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FOR	
  IMMEDIATE	
  RELEASE:	
  March	
  26,	
  2012	
  
CONTACT:	
  	
   Terry	
  Revere	
  	
  
                       Revere	
  &	
  Associates	
  
                       (808)	
  265-­‐5949	
  
	
        	
           Email:	
  terry@revereandassociates.com	
  
	
  
	
  
Jury	
  awards	
  $3.87	
  million	
  to	
  victims	
  of	
  Molokai	
  condominium	
  vendetta	
  
	
  
	
  
When	
  retired	
  California	
  firefighter	
  Jim	
  Bevill	
  and	
  his	
  wife,	
  Nancy,	
  moved	
  from	
  
California	
  and	
  bought	
  an	
  apartment	
  in	
  the	
  Ke	
  Nani	
  Kai	
  Condominium	
  on	
  Molokai’s	
  
west	
  end	
  back	
  in	
  the	
  summer	
  of	
  2004,	
  they	
  were	
  looking	
  forward	
  to	
  enjoying	
  a	
  
relaxing	
  life	
  on	
  the	
  “Friendly	
  Isle.”	
  
	
  
Their	
  new	
  home	
  soon	
  turned	
  out	
  to	
  be	
  anything	
  but	
  friendly.	
  The	
  Bevills	
  found	
  
themselves	
  targets	
  of	
  	
  threats,	
  harassment,	
  and	
  intimidation	
  by	
  an	
  unlicensed	
  
contractor	
  	
  with	
  a	
  criminal	
  record	
  who	
  was	
  hired	
  to	
  do	
  various	
  tasks	
  around	
  the	
  
complex	
  and	
  the	
  resident	
  manager.	
  A	
  small	
  group	
  of	
  apartment	
  owners	
  that	
  
controlled	
  the	
  condominium’s	
  board	
  of	
  directors	
  either	
  directed	
  or	
  condoned	
  the	
  
campaign	
  of	
  abuse,	
  according	
  to	
  a	
  lawsuit	
  filed	
  against	
  the	
  Ke	
  Nani	
  Kai	
  Association	
  
of	
  Apartment	
  Owners,	
  its	
  board	
  of	
  directors,	
  and	
  several	
  individuals.	
  
	
  
The	
  intimidation	
  lasted	
  for	
  at	
  least	
  six	
  years,	
  and	
  continued	
  even	
  after	
  the	
  Bevills	
  
went	
  to	
  court	
  in	
  mid-­‐2008.	
  
	
  
Honolulu	
  attorney	
  Terry	
  Revere,	
  who	
  represents	
  the	
  Bevills,	
  described	
  it	
  as	
  “the	
  
West	
  Molokai	
  version	
  of	
  Lord	
  of	
  the	
  Flies	
  or	
  the	
  equivalent	
  of	
  a	
  John	
  Ford	
  Western	
  
where	
  an	
  isolated	
  town	
  is	
  run	
  by	
  a	
  villain	
  and	
  his	
  collection	
  of	
  thugs.”	
  	
  	
  
	
  
But	
  last	
  week,	
  a	
  Maui	
  jury	
  awarded	
  the	
  Bevills	
  $3.87	
  million	
  in	
  general	
  	
  and	
  punitive	
  
damages	
  after	
  finding	
  the	
  condominium	
  association	
  and	
  board	
  members	
  had	
  
violated	
  numerous	
  laws	
  in	
  their	
  campaign	
  of	
  intimidation	
  against	
  the	
  Bevills	
  and	
  
other	
  owners	
  who	
  stood	
  up	
  for	
  their	
  rights.	
  
	
  
Revere	
  said	
  it	
  appears	
  to	
  be	
  the	
  largest	
  monetary	
  judgment	
  of	
  its	
  kind	
  on	
  record	
  
anywhere	
  in	
  the	
  country	
  in	
  a	
  case	
  involving	
  an	
  internal	
  dispute	
  among	
  factions	
  of	
  
owners	
  in	
  a	
  condominium.	
  	
  
	
  
Testimony	
  during	
  the	
  eight	
  week	
  trial,	
  and	
  hundreds	
  of	
  exhibits,	
  including	
  
condominium	
  records,	
  emails,	
  and	
  both	
  audio	
  and	
  video	
  recordings,	
  showed	
  the	
  
harassment,	
  including	
  several	
  assaults	
  and	
  death	
  threats,	
  intensified	
  after	
  the	
  
Bevills	
  wrote	
  a	
  letter	
  to	
  all	
  owners	
  describing	
  the	
  crimes	
  being	
  committed	
  and	
  	
  
asking	
  owners	
  to	
  elect	
  a	
  new	
  slate	
  of	
  directors.	
  
