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Senate committee removes 25% attorney‑fee cap from condominium bill after heated testimony
Summary
After extensive testimony from homeowner advocates, the Community Associations Institute and the Hawaii State Bar Association collection law section, the Senate Commerce Committee amended SB 2037 to remove a proposed 25% cap on attorney fees and to clarify appeal and collection procedures before passing the measure with amendments.
The Hawaii Senate Commerce and Consumer Protection Committee on Feb. 13 amended SB 2037—legislation concerning condominium enforcement and recovery of attorneys’ fees—to remove a proposed 25% cap on attorneys’ fees and to clarify appeal timing and the definition of when fines are 'deemed collectible.' The committee then passed the bill with those amendments.
Phil Nerney, testifying for the Community Associations Institute, told the committee a 25% cap would undermine associations’ ability to collect maintenance fees and enforce rules: "Condominium associations cease to exist" if they cannot recover enforcement costs, he said.…
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