Hawaii Revised Statutes

Haw. Rev. Stat. § 444-26 (2026)

Contractors recovery fund; use of fund; person injured; fees

✓ current as of July 2026

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§444-26 Contractors recovery fund; use of fund; person injured; fees. (a) The board is authorized to establish and maintain a contractors recovery fund from which any person injured by an act, representation, transaction, or conduct of a duly licensed contractor that is in violation of this chapter or the rules adopted pursuant thereto may recover, by order of the circuit court or district court of the judicial circuit where the violation occurred, an amount of not more than $12,500 per contract, regardless of the number of persons injured under the contract, for damages sustained from the act, representation, transaction, or conduct. Recovery from the fund shall be limited to the actual damages suffered by the claimant, including court costs and fees as set by law and reasonable attorney fees as determined by the court; provided that recovery from the fund shall not be awarded to persons injured by an act, representation, transaction, or conduct of a contractor whose license was suspended, revoked, forfeited, terminated, or in an inactive status at the time the claimant entered into the contract with the contractor.

(b) For purposes of this chapter, "person injured" or "injured person" means and is limited to owners or lessees of private residences, including condominium or cooperative units, who have contracted with a duly licensed contractor for the construction of improvements or alterations to the owners' or lessees' own private residences and owners or lessees of real property who have contracted with a duly licensed contractor for the construction of the owners' or lessees' own private residences on the owners' or lessees' real property.

(c) When any person applies for a contractors license, the person shall pay, in addition to the person's original license fee, a fee of $150 for deposit in the contractors recovery fund and a fee for deposit in the contractors education fund as provided in rules adopted by the director pursuant to chapter 91. If the board does not issue the license, these fees shall be returned to the applicant. [L 1973, c 170, pt of §1; am L 1976, c 144, §1; am L 1977, c 127, §1 and c 152, §2; am L 1983, c 201, §4; gen ch 1985; am L 1989, c 209, §1; am L 1994, c 132, §2; am L 1995, c 20, §8; am L 2019, c 29, §§7, 18(2); am L 2020, c 12, §§1, 8; am L 2021, c 230, §15]

Notes of Decisions

Cited in 7 cases, 1981–2013 · leading case: Educators Ventures, Inc. v. Bundy, 652 P.2d 637 (Haw. App. 1982).

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Educators Ventures, Inc. v. Bundy, 652 P.2d 637 (Haw. App. 1982). · cites it 21× “The legislative history of HRS § 444-26 (1976 & Supp. 1981) 7 *442 which created the contractors recovery fund parallels that of HRS § 467-16.”

Graham Constr. Supply, Inc. v. Schrader Constr., Inc., 632 P.2d 649 (Haw. 1981). · cites it 6× “5 It further asserts a related statutory provision effectively preserved its claim despite the critical alteration of HRS § 444-26. 6 The Board perceives the collection of an otherwise uncollectible judgment against a contractor from the fund as a “two-tiered” process, a first…”

808 Dev., LLC v. Murakami, 141 P.3d 996 (Haw. 2006). · cites it 2× “Under HRS § 444-26 (Supp.2004), persons who have been injured by an act, representation, transaction, or conduct of a licensed contractor which is in violation of Chapter 444, are allowed to recover damages from the Contractor's Recovery Fund in an amount not more than $12,500…”

Kim v. Contractors License Bd., 965 P.2d 806 (Haw. 1998). · cites it 2× “See HRS § 444-26 (1993). Accordingly, it appears that financial integrity and solvency are “qualifications” an applicant must have in order to obtain a license.”

Kuhnert v. Allison, 868 P.2d 457 (Haw. 1994). · cites it 2× “The CRF is described in HRS § 444-26 (Supp.1992), which provides in part: The contractors license board is authorized and directed to establish and maintain a [CRF] from which any person injured by an act, representation, transaction, or conduct of a duly licensed contractor,…”

State v. Atwood., 301 P.3d 1255 (Haw. 2013). “Luu would not have entered into the contract and paid [Atwood] any money. The [c]ourt notes that Dr. Luu’s reliance on [Atwood]’s representation that he was a licensed contractor was reasonable.”

Dist. Council 50, of the Int'l Union of Painters & Allied Trades v. Saito, 216 P.3d 108 (Haw. App. 2009). · cites it 2× “2008) prevents recovery of the value of materials or services rendered by any person in violation of the chapter and HRS § 444-26 (Supp.2008) provides for a contractors recovery fund for persons injured by licensed contractors.”

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