Ohtani Lawsuit: $240M Hawaii Project, Allegations, and Settlement

The Ohtani Hawaii lawsuit was a dispute filed in August 2025 by developer Kevin J. Hayes Sr. and real estate broker Tomoko Matsumoto, who accused Los Angeles Dodgers star Shohei Ohtani and his agent, Nez Balelo, of using celebrity leverage to force them out of a $240 million luxury housing development on the Big Island. Ohtani and Balelo denied the claims and countered that the plaintiffs had misused Ohtani’s name and image to promote a separate side project. The parties privately settled in March 2026 and dismissed the case with prejudice, without disclosing financial terms.¹

The Project at the Center of the Dispute

The development, known as “The Vista at Mauna Kea Resort” and marketed as “Hapuna Estates,” is a 34-acre gated community on the Hapuna Coast with 14 luxury homesites averaging roughly $17.3 million each.² Hayes and Matsumoto said they worked on the project for more than a decade before bringing in outside investors, including Kingsbarn Realty Capital, which became the joint venture’s majority owner.³

In 2023, the developers signed an endorsement deal with Ohtani to help attract high-net-worth buyers, particularly in the Japanese luxury vacation home market.⁴ Investment materials described Ohtani as “Japan’s Babe Ruth” and listed him as the project’s “1st Resident.”² Ohtani committed to buying one of the 14 residences as a winter home, at a reported construction cost of more than $17 million, and reportedly planned to build a small hitting and pitching facility on the property for preseason training.⁵

What the Plaintiffs Alleged

Hayes and Matsumoto filed their complaint on August 8, 2025, in the Hawaii Circuit Court for the First Circuit, asserting two causes of action: tortious interference with contractual and business relations, and unjust enrichment.³

The complaint characterized Balelo as a “disruptive force” who inserted himself into the development’s day-to-day business, made escalating demands for concessions, and repeatedly threatened to pull Ohtani from the project.⁶ The plaintiffs alleged that Kingsbarn began “capitulating to Balelo’s every whim,” prioritizing its relationship with Ohtani over its contractual obligations to them.²

According to the complaint, Balelo issued an ultimatum that Kingsbarn should remove Hayes and Matsumoto from the project or face retaliatory litigation.³ In July 2025, Kingsbarn fired both plaintiffs in what the lawsuit called a “coordinated ambush,” and the complaint alleged that during the termination call Kingsbarn admitted the firings were done “solely to placate” Balelo. The plaintiffs sought damages including lost profit, construction management fees, and broker commissions.⁴ The suit also alleged that Ohtani and Balelo tried to undermine the plaintiffs’ interests in a second, neighboring venture.⁶

How Ohtani and Balelo Responded

Ohtani and Balelo’s legal team, led by Laura Smolowe of Akin Gump, filed a motion to dismiss on September 14, 2025, and offered a very different account.⁷ The defense argued that the 2023 endorsement deal authorized use of Ohtani’s name, image, and likeness only for the specific Parcel F development at Mauna Kea Resort. According to the motion, the plaintiffs instead used Ohtani’s name and photograph to drive traffic to a website promoting a different side project, “Hapuna Estates PO,” without authorization or compensation.⁸

The defense labeled the plaintiffs’ conduct “self-dealing” and a “clear misappropriation,” calling Ohtani a “victim of NIL violations.” Balelo’s objections, the defense argued, were “clearly protected speech” by an agent advocating on behalf of his client against unauthorized use of his identity.⁸ The motion also argued that Ohtani should not be a defendant at all because the plaintiffs’ claims focused on Balelo’s conduct, and Ohtani could not be held vicariously liable for actions within the scope of his agent’s authority. If the case were not dismissed, the defense said, Ohtani and Balelo intended to file counterclaims for unauthorized misappropriation of Ohtani’s NIL.⁷

The Plaintiffs’ Amended Response

In an amended complaint, Hayes and Matsumoto denied any improper use of Ohtani’s likeness. Their attorney, Josh Schiller of Boies Schiller Flexner, stated that the promotional video on the website had been sent to Balelo, to CAA, and to Ohtani adviser Mark Daulton before publication, and that none of them objected. Before the site went live, the plaintiffs alleged, Hayes submitted a link to the entire website, including its promotional content, to Balelo and to Terry Prince, the director of legal and business affairs at CAA Sports.⁹

The website stayed online for 14 months without objection, the plaintiffs said, until Balelo raised the NIL issue. They characterized the sudden complaint as retaliatory and as a pretext to extract additional concessions, alleging Balelo “weaponized” the issue after disputes over cost overruns on Ohtani’s personal home.¹⁰

How the Case Ended

In March 2026, attorneys for all parties agreed to dismiss the lawsuit with prejudice, ending the case and all associated claims. The plaintiffs released a statement citing a “misunderstanding of a business nature” and said all parties had reconciled.¹ Financial terms were not disclosed.⁵

Kingsbarn Realty Capital, which was not a party to the suit, had earlier called the allegations “completely frivolous and without merit” and said it took “full responsibility” for the decision to remove Hayes and Matsumoto from the project.⁶

What Happened to the Development

The Hapuna Estates project appears to be moving forward under different management. In mid-2026, West Point Investment Corporation secured $27.6 million in construction financing from Arixa Capital for seven luxury single-family homes within the Mauna Kea Resort, with construction scheduled to begin in early 2027 and delivery targeted for 2028.¹¹

1
New York Post. Shohei Ohtani Quietly Settles Hawaii Real Estate Lawsuit Over $240 Million Project
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CBS News. Shohei Ohtani and His Agent Sued Over Their Alleged Actions in $240 Million Hawaii Real Estate Project
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Sportico. Ohtani Hawaii Lawsuit
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ABC7. Dodgers Star Shohei Ohtani, Agent Accused of Sabotaging $240M Hawaii Real Estate Project
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Yahoo Sports. Dodgers Star Shohei Ohtani Quietly Settles Hawaii Real Estate Lawsuit
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ESPN. Shohei Ohtani, Agent Accused of Sabotaging $240M Hawaii Real Estate Project
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Sportico. Shohei Ohtani Hawaii Housing Lawsuit Motion
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ESPN. Ohtani Lawyers Claim Misuse, Move to Dismiss Real Estate Lawsuit
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Spectrum Local News. Hawaii Real Estate Investor Denies Improper Use of Shohei Ohtani’s Likeness in Lawsuit
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ESPN. Hawaii Developer Denies Improper Use of Ohtani Likeness
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Commercial Observer. Arixa Capital Hawaii Build-for-Sale Luxury Homes