Report Title:

Attorneys' Fees Cap; Condominium Property Regimes

Description:

Establishes a graduated schedule of reasonable attorneys' fees for cases pertaining to an association's collection of delinquent assessments, foreclosure of liens, and enforcement of the Condominium Property Act and related rules and regulations.

 


HOUSE OF REPRESENTATIVES

H.B. NO.

1845

TWENTY-FOURTH LEGISLATURE, 2007

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT


 

 

Relating to attorneyS' fees.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


     SECTION 1.  Section 514B-157, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§514B-157[]]  Attorneys' fees, delinquent assessments, and expenses of enforcement.  (a)  All costs and expenses, including reasonable attorneys' fees, incurred by or on behalf of the association for:

     (1)  Collecting any delinquent assessments against any owner's unit;

     (2)  Foreclosing any lien thereon; or

     (3)  Enforcing any provision of the declaration, bylaws, house rules, and this chapter, or the rules of the real estate commission;

against an owner, occupant, tenant, employee of an owner, or any other person who may in any manner use the property, shall be promptly paid on demand to the association by such person or persons; provided that if the claims upon which the association takes any action are not substantiated, all costs and expenses, including reasonable attorneys' fees, incurred by any such person or persons as a result of the action of the association, shall be promptly paid on demand to such person or persons by the association.

     (b)  If any claim by an owner is substantiated in any action against an association, any of its officers or directors, or its board to enforce any provision of the declaration, bylaws, house rules, or this chapter, then all reasonable and necessary expenses, costs, and attorneys' fees incurred by an owner shall be awarded to such owner; provided that no such award shall be made in any derivative action unless:

     (1)  The owner first shall have demanded and allowed reasonable time for the board to pursue such enforcement; or

     (2)  The owner demonstrates to the satisfaction of the court that a demand for enforcement made to the board would have been fruitless.

     If any claim by an owner is not substantiated in any court action against an association, any of its officers or directors, or its board to enforce any provision of the declaration, bylaws, house rules, or this chapter, then all reasonable and necessary expenses, costs, and attorneys' fees incurred by an association shall be awarded to the association, unless before filing the action in court the owner has first submitted the claim to mediation, or to arbitration under subpart D, and made a good faith effort to resolve the dispute under any of those procedures.

     (c)  Anyone contracted by the association to collect delinquent assessments against any owner's unit shall not share in any portion of any penalties or late charges collected.

     (d)  For purposes of this section, the court may award reasonable attorneys' fees as follows:

     (1)  Twenty-five per cent on the first $1,000 owed or fraction thereof;

     (2)  Twenty per cent on the second $1,000 owed or fraction thereof;

     (3)  Fifteen per cent on the third $1,000 owed or fraction thereof;

     (4)  Ten per cent on the fourth $1,000 owed or fraction thereof;

     (5)  Five per cent on the fifth $1,000 owed or fraction thereof; and

     (6)  Two and one-half per cent on any amount owed in excess of $5,000.

The above fees shall be assessed on the amount of judgment, exclusive of costs and any other attorneys' fees."

     SECTION 2.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun, before its effective date.

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect upon its approval.

 

INTRODUCED BY:

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