By Peter Boylan
Copyright staradvertiser
Attorneys for Los Angeles Dodgers star Shohei Ohtani and his agent Nez Balelo have filed a motion in state court to dismiss a lawsuit brought against them
by real estate investors alleging Ohtani and Balelo conspired to cut them out of a $250 million deal on Hawaii island.
The dispute arises out of real estate investors Kevin
J. Hayes Sr. and Tomoko Matsu-moto’s “attempt to get close to celebrity athlete Shohei Ohtani in order to profit off him unlawfully,” according to the motion to dismiss filed in Oahu Circuit Court Sunday afternoon.
“Nez Balelo has always prioritized Shohei Ohtani’s best interests, including protecting his name, image, and likeness from unauthorized use,” said Laura Smolowe, Balelo and Ohtani’s attorney, in a statement to the Honolulu Star-Advertiser. “This frivolous lawsuit is a desperate attempt by plaintiffs to distract from their myriad of failures and blatant misappropriation of
Mr. Ohtani’s rights.”
In 2023, Hayes and Matsumoto, “purporting to act on behalf of a joint venture of which they owned minority interests” acquired the rights for the joint venture to use Ohtani’s name, image and likeness to market a real estate development in the Mauna Kea Resort, the motion alleges.
Without Ohtani and Balelo knowing, allegedly, Hayes and Matsumoto used Ohtani’s name and photograph to “drum up traffic” to a website that marketed Hayes and Matsu-moto’s side project
development.
“They engaged in this self-dealing without authorization, and without paying Ohtani for that use, in a selfish and wrongful effort to take advantage of their proximity to the most famous baseball player in the world,” wrote attorney Randall C. Whattoff. “When Balelo did his job and
protected his client by
expressing justifiable concern about this misuse and threatening to take legal action against this clear misappropriation, Plaintiffs decided the best defense was a good offense (or at least an attempt at one). They rushed to court and sued first, commencing this lawsuit.”
Balelo’s alleged wrongdoing was simply “asserting Ohtani’s right to control how his NIL (name, image and likeness) is used” and threatening litigation against those who were “flagrantly” abusing it, wrote Whattoff.
Hayes and Matsumoto allege that joint venture majority owner Kingsbarn Realty Capital LLC learned that they had “siphoned off the joint venture’s rights in Ohtani’s NIL” for their personal use, putting their interests above that of the joint venture. Kingsbarn allegedly responded by cutting ties with Hayes and Matsumoto.
Also, Hayes and Matsumoto do not state a claim for relief, and the suit must be dismissed, Whattoff wrote.
The pair were sued in a 13-page civil action filed Aug. 8 in Oahu Circuit Court alleging a “calculated and unlawful scheme” that was orchestrated by Balelo, on Ohtani’s behalf, to interfere with the “contractual rights and economic relationships” tied to a real estate development in the Mauna Kea
Large sections of the complaint are redacted, including what exactly Balelo allegedly tried to extract in the way of concessions and precisely how he and Ohtani persuaded Kingsbarn to cut Hayes and Matsumoto out of their deal.
In April 2024, Ohtani entered into an endorsement deal with Hapuna Estates that allowed him to pick his 1.1-acre lot in the development. On that lot, Ohtani would pay for contractors to build a 5,000-square-foot home with ocean views overlooking the eighth hole of Arnold Palmer’s Hapuna Golf Course.
Ohtani’s residency status as the first homebuyer would be used to promote the project and lure other high-end homebuyers. Hapuna Estates has space for 166 homes and condominiums.
The high-end homes range in price from
$4.5 million to $20 million.
The lawsuit alleged Ohtani and Balelo issued an ultimatum to Hayes and Matsumoto’s business partner, Kingsbarn Realty Capital LLC, demanding that Kingsbarn remove Hayes and Matsumoto from the project or else face retaliatory litigation.
