Hawai'i stevedoring company McCabe Hamilton & Renny has filed a federal lawsuit against Matson Navigation Co., accusing the shipping giant of attempting to hire away most of McCabe's longshore workforce and using confidential information to solicit the employees.

The lawsuit was filed Thursday in U.S. District Court by McCabe Hamilton & Renny, Co., Ltd., and lists as defendants Matson Navigation Co. and its unit, Matson Terminals Inc. McCabe is asking that a judge prohibit Matson from hiring the workers and declare that the acquisition of the workforce would lead to an illegal monopoly by Matson.

McCabe also is seeking an undetermined amount in damages and attorneys fees.

In the lawsuit, McCabe Hamilton & Renny alleges that Matson's attempt to hire McCabe's stevedores would mean the company would be "unable to continue its business." The move also "may substantially lessen competition, or tend to create a monopoly, in the stevedoring services and water carriage markets," which the lawsuit said would be a violation of antitrust laws.

McCabe Hamilton & Renny also is accusing Matson of misusing confidential company information and trade secrets to Matson's advantage in luring the stevedores, according to the lawsuit. McCabe said the information was provided to Matson in 2005 when Matson was negotiating a proposed purchase of McCabe, the lawsuit said.

"Any confidential information or trade secrets communicated by McCabe to Matson were communicated under a clear understanding by Matson that they were to be used solely for the limited purpose for which they were provided," the lawsuit states. "Such information would be highly valuable to anyone intending to enter the stevedoring market on O'ahu."

McCabe officials yesterday declined further comment on the lawsuit.

Matson spokesman Jeff Hull did not want to comment on the specific accusations, but said Matson is not hiring employees away from McCabe.

Hull said it's been Matson's practice to contract longshore labor through McCabe Hamilton & Renny. The stevedores are members of the International Longshore and Warehouse Union who Hull said are under contract with McCabe, but aren't employees of McCabe.

"What this would be is sort of restructuring where we'd employ a dedicated Matson workforce at our terminal," Hull said. "Rather than contracting through McCabe, we would hire directly. They would become Matson employees."

Matson Navigation Co. is the state's largest ocean cargo carrier, and Hull said this move should improve service to its customers. He said about 100 employees would be hired.

"Our objective is to really improve the overall level of service we can provide Hawai'i and by having a workforce that's really focused on Matson's operations, we feel that that's overall better business and better service," Hull said.

Reach Curtis Lum at culum@honoluluadvertiser.com.