A federal judge yesterday upheld an arbitrators ruling earlier this year for the state to pay a Texas developer $1.6 million over a failed plan to redevelop piers 5 and 6 near Aloha Tower.

U.S. District Judge David Ezra issued the opinion after hearing arguments in the case on Tuesday during which the state Aloha Tower Development Corp. asked that all or nearly all of the arbitration award be rejected.
The award compensates developer Ken Hughes for some of his time spent on the project plus attorneys fees and interest.
An arbitrator concluded that the agency’s pace and manner of negotiations breached its duty to negotiate fairly in good faith, contributing to the failure of the $300 million plan for condominiums, retail and restaurant space.