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Homeowners receive $9.25M in construction defects suit

Issues at Kehalani included concrete failures, defects in hurricane straps, plumbing

More than 100 homeowners in the Cottages at Kehalani subdivision in Wailuku are each receiving more than $51,000 in a settlement of a class-action lawsuit over construction defects in the homes. "It's been four years, and we're really relieved that it's over," said Ann Pitcaithley, who owns a three-bedroom, two-and-a-half bath, 1,450-square-foot house in the subdivision. "Now we can make necessary repairs on our homes. "We're fortunate to have concluded this case, particularly considering it occurred during COVID." Porter McGuire Kiakona LLP and the Law Office of Kyle Smith represented the residents in the lawsuit that resulted in a settlement totaling $9.25 million for 107 single-family homeowners in the subdivision at the base of the West Maui Mountains. It is part of the master-planned Kehalani development. According to the lawsuit filed in March 2018 in 2nd Circuit Court, the construction defects included driveway cracking and cul-de-sac concrete failures, as well as defects in hurricane straps, plumbing and windows. Soil settlement beneath homes resulted in broken plumbing, cracked foundations and driveways, and failed windows and doors, according to the lawsuit. It also alleged improper installation of drainage swells, sliding glass doors and windows and plumbing, window glazing and fogging issues and interior kitchen cabinet fading and failures. Second Circuit Judge Peter Cahill granted final approval of the settlement Dec. 27. It followed "four years of protracted discovery and litigation requiring review of hundreds of thousands of documents, extensive deposition from experts and lay witnesses," according to a news release about the settlement. Homeowners received their settlements last month, according to the news release. "We are very pleased that we were able to secure some relief for homeowners of the Cottages at Kehalani who, like all homeowners, deserve to live in the quality of home they were promised," said Kapono Kiakona, a partner at PMK Law. "This settlement would be a great outcome under normal circumstances, but we are particularly happy for our clients given we were able to obtain this result in the middle of the COVID-19 pandemic," Smith said. Stanford Carr Development, which built and sold the homes, couldn't be reached for comment. * Lila Fujimoto can be reached at lfujimoto@mauinews.com.

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