GGS (HI), Inc. v. New York Diamond, Inc.

944 P.2d 1341, 85 Haw. 398, 1997 Haw. App. LEXIS 107
CourtHawaii Intermediate Court of Appeals
DecidedJuly 28, 1997
DocketNo. 18948
StatusPublished
Cited by18 cases

This text of 944 P.2d 1341 (GGS (HI), Inc. v. New York Diamond, Inc.) 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
GGS (HI), Inc. v. New York Diamond, Inc., 944 P.2d 1341, 85 Haw. 398, 1997 Haw. App. LEXIS 107 (hawapp 1997).

Opinion

ACOBA, Judge.

We hold in this appeal by Owner/Movant-Appellant GGS (HI), Inc. (GGS) from the first circuit court (circuit court) February 3, 1995 order denying GGS’s motion for an order expunging the lis pendens,1 supplemental lis pendens, and stipulated judgment and order from its land court certificate of title; April 10, 1995 final judgment; and April 25, 1995 order denying GGS’s motion to alter or amend the order denying GGS’s motion to expunge2; that (1) the land court and not the circuit court has jurisdiction to expunge memoranda from a certificate of title to land court registered property (registered property)3; (2) Hawaii Revised Statutes (HRS) § 501-151 (Supp.1991) pertaining to lis pen-dens on registered property must be strictly construed; (3) HRS § 501-151 authorizes the filing and recording of lis pendens and judgments against registered property, only for “writ[s] of entry,” “actions for partition,” or actions “affecting the title to real property or the use and occupation thereof or the building thereon”; (4) a non-final “stipulated judg[401]*401ment” cannot constitute a judgment lien on real property; and (5) the stipulated judgment and order in the instant case did not constitute an equitable hen on GGS’s registered property.

I.

A.

In March 1990, Japan E.C.O. Co., Ltd. (Japan ECO) bought certain real property located at 2008 and 2007 Ala Wai Boulevard (Ala Wai King) on 0‘ahu from Osaki Hawaii, Inc. The Ala Wai King property is registered property.4 In June 1990, Japan ECO assigned ah of its interest in the Ala Wai King to E.C.O. Hawaii (ECO Hawaii).

By warranty deed dated December 6,1990, ECO Hawaii assigned all of its interest in the Ala Wai King to New York Diamond, Inc. (N.Y. Diamond). Between September 1990 and July 1991, N.Y. Diamond incurred various expenses in connection with the eviction of tenants from and renovation and operation of the Ala Wai King.

On July 23, 1991, Japan ECO and ECO Hawaii resumed operation of the Ala Wai King, and N.Y. Diamond assigned all of its interest in the Ala Wai King back to ECO Hawaii. Subsequently, by “correction warranty deed,” dated August 20, 1991, N.Y. Diamond conveyed all of its interest in the Ala Wai King back to ECO Hawaii.

On September 14,1992, N.Y. Diamond and its president, Toshio Masuda (Masuda) filed a breach of contract lawsuit against Japan ECO, ECO Hawaii, and others “concerning the acquisition, development and use of [the] Ala Wai King.” After serving their complaint, N.Y. Diamond and Masuda recorded a lis pendens on September 15, 1992 in the land court against the Ala Wai King.

On October 29, 1992, ECO Hawaii executed a general warranty deed conveying the Ala Wai King to GGS for $4 million dollars but did not record the deed in the land court until March 12,1993.

On November 30, 1992, N.Y. Diamond and Masuda recorded a supplemental lis pendens in the land court.

On December 23, 1992, the circuit court entered a “stipulated judgment” and order in the breach of contract action. On December 24, 1992, N.Y. Diamond and Masuda recorded the stipulated judgment in the land court.

On November 18, 1993, N.Y. Diamond, Masuda, ECO Hawaii, and Japan ECO, the parties in the breach of contract action, filed a stipulation which dismissed all of the remaining claims in the lawsuit.5

B.

On May 20,1994, GGS filed motions in the breach of contract action to vacate the lis pendens, supplemental lis pendens, and stipulated judgment and order and expunge them from its certificate of title to the Ala Wai King (motion to expunge). GGS argued that “the allegations of [NY Diamond and Masuda’s] complaint were and are insufficient to create any right to record” the lis pendens and supplemental lis pendens. GGS contended that HRS § 501-151 should be interpreted “restrictively,” and therefore, a “lis pendens may only be recorded against [l]and [e]ourt property (1) in an action for partition of such property, (2) in an action otherwise affecting the title to such property, or (3) in an action affecting the right to use or occupy such property or buildings thereon.”6 With regard to the stipulated judgment, GGS argued that it should be vacated insofar as it entered judgment in favor of [402]*402Masuda individually7 and expunged to the extent that it constituted a lien upon the property.

On June 13, 1994, N.Y. Diamond and Ma-suda filed a memorandum in opposition to GGS’s motion contending that GGS did not have standing to attack the stipulated judgment under Hawai‘i Rules of Civil Procedure (HRCP) Rule 60(b)8; the circuit court should enforce and support the stipulated judgment; GGS’s motion was untimely; and, the lis pendens and supplemental lis pendens were both proper and valid.

On June 15, 1994, a hearing was held on GGS’s motion. The circuit court determined that GGS was “not a party or legal representative of a party pursuant to [HRCP Rule 60(b) ]” and therefore “lack[ed] standing to bring [the][m]otion[ ].”

On June 20, 1994, the circuit court denied GGS’s motion to expunge without prejudice. On July 1, 1994, GGS filed a motion for reconsideration. On September 15,1994, the circuit court denied GGS’s motion for reconsideration and an order was filed accordingly.

C.

1.

After GGS’s motion for reconsideration was denied, GGS initiated a “special proceeding” to again “clear from its title [the] three improper recordings.”

On September 29, 1994, GGS filed anew, its motion to expunge. GGS contended that the lis pendens and supplemental lis pendens were improperly recorded because N.Y. Diamond and Masuda’s underlying action “was not the kind of action” for which a lis pen-dens “may be recorded against land court property.” GGS also argued that the stipulated judgment and order was improperly recorded because it “was accepted for recording although it was not a final judgment or order[.]”

On October 11, 1994, N.Y. Diamond and Masuda filed a memorandum in opposition to the motion to expunge. NY Diamond and Masuda contended that the lis pendens and supplemental lis pendens were “proper and valid” and that “the stipulated judgment [was] a valid judgment lien against the Ala Wai King the priority of which relate[d] back to the [lis pendens] recorded on September 15,1992.”

NY Diamond and Masuda argued that GGS purchased the Ala Wai King subject to the terms of the stipulated judgment, and the stipulated judgment continued as a valid judgment lien on the Ala Wai King, superior and prior to the interests of GGS. Also, N.Y. Diamond and Masuda indicated that on July 19, 1994, they had assigned their interest in the stipulated judgment to Shigeyuki Tachi-bana (Tachibana).

On December 23, 1994, Tachibana also filed a memorandum in opposition to GGS’s motion. Besides joining in N.Y. Diamond and Masuda’s arguments, Tachibana contended that the stipulated judgment and order, recorded before GGS recorded its deed to the Ala Wai King, had priority over GGS’s deed.

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Bluebook (online)
944 P.2d 1341, 85 Haw. 398, 1997 Haw. App. LEXIS 107, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ggs-hi-inc-v-new-york-diamond-inc-hawapp-1997.