Opinion ID: 6491398
Heading Depth: 3
Heading Rank: 1

Heading: Unfair Methods of Competition

Text: HRS § 480-2 (1993) provided in relevant part: § 480-2 Unfair competition, practices, declared unlawful, (a) Unfair methods of competition and unfair or deceptive acts or practices in the conduct of any trade or commerce are unlawful. (b) In construing this section, the courts and the office of consumer protection shall give due consideration to the rules, regulations, and decisions of the Federal Trade Commission [ (FTC) ] and the federal courts interpreting section 5(a)(1) of the Federal Trade Commission Act [ (FTCA) ] (15 U.S.C. [§ ]45(a)(l)), as from time to time amended. (c) No showing that the proceeding or suit would be in the public interest (as these terms are interpreted under section 5(b) of the [FTCA]) is necessary in any action brought under this section. (d) No person other than a consumer, [ 21 ] the attorney general or the director of the office of consumer protection may bring an action based upon unfair or deceptive acts or practices declared unlawful by this section. (Bold emphasis in original.) (Underscored emphases added.) Moreover, HRS § 480-13(a) (Supp.2005) states in relevant part: § 480-13 Suits by persons injured; amount of recovery, injunctions, (a) Except as provided in subsections (b) and (c), any person who is injured in the person’s business or property by reason of anything forbidden or declared unlawful by this chapter: (1) May sue for damages sustained by the person, and, if the judgment is for the plaintiff, the plaintiff shall be awarded a sum not less than $1,000 or threefold damages by the plaintiff sustained, whichever sum is the greater, and reasonable attorney’s fees together with the costs of suit[; and] (2) May bring proceedings to enjoin the unlawful practices, and if the decree is for the plaintiff, the plaintiff shall be awarded reasonable attorney’s fees together with the costs of suit. (Bold emphasis in original.)
On July 15, 1999, this court decided Robert’s Hawai’i School Bus, Inc. v. Laupahoehoe Transportation Co., 91 Hawai'i 224, 982 P.2d 853 (1999), essentially holding that there was no private claim for relief under HRS § 480-13 for unfair methods of competition in violation of HRS § 480-2. 22 Id. at 252, 982 P.2d at 881. In so holding, this court examined both HRS §§ 480-2 and -13 and the legislative history, particularly the 1965 and 1987 amendments. The 1965 legislative history underlying HRS § 480-2 includes the following: H.B. No. 136 would amend the Hawai'i Antitrust Act by adding a new section declaring unfair methods of competition and unfair or deceptive acts or practices in the conduct of any trade or commerce unlawful. The purpose of the bill is to provide the Attorney General with much needed authority to bring proceedings to enjoin unfair and deceptive business practices by which consumers are defrauded and the economy of the State is harmed. There has been established in the Attorney General’s Office of a Fair Business Practices Division. That division has been assigned the responsibility for developing and administering an effective fair business program to protect both consumers and honest businessmen from fraudulent, unfair or deceptive business practices. The authority to stop and prevent practices of this nature, which H.B. No. 136 would provide, is essential to an effective fair business program. The Hawaii Antitrust Act now contains appropriate enforcement provisions, including authority to the Attorney General to bring proceedings to enjoin any violations of the provisions of the act. The amendment of the act, as provided by H.B. 136, ivould make all of its enforcement provisions, except the criminal provisions, applicable to the amendment. Primarily, as indicated above, it would empower the Attorney General to maintain suits to enjoin the continuation of 'unfair methods of competition and 'unfair or deceptive acts or practices in the conduct of trade and commerce. Id. at 250, 982 P.2d at 879 (emphases in original) (footnote, citation, and ellipses omitted) (quoting Hse. Stand. Comm. Rep. No. 55, in 1965 House Journal, at 538). With respect to the 1987 amendment, this court stated: The legislative history relating to the 1987 amendment also stated in relevant part: The purposes of this bill were to establish definitions of “class action” and “de facto class action” and to make several amendments to Chapter 480, [HRS], including the following: (1) Provided that the $1,000 minimum recovery provision is only