ROYAL KUNIA COMMUNITY ASS'N v. Nemoto

198 P.3d 700
CourtHawaii Intermediate Court of Appeals
DecidedNovember 28, 2008
Docket27703
StatusPublished

This text of 198 P.3d 700 (ROYAL KUNIA COMMUNITY ASS'N v. Nemoto) 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
ROYAL KUNIA COMMUNITY ASS'N v. Nemoto, 198 P.3d 700 (hawapp 2008).

Opinion

198 P.3d 700 (2008)

ROYAL KUNIA COMMUNITY ASSOCIATION, by its BOARD OF DIRECTORS, Plaintiff-Appellee,
v.
Reuben K. NEMOTO and Lorna A. Nemoto, Defendants-Appellants, and
John Does 1-5, Jane Does 1-5; and Doe Entities 1-5, Defendants.

No. 27703.

Intermediate Court of Appeals of Hawai`i.

November 28, 2008.

*701 James J. Stone, Honolulu, and Derwin Hayashi, on the briefs, for defendants-appellants.

Terrance M. Revere and Kapono F.H. Kiakona (Motooka Yamamoto & Revere), on the briefs, Honolulu, for plaintiff-appellee.

WATANABE, PRESIDING J., FOLEY, and FUJISE, JJ.

Opinion of the Court by WATANABE, Presiding J.

In this breach-of-restrictive-covenants case, Reuben K. Nemoto (Reuben) and Lorna A. Nemoto (collectively, the Nemotos) appeal: (1) the Final Judgment entered by the Circuit Court of the First Circuit[1] (circuit court) on April 5, 2006 in favor of Royal Kunia Community Association (Association); (2) the August 30, 2005 order granting summary judgment to the Association (Summary Judgment Order); and (3) numerous related orders[2] entered by the circuit court.

We conclude that the circuit court partly erred in granting summary judgment in favor of the Association. Accordingly, we affirm in part and vacate in part the Summary Judgment Order, vacate the Final Judgment, and remand for further proceedings consistent with this opinion.

BACKGROUND

A.

The Nemotos are the owners of a residence located on a lot (Property) in Royal Kunia, a planned residential community. The Association, a Hawai`i nonprofit corporation, is charged with carrying out the duties, obligations, and responsibilities set forth in the Association's articles of incorporation and bylaws, and the Amended and Restated Declaration of Protective Covenants for Royal *702 Kunia Community, recorded in the Bureau of Conveyances of the State of Hawai`i on March 21, 1994 (Amended Declaration).

The Nemotos acquired their Property pursuant to a "Deed with Reservations, Covenants, Conditions and Restrictions" (Deed) that was executed by Kunia Residential Partners as Grantor and the Nemotos as Grantees on December 26, 2000. The Deed, which was recorded in the State of Hawai`i Bureau of Conveyances on September 13, 2001, expressly provides that the Property is subject to the

Declaration of Protective Covenants for Royal Kunia Community dated April 17, 1989, recorded in the Bureau of Conveyances of the State of Hawaii in Book 23083 at Page 509, as amended ... by [the Amended Declaration], recorded in said Bureau as Document No. 94-049225, as further amended from time to time (collectively, the "Royal Kunia Community Restrictions").

Additionally, the Deed includes specific covenants which the Nemotos agreed to when they signed the Deed as "Grantee":

Grantee's Covenants
AND, in consideration of the foregoing, the Grantee, for the Grantee, the Grantee's heirs, personal representatives, successors and assigns, does hereby covenant and agree as follows:
A. Royal Kunia Community Restrictions. Grantee does hereby accept and approve the "Royal Kunia Community Restrictions" described in said Exhibit A attached hereto. The Grantee does hereby covenant and agree that the granted premises shall be held, occupied and used by the Grantee subject to and in accordance with the terms, covenants, conditions, restrictions and provisions of the Royal Kunia Community Restrictions, and that the Grantee shall pay all assessments as therein provided and shall observe and perform all of the terms, covenants, conditions, restrictions and provisions contained therein. Except as otherwise defined in this Indenture, all capitalized terms used in this Section A, Section C and in Section D below shall have the meanings given to them in the Royal Kunia Community Restrictions. Without limiting the generality of the foregoing, Grantee understands, acknowledges, covenants and agrees that the Royal Kunia Community Restrictions provide, among other things, the following:
1. Any Improvement,[[3]] alteration, repair, landscaping or other work undertaken upon any Lot (including the Property) in a Residential Area, which is or may be Visible from Neighboring Property[[4]] or a Street,[[5]] shall be subject to certain conditions, limitations and restrictions, including without limitation, the requirement that Design Committee[[6]] approval be obtained with respect thereto, all as more particularly set forth in the Royal Kunia Community Restrictions.
....
*703 H. Remedies. The violation or breach of any of the covenants, conditions, agreements or restrictions contained herein shall give the Grantor the right to prosecute a proceeding at law or in equity against the Grantee to prevent or enjoin the Grantee from violating or breaching any of the covenants, conditions, agreements or restrictions, or to cause said violation or breach to be remedied, or to recover damages or other remedies available for such violation or breach. The Grantor shall be entitled to recover fees, costs and expenses as may have been incurred by the Grantor for attorneys (including, without limitation, allocated costs of in-house counsel of Grantor and/or Grantor's partners) in enforcing its rights hereunder.
....
J. Covenants Running with the Land; Duration. Except as otherwise expressly provided herein, each and all of the Grantor's reservations and the Grantee's covenants, agreements, conditions and restrictions contained herein and in the Contract of Sale between Grantor and Grantee are perpetual and intended to run with the land in favor of the Grantor, its successors and assigns, and are expressly binding upon the Property, and each portion thereof, and each successive owner of the property and each person having any right, title or interest in the Property or any portion thereof, unless and until the Grantor shall relinquish and permanently waive any of its rights, but only with respect to the specific rights waived, as evidenced by the recordation of a written notice of such waiver in the Bureau of Conveyances of the State of Hawaii.

(Footnotes added.)

The Amended Declaration includes the following restrictive covenants that are relevant to this appeal:

ARTICLE III
LAND CLASSIFICATIONS AND APPLICABLE RESTRICTIONS
....
Section 3.02 Residential Area: Specific Uses and Restrictions. Each Lot in a Residential Area (except those Lots owned by a Declarant) shall be for the exclusive use and benefit of the Owner thereof, subject, however, to the provisions of this Declaration and to the following:
(a) The rights of the Association or its duly authorized agents, with respect to each Lot, as provided for in Article V;
(b) That no Improvement or other work which in any way alters any Lot from its natural or improved state existing on the date such Lot was first conveyed by a developer Declarant to an Owner, shall be made or done except upon strict compliance with the provisions of Section 4.02;
....

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Royal Kunia Community Ass'n ex rel. Board of Directors v. Nemoto
198 P.3d 700 (Hawaii Intermediate Court of Appeals, 2008)

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Bluebook (online)
198 P.3d 700, Counsel Stack Legal Research, https://law.counselstack.com/opinion/royal-kunia-community-assn-v-nemoto-hawapp-2008.