Keaau Development Partnership LLC v. Lawrence, Jr.

CourtHawaii Intermediate Court of Appeals
DecidedMay 12, 2025
DocketCAAP-24-0000494
StatusPublished

This text of Keaau Development Partnership LLC v. Lawrence, Jr. (Keaau Development Partnership LLC v. Lawrence, Jr.) 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
Keaau Development Partnership LLC v. Lawrence, Jr., (hawapp 2025).

Opinion

FOR PUBLICATION IN WEST'S HAWAI#I REPORTS AND PACIFIC REPORTER

Electronically Filed Intermediate Court of Appeals CAAP-XX-XXXXXXX 12-MAY-2025 08:03 AM Dkt. 74 PO

IN THE INTERMEDIATE COURT OF APPEALS

OF THE STATE OF HAWAI#I

---o0o---

KEAAU DEVELOPMENT PARTNERSHIP LLC, Plaintiff/Counterclaim Defendant/Cross-claimant/Cross-claim Defendant-Appellant, v. PATRICK JOHN LAWRENCE, JR. dba as PJ'S CONSTRUCTION, Defendant/Counterclaimant/Cross-claimant/Cross-claim Defendant-Appellee, and JANEL M. ARAUJO INC.; JANEL ARAUJO; and ROBERT C. SMELKER, Defendants/Cross-claim Defendants-Appellees, and ANNALEINE MELICIA REYNOLDS, Defendant/Cross-claim Defendant/Counterclaimant/Cross-claimant-Appellee, and LEORA WHITE THOMPSON and HEIRS OR ASSIGNS OF LEORA WHITE THOMPSON, Defendants/Cross-claim Defendants-Appellees, and COUNTY OF HAWAI#I, Defendant/Cross-claim Defendant-Appellee, and JOHN DOES 1-10; JANE DOES 1-10; DOE PARTNERSHIPS 1-10; DOE CORPORATIONS 1-10; DOE ENTITIES 1-10; DOE TRUSTS 1-10; and DOE GOVERNMENTAL AGENCIES 1-10, Defendants

NO. CAAP-XX-XXXXXXX

APPEAL FROM THE CIRCUIT COURT OF THE THIRD CIRCUIT (CASE NO. 3CCV-XX-XXXXXXX)

MAY 12, 2025

LEONARD, ACTING CHIEF JUDGE, HIRAOKA AND McCULLEN, JJ. FOR PUBLICATION IN WEST'S HAWAI#I REPORTS AND PACIFIC REPORTER

ORDER OF THE COURT BY HIRAOKA, J.

Defendant/Cross-claim Defendant/Counterclaimant/Cross-

claimant-Appellee Annaleine Melicia Reynolds moved to dismiss

this appeal for lack of jurisdiction on September 5, 2024. The

motion and memorandum in support were signed by Reynolds'

attorney, James D. DiPasquale. The memorandum cited Greenspan v.

Greenspan, 121 Hawai#i 60, 71, 214 P.3d 557, 568 (App. 2009), as

a case where "the court rejected the applicability of the Forgay Doctrine where no immediate transfer of property was ordered and

no immediate danger of irreparable harm existed." The court

found that 121 Hawai#i 60 and 121 Hawai#i 71 are pinpoint

citations to Estate of Roxas v. Marcos, 121 Hawai#i 59, 214 P.3d

598 (2009); 214 P.3d 557 is the citation for Madison Capital

Company v. Star Acquisition VIII, 214 P.3d 557 (Colo. App. 2009);

and 214 P.3d 568 is a pinpoint citation to City of Boulder v.

Farmer's Reservoir & Irrigation Company, 214 P.3d 563 (Colo. App.

2009). The court couldn't find a Hawai#i appellate decision,

reported or unreported, titled Greenspan v. Greenspan.

Hawai#i Rules of Civil Procedure (HRCP) Rule 11 (eff.

2019) provides, in relevant part:

(b) Representations to court. By presenting to the court (whether by signing, filing, submitting, or later advocating) a pleading, written motion, or other paper, an attorney . . . is certifying that to the best of the person's knowledge, information, and belief, formed after an inquiry reasonable under the circumstances: . . . .

(2) the claims, defenses, and other legal contentions therein are warranted by existing law[.]