applicable to consumer suits based upon unfair or deceptive practices brought under Section 480-2, unfair and deceptive practices; [[Image here]] (5) Provided that suits based upon unfair or deceptive acts or practices under Section 480-2 may be brought only by consumers, the Attorney General, or the Office of Consumer Protection, in effect precluding its application to private disputes between businessmen. Your Committee finds that current law is unclear and the procedure confusing. Upon further consideration, your Committee has made numerous amendments to the bill including the following: [[Image here]] 2. Amended Section 180-2, [HRS], by requiring that the court and Office of Consumer Protection shall be guided by rules, regulations, and decisions of the Federal Trade Commission and the federal courtfs] and by providing that it shall not be necessary to show that the proceeding or suit brought under this section would be in the public interest and that no other person other than a consumer, the Attorney General or the director of the Office of Consumer Protection may bring an action under this section. The amendment to Section 180-2 is intended to clarify actions of unfair and deceptive acts and is not intended to affect suits based upon unfair methods of competition[.] Id. at 250-51, 982 P.2d at 879-80 (ellipses, brackets, and emphases in original) (quoting Hse. Conf. Comm. Rep. No. 104, in 1987 House Journal, at 1053). Accordingly, this court “interpreted] the legislative history to the 1965 and 1987 amendments [as] not ... recognizing] or creating] a private claim for relief under HRS § 480-13 for unfair methods of competition in violation of HRS § 480-2.” Id. at 251, 982 P.2d at 880 (footnote omitted) (emphasis in original). Thereafter, in 2002, the legislature passed Senate Bill No. 1320 (S.B. 1320), which was signed into law as Act 229, amending HRS § 480-2 by adding subsection (e), which provides: “Any person may bring an action based on unfair methods of competition declared unlawful by this section.” See 2002 Haw. Sess. L. Act 229, § 2 at 916-17 (emphasis added). Section 6 of Act 229 stated that the Act “shall take effect upon approval.” Act 229 was approved on June 28, 2002. See 2002 Haw. Sess. L. Act 229, at 918. The plaintiffs maintain that the amendment effectively overruled only that portion of the decision in Robert’s Hawai'i that held that the legislature did not extend a private right of action for claims of unfair methods of competition. See Robert’s Hawai'i, 91 Hawai'i at 251, 982 P.2d at 880 (“[This court] ... interprets] the legislative history to the 1965 and 1987 amendments not to recognize or create a private claim for relief ... for unfair methods of competition in violation of HRS § 480-2. This interpretation in no way limits consumer claims of unfair or deceptive acts or practices under HRS § 480-2[.]” (Emphasis in original.)). Because, in the plaintiffs’ view, the amendment “provided the clarification this [c]ourt invited in [Robert’s Hawai'i],’’ the plaintiffs submit that their claims of violation of HRS § 480-2 are not limited to those acts committed after June 28, 2002. We do not believe the amendment “overruled” Robert’s Hawai‘i as the plaintiffs suggest, but instead simply provided a new right that did not previously exist. The House Committees on Consumer Protection and Commerce and Judiciary and Hawaiian Affairs stated: The purpose of [S.B. 1320] is to permit private actions for unfair methods of competition .... Your Committees find that only the Attorney General may bring an action to enforce the antitrust, or unfair methods of competition law.... This bill amends the latv to clearly give businesses and consumers the right to enforce the law if the Attorney General declines to commence an action based on the claim. Hse. Stand. Comm. Rep. No. 1118, in 2002 House Journal, at 1665 (emphases added); see also Sen. Stand. Comm. Rep. No. 448, in 2001 Senate Journal, at 1116-17 (“The purpose of [S.B. 1320] is to allotv a private citizen to bring an action based on unfair methods of competition. ... Current law does not allow private individual actions based on unfair methods of competition, although actions based on unfair or deceptive acts or practices are allowed. This measure corrects that inconsistency which has produced uncertainty in the courts.” (Emphasis added.)); Sen. Stand. Comm. Rep. No. 931, in 2001 Senate Journal, at 1295 (“Under current law, it is clear that consumers may bring a direct cause of action for unfair and deceptive practices, but