A state judge has set aside a March jury verdict that awarded nearly $4 million in damages to a Molokai couple who sued their condo association and individual directors, accusing the directors of a multiyear effort at intimidation and harassment.

The $3.87 million award to Jim and Nancy Bevill of Ke Nani Kai Condominium was believed to be the largest ever in Hawaii involving a nonconstruction condo dispute.

In granting motions by defendants in the case, Maui Circuit Judge Rhonda Loo agreed to set aside the verdict — reached after an eight-week trial she oversaw — and ordered that a new trial be held.

The date for the trial has not been set.

Lawyers for the defendants had argued that the verdict was defective for several reasons.

Attorney Mark Bennett, who represents the Ke Nani Kai association and board, argued in his motion that the award included a judgment against the board even though the board was not named as a defendant and association boards in Hawaii cannot be sued.

Bennett also argued that the verdict was faulty because the jury never issued findings regarding individual plaintiffs on specific counts, denying the association the right to have its liability determined plaintiff by plaintiff.

Additionally, Bennett maintained that the verdict should be set aside because the court did not instruct the jury to consider what percentages of the negligence-related counts were attributed to the plaintiffs and to reduce the damages based on those percentages. Hawaii law requires that such determinations be made, his motion said.

Bennett also argued that the verdict was defective because it included damages based on a charge of civil conspiracy even though that is not a cause of action for which one can be sued.

In her Nov. 15 order, Loo said the defective verdict could be corrected only with a new trial.

The Bevills alleged in their lawsuit that the harassment stemmed from their efforts to elect new board members and to rid the Kaluakoi, Molokai, complex of a repairman who was unlicensed and had a criminal record. The repairman no longer works there.

The jury ruled for the Bevills on all 11 counts, finding that the board of directors, the association or their agents or employees engaged in racketeering, civil conspiracy, gross negligence, malicious prosecution, abuse of process, breach of contract and negligent and intentional infliction of emotional distress, according to the jury documents.

The verdict created a stir among condo boards around the state, raising questions about liability if their association or board representatives engaged in similar conduct.

Bennett said in an interview Dec. 26 that his clients were pleased with Loo’s decision but continued to hope that the case would be settled without it having to go to trial again.

Attorney Terry Revere, who represents the Bevills, said his clients were relieved that the primary purpose of the case — ridding the complex of a dangerous man — remains undisturbed.

"It is unfortunate that the Bevills had to bring an action because board members were too cowardly and too corrupt to do anything about the situation and instead chose to attack the victims," Revere said in a statement.

If the parties don’t reach a settlement, Revere said, he and his clients are confident the jury’s verdict will be restored on appeal.