May 22, 2003 The Honolulu Star-Bulletin Mold dispute hits another hotel in Waikiki By Tim Ruel Mold-related litigation has taken hold at another Waikiki hotel, the former Aston Waikiki Parkside Hotel, which closed in February for major repairs. The hotel's owner and management firm have sued each other in state Circuit Court, and the owner has sued the company that sold it the 255-room hotel for $16.2 million in August 2001. The owner, LaeRoc Partners of Manhattan Beach, Calif., retained Aston Hotels & Resorts as property manager in December 2001. Aston says it soon found problems in the building, including mold proliferation, but the owner, LaeRoc, initially refused to remedy the problem, despite Aston's demands. LaeRoc sued the hotel's previous owner, a unit of Japan-based Kenchiku Shiryo Kenkyusha Co., in August 2002. The hotel has a long history of termite infestation, and grew mold on its chilled water pipes and inside guest room walls, according to the lawsuits. The seller failed to disclose the defects, according to LaeRoc. In October, the management firm Aston stopped making part of its required contract payments to LaeRoc, LaeRoc says. Aston says LaeRoc should have known about the mold before it hired Aston, and failed to tell Aston about it. The hotel, renamed the Aston Hotel Kai at Waikiki, closed for renovations reportedly worth $2.1 million in February and has not reopened. LaeRoc killed Aston's contract on April 28, and sued Aston for payment last week. Glenn K. Sato, an attorney representing LaeRoc, declined comment. An Aston executive could not be reached for comment. The Aston Hotel Kai is across Ala Moana from the Kalia Tower of the Hilton Hawaiian Village, which closed 10 months ago with a major mold problem. The Kalia Tower, which opened May 2001 at a construction cost of $95 million, is costing $56 million to fix. Hilton has sued several construction and design firms that built the tower.
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