unclear that consumers may bring a claim of unfair methods of competition. This measure would add that protective provision.” (Emphasis added.)). The 2002 amendment clearly created a private claim for relief for unfair methods of competition for claims arising after the June 28, 2002 effective date. Neither the language of the statute itself nor the legislative history of the amendment give any expressed indication that the amendment should be applied retroactively. See HRS § 1-3 (1993) (“No law has any retrospective operation, unless otherwise expressed or obviously intended.”); Clark v. Cassidy, 64 Haw. 74, 77 n. 6, 636 P.2d 1344, 1347 n. 6 (1981) (“It is a general rule in most jurisdictions that[ ] statutes or regulations which say nothing about retroactive application are not applied retroactively if such a construction will impair existing rights, create new obligations[,] or impose additional duties with respect to past transactions.” (Citation omitted.)). Thus, retrospective application of HRS § 480-2(e) is not permitted inasmuch as the legislature did not expressly or obviously indicate its intention that HRS § 480-2(e) apply retroactively. Accordingly, we hold that the circuit court correctly concluded that the plaintiffs’ claims of unfair methods of competition based upon HMSA’s alleged wrongful acts prior to June 28, 2002 are barred inasmuch as HRS § 480—2(e) does not apply retroactively.
In its May 23, 2003 orders, the circuit court concluded that the plaintiffs’ claims of unfair methods of competition occurring after June 28, 2002 are still fatally flawed because [they do] not involve claims of “competition” by HMSA. HMA and its physician members are not “competitors” with HMSA and they are not in “competition” with HMSA. Quite the opposite, HMA is a professional medical society whose members are physicians providing medical services that HMSA reimburses [and physician-plaintiffs are physicians who provide medical services that HMSA reimburses. 23 ] Thus, [the plaintiffs’] allegations are in reality nothing more than claims [off unfair and deceptive practices, which, for the reasons stated above,[ 24 ] are clearly barred. (Emphases added.) Further, in concluding that HMA “failed to show, and cannot show, antitrust injury standing as required by HRS [cjhapter 480,” the circuit court stated: To establish “antitrust standing,” HMA must allege a direct injury. HMA cannot meet this burden. Each and every allegation of harm suffered by HMA pertains either to a harm allegedly suffered directly by a physician member (ia, that physicians have not been reimbursed properly) or a harm HMA has suffered as a result of such a physician’s alleged suffering (ia, by attending to the needs of its member physicians). HMA’s repeated assertion that these injuries are “direct” does not make it so. Its injuries are derivative and remote by definition, and do not give rise to an antitrust claim. On appeal, the plaintiffs argue that HRS § 480-2(a) does not require that they be “competitors” of HMSA; nor does it require that they be in competition with HMSA. Rather, the statute plainly states, “Any person may bring an action based on unfair methods of competition!;.]” HRS § 480-2(e) (emphasis added). In addition, HMA asserts that the circuit court erred in concluding that HMA had failed to allege a direct cognizable “antitrust injury” because there can be no dispute that HMA has alleged a direct and palpable injury of the type sufficient to confer standing for claims both on its own behalf and on behalf of its members. As for its own injury, [HMA] alleges that it has been required to divert substantial resources and time to deal with its members’ problems created by HMSA’s conduct—resources that otherwise would go to support its principal mission in service of its members. [HMA] also has alleged that its members have been deprived of monies to which they are entitled, and their businesses are threatened by [HMSA’s] ongoing wrongful conduct. It is difficult to imagine clearer examples of “injury to business or property.” HMSA, however, contends that the claims of unfair methods of competition are still barred because: (1) the plaintiffs are not “competitors” of HMSA or in “competition” with HMSA; (2) the plaintiffs’ allegations in support of their claims of unfair methods of competition are nothing more than claims of unfair and deceptive practices, which are barred, see supra notes 8,12, and 24; and (3) HMA did not allege a cognizable injury under HRS § 480-2(a) to its “business or property.”
