ÌìÃÀÊÓƵ

Cory Lum/Civil Beat/2022

About the Author

Marcia Kimura

Marcia Kimura is a 33-year condominium owner and lifetime Hawaii resident who became active since 2014 in condo owner rights efforts, including advocacy involving legislation.

Legislation has been introduced to prohibit illicit demands of individual owners when boards hire attorneys.

Picture this: You’ve been a model condo owner for almost a decade now, always giving the benefit of the doubt to whatever board members hold the reins, even though you occasionally disagree with their decisions.

But this time, they’ve given you notice of their intent to install an obstructive shade on your porch, and your patience finally hits the skids. You show up at the next board meeting with a head full of steam, hell-bent on letting it rip about their announcement.

Although you come across as out-of-control and abusive to the board, actually you utter no obscenities, profanities or threats, just an honest justifiable protest to their announcement, which offered no opportunity to express objection.

A week later, you get a letter from the board’s attorney, demanding that you pay for legal services the directors claim was their only protection from your “outrageous, threatening” behavior.

You had no idea this was coming, and your first reaction is resistance and disbelief that the demand for payment of the $3,000-plus is real. At this time, you just don’t have the money to pay, so although it’s disturbing to let it ride, you put the letter and payment aside for another two weeks, while you write a letter to the board objecting to their unwarranted demands.

But three weeks later, you get another bill of $5,000 total, including the first amount plus late fees, and no response to your letter demanding justification for the bill. And onward and upward it goes, until or unless you pay the assessed amounts in full.

Not only does this phantom bill become unmanageable for you, but as a result, so do your regular maintenance dues.

‘Excessive Legal Bills’

The above scenario isn’t far-fetched at all, it is reality for condo owners in Hawaii as well as in other states.

Properties have been foreclosed on or seized as the result of what began as boards’ insistence on their justified response to “outrageous, threatening” behavior of owners who have every right to oppose, question or recall board directors, as the constitutional right of free speech allows.

Those targeted have no obligation to pay legal bills from board-hired attorneys, and boards have no right to what must be considered their bogus non-judicial “guilty” convictions of owners.

It is this writer’s conviction that it is overdue time that the brakes be slammed on runaway legal fees charged by attorneys boards hire — excessive legal bills that probably would not materialize if boards were, as the attorneys’ clients, rightfully responsible for paying these from their association funds.

Readers are strongly encouraged to support and its House bill counterpart , which have been introduced to prohibit illicit demands for legal fee charges to individual owners when boards hire attorneys.

Yet an exception for legal collection fees owners must pay when they are delinquent in maintenance dues payments protects associations and limits the fees to 25% of original delinquent amounts owed.

Those interested in supporting these timely measures may read the bills in their entirety at and contact the chairs and vice chairs of the Senate and House commerce and consumer protection and judiciary committees to urge scheduling public hearings for them.

If hearings are scheduled, testimony can be done in person or in writing at the website no later than 24 hours before hearings are scheduled.

Community Voices aims to encourage broad discussion on many topics of community interest. It’s kind of a cross between Letters to the Editor and op-eds. This is your space to talk about important issues or interesting people who are making a difference in our world. Column lengths should be no more than 800 words and we need a photo of the author and a bio. We welcome video commentary and other multimedia formats. Send to news@civilbeat.org. The opinions and information expressed in Community Voices are solely those of the authors and not Civil Beat.


Read this next:

Jonathan Okamura: A Report On The Economic Returns Of A UH Degree Fails To Address Ethnicity


Local reporting when you need it most

Support timely, accurate, independent journalism.

ÌìÃÀÊÓƵ is a nonprofit organization, and your donation helps us produce local reporting that serves all of Hawaii.

Contribute

About the Author

Marcia Kimura

Marcia Kimura is a 33-year condominium owner and lifetime Hawaii resident who became active since 2014 in condo owner rights efforts, including advocacy involving legislation.


Latest Comments (0)

Current HRS 514B laws are mostly administrative and there are few penalties in the law for board members and community association managers {CAMs) who knowingly violate HRS 514B or the association’s governing documents, thus unprincipled directors and CAMs have minimal incentive to follow the statutes or governing documents.Owners, on the other hand, are subject to rules enforced by the board who serves as judge, jury, and executioner, with unilateral, unopposable power.While the legal industry appears to believe that disputes and challenges may be handled through attorneys and the Court system, owners do not have that same confidence. It takes courage to challenge authority, even if that authority is the party that violated laws or associations rules. Fewer are bold enough to go pro se when the opposition is armed with attorneys. And even when the condo owner prevails, there is still the chance that his/her legal fees may not be recoverable.Further, penalties against the association punish innocent association members, not the directors or CAM who violated the laws.

lmower · 1 year ago

Legislators are encouraged to examine* the proportion of legal fees & costs associated with dispute resolution to the amount awarded;* the proportion of legal fees & costs associated with foreclosures to the delinquent amount;* the legality of levying owners with non-commonly assessed legal fees although the assessed owners did not request or demand legal advice from that attorney or otherwise caused legal fees to be charged. E.g., legal fees caused by an assn or its board that demand that the owner "cease and desist" for unstated or unsubstantiated violations, fees caused by an association or its directors that serve to silence or intimidate dissenting owners;* whether detailed legal billing is provided to owners upon request, * the possibility of reforming fines and fees so that they do not disproportionately burden vulnerable residents and set off a cycle of inescapable consequences (e.g., they may rely on debt mechanisms such as loans or credit cards which can cause a worsened credit rating that can impair their employment opportunities that can affect their income which causes increased economic distress, etc.) and investigate the use and efficacy of repayment programs.

lmower · 1 year ago

Don't live in a condo. Problem solved.

gronk · 1 year ago

Join the conversation

About IDEAS

IDEAS is the place you'll find essays, analysis and opinion on public affairs in Hawaii. We want to showcase smart ideas about the future of Hawaii, from the state's sharpest thinkers, to stretch our collective thinking about a problem or an issue. Email news@civilbeat.org to submit an idea.

Mahalo!

You're officially signed up for our daily newsletter, the Morning Beat. A confirmation email will arrive shortly.

In the meantime, we have other newsletters that you might enjoy. Check the boxes for emails you'd like to receive.

  • What's this? Be the first to hear about important news stories with these occasional emails.
  • What's this? You'll hear from us whenever Civil Beat publishes a major project or investigation.
  • What's this? Get our latest environmental news on a monthly basis, including updates on Nathan Eagle's 'Hawaii 2040' series.
  • What's this? Get occasional emails highlighting essays, analysis and opinion from IDEAS, Civil Beat's commentary section.

Inbox overcrowded? Don't worry, you can unsubscribe
or update your preferences at any time.