That’s how much a jury awarded two homeowners in Hawaii after their HOA board retaliated against them for six years. The board members paid $200,000–$300,000 each — personally.
These costs don’t come from nowhere. They come from your HOA’s insurance premiums, your reserve fund, and — when insurance runs out — from special assessments levied on every homeowner in the community. Including you.
These are real outcomes from real HOA disputes. They share a pattern: boards that stopped listening to homeowners ended up answering to courts.
| Case | Year | Claims | Outcome |
|---|---|---|---|
| Bevill v. Ke Nani Kai Molokai, Hawaii |
2008–2012 | RICO, conspiracy, IIED, negligence, malicious prosecution, breach of contract | $3.87M jury verdict $1.175M insurance settlement |
| FHA Accommodation Denial Franklin, Tennessee |
2015 | Fair Housing Act — disability discrimination | $156,000 settlement |
| Kailua Village HOA Kailua, Hawaii |
2024 | Fair Housing Act — accommodation denial (paraplegic buyer) | $162,500 settlement DOJ involvement |
| Oie v. Kaman & Cusimano LLC E.D. Wisconsin |
2024–2026 | FDCPA class action — same law firm described above | Settled Feb 2026 Terms not public |
Jim and Nancy Bevill moved to Molokai, Hawaii in 2004. They tried to elect new board leadership. What followed was a six-year campaign of retaliation that a judge called “a poster child” for everything wrong with HOA governance.
Source: Revere & Associates, Insurance Journal
In Bevill, the jury didn’t just find the association liable. Individual board members were held personally responsible:
| Defendant | Role | Personal Judgment |
|---|---|---|
| Phil Schutte | Board Director | $300,000 |
| Bruce “Skip” Blough | Board Director | $300,000 |
| Mike Preiss | Board Director | $200,000 |
| Board of Directors (collective) | Governing body | $1,300,000 |
| Condo Association | Entity | $700,000 |
When homeowners request disability accommodations and boards deny them, the Fair Housing Act provides powerful remedies. These are recent outcomes:
$156,000
Single FHA disability discrimination claim against a Tennessee HOA. One claim, one homeowner, no RICO, no FDCPA — just the Fair Housing Act alone produced a six-figure settlement.
Williamson County — same county as Bent Creek.
$162,500
HOA board refused accommodation for a paraplegic home buyer. U.S. Department of Justice intervened. Settlement included damages, policy changes, and fair housing training for the entire board.
DOJ involvement signals federal enforcement priority.
Under the Fair Housing Act (42 U.S.C. § 3604), HOA boards are required to make reasonable accommodations for residents with disabilities. Failure to engage in the interactive process — or retaliating against homeowners who request accommodations — can result in compensatory damages, punitive damages, and injunctive relief.
Even if a board “wins,” the cost of getting there can devastate a community’s finances.
| Phase | Typical Cost | Who Pays |
|---|---|---|
| Motion to Dismiss | $50,000 – $75,000 | Insurance (D&O or CGL policy) |
| Discovery | $100,000 – $200,000 | Insurance, then reserve fund if limits exceeded |
| Trial Preparation + Trial | $75,000 – $100,000 | Insurance, then special assessment if needed |
| Total Defense Cost | $225,000 – $375,000 | Your insurance, your reserves, your assessments |
These estimates are conservative. In the Bevill case, defense costs alone exceeded the insurance settlement. Complex HOA cases involving Fair Housing Act, RICO, and civil rights claims routinely generate six- and seven-figure defense budgets before a single deposition is taken.
Board service is a volunteer position. Most board members act in good faith. But when a board exceeds its authority, retaliates against homeowners, or ignores legal obligations, the consequences fall on individual directors — not just the entity.