In Cieri v. Leticia Query Realty Inc., 80 Hawai'i 54, 905 P.2d 29 (1995), this court stated that: Hawai'i antitrust and consumer protection law is an amalgam of the various prohibitions contained in the federal law; however, our consumer protection provisions bear the most resemblance to the, 1938 amendments to Section 5 of the [FTCA]. Originally, the 1914 version of the FTCA limited the power of the [FTC] to prevent “unfair methods of competition.” Act of Sept. 26, 1914, ch. 311, § 5, 38 Stat. 719. In 1938, however, Congress amended section 5 of the FTCA to give the FTC express authority over “unfair or deceptive act or practices.” Act of March 21, 1938, ch. 49, § 3, 53 Stat. Ill, amending Act of Sept. 26, 1914, ch. 311, § 5, 38 Stat. 719, codified at 15 U.S.C. § 45(a)(1) (1982). The 1938 amendment “created direct protection of consumer interests on a par with market competitors, heralded increased activity of the FTC in all aspects of commercial advertising with an interstate effect, and spurred parallel efforts by the states.” VII E. Kintner, Federal Antitrust Law, § 49.1, 124 (1988). ... HRS § 480-2 is virtually identical to section 5 of the FTCAC[ 25 ] and provided, very simply, that “[u]nfair methods of competition and unfair or deceptive acts or practices in the conduct of any trade or commerce are hereby declared unlawful.” Id. at 60, 905 P.2d at 35 (citations omitted). We further recognized that, [fjrom the outset, it was clear that the focus of what would eventually be the spearhead of Hawai'i consumer protection law was on trade, commerce, and business: Your committee recognizes, as did the Congress of the United States in 1914 when it enacted the [FTCA], that it is impractical to enact a law prohibiting each unfair method of competition or unfair or deceptive act or practice in the conduct of trade and commerce after the need therefor comes to light. In explaining the need for the broad language of the [FTCA], Congress said: It is impossible to frame definitions which embrace all unfair practices. There is no limit to human inventiveness in this field. Even if all known practices were specifically defined and prohibited, it would be at once necessary to begin over again. If Congress were to adopt the method of definition, it would undertake an endless task. It is also practically impossible to define unfair practices so that the definition will fit business of every sort in every part of this country. Whether competition is unfair or not generally depends upon the surrounding circumstances of the particular case. What is harmful under certain circumstances may be beneficial.under different circumstances. Id. at 60-61, 905 P.2d at 35-36 (quoting Hse. Stand. Comm. Rep. No. 55, in 1965 House Journal, at 538) (citation and emphasis omitted). Section 480-2, however, differs from section 5 of the FTCA in one essential aspect— enforcement. See Robert’s Hawai'i 91 Hawai'i at 249, 982 P.2d at 878 (“FTCA does not afford a private cause of action.”). “Section 5 of the. FTCA contains no private remedy, rather enforcement of its provisions is vested in the [FTC].” Star Markets, Ltd. v. Texaco, Inc., 945 F.Supp. 1344, 1346 (D.Haw.1996) (citation omitted). Hawaii’s version ... contains a blanket authorization for private actions for damages sustained under any provision of ch. 480. HRS § 480-13(a). Two distinct catises of action have emerged under § 4.80-2(a): 1) claims alleging unfair methods of competition; and 2) claims alleging unfair or deceptive acts or practices. In 1987, the Hawai'i legislature amended both §§ 480-2 and 480-13 to eliminate a prior requirement that a plaintiff show that the suit would be in the public interest. [ 26 ] Sen. Conf. Comm. Rep. No. 105, in [1987] Senate Journal, at 872. These amendments allow for even broader enforcement of ch. 480. In conjunction with this expansion, however, the legislature also amended § 480-2 by adding subsection (d) which limits enforcement of the unfair or deceptive acts or practices clause to consumers, the attorney general or the director of the officer of consumer protection; HRS § 480—2(d)[; see also Sen. Stand. Comm. Rep. No. 1056, in 1987 Senate Journal, at 1345 (“Your Committee also believes that private enforcement of antitrust laws is beneficial to the judicial process as it discourages violations and eases the burden on the attorney general’s limited resources.”) ]. The amendment denies businesses standing to sue 'under the “deceptive acts or practices” clause of § 1/80-2(a). However, no such limiting language was included for “unfair methods of competition” claims. Id. (citations omitted) (emphasis added). Moreover, even after this court’s declaration in Robert’s Hawai'i of no private right of action for unfair methods of competition, the legislature specifically retained the broad enforcement language for unfair methods of competition claims by adding subsection (e) to HRS § 480-2, which, as previously quoted, provides that “[a]ny person may bring an action based on unfair methods of competition declared unlawful by this section.” (Emphasis added.) The legislative history explicitly indicates that “[t]his bill amended the law to clearly give businesses and consumers the right to enforce the law if the Attorney General declines to commence the action based on the claim.” Hse. Stand. Comm. Rep. No. 1118, in 2002 House Journal, at 1665 (emphasis added). By its plain terms, HRS § 480-2(e) authorizes any person, i.e., businesses and individual consumers, to bring an action grounded upon unfair methods of competition. To require that the plaintiffs in this ease be competitors of HMSA would contravene the plain language of subsection (e) and the intent of the legislature in amending the subject statute. Accordingly, to the extent the circuit court premised its dismissal of the plaintiffs’ unfair methods of competition claims on its conclusion that they “are not competitors [of] HMSA,” we hold that the circuit court erred. (Internal quotation marks omitted.) Moreover, as previously stated, HMSA essentially maintains that, in order to sustain their claims of unfair methods of competition, the plaintiffs must also be in competition unth HMSA, which they are not because [the plaintiffs] provide medical services that HMSA reimburses in accordance with PAR Agreements, and [the plaintiffs] want more money for themselves at the expense of HMSA and its patient members. Accordingly, there can be no violation here of the prohibition against “unfair competition” in Chapter 480. In response to HMSA’s contention, the plaintiffs merely retort that HRS § 480-2 does not require a showing of “harm to competition,” but only that the unfair practice has caused injury to “a person.” 27 However, having held that the plaintiffs need not be competitors of HMSA, it follows that they need not be “in competition” with HMSA. See Fed. Trade Comm’n v. Raladam Co., 283 U.S. 643, 649, 51 S.Ct. 587, 75 L.Ed. 1324 (1931) (“[i]t is obvious that the word ‘competition’ imports the existence of present or potential competitors”), superseded by statute on other grounds, Fed. Trade Comm’n v. Sperry & Hutchinson Co., 405 U.S. 233, 244, 92 S.Ct. 898, 31 L.Ed.2d 170 (1972). Thus, to the extent that the circuit court’s dismissal is premised upon its conclusion that the plaintiffs “are not in competition with HMSA,” we hold that the circuit court erred.
