A squabble between the board of directors and owners of condominiums in the Maile Sky Court Hotel in Waikiki has made its way to First Circuit Court in Honolulu.
The plaintiffs, National Maile LLC, MSC Acquisition LLC and the Association of Apartment Owners of Maile Sky Court, are accusing the board of failing to inform them about the operations of the property at 2058 Kuhio Ave.
Defendants include Bert “B.J.” Kobayashi, Ian MacNaughton, Gary Oda, Brian Li, Holly Park, KOHI Investors LLC and DOE Defendants 1-50.
KOHI Investors is an affiliate of Black Sand Capital, which Kobayashi and MacNaughton manage.
“The major beef is that the board members are keeping the minority owners in the dark,” said Terrance Revere of Revere & Associates, the attorney for the plaintiffs which include developer Kevin Showe.
Revere said the board skipped the mandatory annual meeting last year and refused to let minority interest owners participate during board meetings.
“The board meetings consist of board members sitting in a room reading from what appears to be scripts as opposed to the substantive open meetings required under the law,” he said. “The plaintiffs are also very concerned that conflicts of interest are simply being ignored.”
Revere said the plaintiffs have not yet determined what damages they will seek. That will depend on the results of a “full forensic accounting,” he said.
“One of the problems has been the lack of transparency on the part for the board,” he said. “Especially not disclosing who is paying for what at the [Association of Apartment Owners], and tracking whether [it’s] collecting all the funds that it should be collecting.”
“My clients are very disappointed that they were not able to have fruitful dialogue with the board, leaving them no alternative but the present action,” he said.
Louise Ing of Honolulu’s Alston Floyd Hunt and Ing law firm, who is representing KOHI Investors, told PBN that the claims made by National Maile and others are groundless and without merit.
“KOHI is acting appropriately and responsibly on all matters involving the Maile Sky Court,” she said.
KOHI Investments confirmed in March that it was selling some of the 596-room budget hotel’s condominium units to MSC Owner, a company registered in Delaware, for an undisclosed price.