Hawaii Horizon Properties LLC v. KD Acquisition, LLLP

Summary

The Hawaiʻi Intermediate Court of Appeals affirmed the denial of KD Acquisition, LLLP’s motion to compel arbitration. The court held that the governing declaration’s arbitration provision gave Hawaii Horizon Properties LLC the option, rather than the obligation, to submit its claims to arbitration, and that requiring arbitration would render part of the provision meaningless.

Holdings

1. The arbitration provision gave Horizon the option to submit its claim to arbitration; it did not require Horizon to arbitrate.
2. KD was not entitled to compel arbitration because the agreement did not impose a mandatory arbitration obligation on Horizon.

Questions Presented

1. Whether the arbitration provision in the Declaration of Covenants, Conditions and Restrictions required Horizon to arbitrate its claims against KD.
2. Whether the circuit court properly denied KD's motion to compel arbitration.

Disposition

affirmed