After the Plantiffs submitted the (initial) Verified Complaint of 2020-09-29, the
Defense moved to dismiss the lawsuit on the grounds that the four
LCA members (K. Bandmann, V. Bandmann, R. Stadnyk, and M. Farrell)
did not have standing to file a lawsuit against the Board of
Directors. The Defense cited Hawaii Revised Statutes (HRS)
pertaining to entities such as home owners associations that
Boards may only be sued
if the Plaintiffs comprise either (a) 5% of the members, (b) 50
members, or (c) a Board Director. The Plaintiffs attempted, but
failed, to convince 46 other members of the LCA to join them in
their lawsuit. Therefore, by Hawaii law, they did not have standing
and a judge could not rule on the substance of the complaint.
Before the judge ruled on the validity of the Defense's argument,
the Plaintiffs then attempted to keep the lawsuit alive using condition (c) above by
adding Philip A. Denney as a Plaintiff. Denney was a LCA Board Director at the time.
Adding Denney was formally accomplished by the Plaintiffs by creating a new Verified
Complaint called the 1st Amended Complaint with Plaintiffs Denney and the original
4 individual member Plaintiffs. The Defense objected again to the inclusion of Bandmann,
Bandmann, Stadnyk, and Farrell as they did not have standing. The Defense also objected
to Denney as a Plaintiff.
There followed a
long series of responses and counter-responses between the Defense
and the Plaintiffs. Ultimately, the judge ruled that the 4 members did not
have standing, but that Denney could act as a Plaintiff. Denney then created
a 2nd Amended Complaint that included only Philip A. Denney, thereby
excusing the original four from any financial responsiblility for
legal fees. These moves were only maneuvers to keep the original
lawsuit alive; there were few changes to the original list of
substantive allegations in the Original Verified Complaint of 2020-09-29.