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  From The Honolulu Advertiser, Page A-5, Wednesday, July 8, 1995:

Coco Palms reopening stalled
By Jan TenBruggencate
Advertiser Kauai Bureau

LIHUE, Kauai - The venerable Coco Palms Resort in Wailua won't be reopened this year.

Owners are hoping to resolve within six months an insurance battle that will allow them to get the hotel back in the market sometime in 1995.

"It's the hotel's intent to reopen as soon as possible. Two years has been too long for us," said Mark Tuft, a California attorney representing hotel owner Wailua Associates in its legal battles with Aetna Casualty and Surety Co. of Connecticut.

Wailua Associates is a sister firm to Park Lane Hotels, which was operating Coco Palms before it closed.

Tuft said the insurance policy includes a requirement that each side name an appraiser, that the appraisers select an umpire, and that between them they establish the amount of the loss.

But Wailua Associates and Aetna disagree over the issues the appraisers should consider, and the differences will be aired in claims and counterclaims to be heard in federal District Court in Honolulu.

Without a resolution of the Hurricane Iniki damage claim, there is no way to determine whether it will make more sense to tear the existing hotel down and build anew, or whether to repair what's there.

Reports that the hotel will be razed are premature, Tuft said. "Neither side has taken that position," he said.

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