Opinion ID: 2805465
Heading Depth: 4
Heading Rank: 1

Heading: The Purchase Agreements

Text: The Homeowners entered into purchase agreements with 4  FOR PUBLICATION IN WEST’S HAWAI#I REPORTS AND PACIFIC REPORTER  the developer soon after the documents governing the project were recorded.2 The first page of the purchase agreements state: ACKNOWLEDGMENT OF RECEIPT, OPPORTUNITY TO REVIEW, AND ACCEPTANCE OF PROJECT DOCUMENTS THE FOLLOWING DOCUMENTS THAT ARE REFERRED TO IN THIS PURCHASE AGREEMENT FORM AN ESSENTIAL PART HEREOF. PURCHASER ACKNOWLEDGES THAT PURCHASER HAS RECEIVED COPIES OF EACH OF THE FOLLOWING DOCUMENTS AND THAT PURCHASER HAS HAD A FULL AND COMPLETE OPPORTUNITY TO READ, REVIEW AND EXAMINE EACH OF THE FOLLOWING DOCUMENTS. . . . . 2. the applicable state of Hawaii Condominium Public Report(s) 3. the Declaration of Condominium Property Regime of Kapalua Bay Condominium 4. the Bylaws of the Association of Apartment Owners of Kapalua Bay Condominium The purchase agreements also contain a clause entitled “Purchaser’s Approval and Acceptance of Project Documentation,” which states: Purchaser acknowledges . . . having had a full opportunity to read and review and hereby approves and accepts the following documents . . .: the Condominium Public Report(s) indicated in Section C.5, above, the Declaration, the Bylaws . . . . It is understood and agreed that this sale is in all respects subject to said documents. The Homeowners do not dispute that they received the condominium declaration, the public report, and the AOAO bylaws along with their purchase agreements. The arbitration clause at issue in this case appears in the condominium declaration, which is referenced more than twenty 2 Representative purchase agreements from two of the Homeowners were cited by the parties. These agreements appear to be identical and were signed by these Homeowners in late May of 2006. 5  FOR PUBLICATION IN WEST’S HAWAI#I REPORTS AND PACIFIC REPORTER  times in the purchase agreements and in a variety of contexts. For example, the purchase agreements state: “Seller . . . reserves the right to utilize unassigned or guest parking spaces described in the Declaration.” The purchase agreements also state: “Purchaser agrees to purchase from Seller, in fee simple, the following property: a. The Apartment designated in Section A above and more fully described in the Declaration.” Thus, on many occasions, the purchaser is put on notice that more specific information concerning particular rights and obligations is contained in the condominium declaration. The purchase agreements contain two clauses related to dispute resolution: 47. Waiver of Jury Trial. Seller and Purchaser hereby expressly waive their respective rights to a jury trial on any claim or cause of action that is based upon or arising out of this Purchase Agreement. . . . Venue for any cause of action brought by Purchaser hereunder shall be in the Second Circuit Court, State of Hawai#i. 48. Attorneys[’] Fees. If any legal or other proceeding, including arbitration, is brought . . . because of an alleged dispute, breach, default or misrepresentation in connection with any provisions of this Agreement, the successful or prevailing party or parties shall be entitled to recover reasonable attorneys’ fees, court costs and all expenses even if not taxable as court costs, . . . in addition to any other relief to which such party or parties may be entitled. These clauses do not mention a binding agreement to arbitrate, nor do they direct the purchaser to the alternative dispute resolution clause in the condominium declaration.