Ā§421H-6Ā Arbitration of disputes.Ā  (a)Ā At the request of any party, any dispute concerning or involving one or morestockholders and a limited-equity housing corporation, its board of directors,managing agent, or one or more other stockholders relating to theinterpretation, application, or enforcement of this chapter or thecorporation's charter of incorporation, bylaws, or administrative rules adoptedin accordance with its bylaws shall be submitted to arbitration.Ā  Thearbitration shall be conducted, unless otherwise agreed by the parties, inaccordance with chapter [658A] and the Condominium Property Regime Rules onArbitration of Disputes of the American Arbitration Association; provided thatwhere any arbitration rule conflicts with chapter 658A, chapter 658A shallprevail; provided further that notwithstanding any rule to the contrary, thearbitrator shall conduct the proceedings in a manner which affords substantialjustice to all parties; provided further that the proceedings shall beconcluded ninety days after the commencement of the arbitration unless extendedby mutual consent of the parties involved and their counsel.Ā  The arbitratorshall be bound by rules of substantive law and shall not be bound by rules ofevidence, whether or not set out by statute, except for provisions relating toprivileged communications.Ā  The arbitrator shall permit discovery as providedfor in the Hawaii rules of civil procedure; provided that the arbitrator mayrestrict the scope of such discovery for good cause to avoid excessive delayand costs to the parties or the arbitrator may refer any matter involvingdiscovery to the circuit court for disposition in accordance with the Hawaiirules of civil procedure then in effect.

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

(1)Ā  The mortgagee of a mortgage of record;

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

(3)Ā  Actions seeking equitable relief involvingthreatened property damage or the health or safety of stockholders or any otherperson;

(4)Ā  Actions to collect assessments which are liens orsubject to foreclosure;

(5)Ā  Personal injury claims; or

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

 

Cross References

 

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

 

Rules of Court

 

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