This page is a work in progress. Come back later for a more complete listing.
====== History ======
Here is a complete run-down of significant milestones along the road to a hopeful resolution. Please contact us at [[contact@royalmaianowners.org]] if you have any questions or wish to see anything further.
===== Background =====
On **December 20, 2022** the Royal Mauian HOA board passed a resolution imposing a new registration fee that must be paid by every guest registering at the front desk. This fee is illegal under our governing documents as further described [[:registration_fee:|here]].
On **January 5th, 2023**, a {{ :registration_fee:20230105_owner-comm-reg-fee_-_final-approved-resolution.pdf |fee resolution cover letter and Final Draft of the Fee Resolution}}, which was approved unanimously by the Board in the December 20 meeting, was emailed to owners. Except for the small reduction in fee amount, the final resolution is substantially the same as the draft proposal first mailed out December 16.
Shortly after that January 5th email from the Board, the Royal Mauian Owners Group, which sponsors this website, was formed in opposition to the registration fee.
===== Mediation =====
On **March 14, 2023**, after engaging legal counsel, we formally requested mediation. Our attorney sent a {{ ::2023.03.14.ltr_porter_to_dpr_w_enclosures.pdf |mediation letter}} to the Board and we sent a copy by {{ ::20230314_letter_to_owners.pdf |email to all owners}} we could reach. The mediation letter raises the following allegations (1) that the December 20 registration fee resolution is illegal under our governing documents, (2) that the Board has broken open records laws, and (3) that the Board has not exercised prudent business judgment in determining the fee. We also sent a separate letter on our own to the Board asking that the implementation of the registration fee be delayed until our dispute is resolved, and in addition, for the opinion from the HOA's attorney that the HOA has relied on in issuing the Resolution.
The mediation Hearing occurred on **August 4, 2023**. The mediation occurred in accordance with the provisions of the Bylaws and involved a mutually-agreed-upon mediator that attempted to bring the two parties (the owner group and the HOA Board) to an agreement via a shuttle-diplomacy style negotiation. The mediation was carried out for three and a half hours over Zoom, with no resolution. In the week following that call final proposals were exchanged between representatives of the owners group and the Board.
On **August 10th, 2023**, we learned that the Board rejected our final counter-proposal which still required the Board to immediately rescind the December 20th resolution. As concessions, we did not ask for a refund of fees previously collected or for payment of our legal expenses. We explained that the registration fee is contrary to the clear language of the Royal Mauian's governing documents and we believe that the Board is being unreasonable in not accepting this reality.
===== Arbitration =====
On **August 17th**, we submitted our Demand for Arbitration in accordance with the Association's Bylaws. Arbitration is like an informal legal trial in which the parties are contractually bound to abide by the decision of an arbitrator, who is designated by agreement of both parties. Since the proceeding is not a court proceeding, the arbitrator is not required to adhere to legal principles in reaching his or her decision, but arbitrators generally will follow the law and principles of fairness in reaching their decision. Our current status is that we are waiting for the Association to obtain insurance coverage for their legal expenses, and this may include obtaining new counsel for their defense.
As of **10/26/23**, it seems that the AOAO has not obtained new counsel (and will not) and the parties are currently negotiating for an arbitrator that both sides can agree to.
On **11/12/23**, we sent {{ ::20231112_rm_letter.pdf |this letter (PDF)}} to all owners we could reach by email. We sent this email because it had been some time since we've communicated with owners at large and wanted to provide an update as to the current status of our dispute. In summary, we are moving forward with our arbitration and are working to identify an arbitrator that we can agree on.
On **11/21/23**, the HOA board sent a {{ ::20231121_ltr_to_owners_re_claimants.pdf |letter}} to all owners confirming that arbitration has been initiated and that the HOA's own counsel interprets the governing documents in a way that supports the December 20 resolution. In addition, the Board claims that "early on" they communicated directly with us and denied that the fee is arbitrary or "backed in," now stating:
> "...the fee is a calculated amount based only on the cost of the front office employee (Joanne) pro-rated for the time dedicated to being available to serve the thousands of non-owner guests each year, along with a small amount for administrative supplies, GET and accounting."
As of **12/28/23**, since mediation did not resolve our dispute, we are moving forward with arbitration. We have appointed a retired judge to serve as the arbitrator, and both parties have agreed that his decision will be final and legally binding. This means that neither party will be able to take the matter to court if they disagree with the arbitrator's ruling. Fortunately, we were able to bypass the "strikeout" process, as the Board accepted one of the arbitrators we proposed in exchange for our accepting of the arbitrator's ruling as final. Our representatives have scheduled a preliminary call with the arbitrator for January 4th to discuss the upcoming arbitration.
On **January 26, 2024**, the RMO group's attorney, Chris Porter, sent a formal letter to the Board and their attorney identifying the sole issue under arbitration -- the legality of the Resolution implementing guest registration fees, an outline of a proposed process for the arbitration, and a request for relaxant documents in Board's possession.
The proposed process will be an exchange of written briefs upon which the arbitrator will make his decision - i.e., without an oral hearing. We think this will save costs on the part of both parties and it is appropriate in cases like this one where the parties are in agreement as to what the relevant facts are.
Among the documents we requested, we asked for documents that formed the basis for the Board's vote on the Resolution, documents related to the Resolution including financial projections and budgets, the General Manager's job description, documents referencing the owner vote around 2007-2008 related to the charging of guest registration fees, legal opinions relied upon, meeting minutes, and information regarding any alternatives to the guest registration fee that were considered by the Board. We asked that these materials be provided within 30 days (i.e., February 28.
If we hear a reply, we will let you know.