Shohei Ohtani in the Eye of the Storm: Lawsuits Over a Real Estate Project in Hawaii
Los Angeles Dodgers star Shohei Ohtani and his agent, Nez Balelo, are facing a lawsuit filed by an investor and a real estate broker from Hawaii. The main accusation is that Ohtani and Balelo orchestrated the dismissal of the plaintiffs from a luxury housing development project valued at $240 million on the coveted Hapuna Coast, on the Big Island. According to the lawsuit filed in the Hawaii Circuit Court, Balelo demanded increasingly more concessions from developer Kevin J. Hayes Sr. and real estate broker Tomoko Matsumoto. Subsequently, Balelo requested that Kingsbarn Realty Capital, the plaintiffs’ business partner, exclude them from the agreement.The lawsuit accuses Ohtani and Balelo of illicit interference and unjust enrichment. Hayes, with 40 years of experience in development, and Matsumoto, who was to be the listing agent for the houses with an average price of $17.3 million each, claim that Ohtani and Balelo also tried to undermine their interests in a second nearby project. The lawsuit alleges that Ohtani and Balelo abused their power, using threats and unfounded legal claims to force a business partner to breach their contractual obligations and deprive the plaintiffs of the project they conceived and built. Shohei Ohtani, who arrived from Japan in 2018 with great expectation, signed a record 10-year, $700 million contract with the Dodgers before last season and helped the team win the 2024 World Series. The investment materials for The Vista at Mauna Kea Resort, which remained online Monday night, listed Hayes and Matsumoto as part of the management team, along with Kingsbarn. Ohtani was touted as “the Babe Ruth of Japan” and the “First Resident”. “Ohtani will act as a celebrity spokesperson for the project and has committed to purchasing one of the 14 residences within the project,” according to the brochure. “He also intends to spend a significant amount of time at The Vista in the off-season and will build a small batting and pitching facility for pre-season training.” The lawsuit indicates that the developers worked for 11 years on the deal and signed an endorsement agreement with Ohtani in 2023 as part of a bold marketing strategy. “This association with Ohtani will increase demand and create anticipation within the Japanese luxury vacation home market, which is a primary target audience for the project,” according to the investment brochure. “We see that Shohei Ohtani’s home ownership has a significant impact on the global exposure of the project and we expect to accelerate the pace of sales, which will help us achieve our pricing goals.” The lawsuit states that Balelo “quickly became a disruptive force,” threatening to take Ohtani out of the deal if concessions were not made. Last month, in what the lawsuit describes as “a coordinated ambush,” Kingsbarn fired Hayes and Matsumoto. The lawsuit alleges that Kingsbarn openly admitted during the call that Balelo had demanded the layoffs and that they were being carried out solely to please him. The plaintiffs could lose millions of dollars in compensation tied to projected profits from home construction, construction management fees, and broker commissions.“Balelo and (Ohtani), who were brought into the company solely for the promotional and brand value of (Ohtani), exploited their celebrity influence to destabilize and ultimately dismantle the plaintiffs’ role in the project, for no other reason than their own financial interest,” the lawsuit states.
Lawsuit filed in the Circuit Court of Hawaii
