In 2007, Jim and Nancy Bevill, who live in the Ke Nani Kai Condominium on the island of Molokai, decided to write a letter to their fellow homeowners describing crimes that were being committed on the condominium grounds and asking them to help elect a new board of directors. According to court testimony, the couple then became the target of threats, death threats, harassment and intimidation by the resident manager, the board of directors, and an unlicensed contractor who was hired by Ke Nani Kai to do work around the complex. The board of directors also filed a lawsuit against the Bevills alleging defamation, but the lawsuit was later dismissed in court due to lack of merit.
This past week, a Maui jury sided with Jim and Nancy Bevill and awarded them $3.87 million in general and punitive damages. Court documents showed that the jury sided with the Bevills on all 11 counts and “found that the board of directors, the association or their agents or employees engaged in engaged in racketeering, civil conspiracy, gross negligence, malicious prosecution, abuse of process, breach of contract and negligent and intentional infliction of emotional distress.” Three of the Ke Nani Kai board members were each assessed between $200,000 and $300,000 in damages. The resident manager, Darrel Borling, was assessed $190,000 in punitive damages, and the unlicensed contractor, Frank Maurizio was assessed $380,000 in punitive damages.
Members of a condominium’s board of directors are usually volunteers who own a unit(s) in the complex. Most condominium insurance policies do not cover punitive damages, so an individual defendant may be personally responsible to pay for the damages themselves. Real estate experts predict that one of the fall outs from this landmark case is that there will be increased number of resignation from various condominium board members throughout the islands.
Source: Honolulu Star Advertiser, 3-28-2012, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, Realtor
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com
