In Hawaii, a developer mistakenly built a house on the wrong plot of land due to confusion. A judge ordered that the construction company pay for the demolition of the house.
The judge rejected a request to restore the land to its original condition after demolishing the house intended for construction on the adjacent lot in Hawaiian Paradise Park.
The Dream House in Hawaii
Annaleine “Anne” Reynolds bought the one-acre plot of land in Hawaiian Paradise Park on Hawaii’s Big Island in 2018 for $22,500 at a tax auction.
The Californian purchased the land with the hope to build a house for her children and to host women’s retreats in a beautiful and serene location, according to Business Insider. However, things took a different turn when she discovered in June 2023 that her house had been built on the wrong plot.
The Builders Placed the House on the Wrong Plot of Land
The house, which was worth roughly $500,000, was built by PJ’s Construction. Keaau Development contracted the company to build twelve properties in Hawaiian Paradise Park, but mistakenly built the wrong property on the wrong plot of land.
According to BI, the confusion came after the company used telephone poles to identify Lot 115, but accidentally built on Lot 114, which was on the other side of the telephone pole, according to the legal filings.
Realizing the Mistake
Patrick John Lawrence, Jr., owner of PJ’s Construction, said he became aware of the mistake when the real estate agent informed him after the house was sold.
Reynolds was unaware of the construction until she got a call from the real estate broker who had learned about the mistake. “And then he informed me, ‘Oh well, I just sold the house, and it happens to be on your property,’” Reynolds recalled to Hawaii News Now.
The Company Sues Reynolds
Keaau Development sued Reynolds, alleging she unjustly enriched herself from the property. Reynolds hired Honolulu attorney James DiPasquale to assist with the confusing and complicated situation.
“There’s a lot of fingers being pointed between the developer and the contractor and some subs,” DiPasquale said.
The House Sat Empty… Well, Mostly
A neighbor informed Hawaii News Now that squatters quickly turned the house, which the lawsuit preventing its sale has made Reynolds’s worst nightmare, into an attraction.
“Before they put the fence on this property there were people coming already to this property. I know I’m kind of looking inside,” the neighbor said.
Reynolds’s Property Tax Jumped Up
Along with the cost of fencing, Reynolds is paying property taxes that jumped from a few hundred dollars to several thousand dollars.
The developers are trying to settle the issue by offering to swap her lot for the one right next door or sell her house at a discount, according to Reynolds’ attorney. She refused both offers. “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,” DiPasquale said.
The Half-Million-Dollar Mistake Goes to Court
The developer brought the half-million-dollar mistake to court, hoping the judge can solve the problem. Judge Robert D. S. Kim wrote an order that forces PJ’s Construction to pay for the demolition of the house.
The company may seek contribution or indemnity from Keaau Development at a subsequent trial or hearing, Kim wrote.
Cutting Corners
Kim stated in the filing that Keaau Development and PJ’s Construction excavated the lot and built the house without a survey, intending to “cut corners to reduce construction costs,” which resulted in a costly mistake outweighing the savings.
He wrote that the house is illegal because the construction permits were approved for Lot 115, not Lot 114.
A Request to Restore the Land
Reynolds also asked the court to order Keaau Development and PJ’s Construction to restore the plot of land to its original state.
According to BI, PJ’s Construction had bulldozed the lot to build the house, which “removed all of the previously standing native vegetation,” Kim wrote. After this, there was a “long period of neglect,” during which invasive Albizia trees were able to “infest” the lot, he wrote.
A Step In the Right Direction
City of Greenville, North Carolina/Flickr
However, Kim wrote that it was “impossible” to return the land to its original state. However, Kim noted that the companies had “seriously disturbed the peaceable use, enjoyment, and possession of real property.”
“While we didn’t get everything we wanted, this is a significant step in the right direction; the house is going to be taken down. She has a little bit of closure to that,” Dipasquale said.
Understand Property and Zoning Laws
“We are thrilled with the court’s decision that PJ’s Construction must bear the costs of demolishing the unauthorized structure on Anne Reynolds’ property,” DiPasquale said.
“This ruling not only preserves Anne’s property rights but also sets a precedent for accountability in the construction industry. While it’s regrettable that the land cannot be restored to its original state, the judgment underscores the importance of meticulous adherence to property and zoning laws.”
