This site is created by four owners of Royal Mauian condo units who are opposing the December 20, 2022 resolution by the HOA board to impose registration fees. We are challenging the validity of this resolution on the following grounds:
See this page for Background and outline of the disagreement.
On December 16, 2024, we finally received some documents in partial compliance with our years of document requests. However, among the documents, there was no legal opinion that explains the legal authority for the Board's resolution of December 20, 2022.
A quick reminder, that, in a letter to owners dated January 5, 2023 that explains the resolution, the Board states:
“Per legal counsel, the Board has the authority both in Royal Mauian Bylaws and Hawaii Revised Statutes to charge for services rendered to specific owners”
Yet, the Board has no proof (or is unwilling to provide such proof after being ordered to do so by the Arbitrator) that any such legal opinion was ever presented to the Board. Without any explanation forthcoming from the Board, it is hard to escape the conclusion that the statement quoted above from the January 5, 2023 letter was an outright lie to owners.
With the departure of Board president Mary Sipes on December 6, 2024, we have “paused” the arbitration in an effort to re-engage in direct communication with Board members. Such discussions are scheduled to occur in early February.
Stay tuned.
On Wednesday, September 4, an oral hearing was held with the arbitrator and the parties' attorneys to consider opposing briefs on a motion for summary judgment submitted by the claimants (RMOG). Motions to dismiss are appropriate where there are no material facts in dispute. The arbitrator, Judge Yim (retired) held that there are material facts in dispute but declined to specify which facts. As a result, we are proceeding forward with the arbitration.
Sorry again for the long silence. Two big events since the last update:
First, we were unable to agree to a binding arbitration agreement. Such an agreement would have meant that the arbitrator's decision would be final and the parties would agree to abide by it. Instead we have a non-binding agreement, which means that the parties must abide by the agreement or file a suit in a court of law to challenge the ruling of the arbitrator. While neither party wishes to take this matter to a court of law, the parties could not agree on the wording of a question to be resolved by the arbitrator. Essentially the Owners Group wanted to have the arbitrator make a determination as to what the bylaws and statutes require in order for the Board to institute any kind of use-based fee on owners. The Board refused to agree to such a determination being binding. Instead, they favored a narrow ruling on just whether the particular usage fee as implemented by the Board is OK or not. This was not acceptable to the Owners Group. As a result, we were unable to come to an agreement on a non-binding arbitration.
In June, we were able to agree to a non-binding resolution, with Judge Patrick K.S.L. Yim (retired) serving as our arbitrator. Since the owners requested this arbitration, and since it is non-binding, the owners get to decide what question will be addressed by the arbitrator. The question to be resolved is as follows:
The issue, in this case, is to determine/declare the extent to which the Board of Directors (the “Board”) of the Association of Apartment Owners (the “Association”) of the Royal Mauian was authorized under the Association’s governing documents and/or Hawaii Revised Statutes to impose fees on certain Owners by the adoption of the Resolution Related to Guest Registration Fees as passed by the Board on December 20, 2022, and, if prohibited, did this imposition of fees instead require the amendment of the Association’s governing documents by vote or approval of owners representing 67% of the percentage of common interest as was done by the Association’s then Board in 2008 when the issue of such a fee was raised for the first time and after receiving legal advice, was put by the then Board to the Owners for a 67% vote of the owners which vote failed.
On July 2nd, a scheduling order was issued listing the following dates. Hopefully, with the non-binding agreement in place and a scheduling order, things will start to move more quickly going forward.
Send any questions to contact@royalmauianowners.org
Sorry for the radio silence. Here is what we know:
After missing for the second time a deadline agreed to by the attorneys to produce requested documents, a new deadline for the association to produce requested documents was set in mid-March for April 12th and an April 30 deadline to resolve all document production issues. After that, we will trade briefs on uncontested facts and by May 28 should have the question resolved as to whether there are any undisputed facts relevant to the sole issue in Arbitration, which is whether the December 2022 resolution was permitted under Bylaws or whether it was ultra vires – that is, whether the Board exceeded its authority in passing that resolution.
We are a group of concerned owners of units in the Royal Mauian building in Kihei, HI.
Drs. Skye and Jane Lininger
Owners of 516 since 2021, Skye is former Board President of Wailea Beach Villas, he is the founder and CEO of multiple companies and currently teaches in the School of Business at Portland State University. Jane and Skye and their two daughters have been annually vacationing in South Maui (staying at either Kameole Nalu, Royal Mauiian, or Wailea Beach Villas) since 1980.
Richard Berkins Owner at Royal Mauian since 1997. Richard is an accountant and small business owner.
Leonard Heyman and Jaimie Kim
Leonard is a corporate patent attorney and has owned 205 with Jaimie since 2021. Jaimie is a customer experience architect for a major software company.
Dirk De Vuyst
Purchased first Royal Mauian unit in 1989 and second unit in 2008. Dirk is a retired real estate development attorney who has practiced almost 40 years. From 2010-2013 he was the chairmen of the Royal Mauian Resort and from 2008-2012 he was a Board member for the Royal Mauian HOA.
Edited Conversation (17 minutes).
Due to instances of spam and a general lack of activity, I shut this down. Contact us if you think a general topic discussion board is a good idea.