Background
Thomas Holt Coffey, trustee of a trust owning two units at the Maui Kai condominium project, disputed responsibility for replacing deteriorated lanai sliding doors and exterior windows. The Association of Apartment Owners of Maui Kai sought declaratory relief that the doors and windows were limited common elements serving Coffey’s units, that Coffey had to pay replacement costs, and that the association could withhold approval for replacements that failed to meet its specifications.
Coffey demanded arbitration under Hawaii Revised Statutes section 514B-162. The parties initially agreed to arbitrate, but could not agree on a replacement arbitrator after one withdrew. The circuit court concluded that arbitration was not mandatory and entered judgment for the association. Coffey appealed.
The Court’s Holding
The Intermediate Court of Appeals affirmed. It held that the dispute was exempt from mandatory arbitration under HRS section 514B-162(b)(4), which excludes actions seeking equitable relief involving threatened property damage or health or safety. The association’s complaint sought declaratory relief, and the record supported its concern that Coffey’s proposed smaller door could affect the building’s structural integrity, waterproofing, and common elements. The court therefore did not decide whether a separate insurance-related arbitration exemption also applied.
The court also held that the lanai doors and exterior windows were limited common elements by operation of HRS section 514B-35(4), because they were exterior fixtures located outside unit boundaries and designed to serve only Coffey’s respective units. Although the condominium declaration and bylaws did not allocate responsibility for these elements, HRS section 514B-41(a)’s default rule required the owner of the unit to which a limited common element is appurtenant to bear the related costs and expenses. Thus, Coffey was responsible for maintenance and replacement costs.
Key Takeaways
- Safety- and property-damage-related declaratory actions may fall outside Hawaii condominium arbitration requirements.
- Exterior doors and windows serving a single condominium unit can be limited common elements by statute even when governing documents are silent.
- Absent a contrary declaration, bylaws provision, or applicable board resolution, the appurtenant unit owner bears limited-common-element expenses.
Why It Matters
The decision applies Hawaii’s statutory default rules where older condominium governing documents do not classify exterior fixtures or assign the costs of maintaining them. It also confirms that condominium associations need not arbitrate every owner dispute when requested equitable relief addresses a credible threat to property or safety.