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Hawaii · Article Updated May 26, 2026

The State Certified Arbitration Program (SCAP) in Hawaii

Hawaii's DCCA-administered State Certified Arbitration Program — a fast (45-day), low-cost state arbitration where the manufacturer pays the filing fee and decisions bind a participating manufacturer.

Hawaii resolves most lemon-law disputes through the State Certified Arbitration Program (SCAP) — a state-administered program established under HRS § 481I-4 and run by the Department of Commerce and Consumer Affairs (DCCA). It is fast, low-cost, and consumer-favorable.

How SCAP works

  1. Consumer elects SCAP arbitration (it is not a mandatory prerequisite to court).
  2. Filing fees: the manufacturer pays $200; the consumer pays $50 (refunded if the consumer prevails).
  3. DCCA administers the program and may contract with independent arbitration organizations.
  4. Decision within 45 days of the procedure being invoked — among the fastest of any state program.
  5. Remedies: a replacement vehicle or full refund plus collateral/incidental charges (the consumer elects).

Binding vs. nonbinding

  • Once a party agrees to participate, all parties “shall also participate in, and be bound by” the decision.
  • A consumer may instead elect nonbinding arbitration and demand a trial de novo within 30 days. But if the party demanding the trial fails to improve its position by 25% or more, the court awards the trial costs and attorney fees to the other side — a real risk to weigh before rejecting a SCAP decision.

Why SCAP is consumer-favorable

  • Cheap — $50 (refundable) for the consumer; the manufacturer bears the $200 fee.
  • Fast — 45 days, versus months of litigation.
  • State-monitored — DCCA oversight, not a manufacturer-run program.
  • Consumer-elected remedy — refund or replacement.

This is a meaningfully more consumer-friendly arbitration model than the manufacturer-operated programs of Idaho or the conditional IDS programs of Arizona and West Virginia.

What SCAP does NOT fully deliver

  • Attorney fees are discretionary for the prevailing party in arbitration (§ 481I-4(c)) — not the mandatory fees available in court.
  • UDAP § 480-13 treble and the $5,000 elder enhancement are court remedies, not SCAP awards.
  • Magnuson-Moss claims are pursued in court.

When to accept SCAP vs. go to court

Accept SCAP for a clean, fast refund or replacement where the case lacks misrepresentation facts. Go to (or to court after nonbinding) court when you want the UDAP automatic treble, mandatory fees, the elder enhancement, or Magnuson-Moss — but weigh the 25% improvement rule before demanding a trial de novo.

Bottom line

SCAP is Hawaii’s fast, cheap, state-run path to a refund or replacement — manufacturer-funded and decided in 45 days. For automatic treble and mandatory fees, court under the UDAP is the stronger route. Get a free case review before accepting or rejecting a SCAP decision.

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