Boomlets, LLC v. Otherside LLC

CourtHawaii Intermediate Court of Appeals
DecidedMarch 27, 2026
DocketCAAP-24-0000767
StatusPublished

This text of Boomlets, LLC v. Otherside LLC (Boomlets, LLC v. Otherside LLC) is published on Counsel Stack Legal Research, covering Hawaii Intermediate Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Boomlets, LLC v. Otherside LLC, (hawapp 2026).

Opinion

NOT FOR PUBLICATION IN WEST'S HAWAI‘I REPORTS AND PACIFIC REPORTER

Electronically Filed Intermediate Court of Appeals CAAP-XX-XXXXXXX 27-MAR-2026 07:46 AM Dkt. 60 SO

NO. CAAP-XX-XXXXXXX

IN THE INTERMEDIATE COURT OF APPEALS

OF THE STATE OF HAWAI‘I

BOOMLETS, LLC, Plaintiff-Appellee, v. OTHERSIDE LLC; THIS SIDE LLC; PETER NASCARELLA, individually and as Manager of Otherside LLC; KELLY NASCARELLA, individually and as Manager of Otherside LLC and This Side LLC, Defendants-Appellants, and JOHN DOES 1-10; JANE DOES 1-10; DOE PARTNERSHIPS 1-10; DOE CORPORATIONS 1-10; DOE "NON-PROFIT" CORPORATIONS 1-10; DOE ENTITIES 1-10; and DOE GOVERNMENTAL ENTITIES 1-10, Defendants

APPEAL FROM THE CIRCUIT COURT OF THE FIRST CIRCUIT (CASE NO. 1CCV-XX-XXXXXXX)

SUMMARY DISPOSITION ORDER (By: Hiraoka, Presiding Judge, Wadsworth and Guidry, JJ.)

Defendants-Appellants Otherside LLC (Otherside), This

Side LLC (This Side), and Peter Nascarella and Kelly Nascarella

(the Nascarellas) (collectively, the Appellants) appeal from the

"Final Judgment in Favor of Plaintiff and Against Defendants" NOT FOR PUBLICATION IN WEST'S HAWAI‘I REPORTS AND PACIFIC REPORTER

(Final Judgment), 1 entered by the Circuit Court of the First

Circuit 2 (circuit court) on October 11, 2024.

In August 2020, Boomlets filed a Complaint 3 against

Appellants, alleging, inter alia, that the Nascarellas

improperly diverted funds from Otherside's bank accounts for the

Nascarellas' personal use in violation of the "Operating

Agreement of Otherside LLC a Hawaii Limited Liability Company

Organized under Hawaii Revised Statutes Chapter 428" (Operating

Agreement) between Boomlets and the Nascarellas. The

unchallenged Findings of Fact (FOFs) establish that, pursuant to

the Operating Agreement, Boomlets loaned money to Otherside via

cash loans and a "Revolving Line of Credit Agreement &

Promissory Note dated April 27, 2017" (Revolving Line of Credit)

in the maximum principal amount of $5,350,000. These loan

moneys were to be used solely for developing Otherside's

1 Otherside and This Side are limited liability companies organized pursuant to Hawaii Revised Statutes (HRS) Chapter 428. Plaintiff-Appellee Boomlets, LLC (Boomlets) holds a one-third ownership interest in Otherside and This Side, and the Nascarellas hold a two-thirds ownership interest. At issue in the underlying case is the Nascarellas' unauthorized diversion of Otherside funding for their personal expenditures.

Appellants clarify that they do not challenge the $6,307,650 Judgment awarded against Otherside and This Side. Appellants challenge only the $2,552,953 Judgment awarded against the Nascarellas personally.

2 The Honorable John M. Tonaki presided.

3 Boomlets filed its operative "First Amended Complaint" in June 2022.

2 NOT FOR PUBLICATION IN WEST'S HAWAI‘I REPORTS AND PACIFIC REPORTER

restaurant business. The Operating Agreement made no provision

for compensation to the Nascarellas.

Appellants assert three points of error on appeal,

contending that the circuit court erred by: (1) entering certain

FOFs; (2) entering certain Conclusions of Law (COLs); and (3)

denying the "[Nascarellas'] Motion for Reconsideration of [FOFs]

and [COLs] and Order Filed on May 29, 2024" (Motion for

Reconsideration).

