*** NOT FOR PUBLICATION IN WEST’S HAWAI#I REPORTS AND PACIFIC REPORTER ***

SCAP-13-0003607

IN THE SUPREME COURT OF THE STATE OF HAWAI#I

KRISHNA NARAYAN; SHERRIE NARAYAN; VIRENDRA NATH; NANCY

MAKOWSKI; KEITH MACDONALD, as Co-Trustee for the DKM Trust

dated October 7, 2011; SIMON YOO; SUMIYO SAKAGUCHI; SUSAN

RENTON; Individually and as Trustee for The Renton Family

Trust dated 12/3/09; STEPHEN XIANG PANG; FAYE WU LIU; MASSY

MEHDIPOUR, Individually and as Trustee for Massy Mehdipour

Trust dated June 21, 2006; G. NICHOLAS SMITH; TRISTINE SMITH;

RITZ 1303 RE, LLC, a Colorado Limited Liability Company;

CLIFFORD W. CHAFFEE; BRADLEY CHAFFEE, Individually and as

Trustee of the Charles V. Chaffee BRC Stock Trust dated 12/1/99,

and the Clifford W. Chaffee BRC Stock Trust dated 1/4/98,

GARY S. ANDERSON, RONALD W. LORENZ, and RENEE Y. LORENZ,

Plaintiffs-Appellees,

vs.

MARRIOTT INTERNATIONAL, INC.; THE RITZ-CARLTON DEVELOPMENT

COMPANY, INC.; THE RITZ-CARLTON MANAGEMENT COMPANY, LLC; JOHN

ALBERT; EDGAR GUM; THE RITZ-CARLTON HOTEL COMPANY, LLC; MARRIOTT

VACATIONS WORLDWIDE CORPORATION; MARRIOTT OWNERSHIP RESORTS,

INC.; MARRIOTT TWO FLAGS, LP; and MH KAPALUA VENTURE, LLC,

Defendants-Appellants,

and

Electronically Filed

Supreme Court

SCAP-13-0003607

14-JUL-2017

09:07 AM
*** NOT FOR PUBLICATION IN WEST’S HAWAI#I REPORTS AND PACIFIC REPORTER ***

MAUI LAND & PINEAPPLE CO., INC.; EXCLUSIVE RESORTS, LLC;

KAPALUA BAY, LLC; ASSOCIATION OF APARTMENT OWNERS OF KAPALUA

BAY CONDOMINIUM; CAROLINE PETERS BELSOM; CATHY ROSS; ROBERT

PARSONS; RYAN CHURCHILL; MLP KB PARTNER LLC; KAPALUA BAY

HOLDINGS, LLC; ER KAPALUA INVESTORS FUND, LLC; ER KAPALUA

INVESTORS FUND HOLDINGS, LLC; EXCLUSIVE RESORTS DEVELOPMENT

COMPANY, LLC; and EXCLUSIVE RESORTS CLUB I HOLDINGS, LLC,

Defendants-Appellees.

ON REMAND FROM THE UNITED STATES SUPREME COURT

(CAAP-13-0003607; CIV. NO. 12-1-0586)

SUMMARY DISPOSITION ORDER

(By: Recktenwald, C.J., Nakayama, McKenna, and Pollack, JJ., and

Circuit Judge Nakasone, in place of Wilson, J., recused)

This appeal concerns the arbitrability of certain 

“purchase-based” claims pursuant to an arbitration clause

contained in the Declaration of Condominium Property Regime of

Kapalua Bay Condominium. On June 30, 2015, we affirmed the

Circuit Court of the Second Circuit’s (circuit court) order

denying Defendants’ motion to compel arbitration pursuant to our

opinion in Narayan v. Ritz-Carlton Development Co., 135 Hawai#i

327, 350 P.3d 995 (2015) (Narayan I).

On January 11, 2016, the Supreme Court of the United

States vacated and remanded Narayan I and this case for further

consideration in light of its decision in DIRECTV, Inc. v.

Imburgia, 136 S. Ct. 463 (2015). 

The questions presented in this appeal are controlled

by our decision in Narayan v. Ritz-Carlton Development Co., No.

SCWC-12-0000819, at 3 (Haw. July 14, 2017) (pub. op.) (Narayan

II), which affirmed our decision in Narayan I and held that

“under long-standing Hawai#i contract law, the arbitration clause

is unconscionable.” 

2
*** NOT FOR PUBLICATION IN WEST’S HAWAI#I REPORTS AND PACIFIC REPORTER ***

Pursuant to our analysis in Narayan II, the circuit

court’s August 26, 2013 order denying Defendants’ motion to

compel arbitration is affirmed. 

DATED: Honolulu, Hawai#i, July 14, 2017.

/s/ Mark E. Recktenwald

/s/ Paula A. Nakayama

/s/ Sabrina S. McKenna 

/s/ Richard W. Pollack

/s/ Karen T. Nakasone

3