	
  
The	
  board	
  of	
  directors	
  retaliated	
  in	
  2007	
  by	
  suing	
  the	
  Bevills	
  and	
  another	
  couple,	
  
claiming	
  the	
  board	
  was	
  defamed	
  by	
  their	
  questions	
  and	
  criticism	
  during	
  the	
  board	
  
election	
  campaign.	
  The	
  board	
  pursued	
  the	
  defamation	
  lawsuit	
  despite	
  warnings	
  
from	
  their	
  own	
  attorneys	
  that	
  the	
  suit	
  would	
  fail	
  and	
  had	
  no	
  other	
  purpose	
  than	
  to	
  
try	
  to	
  force	
  the	
  critics	
  to	
  back	
  down,	
  according	
  to	
  evidence	
  introduced	
  in	
  court.	
  	
  The	
  
defamation	
  case	
  was	
  dismissed	
  by	
  Circuit	
  Court	
  Judge	
  Joel	
  August,	
  who	
  found	
  it	
  was	
  
without	
  legal	
  merit.	
  
	
  
“It	
  was	
  a	
  gross	
  misuse	
  of	
  the	
  board’s	
  discretion	
  to	
  use	
  condominium	
  funds	
  to	
  sue	
  
their	
  critics	
  for	
  their	
  political	
  speech,”	
  Revere	
  said.	
  
	
  
Last	
  week’s	
  jury	
  verdict	
  found	
  the	
  board	
  of	
  directors,	
  and	
  its	
  employees	
  and	
  agents	
  
violated	
  state	
  condominium	
  law,	
  and	
  engaged	
  in	
  a	
  variety	
  of	
  illegal	
  acts	
  including	
  
racketeering,	
  civil	
  conspiracy,	
  gross	
  negligence,	
  malicious	
  prosecution,	
  breach	
  of	
  
contract,	
  and	
  both	
  negligent	
  and	
  intentional	
  infliction	
  of	
  emotional	
  distress.	
  
	
  
The	
  jury	
  verdict	
  included	
  $500,000	
  dollars	
  in	
  general	
  damages	
  to	
  compensate	
  the	
  
Bevills	
  for	
  what	
  they	
  endured	
  over	
  the	
  six	
  year	
  period.	
  
	
  
In	
  addition,	
  the	
  jury	
  awarded	
  more	
  than	
  $3	
  million	
  in	
  punitive	
  damages,	
  which	
  are	
  
used	
  to	
  punish	
  intentional	
  or	
  malicious	
  misconduct.	
  
	
  
The	
  jury	
  awarded	
  $1.3	
  million	
  in	
  punitive	
  damages	
  to	
  be	
  paid	
  by	
  the	
  board	
  of	
  
directors	
  and	
  $700,000	
  by	
  the	
  condominium	
  association.	
  	
  Punitive	
  damages	
  were	
  
also	
  assessed	
  against	
  three	
  Ke	
  Nani	
  Kai	
  directors—Phil	
  Schutte	
  ($300,000),	
  Bruce	
  
Blough	
  ($300,000),	
  and	
  Mike	
  Preiss	
  ($200,000),	
  the	
  project’s	
  former	
  resident	
  
manager,	
  Darrel	
  Borling	
  ($190,000),	
  and	
  unlicensed	
  contractor	
  Frank	
  Maurizio	
  
($380,000).	
  
	
  
“The	
  jury	
  sent	
  a	
  very	
  strong	
  message,”	
  Revere	
  said.	
  “If	
  you	
  abuse	
  your	
  owners,	
  and	
  
engage	
  in	
  anything	
  close	
  to	
  the	
  outrageous	
  conduct	
  that	
  happened	
  here,	
  juries	
  aren’t	
  
going	
  to	
  stand	
  for	
  it.”	
  