Upon careful review of the record, briefs, and

relevant legal authorities, and having given due consideration

to the arguments advanced and the issues raised by the parties,

we resolve Appellants' points of error as follows:

(1) Appellants contend that the circuit court erred in

entering FOFs 74, 75, 76, 78, 79, 83, 84, 86, 88, 89, and 94.

"In this jurisdiction, a trial court's [FOFs] are subject to the

clearly erroneous standard of review." Casumpang v. ILWU Local

142, 108 Hawaiʻi 411, 419, 121 P.3d 391, 399 (2005) (citation

omitted).

Boomlets retained Ross Murakami (Murakami), a Partner

at the accounting firm KMH LLP, to review Otherside's bank and

tax records. Murakami produced an Expert Report that was

introduced into evidence without objection. To the extent that

the challenged FOFs present a factual recitation of information

3 NOT FOR PUBLICATION IN WEST'S HAWAI‘I REPORTS AND PACIFIC REPORTER

presented in Murakami's Expert Report, they are not clearly

erroneous.

The transcript of Murakami's testimony is not in the

record. To the extent Appellants contend that the challenged

FOFs are clearly erroneous in light of Murakami's testimony,

Appellants have failed to meet their burden of providing an

adequate record. See Bettencourt v. Bettencourt, 80 Hawaiʻi 225,

230, 909 P.2d 553, 558 (1995) ("The burden is upon appellant in

an appeal to show error by reference to matters in the record,

and he or she has the responsibility of providing an adequate

transcript." (cleaned up)); Hawaiʻi Rules of Appellate Procedure

Rule 10(b)(3) ("If the appellant intends to urge on appeal that

a finding or conclusion is unsupported by the evidence or is

contrary to the evidence, the appellant shall include in the

record a transcript of all evidence relevant to such finding or

conclusion.").

We conclude that Appellants' point of error (1) lacks

merit.

(2) Appellants contend that the circuit court erred in

entering COLs 6, 7, 9, 11, 12, 13, and 14. "[COLs] are reviewed

de novo, under the right/wrong standard of review." Lambert v.

Waha, 137 Hawaiʻi 423, 431, 375 P.3d 202, 210 (2016) (cleaned

up). Mixed questions of law and fact are reviewed for clear

4 NOT FOR PUBLICATION IN WEST'S HAWAI‘I REPORTS AND PACIFIC REPORTER

error. Keep the N. Shore Country v. Bd. of Land & Nat. Res.,

150 Hawaiʻi 486, 503, 506 P.3d 150, 167 (2022) ("A mixed question

of law and fact exists when the conclusion is dependent upon the

facts and circumstances of the particular case." (cleaned up)).

The unchallenged FOFs, 4 as well as the evidence in the

record, support the circuit court's determination that the

Nascarellas engaged in the unauthorized use of $2,552,953 in

business funds for their personal benefit. We therefore

conclude that the circuit court was not wrong in awarding

Boomlets damages in the amount of $2,552,953, plus accrued

interest, from the Nascarellas.

4 "[FOFs] . . . that are not challenged on appeal are binding on the appellate court." Okada Trucking Co. v. Bd. of Water Supply, 97 Hawaiʻi 450, 458, 40 P.3d 73, 81 (2002) (citations omitted). Appellants do not challenge, inter alia, the circuit court's findings that:

56. In addition to the amounts reflected in the final [Revolving Line of Credit], Boomlets made several more disbursements to Otherside, bringing the total of the loan to $5,895[,]000.

. . . .

58. The money that Boomlets would be lending to Otherside was to be used solely to develop the pizza chain in Hawaii. The Operating Agreement made no provision for Member compensation.

93.

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Related

Bettencourt v. Bettencourt
909 P.2d 553 (Hawaii Supreme Court, 1995)
Cho v. State
168 P.3d 17 (Hawaii Supreme Court, 2007)
Okada Trucking Co. v. Board of Water Supply
40 P.3d 73 (Hawaii Supreme Court, 2002)
Casumpang v. ILWU LOCAL 142
121 P.3d 391 (Hawaii Supreme Court, 2005)
Lambert v. Waha
375 P.3d 202 (Hawaii Supreme Court, 2016)

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Boomlets, LLC v. Otherside LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/boomlets-llc-v-otherside-llc-hawapp-2026.