‘A dangerous precedent’: Hawaii property owner left stunned after $500K home was mistakenly built on her Paradise Park lot. Now she’s being sued

moneywise ^ | May 15, 2024 | Serah Louis

[where's_the_Outrage?]

Annaleine “Anne” Reynolds snapped up some vacant land in Hawaii for about $22,500 at an auction back in 2018.

Reynolds planned to create a picturesque oceanview home using sustainable materials on Puna's Hawaiian Paradise Park lot to host her meditative healing women’s retreats.

“There’s a sacredness to it and the one that I chose to buy had all the right qualities,” Reynolds told Hawaii News Now.

But while she waited out the COVID-19 pandemic in California before getting started on construction, a real estate broker mistakenly sold the property to a developer, who bulldozed the lot and built a three-bedroom, two-bathroom house worth about $500,000.

Now, Reynolds, along with the real estate agent, the construction firm, the architect, the prior property owner’s family and the county — which approved the permits — are reportedly being sued by the developer, Keaau Development Partnership.

"It would set a dangerous precedent, if you could go on to someone else's land, build anything you want, and then sue that individual for the value of it," Reynolds’ attorney, James DiPasquale, said........

She also said she’s unwilling to swap lots since the original property fits all of her parameters, including the position of the stars, numerology and the “feel of the land.”

[alexander_busek]

The Developer should be allowed to move the house or if that is impossible, to deconstruct the house or sell it to her at a loss.

They bulldozed the lot! How are they going to "unbulldoze" it?!

Many people bulldoze their lots before building. Many don't, or do it only partially - they want to preserve the natural appearance.

I've done both.

Regards,

[ridesthemiles]

A perfect ad for “TITLE LOCK”.

[alexander_busek]

I haven’t seen the specific location of the property, but in Hawaii it could be on the side of a volcano and easily be miles from the coast, but still have “Oceanview”.

The entire island of Hawaii consists of volcanos. HPP (the development in question here) is right on the water (Kaloli Point).

Prior to the first eruptions in recent history (1982), the windward (eastern) side was spared the disgusting and unhealthy vog (volcanic fog) about 90% of the time. It was a problem only when the Kona winds blew. (Conversely, the wonderful Kona - western, ritzy - side of the island with its sunshine, million-dollar hotels, and beautiful beaches suffered Los Angeles-level vog most of the time.)

Now, after the eruptions, which are continuing, the eastern side suffers vog most of the time.

I divested myself of my land holdings about twenty years ago, but still have siblings there in HPP, so remain abreast of real estate market developments and the like.

Hilo has really been going downhill, economically, for about 20 years.

$22,500 sounds exactly right for a quarter-acre lot in HPP. Even on the same road, there might be other lots going for twice that - or half that (because they are in a gulch, are located next to a crack house, etc.)

I purchased some half-acre lots (with utilities - i.e., on power) for $15k back in the 1990s and then developed them.

Regards,

[alexander_busek]

Builder doesn’t order a survey before beginning any construction or even purchasing the lot? I guess Hawaii doesn’t do the surveys, huh?

The building contractor probably hired (for $50) a guy to come out and tag the land (they use actual plastic tags, affixed to tree limbs and such). It's called "pinning." Anyone with a plat map and the ability to count and a basic sense of orientation can do it.

And anyone who's had a few beers for lunch can easily make a mistake.

Regards,

[alexander_busek]

I own a lot in Hawaiian Paradise Park.

Whereabouts?

I've owned a quarter-acre lot on A St. ("Ama'au"), as well as half-acre lots on 5th and 19th.

Regards,

[alexander_busek]

The man that owned the lot came and saw the construction going on BUT DID NOT ATTEMPT TO STOP IT.

I hope that the man had sense enough to later explain, "I didn't notice anything suspicious about it back then. I've since had my prescription glasses replaced. Was I obligated to notice anything?"

Regards,

[Brilliant]

This is why you get title insurance. The developer should just assert a claim on his title policy.

[Red Badger]

The Judge was not amused..................

[alexander_busek]

Yep. That was an act of bad faith on his part. Courts take a very dim view of that especially when you then try to seek relief.

"Saw construction going on..."

"Honest, Your Honor! Sure, I was a little puzzled for a moment, but then I just assumed that I must be mistaken. It was late at night, and raining heavily, my glasses were broken, and I had a stye in my left eye."

Unless the Plaintiff acted in a ridiculous fashion, ostentatiously taking photographs, hitting the bars afterwards and bragging to everyone about the "big windfall" coming his way, it's impossible to prove - and he is under absolutely no obligation to "follow up" on any slight suspicion that might have momentarily crossed his mind.

Regards,

[alexander_busek]

What did it over look, the ocean view of the village sewage discharge?

HPP (the development in question here) stands on cooled lava - and is criss-crossed with countless below-ground lava tubes. That's why the majority of homes are equipped with seepage lines - natural discharge into the ocean (and quite unnoticeable).

Regards,

[alexander_busek]

There’s got to be some fraud going on here

Hanlon's Razor.

"Forget it, Jack. It's Puna!"

Regards,

[FLT-bird]

Unless the Plaintiff acted in a ridiculous fashion, ostentatiously taking photographs, hitting the bars afterwards and bragging to everyone about the "big windfall" coming his way, it's impossible to prove - and he is under absolutely no obligation to "follow up" on any slight suspicion that might have momentarily crossed his mind.,/p>

When you're asking a court for equitable relief, you have a duty to mitigate the damages. If you sit back and let the damages get worse.....ie let them go on building that house on your property.....that is what courts take a very dim view of. That's when they're likely to not give you some kind of windfall you were presumably seeking.

[dakine]

I’m dirt poor...

[CodeJockey]

a real estate broker mistakenly sold the property to a developer

So the owner had her property illegally sold by some real estate broker? I'm not understanding this story.

[steve in DC]

“Property Owner” means that you are the one who pays the taxes.

[Harmless Teddy Bear]

Because pricks who not only build on your property but then sue you because how dare you have stuck your land under their house should not only be kicked repeatedly but also cut off.

[AppyPappy]

And when we were all fallen to the earth, I heard a voice speaking unto me, and saying in the Hebrew tongue, Saul, Saul, why persecutest thou me? it is hard for thee to kick against the pricks....Acts 26:14

[Harmless Teddy Bear]

I know the verse.

[logi_cal869]

The developer can move the house. Period. It’s done all the time.

But I agree: They’re likely to side with who donates the most money to the cause (’dem’ is the word).

[alexander_busek]

When you're asking a court for equitable relief, you have a duty to mitigate the damages. If you sit back and let the damages get worse.....ie let them go on building that house on your property.....that is what courts take a very dim view of. That's when they're likely to not give you some kind of windfall you were presumably seeking.

Agree!

Which is why I say that, as the aggrieved party, one should wait for as long as possible before "suddenly noticing" the trespass!

The Court can't expect the Plaintiff to appeal for equitable relief before even becoming aware of the encroachment.

So the "smart" move is to wait until construction has been completed, and then "suddenly notice" that they've built on your property.

This might not work as well in a highly-developed neighborhood - but in Hawaiian Paradise Park (with which I am intimately familiar), there can be no expectation on the part of the Court that the legitimate property owner "should have noticed." On some roads, you have literally miles and miles of undeveloped property - essentially dense tropical rainforest - with no obvious "pins" marking property lines.

Regards,