2026-09-10 · Hawaii · Courts

An arbitrator invalidated a Kauai association’s declaration amendment allowing lanai additions. The circuit court rewrote his conclusions of law and awarded the association its fees. The Intermediate Court of Appeals has vacated all of it.¹

Jabre and Whitehouse v. Association of Apartment Owners of Ka‘iulani of Princeville, consolidated Nos. CAAP-24-0000490 and CAAP-25-0000396, summary disposition order filed April 29, 2026. Unpublished.

What happened below

The association amended its declaration to allow lanai additions, including support pillars, for some units. Owners challenged it. The arbitrator’s January 16, 2024 award invalidated the amendment, concluding under Penney v. AOAO of Hale Kaanapali, 70 Haw. 469 (1989), that converting common area to limited common element for one owner’s exclusive use requires a unanimous vote.

The association moved to modify for mistake of law. The circuit court granted it, rewrote conclusions 16 and 17, added new conclusions keyed to HRS §§ 514B-38(5), 514B-32(a)(11) and 514B-140(b), and awarded the association fees as prevailing party.

The holding

“It appears that the circuit court’s modifications to the arbitration award essentially sought to correct mistakes of law. HRS § 658A-24 does not authorize modification to correct a mistake of law.” Quoting Schmidt v. Pacific Benefit Services: “[W]here the parties agree to arbitrate, they thereby assume all the hazards of the arbitration process, including the risk that the arbitrators may make mistakes in the application of law and in their findings of fact.”

The court rejected the association’s inherent-powers and public-policy arguments, and expressly declined to decide whether relying on Penney was legal error at all, “as that determination is outside the scope of our judicial review under HRS § 658A-24.” The fee award fell with the judgment.

1. Jabre v. AOAO of Ka‘iulani of Princeville, Nos. CAAP-24-0000490 and CAAP-25-0000396, Hawaii ICA summary disposition order, April 29, 2026 ↩
2. HRS § 514B-163, Trial de novo and appeal ↩