§421H-6 
Arbitration of disputes.  (a) 
At the request of any party, any dispute concerning or involving one or more
stockholders and a limited-equity housing corporation, its board of directors,
managing agent, or one or more other stockholders relating to the
interpretation, application, or enforcement of this chapter or the
corporation's charter of incorporation, bylaws, or administrative rules adopted
in accordance with its bylaws shall be submitted to arbitration.  The
arbitration shall be conducted, unless otherwise agreed by the parties, in
accordance with chapter [658A] and the Condominium Property Regime Rules on
Arbitration of Disputes of the American Arbitration Association; provided that
where any arbitration rule conflicts with chapter 658A, chapter 658A shall
prevail; provided further that notwithstanding any rule to the contrary, the
arbitrator shall conduct the proceedings in a manner which affords substantial
justice to all parties; provided further that the proceedings shall be
concluded ninety days after the commencement of the arbitration unless extended
by mutual consent of the parties involved and their counsel.  The arbitrator
shall be bound by rules of substantive law and shall not be bound by rules of
evidence, whether or not set out by statute, except for provisions relating to
privileged communications.  The arbitrator shall permit discovery as provided
for in the Hawaii rules of civil procedure; provided that the arbitrator may
restrict the scope of such discovery for good cause to avoid excessive delay
and costs to the parties or the arbitrator may refer any matter involving
discovery to the circuit court for disposition in accordance with the Hawaii
rules of civil procedure then in effect.



(b) 
Nothing in subsection (a) shall be interpreted to mandate the arbitration of
any dispute involving:



(1)  The mortgagee of a mortgage of record;



(2)  The developer, general contractor,
subcontractors, or design professionals for the project; provided that when any
person exempted by this paragraph is also a stockholder, a director, or
managing agent, such person, in those capacities, shall be subject to
subsection (a);



(3)  Actions seeking equitable relief involving
threatened property damage or the health or safety of stockholders or any other
person;



(4)  Actions to collect assessments which are liens or
subject to foreclosure;



(5)  Personal injury claims; or



(6)  Actions for amounts in excess of $2,500 against a
limited-equity housing corporation, a board of directors, or one or more directors,
officers, agents, employees, or other persons, if insurance coverage under a
policy or policies procured by the limited-equity housing corporation or its
board of directors would be unavailable because action by arbitration was
pursued. [L 1987, c 105, pt of §1; am L 1990, c 34, §26; am L 1995, c 11, §18;
am L 2001, c 265, §4; am L 2002, c 129, §1]



 



Cross References



 



  Privileges under Hawaii Rules of Evidence, see §626-1,
article V.



 



Rules of Court



 



  Discovery, see Hawaii Rules of Civil Procedure, part V.