Charles v. Kapalua Bay, LLCAnnotate this Case
In this arbitrability dispute, the Supreme Court reversed the portion of the intermediate court of appeals’ (ICA) order denying Petitioners’ request for appellate attorneys’ fees and affirmed the portions of the ICA’s order granting Petitioners’ request for appellate costs and denying Petitioners’ request for fees and costs incurred in the circuit court without prejudice. The court held (1) for purposes of Haw. Rev. Stat. 607-14, the appeal of the arbitrability issue is a separate action from the underlying dispute on the merits; (2) Petitioners prevailed in the arbitrability action and were therefore entitled to reasonable attorneys’ fees under section 607-14 and a fee-shifting provision in a purchase agreement; and (3) as to Petitioners’ request for an order stating that they were entitled to attorneys’ fees and costs incurred in proceedings before the circuit court and in arbitration, the circuit court properly denied without prejudice to Petitioners’ right to request fees and costs from the circuit court.