Moloaa Farms LLC v. AOAO of Moloaa Hui I

553 P.3d 922, 154 Haw. 416
CourtHawaii Intermediate Court of Appeals
DecidedAugust 15, 2024
DocketCAAP-20-0000286
StatusPublished

This text of 553 P.3d 922 (Moloaa Farms LLC v. AOAO of Moloaa Hui I) is published on Counsel Stack Legal Research, covering Hawaii Intermediate Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Moloaa Farms LLC v. AOAO of Moloaa Hui I, 553 P.3d 922, 154 Haw. 416 (hawapp 2024).

Opinion

NOT FOR PUBLICATION IN WEST'S HAWAII REPORTS OR THE PACIFIC REPORTER

Electronically Filed Intermediate Court of Appeals CAAP-XX-XXXXXXX 15-AUG-2024 07:56 AM Dkt. 111 SO

NOS. CAAP-XX-XXXXXXX AND CAAP-20–0000444

IN THE INTERMEDIATE COURT OF APPEALS

OF THE STATE OF HAWAI#I

In Re MOLOAA FARMS LLC, Claimant-Appellant, v. ASSOCIATION OF APARTMENT OWNERS OF MOLOAA HUI I; PAUL C. HUBER, individually and as President of the Association of Unit Owners of Moloaa Hui I; ASSOCIATION OF APARTMENT OWNERS OF MOLOAA HUI II; NED Y. WHITLOCK, as President of the Association of Unit Owners of Moloaa Hui II; MOLOAA HUI LANDS, INC.; CANDACE L. STRONG, individually; and ERIC M. STRONG, President and Chief Executive Officer of Moloaa Hui Lands, Inc., Respondents-Appellees

APPEAL FROM THE CIRCUIT COURT OF THE FIFTH CIRCUIT (CASE NO. 5CSP-XX-XXXXXXX)

SUMMARY DISPOSITION ORDER (By: Hiraoka, Presiding Judge, and Wadsworth and Nakasone, JJ.)

These consolidated appeals arise from a special proceeding in the Circuit Court of the Fifth Circuit (Circuit Court)1/ that terminated an arbitration before the American Arbitration Association (AAA). Claimant-Appellant Moloaa Farms, LLC (Moloaa Farms) appeals from the following Circuit Court orders granting the identified motions and substantive joinder filed by Respondents-Appellees Association of Apartment Owners of Moloaa Hui I (AOAO MH I); Paul C. Huber (Huber), individually and as President of the Association of Unit Owners of Moloaa Hui I; Association of Apartment Owners of Moloaa Hui II (AOAO MH II); Ned Y. Whitlock (Whitlock), as President of the Association of

1/ The Honorable Kathleen N.A. Watanabe presided. NOT FOR PUBLICATION IN WEST'S HAWAII REPORTS OR THE PACIFIC REPORTER

Unit Owners of Moloaa Hui II; and Candace L. Strong (C. Strong), individually (collectively, Respondents-Appellees): (1) the March 18, 2020 "Order Granting: (1) [AOAO MH I] and . . . Huber's Motion to Stay Arbitration and/or Terminate Arbitration Regarding [Moloaa Farms'] Demand for Arbitration in AAA Case: 01-19-0002-2645, Filed on January 27, 2020; and (2) [AOAO MH II] and . . . Whitlock's Substantive Joinder to [AOAO MH I] and . . . Huber's Motion to Stay Arbitration and/or Terminate Arbitration Regarding [Moloaa Farms'] Demand for Arbitration in AAA Case: 01-19-0002-2645 (Filed 1/27/2020), Filed on February 28, 2020"; (2) the March 18, 2020 "Order Granting '. . . Huber, Individually's, Motion to Determine Existence and Validity of Agreement to Arbitrate Re: "Demand for Arbitration," Dated October 7, 2019, in [AAA] Case No. 01-19-0002-2645,' Filed February 18, 2020"; (3) the March 19, 2020 "Order Granting . . . [C.] Strong's Motion to Terminate Arbitration Against Her Filed, February 11, 2020";2/ (4) the June 12, 2020 "Order Granting '. . . Huber, Individually's, Motion for an Award of Attorneys' Fees and Costs,' Filed April 1, 2020"; (5) the June 15, 2020 "Order Granting in Part [AOAO MH I] and . . . Huber's Motion for Attorney's Fees and Costs Filed on April 3, 2020"; (6) the June 16, 2020 "Order Granting . . . [C.] Strong's Motion for Attorneys' Fees and Costs"; and (7) the June 22, 2020 "Order Granting [AOAO MH II's] and . . . Whitlock's Motion for Award of Attorneys' Fees Incurred in Successful Defense of Demand for Arbitration Filed by [Moloaa Farms] in

2/ We refer to orders (1) through (3) as the Termination Orders.

