A condominium association Board in Hawaii was sued for hiring a contractor who had a criminal record, and later condoned or directed the abuse of two condo owners by the contractor and property manager. The owners stated they were subjected to harassment, intimidation, and threats by the Board, property manager and contractor.
The couple was awarded $3.87M in general and punitive damages by a jury. This may be the largest monetary judgment ever granted for an internal dispute among condominium members. The Court found that the board had violated several state condominium laws, and that the board was liable for racketeering, civil conspiracy, malicious prosecution, breach of contract, and infliction of emotional distress.
At one point, the contractor threatened to kill one of the owners and tried to run them off the road with his car. Several condominium residents complained about the contractor and on-site manager over a six-year period, however, the board ignored the complaints and is now on the hook for just shy of four million dollars. It is unclear whether there are sufficient insurance proceeds to cover the verdict. 119 unit owners might have to split the bill.