Association of Apartment Owners of Century Center, Inc. ex rel. Board of Directors v. Young Jin An

389 P.3d 115, 139 Haw. 278, 2016 Haw. LEXIS 332
CourtHawaii Supreme Court
DecidedDecember 8, 2016
DocketSCWC-14-0000431
StatusPublished
Cited by4 cases

This text of 389 P.3d 115 (Association of Apartment Owners of Century Center, Inc. ex rel. Board of Directors v. Young Jin An) is published on Counsel Stack Legal Research, covering Hawaii Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Association of Apartment Owners of Century Center, Inc. ex rel. Board of Directors v. Young Jin An, 389 P.3d 115, 139 Haw. 278, 2016 Haw. LEXIS 332 (haw 2016).

Opinion

OPINION OF THE COURT BY

RECKTENWALD, C.J.

This case involves a nonjudicial foreclosure by the Association of Apartment Owners of Century Center, Inc. (the AOAO) of a unit in the Century Center condominiums. The AOAO purchased the unit at the foreclosure sale, and then filed a complaint for summary possession in the District Court1 of the First Circuit against Young Jin An aka Young Ja Kim (An) and Ambrosia-Spa Inc. (together, Respondents).

Respondents moved to dismiss, on the grounds that the district court lacked jurisdiction pursuant to Hawai'i Revised Statutes (HRS) § 604-5(d), which states that the district court “shall not have cognizance of ... actions in which the title to real estate comes in question.” Respondents submitted an affidavit pursuant to District Court Rules of Civil Procedure (DCRCP) Rule 12.1, which requires a party raising this jurisdictional defense to submit an affidavit “setting forth the source, nature and extent of the title claimed by defendant to the land in question, and such further particulars as shall fully apprise the court of the nature of defendant’s claim.”

The district court denied Respondents’ motions and, after a hearing on the merits of the AOAO’s complaint, filed a Judgment for Possession and a Writ of Possession in favor of the AOAO.

Respondents appealed to the Intermediate Court of Appeals (ICA), arguing that the district court erred in exercising jurisdiction over the ease because they had established that title over the Property was in question. The ICA agreed with Respondents, determining that An’s affidavit and the quitclaim deed attached to the AOAO’s complaint provided sufficient information regarding the source, nature, and extent of the title An claims to the Property. Accordingly, the ICA vacated the district court’s Judgment for Possession and Writ of Possession, and remanded the case to the district court with instructions to dismiss for lack of jurisdiction.

The AOAO now seeks review of the ICA’s decision. We find that the ICA did not err in considering the quitclaim deed that was attached to the AOAO’s complaint, since the deed supported the claim of title asserted by An’s affidavit. We agree with the ICA that An’s affidavit satisfied DCRCP Rule 12.1 and that the district court therefore lacked jurisdiction over the summary possession proceeding. Accordingly, the ICA’s judgment on appeal is affirmed.

I. Background

In 2009, Lisa Yongsonyi Nose purchased a leasehold interest in 1750 Kalakaua Avenue, Apartment 116 (Property) as tenant in sever-alty in an “Assignment of Apartment Lease and Sublease” recorded with the Office of Assistant Registrar, Land Court of the State of Hawai'i (Land Court). According to the AOAO, Nose fell behind on her payments to the AOAO for maintenance and other fees, and in a letter to Nose dated April 13, 2010, the AOAO demanded payment of unpaid assessments, totaling $17,871.29. The AOAO subsequently sent three more demand letters, and on August 26, 2011, the AOAO filed a “Notice of Lien for Unpaid Assessments” against Nose in the Land Court. In a letter dated August 31, 2011, AOAO notified Nose that a lien had been filed upon the Property.

Meanwhile, on December 9,2010, the Land Court recorded an agreement of sale between Nose and An for title to the Property for a purchase price of $320,000.

On December 2, 2011, the AOAO filed with the Land Court a “Notice of Default and Intention to Foreclose.” In a letter to Nose on July 27, 2012, the AOAO sent an offer to enter into a payment plan agreement to bring her account current and release the lien. In a letter to the AOAO on the same day, An’s counsel stated that he had edited [281]*281the July 27, 2012 letter by replacing Nose’s name with An’s name, and that An had signed and agreed to the agreement. He attached a document signed by Nose stating, “[An] is authorized to make payments directly to Hawaiiana Management[2] on all current and future monthly maintenance bills[.]” On August 27, 2012, the AOAO recorded a release of the Notice of Default and Intention to Foreclose.

On September 27, 2012, the AOAO sent a demand letter to Nose and An, informing them that monthly maintenance payments were not paid and that the terms and conditions of the July 27, 2012 letter are “deemed immediately null and void.” The letter also informed them that they must pay $37,435.18 within ten days or the AOAO “may take legal action against you without further notice.”

On October 24, 2012, the AOAO recorded another “Notice of Default and Intention to Foreclose” against Nose, stating that if she does not pay $45,380.79 within 60 days, “the Association intends to conduct a power of sale foreclosure to sell the property at a public sale[.]” Nose was served on November 1, 2012. The AOAO was unable to find and serve An. Notice of the pending “non-judicial foreclosure under power of sale” was published in the Honolulu Star-Advertiser on June 19, June 26, and July 3, 2012. On February 13, 2013, a copy of the notice was posted on the Property.

At a public sale on April 17, 2013, the AOAO purchased the Property for $1. On May 9, 2013, the Land Court recorded the AOAO’s “Affidavit of Non-Judicial Foreclosure Under Power of Sale,” which stated that the foreclosure “was conducted as required by the power of sale foreclosure law” and provided a summary of steps taken by the AOAO. On May 15, 2013, the Land Court recorded the AOAO’s “Quitclaim Assignment of Lease,” assigning the Property from the AOAO to itself. On May 23, 2013, the AOAO sent a letter addressed to the “Occupant” of the Property, stating that it was now the owner and that any occupants could either provide a copy of their valid lease within five days or vacate the unit.

On June 18, 2013, the AOAO filed a complaint seeking summary possession of the Property. Respondents filed an answer which argued, among other things, that An owned the Property and that the district court lacked jurisdiction over the case pursuant to HRS § 604-5(d).

Pursuant to DCRCP Rule 12.1, the answer attached an affidavit signed by An, which stated in its entirety:

1. I am Defendant in this action. Plaintiff has incorrectly identified me in the Complaint as Young Jin An, but my name is Young Ja Kim.
2. I acquired title to the real property identified as 1750 Kalakaua Avenue, Apartment 116, Honolulu Hawaii 96826 (the “Real Property”) from Lisa Yongsonyi Nose by virtue of an Agreement of Sale dated December 7, 2010 and recorded as Land Court Document No. 4028097. The purchase price for the Real Property was $320,000.
3. I am the sole owner of the equitable interests in the Real Property.
4. My interest in the Real Property was wrongfully foreclosed upon by the Plaintiff, as set forth in detail in the Counterclaim filed concurrently herewith.
5. From and after my acquisition of the Real Property, Hawaiiana Management Company (“Hawaiiana”), the managing agent of the Real Property for Plaintiff Association of Apartment Owners of Century Center, Inc. (“Plaintiff’ or the “AOAO”), failed and/or refused to transmit all of the monthly statements to me, which resulted in delinquent payments to the AOAO.
6.

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Cite This Page — Counsel Stack

Bluebook (online)
389 P.3d 115, 139 Haw. 278, 2016 Haw. LEXIS 332, Counsel Stack Legal Research, https://law.counselstack.com/opinion/association-of-apartment-owners-of-century-center-inc-ex-rel-board-of-haw-2016.