2 NOT FOR PUBLICATION IN WEST'S HAWAII REPORTS OR THE PACIFIC REPORTER

AAA Case No. 01-19-0002-2645 (Filed 4/6/2020)."3/ In October 2019, Moloaa Farms initiated an arbitration proceeding against Respondents-Appellees and others (collectively, Respondents), seeking declaratory relief and damages for, among other things, the alleged breach of two agreements, both of which contain arbitration provisions – a Bargain Sale Option Agreement (Option Agreement or Agreement), dated February 10, 1997, for the purchase and development of certain subdivided agricultural land in Moloa#a, Kaua#i (the Moloaa Hui Lands), and a Declaration of Covenants, Conditions and Restrictions (Declaration), recorded on March 13, 1997, in the State of Hawai#i Bureau of Conveyances. Moloaa Farms contends that Respondents are signatories (or successors in interest) to one or both agreements, are contractually required to provide Moloaa Farms with, among other things, access to a common water system as required for the development of certain land subject to those agreements, and have failed to do so. After Moloaa Farms submitted the dispute to arbitration, AOAO MH I, Huber, AOAO MH II, Whitlock, and C. Strong moved or joined in a motion to stay or terminate the arbitration pursuant to Hawaii Revised Statutes (HRS) Chapter 658A (the Termination Motions). The Circuit Court granted the Termination Motions and terminated the arbitration. In doing so, the Circuit Court found and concluded that: 1. "There is no arbitration agreement to which Huber [or C. Strong] is a party, that would compel Huber [or C. Strong] to arbitrate disputes with [Moloaa Farms]"; 2. "The subject matter of the dispute [upon] which [Moloaa Farms] bases its arbitration demand is not an arbitrable dispute, as to Huber [or C. Strong]"; 3. "The Demand for Arbitration ('Demand') in AAA Case: 01-19-0002-2645 seeks to adjudicate a dispute between private individuals over water

3/ We refer to orders (4) through (7) as the Fee Orders.

3 NOT FOR PUBLICATION IN WEST'S HAWAII REPORTS OR THE PACIFIC REPORTER

rights in the agricultural district of Moloaa on the island of Kaua#i, and pursuant to HRS § 664-33, this Court 'shall hear and determine all controversies respecting rights of private way and water rights, between private individuals"; 4. "There is no valid and enforceable arbitration provision or agreement between [Moloaa Farms] and AOAO MH I or AOAO MH II, and/or their officers in their official capacities, that would compel the arbitration of the claims and issues set forth in the Demand"; and 5. "The subject matter of the dispute upon which [Moloaa Farms] bases its Demand is not arbitrable against AOAO MH I and AOAO MH II, and/or their officers in their official capacities." After the Circuit Court granted the Termination Motions, it issued several orders granting Respondents' motions for attorneys' fees and costs (Fee Motions). On appeal, Moloaa Farms contends that the Circuit Court erred in granting the Termination Motions because: (1) Respondents "waived their right to seek a judicial determination as to the existence and scope of the arbitration agreements under HRS § 658A-6"; (2) Respondents "failed to serve their motions and joinder as required by HRS § 658A-5, thereby depriving the [C]ircuit [C]ourt of jurisdiction"; (3) Respondents "are parties to and bound by the Option Agreement and/or Declaration as signatories or successors in interest"; (4) "[t]he subject matter of dispute is arbitrable under both the Option [Agreement] and Declaration"; and (5) the dispute "is not about water rights but rather the terms and conditions upon which [a portion of the Moloaa Hui Lands, designated as] Lot 2, is entitled to access the common facilities, as provided for in the Option [Agreement] and Declaration[.]" (Emphasis added.) Moloaa Farms also contends that the Circuit Court abused its discretion in granting the Fee Motions. After reviewing the record on appeal and the relevant legal authorities, and giving due consideration to the issues

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Cite This Page — Counsel Stack

Bluebook (online)
553 P.3d 922, 154 Haw. 416, Counsel Stack Legal Research, https://law.counselstack.com/opinion/moloaa-farms-llc-v-aoao-of-moloaa-hui-i-hawapp-2024.