2 FOR PUBLICATION IN WEST'S HAWAI#I REPORTS AND PACIFIC REPORTER

"A fake opinion is not 'existing law' . . . . An

attempt to persuade a court or oppose an adversary by relying on

fake opinions is an abuse of the adversary system." Mata v.

Avianca, Inc., 678 F.Supp.3d 443, 461 (S.D.N.Y. 2023) (footnote

omitted).1 "Thus, using a fake opinion to support an argument is

a violation of [Fed. R. Civ. P.] Rule 11(b)(2)." Wadsworth v.

Walmart Inc., 348 F.R.D. 489, 495 (D. Wyo. 2025).

On April 25, 2025, the court ordered DiPasquale to show

cause why he should not be sanctioned under HRCP Rule 11(c)(1)(B) for violation of HRCP Rule 11(b), made applicable by Hawai#i

Rules of Appellate Procedure (HRAP) Rule 2.1(a). DiPasquale

filed a declaration on April 29, 2025. He stated he had

"retained a per diem attorney — someone I had previously worked

with and trusted — to handle the drafting" of the motion to

dismiss and "failed to verify every single citation meticulously,

specifically missing the fabricated citation of the 'Greenspan'

case[.]" He stated, "[a]lthough I did not personally use AI

[(artificial intelligence)] in this case, I failed to ensure that every citation was accurate before filing the brief."

[T]he signing attorney cannot leave it to some trusted subordinate, or to one of his partners, to satisfy himself that the filed paper is factually and legally responsible; by signing he represents not merely the fact that it is so, but also the fact that he personally has applied his own judgment.

1 "Where we have patterned a rule of procedure after an equivalent rule within the [Federal Rules of Civil Procedure], interpretations of the rule by the federal courts are deemed to be highly persuasive in the reasoning of this court." Gold v. Harrison, 88 Hawai #i 94, 105, 962 P.2d 353, 364 (1998) (citation omitted) (citing federal case discussing Fed. R. Civ. P. 11).

3 FOR PUBLICATION IN WEST'S HAWAI#I REPORTS AND PACIFIC REPORTER

Enos v. Pac. Transfer & Warehouse, Inc., 79 Hawai#i 452, 457, 903

P.2d 1273, 1278 (1995) (quoting Pavelic & LeFlore v. Marvel Ent.

Grp., 493 U.S. 120, 125 (1989)). The court finds that

DiPasquale's citation of Greenspan — a nonexistent case — without

first attempting to read it to confirm his contention of its

holding was not reasonable under the circumstances, and a

violation of HRCP Rule 11(b)(2). Cf. Benjamin v. Costco

Wholesale Corp., --- F. Supp. 3d ---, No. 2:24-CV-7399 (LGD),

2025 WL 1195925, at *2 (E.D.N.Y. Apr. 24, 2025) (order imposing sanctions) (stating that "an attorney who submits fake cases

clearly has not read those nonexistent cases, which is a

violation of Rule 11 of the Federal Rules of Civil Procedure").

"[T]he central purpose of [federal] Rule 11 is to deter

baseless filings in district court and thus . . . streamline the

administration and procedure of the federal courts." Cooter &

Gell v. Hartmarx Corp., 496 U.S. 384, 393 (1990). Federal courts

seem to encounter AI-generated citations to nonexistent cases

with increasing frequency, "raising the importance of educating

and deterring the larger bar from repeating similar conduct."

United States v. Hayes, --- F. Supp. 3d ---,

No. 2:24-CR-0280-DJC, 2025 WL 235531, at *15 (E.D. Cal. Jan. 17,

2025) (order), recon. denied, 2025 WL 1067323 (E.D. Cal. Apr. 9,

2025).

To his credit, DiPasquale accepted full responsibility

for his omission. His declaration states that he has "since

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Related

Cooter & Gell v. Hartmarx Corp.
496 U.S. 384 (Supreme Court, 1990)
Gold v. Harrison
962 P.2d 353 (Hawaii Supreme Court, 1998)
Enos v. Pacific Transfer & Warehouse, Inc.
903 P.2d 1273 (Hawaii Supreme Court, 1995)
Estate of Roxas v. Marcos
214 P.3d 598 (Hawaii Supreme Court, 2009)
City of Boulder v. Farmer's Reservoir & Irrigation Co.
214 P.3d 563 (Colorado Court of Appeals, 2009)
Madison Capital Co. v. Star Acquisition VIII
214 P.3d 557 (Colorado Court of Appeals, 2009)

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