The plaintiffs alleged, inter alia, that: 66. [HMSA] has engaged in unfair methods of competition that delay, impede, and/or deny lawful claims of reimbursement made by [the plaintiffs] who have entered into agreements with [HMSA]. 67. [HMSA’s] improper, unfair and deceptive acts constitute unfair methods of competition in material aspects. [The plaintiffs], unaware of [HMSA’s] deception, rendered medically necessary services to [HMSA’s] plan members, reasonably expecting to be fully reimbursed for such services in a timely fashion. As a result of [HMSA’s] unfair methods of competition, however, [the plaintiffs] have been denied monies to which they are lawfully entitled for medical semces rendered to [HMSA’s] plan members.[ 28 ] The circuit court concluded that the plaintiffs’ “allegations are in reality nothing more than claims of unfair and deceptive practices, which ... are clearly barred [because the plaintiffs are not consumers].” However, in so concluding, the circuit court overlooked the fact that the plaintiffs may bring claims of unfair methods of competition based on conduct that would also support claims of unfair or deceptive acts or practices. Indeed, the United States District Court for the District of Hawai'i, in Star Markets, Ltd. v. Texaco, Inc., 945 F.Supp. 1344 (D.Haw.1996), was faced with the issue whether “conduct which supports a claim [of] deceptive acts or practices could also support a claim [of] unfair methods of competition.” Id. at 1348. The U.S. district court answered in the affirmative, explaining that: In Kukui Nuts [of Hawai'i, Inc. v. R. Baird & Co., Inc., 7 Haw.App. 598, 789 P.2d 501 (1990) ], the Intermediate Court of Appeals determined that the defendants’ alleged conduct constituted deceptive acts or practices under the definition in [HRS chapter] 481A[, entitled “Uniform Deceptive Trade Practice Act,] and such conduct also supported Kukui Nuts’ § 480-2 claims [of] both unfair methods of competition and deceptive acts or practices. [Id.] at 611-12, 615, 789 P.2d at 511, 513. Under the law today, Kukui Nuts would lack standing to bring a § 480-2 claim [of] deceptive acts or practices. However, the standing limitation of § 480—2(d)[, limiting-persons who may bring an action based upon unfair or deceptive acts or practices to consumers, the attorney general or the director of the office of consumer protection,] does not invalidate the court’s determination that the same allegations could support claims [of] both §§ 481A and 480-2 unfair methods of competition. ... Likewise, this court finds [In re Oxwall Tool. Co., 59 F.T.C. 1408, 1961 WL 65419 (1961),] to be instructive. In that case, tools manufactured in foreign countries were labelled in such a way that consumers could be confused and believe that they were manufactured domestically. The FTC adopted the decision of the hearing examiner that such conduct constituted both unfair methods of competition and deceptive acts or practices within the intent and meaning of the FTCA. 59 F.T.C. at 1413. From this language, the court finds that the FTC allows the same conduct to support claims for both clauses of § 5 of the FTCA. Thus, this couR also finds that Plaintiff’s allegations can su-pport a § 480-2 unfair methods of competition claim. Whether Plaintiff’s allegations also support a § 481A deceptive acts or practices claim makes no difference. Id. (emphasis added). Accordingly, we conclude that the plaintiffs may rely upon HMSA’s alleged unfair or deceptive acts or practices to support their claims of unfair methods of competition. However, notwithstanding the foregoing and our holding that the plaintiffs need not be “competitors” of, or “in competition” with, HMSA, the question remains whether the nature of the competition must be sufficiently alleged. Contrary to the dissent, we conclude that it does because, in the absence of such allegations, the distinction between claims of unfair or deceptive acts or practices and claims of unfair methods of competition that are based upon such acts or practices would be lost where both claims are based on unfair and deceptive acts or practices. In other words, the existence of the competition is what distinguishes a claim of unfair or deceptive acts or practices from a claim of unfair methods of competition. Based on our review of the plaintiffs’ complaints, we believe the allegations contained therein sufficiently allege claims of unfair methods of competition based upon conduct that could otherwise support claims of unfair or deceptive acts or practices. For example, in addition to ¶¶ 66 and 67, quoted supra, the plaintiffs also allege: 11. ... [HMSA’s] conduct has adversely impacted, and continues to adversely impact, members of [HMSA’s] plans by, among other things: (a) imposing financial hardships on, and in some cases threatening the continued viability of, the medical