An 83-year-old widow, Sandra May, has reached a settlement with the city of Honolulu regarding a fine of nearly $600,000 that resulted from an online rental listing error. May, who rents an attached apartment on her property, was fined $10,000 per day for nearly two months after her rental unit was mistakenly advertised for short-term stays. Due to her hospitalization following a serious car accident, she did not see the city's notices, leading to the accumulation of fines totaling $590,000. Under Honolulu law, renting or advertising residential properties for less than 30 days is prohibited outside designated resort zones.
May's attorneys from the Pacific Legal Foundation argued that the listing was a result of a website glitch and that the unit was never actually available for short-term rentals. The city had placed a lien on May's home and restricted her from renewing her driver's license and vehicle registration. Following the lawsuit, a settlement was reached that reduced her total fine by 95%, allowing her to remain in her home of 56 years.
In a statement, May expressed relief at the outcome, stating, "Winning this case is an enormous relief because it resolves all of the city's violation charges and excessive fines." The settlement includes a reduced penalty of $30,000, which will be recorded as a civil fine lien against her home but will not lead to foreclosure during her lifetime. The fine will be payable through escrow if she sells the property or through foreclosure following her death.
Scott Humber, communications director for the City and County of Honolulu, confirmed the settlement and noted that it took into account May's age, medical hardships, and her limited involvement in the advertisement. The case highlights a broader issue on Oahu, where the city has issued over $90 million in fines for similar violations. May's attorney stated that the settlement sends a message to municipalities that excessive financial penalties must adhere to constitutional limits.