Economic Cooperation meetings on Oahu earlier this month were a boon for some businesses and a bust for others. One business among the bust group intends to sue the federal government for damages, and is recruiting others to participate.

Ernie Inada, who opened the nightclub and restaurant Clubhouse Honolulu four months ago in the former home of Hard Rock Cafe across Kalakaua Avenue from the Hawai‘i Convention Center where many APEC events were held, is promoting the idea, but has not yet filed a lawsuit.

John Carroll, a local attorney and former Republican legislator, has agreed to represent Inada. Carroll, who is seeking the GOP nomination for a U.S. Senate seat, met Wednesday with Inada and three other business owners stung by APEC.

Carroll told the group he would seek to recover lost revenue caused by road closings and other security restrictions that impeded customer traffic.

"This is a horrendous interruption of your business," he told the group. "It’s unconscionable."

The attorney said he knows of no precedent for such a case, but believes it can be tied to the Fifth Amendment of the U.S. Constitution that prohibits taking private property for public use without due process or just compensation.

Carroll told the group he would charge a maximum $25,000 — split among plaintiffs — to pursue the case. He also estimated his odds of prevailing at 50-50.

Inada said he is hoping 30 or 40 businesses will join him.

However, hesitancy about the case was displayed at the Wednesday meeting. Chris Tai, owner of Home Bar and Grill about a block mauka of the convention center near Makaloa Street, said pursuing the suit ran a risk of adding to APEC-related losses he incurred.

Tai said parking on a back street that customers used was placed off limits by APEC organizers, so he decided to close for the whole week instead of staying open on the hope customers would venture into the security zone.

"I didn’t want to take a risk of doubling our known loss (of closing by staying open)," he said.

Inada said he met with APEC organizers who suggested he could expect extra business from meeting participants during the week-long event. "We stocked up with food and everything," he said. But Inada made a quick decision to close a few hours after opening for lunch on Nov. 7 because no one came in.

APEC really didn’t begin at the convention center until Nov. 8, but Inada said one of two entries to his parking lot was cordoned off by police that day, so he stayed closed for nine days in all. Inada estimates that he lost $36,000 to $45,000 in revenue and that his 20 employees were denied close to $10,000 in wages, excluding tips.

Jennifer Killinger, a student and Clubhouse Hono­lulu bartender, believes some kind of compensation should be available. "I missed out on a week and a half of work." she said.