practices run by [the plaintiffs]; (b) threatening the continuity of care provided to patients by [the plaintiffs], as required by sound medical judgment; (c) requiring [the plaintiffs] to expend considerable resources seeking reimbursement that could otherwise be available to provide enhanced healthcare services to [HMSA’s] plan members; (d) making it more costly and difficult for [the plaintiffs] to maintain and enhance the availability and quality of care that all patients receive; and (e) increasing the costs of rendering healthcare services in Hawaii as a result of the additional costs incurred and considerable effort expended by HMA members in seeking reimbursement from HMSA for services rendered.... [[Image here]] 21. In order to treat patients who are insured by HMSA, HMSA requires HMA members to enter into agreements with HMSA. 22. If physicians ■ refuse to sign HMSA’s one-sided agreements, those physicians are effectively prevented from seeing and treating patients, including long-time patients, who are covered for health insurance through one of HMSA’? plans. 23. Physicians who object to provisions contained in HMSA’s agreements are faced with an untenable choice: they can either accept the take-it-or-leave-it term? and provisions contained in the agreement? that are unfair to both physicians and patients or they can choose to no longer treat patients, who they have developed long-term relationship with, who are insured by HMSA. [[Image here]] 25. Throuyh its market dominance and oppressive conduct, HMSA has improperly and unfairly attempted to impose unconscionably low reimbursements upon physicians. Thus physicians are forced to either accept the unconscionably low reimbursement rates or to simply not contract with HMSA. 26. HMSA dominates the enrollee market in Hawaii with over 65% of Ha ■ waii’s population enrolled in one of HMSA’s plans. In this reyard, HMSA is the laryest provider of fee-for-service insurance in the State with more than 90% of the market and is the second largest HMO provider in the State. Similarly, HMSA dominates the physician market, with approximately 90% of Hawaii’s physicians participatiny in HMSA’s networks. 27. It is throuyh such market dominance that HMSA is able to dictate the terms and amount of reimbursement HMA physicians will receive.[ 29 ] (Emphases added.) HMSA facilitates access to the dispensing of medical services, and the plaintiffs provide medical services directly. Thus, in our view, HMSA and the plaintiff;? share the same goal or mission, i.e., ensuring that medical services are accessible to their “customers.” Their success in meeting the common goal—-and, in turn, ensuring the profitability of their respective businesses— is dependent upon their ability to effectively provide medical services to their customers, i.e., the patients. However, if HMSA engages in acts or practices that impede or interfere with physicians’ ability to provide effective healthcare services to their patients and/or create incentives for patients to look elsewhere for medical services—that is, to other participating physicians who may be reluctant to challenge HMSA or to non-participating physicians—such acts or practices can, if proven, constitute unfair methods of competition, notwithstanding the fact that the same conduct could also support a claim of unfair or deceptive acts or practices. For purposes of our analysis, we accept, as we must, the allegations in the plaintiffs’ complaint as true, see Aames Funding Corp. v. Mores, 107 Hawai'i 95, 98, 110 P.3d 1042, 1045 (2005) (“[R]eview of a motion to dismiss is based on the contents of the complaint, the allegations of which we accept as true and construe in the light most favorable to the plaintiff.” (Internal quotation marks, citation, and ellipsis omitted.)), and view such allegations in the light most favorable to them as the nonmoving parties, see Ruf v. Honolulu Police Dep’t, 89 Hawai'i 315, 319, 972 P.2d 1081, 1085 (1999) (in motion for judgment on the pleadings, court is required “to view facts presented in the pleadings and the inferences to be drawn therefrom in the light most favorable to the nonmoving party” (citations omitted)). In sum, we hold that any person may bring a claim of unfair methods of competition based upon conduct that could also support a claim of unfair or deceptive acts or practices as long as the nature of the competition is sufficiently alleged in the complaint. Accordingly, we hold that the circuit court erred in concluding that the plaintiffs’ post-June 28, 2002 claims are barred. ' However, inasmuch as the circuit court’s May 23, 2003 orders differed in one respect—that is, in the HMA Appeal case, the circuit court additionally concluded that HMA had failed to show injury for its claim of unfair methods of competition—we turn now to address the sufficiency of HMA’s allegations of injury.