	
  	
  
                                                                  ###	
  

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Terry Revere_release Ke Nani Kai

  • 1. FOR  IMMEDIATE  RELEASE:  March  26,  2012   CONTACT:     Terry  Revere     Revere  &  Associates   (808)  265-­‐5949       Email:  terry@revereandassociates.com       Jury  awards  $3.87  million  to  victims  of  Molokai  condominium  vendetta       When  retired  California  firefighter  Jim  Bevill  and  his  wife,  Nancy,  moved  from   California  and  bought  an  apartment  in  the  Ke  Nani  Kai  Condominium  on  Molokai’s   west  end  back  in  the  summer  of  2004,  they  were  looking  forward  to  enjoying  a   relaxing  life  on  the  “Friendly  Isle.”     Their  new  home  soon  turned  out  to  be  anything  but  friendly.  The  Bevills  found   themselves  targets  of    threats,  harassment,  and  intimidation  by  an  unlicensed   contractor    with  a  criminal  record  who  was  hired  to  do  various  tasks  around  the   complex  and  the  resident  manager.  A  small  group  of  apartment  owners  that   controlled  the  condominium’s  board  of  directors  either  directed  or  condoned  the   campaign  of  abuse,  according  to  a  lawsuit  filed  against  the  Ke  Nani  Kai  Association   of  Apartment  Owners,  its  board  of  directors,  and  several  individuals.     The  intimidation  lasted  for  at  least  six  years,  and  continued  even  after  the  Bevills   went  to  court  in  mid-­‐2008.     Honolulu  attorney  Terry  Revere,  who  represents  the  Bevills,  described  it  as  “the   West  Molokai  version  of  Lord  of  the  Flies  or  the  equivalent  of  a  John  Ford  Western   where  an  isolated  town  is  run  by  a  villain  and  his  collection  of  thugs.”         But  last  week,  a  Maui  jury  awarded  the  Bevills  $3.87  million  in  general    and  punitive   damages  after  finding  the  condominium  association  and  board  members  had   violated  numerous  laws  in  their  campaign  of  intimidation  against  the  Bevills  and   other  owners  who  stood  up  for  their  rights.     Revere  said  it  appears  to  be  the  largest  monetary  judgment  of  its  kind  on  record   anywhere  in  the  country  in  a  case  involving  an  internal  dispute  among  factions  of   owners  in  a  condominium.       Testimony  during  the  eight  week  trial,  and  hundreds  of  exhibits,  including   condominium  records,  emails,  and  both  audio  and  video  recordings,  showed  the   harassment,  including  several  assaults  and  death  threats,  intensified  after  the   Bevills  wrote  a  letter  to  all  owners  describing  the  crimes  being  committed  and     asking  owners  to  elect  a  new  slate  of  directors.    
  • 2. The  board  of  directors  retaliated  in  2007  by  suing  the  Bevills  and  another  couple,   claiming  the  board  was  defamed  by  their  questions  and  criticism  during  the  board   election  campaign.  The  board  pursued  the  defamation  lawsuit  despite  warnings   from  their  own  attorneys  that  the  suit  would  fail  and  had  no  other  purpose  than  to   try  to  force  the  critics  to  back  down,  according  to  evidence  introduced  in  court.    The   defamation  case  was  dismissed  by  Circuit  Court  Judge  Joel  August,  who  found  it  was   without  legal  merit.     “It  was  a  gross  misuse  of  the  board’s  discretion  to  use  condominium  funds  to  sue   their  critics  for  their  political  speech,”  Revere  said.     Last  week’s  jury  verdict  found  the  board  of  directors,  and  its  employees  and  agents   violated  state  condominium  law,  and  engaged  in  a  variety  of  illegal  acts  including   racketeering,  civil  conspiracy,  gross  negligence,  malicious  prosecution,  breach  of   contract,  and  both  negligent  and  intentional  infliction  of  emotional  distress.     The  jury  verdict  included  $500,000  dollars  in  general  damages  to  compensate  the   Bevills  for  what  they  endured  over  the  six  year  period.     In  addition,  the  jury  awarded  more  than  $3  million  in  punitive  damages,  which  are   used  to  punish  intentional  or  malicious  misconduct.     The  jury  awarded  $1.3  million  in  punitive  damages  to  be  paid  by  the  board  of   directors  and  $700,000  by  the  condominium  association.    Punitive  damages  were   also  assessed  against  three  Ke  Nani  Kai  directors—Phil  Schutte  ($300,000),  Bruce   Blough  ($300,000),  and  Mike  Preiss  ($200,000),  the  project’s  former  resident   manager,  Darrel  Borling  ($190,000),  and  unlicensed  contractor  Frank  Maurizio   ($380,000).     “The  jury  sent  a  very  strong  message,”  Revere  said.  “If  you  abuse  your  owners,  and   engage  in  anything  close  to  the  outrageous  conduct  that  happened  here,  juries  aren’t   going  to  stand  for  it.”       ###