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An arbitration judge recently rendered a ruling against a Maui association of apartment owners and voided its front-desk lease with Aston Hotel Resorts and LLC.
Judge E. John McConnell ruled in favor of Steve and Andrea Clark on May 19, awarding the couple more than $83,000 in attorney costs at the conclusion of their binding arbitration case against the Association of Apartment Owners of the Hale Kaanapali. McConnell’s key findings concluded that the board of the 260-unit condominium, which is better known as Maui Kaanapali Villas, breached its contract with the Clarks and the fiduciary duty that it owed them. McConnell said the board engaged in unfair competition and voided its front-desk lease with Aston.
The board could not be reached. The hotel company, which did not respond to the Star-Advertiser’s request for a comment, served as the association’s managing agent for all owners. It also leased the front desk from the association so it could run a hotel rental program there.
Steve Clark said the couple sought legal relief because the board kept extending Aston’s 2005 lease without bringing it before owners for a vote. Clark said the board and the hotelier “gave preferential treatment” to the 181 or so owners whose units were part of the hotel rental pool.
For instance, Clark said the board required the couple to go through Aston’s front desk to obtain a key to their own unit.