In its May 23, 2003 order in the HMA Appeal case, the circuit court concluded, inter alia, that: [E]ven if HMA’s claims could otherwise be construed as claims [of] “unfair methods of competition,” they are still barred because HMA has failed to show, and cannot show, antitrust injury and antitrust standing as required by HRS chapter 480. To establish “antitrust injury,” HMA must show injury of the type the antitrust law were intended to prevent and that flows from HMSA’s alleged unlawful activities. Only a plaintiff who can show a significant threat of injury to his or her “business or property” from impending violations can obtain injunctive relief. HRS. § 480-13(a)(2); McCormack v. Nat[’l] Collegiate Athletic Found[.], 845 F.2d 1338, 1341 (5th Cir.1988)[.] [[Image here]] To establish “antitrust standing,” HMA must allege a direct injury. HMA cannot meet this burden. Each and every allegation of harm suffered by HMA pertains either to a harm allegedly suffered directly by a physician member ... or a harm HMA suffered as a result of such a physician’s alleged suffering. HMA’s repeated assertion that these injuries are “direct” does not make it so. Its injuries are derivative and remote by definition, and do not give rise to an antitrust standing. First, we note that we have already concluded, in section III.B., that HMA has standing to bring suit on behalf of its physician members and on its own behalf and, in section III.C., that HMA’s post-June 28, 2002 claims of unfair methods of competition are not barred. Second, we note that HRS § 480-13(a) authorizes a plaintiff to seek damages and injunctive relief, providing that: “any person who is injured in the person’s business or property by reason of anything forbidden or declared unlawful by this chapter: (1) May sue for damages ...; and (2) May bring proceedings to enjoin the unlawful practieesf.]” In Ai v. Frank Huff Agency, Ltd., 61 Haw. 607, 607 P.2d 1304 (1980), overruled on other grounds, Robert’s Hawai’i, 91 Hawai'i at 250 n. 26, 982 P.2d at 879 n. 26, this court established three elements essential to recovery under HRS § 480—13:(1) a violation of HRS chapter 480; (2) injury to the plaintiffs business or property resulting from such violation; 30 and (3) proof of the amount of damages. 31 Id. at 617, 607 P.2d at 1311; see also Robert’s Hawai'i, 91 Hawai'i at 254, 982 P.2d at 883; Beclar Corp. v. Young, 7 Haw.App. 183, 194, 750 P.2d 934, 941 (1988). “[Wjhile proof of a violation of chapter 480 is an essential element of an action under HRS § 480-13, the mere existence of a violation is not sufficient ipso facto to support the action; forbidden acts cannot be relevant unless they cause [some] private damage.” Robert’s Hawai‘i, 91 Hawai'i at 254 n. 30, 982 P.2d at 883 n. 30 (citation and internal quotation marks omitted) (some brackets in original). In the HMA Appeal, HMA maintains that, by alleging the “diminishment of financial resources,” it had established “antitrust injury” to its business and property. In Ai, this court held that “it is unnecessary for plaintiffs[, in that case, the consumers] to allege commercial or competitive injury[;]” it is sufficient that plaintiffs allege that injury occurred to personal property through a payment of money wrongfully induced.” 61 Haw. at 614, 607 P.2d at 1310. Therefore, HMA need only allege that, by reason of an antitrust violation, it has been injured in its “business or property.” HMA did so when it alleged that, as a result of HMSA’s unfair or deceptive practices, HMA was required to divert substantial resources and time to deal with its members' problems created by HMSA’s conduct—“resources that otherwise would go to support its principal mission in service of its members.” Clearly, HMA has sufficiently alleged “injury to business property.” Accordingly, we hold that the circuit court erred in concluding that HMA failed to allege sufficient injury to its business or property. 32 We emphasize, however, that this case comes before us not after a trial on the merits, but after a grant of a motion for judgment on the pleadings. As such, we are bound to construe the allegations in the complaint in favor of the pleader. Ruf v. Honolulu Police Dep’t, 89 Hawai'i 315, 319, 972 P.2d 1081, 1085 (1999). It would, therefore, be inappropriate for this court to delve into HMA’s ability or inability to prove damages as a result of its involuntary diversion of resources caused by HMSA’s alleged unfair methods of competition.