realestate

Ohtani and Representative Face Allegations of Derailing $240M Development

Hawaii real estate investor and broker sue Shohei Ohtani, alleging he and his agent led to their firing from luxury housing project.

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Hawaii real estate developer and broker are suing Shohei Ohtani, claiming the Dodgers' star and his agent exploited their celebrity status to get them fired from a $240-million luxury housing development on the Big Island's Hapuna Coast. According to the lawsuit filed in Hawaii Circuit Court, Ohtani's agent Nez Balelo demanded concessions from developer Kevin J. Hayes Sr. and real estate broker Tomoko Matsumoto before insisting that their business partner Kingsbarn Realty Capital drop them from the deal.

    The suit alleges that Ohtani and Balelo used their leverage to destabilize and dismantle the plaintiffs' role in the project, motivated by financial self-interest. The developers claim they spent 11 years working on the deal and signed an endorsement contract with Ohtani in 2023 as part of a marketing strategy to target the Japanese luxury vacation home market.

    The lawsuit accuses Ohtani and Balelo of tortious interference and unjust enrichment, saying they tried to undermine Hayes' and Matsumoto's interests in a second neighboring venture. The suit claims that Kingsbarn began capitulating to Balelo's demands, prioritizing their relationship with Ohtani over contractual obligations to their business partners.

    The lawsuit describes the situation as an "abuse of power," where Ohtani and Balelo used threats and baseless legal claims to force a business partner to betray its contractual obligations. The developers are seeking accountability for what they claim is misconduct by Ohtani and his agent, saying that fame should not shield them from consequences.

    Ohtani, 31, arrived in the US in 2018 as one of baseball's most heralded international stars, signing a record $700-million contract with the Dodgers before last season. Investment materials for The Vista at Mauna Kea Resort listed Hayes and Matsumoto as part of the management team, alongside Kingsbarn, and touted Ohtani as "Japan's Babe Ruth" and the project's top spokesperson.

    The suit says that after signing the endorsement deal, Balelo became a disruptive force, threatening to pull Ohtani from the project unless concessions were made. The developers claim they stand to lose millions of dollars in compensation due to their termination.

Shohei Ohtani and representative at center of controversy in Los Angeles development dispute.