Kondaur Capital Corporation v. Matsuyoshi.

341 P.3d 548, 134 Haw. 342, 2014 Haw. LEXIS 308
Hawaii Supreme Court·Decided October 23, 2014·No. SCWC-12-0000867·Published·Cited by 4 cases

Opinion

Opinion of the Court by

POLLACK, J.

Kondaur Capital Corporation (Kondaur) seeks review of the Intermediate Court of Appeals’ (ICA) Judgment on Appeal, filed April 4, 2014, which vacated the Circuit Court of the Fifth Circuit’s (circuit court) order granting Kondaur’s motion for summary judgment, and remanded the case to the circuit court for further proceedings. We conclude that the ICA erred in relying upon a post-judgment motion as a basis to find disputed facts with regard to a motion for summary judgment. We therefore vacate the ICA’s Judgment on Appeal, and remand the case to the ICA for a review of the other issues raised by the parties that were not considered by the ICA in its resolution of the appeal in this ease.

I. Background

A.

This action arose out of a property title dispute between Leigh Matsuyoshi, who purchased the property in Llhu'e, Kaua'i (Property) in June of 2007 and Kondaur, which later acquired a quitclaim deed to the Property following a judicial foreclosure.

Matsuyoshi bought the Property using a home loan she obtained from Resmae Mortgage Corporation. The Mortgage included an acceleration clause, which provided Mat-suyoshi would be given at least 30 days to cure a default of payment. The notary section of the Mortgage states that Matsuyoshi personally appeared before a notary public of the State of Hawai'i, on March 26, 2007, in the City and County of Honolulu.

*343 Six weeks prior to Matsuyoshi buying the property, RMC Mortgage Holdings LLC 1 filed a voluntary petition for Chapter 11 bankruptcy in the United States Bankruptcy Court of the District of Delaware (Bankruptcy Court). On June 5, 2007, the Bankruptcy Court issued an Order confirming the second amended plan of reorganization (Bankruptcy Order). The Bankruptcy Order affirmed that the “Reorganized ResMAE” could continue to exist “as a corporation [and] may operate its business and may use, acquire, and dispose of property ... without supervision or approval of the Bankruptcy Court.” The Bankruptcy Order further affirmed that all transfers of the property to the reorganized Resmae Mortgage Corporation were “legal, valid, and effective,” and “shall vest Reorganized ResMAE” with “good title to such property, free and clear of all Claims, liens, charges other encumbrances, and interest[.]”

In May 2008, an attorney representing Resmae Liquidation Properties (Resmae) sent Matsuyoshi a Notice of Intent to Foreclose stating Matsuyoshi’s loan was in default and that failure to pay the amount due by June 20, 2008 would result in the loan being accelerated and the Property being referred for foreclosure action. Subsequently, in October 2008, Matuyoshi received personal service of a Notice of Mortgagee’s Non-Judicial Foreclosure Under Power of Sale stating that Resmae Liquidation Services would sell the Property at an auction held in Honolulu on November 13,2008.

The sale proceeded as scheduled in Honolulu, and the Mortgagee’s Affidavit of Foreclosure Under Power of Sale (Affidavit of Sale) was certified by Resmae’s attorney and recorded on November 17, 2008. The Affidavit of Sale stated that Resmae was the highest bidder at the sale for the purchase price of $416,900.20. The Affidavit of Sale further stated that the default remained uneured at the time of sale.

On January 14, 2009, Resmae executed a quitclaim deed conveying the Property to itself (Resmae’s quitclaim deed), and Resmae subsequently recorded the deed on January 22, 2009. Resmae then sought possession of the property from Matsuyoshi through an action for ejectment in the circuit court filed on February 3, 2009. On October 15, 2009, the action for ejectment was dismissed pursuant to “Rule 12(Q)” and no final judgment was entered in the record.

On July 14, 2010, Resmae conveyed the Property to Kondaur by a quitclaim deed (Quitclaim Deed). 2 Kondaur did not record its Quitclaim Deed until February 24, 2011, and in the period of time between executing and recording the Quitclaim Deed, on January 14, 2011, Resmae filed an action for ejectment against Matsuyoshi in the United States District Court for the District of Ha-wai'i, which was later dismissed by stipulation of the parties on February 12, 2011. Following the February 24, 2011 recording, Kondaur gave Matsuyoshi notice to vacate. After Matsuyoshi refused to leave, Kondaur filed the underlying action in this case in the circuit court.

B.

Kondaur’s complaint (Complaint), filed on June 5, 2012, against Matsuyoshi, requested a judgment for immediate and exclusive possession of the Property and a writ of possession. The Complaint stated that Kondaur had “acquired title and current ownership of the Property through a Quitclaim Deed recorded on February 24, 2011.” The Complaint was served on Matsuyoshi on June 9, 2012.

On June 27, 2012, Kondaur filed a Motion for Summary Judgment Against All Defendants on Complaint filed June 5, 2012(MSJ). Kondaur requested that the circuit court grant the MSJ and enter a judgment for possession of the Property for Kondaur and *344 against Matsuyoshi, issue a writ of possession, enter the judgment as final, and set a time and date for a trial on damages. The MSJ was suppoi’ted by a declaration of Ann Pham, who stated that she was an asset manager for Kondaur and a custodian of Kondaur’s records. Pham declared that according to regular business records maintained by Kondaur, Kondaur owned the Property pursuant to its Quitclaim Deed, a true and accurate copy of which was attached to the MSJ. Pham also declared that Kond-aur had given Matsuyoshi notice to vacate, and Matsuyoshi “has so far continued to reside at the Property and has otherwise failed or refused to leave.” Attached to the MSJ were Exhibits A to G. 3

In its memorandum in support of the MSJ, Kondaur asserted it had undisputed title to the Property and Matsuyoshi was residing on the property as a trespasser. Kondaur argued that the Quitclaim Deed was prima facie evidence of Resmae’s conveyance of the property to Kondaur, and thus Kondaur contended it was the owner of the Property and was entitled to immediate and exclusive possession.

Kondaur maintained any challenge to its title was meritless because the Bankruptcy Order “sets forth that the property of Res-mae, as a debtor-in-possession, was conveyed to the Liquidating Trust[.]” Kondaur argued the Bankruptcy Order “sets forth a Permanent Injunction that bars any claims against the Property that is based on factual allegations arising prior to June 15, 2007.” Kond-aur also contended the Affidavit of Sale was evidence that the power of sale was duly executed. Kondaur maintained the foreclosure sale extinguished Matsuyoshi’s interest in the property, and “Resmae subsequently conveyed the Property to Kondaur by virtue of the Quitclaim Deed dated July 14, 2010.”

Kondaur argued further that any challenges to the foreclosure or subsequent transfers of the case should have been brought in the Bankruptcy Court.

Free access — add to your briefcase to read the full text and ask questions with AI

Kondaur Capital Corporation v. Matsuyoshi., 341 P.3d 548, 134 Haw. 342, 2014 Haw. LEXIS 308 (haw 2014).

341 P.3d 548 (Kondaur Capital Corporation v. Matsuyoshi.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Kondaur Capital Corporation v. Matsuyoshi
551 P.3d 1222 (Hawaii Intermediate Court of Appeals, 2024)
Kelepolo v. Fernandez
519 P.3d 767 (Hawaii Intermediate Court of Appeals, 2022)
Callender v. Baldwin
466 P.3d 884 (Hawaii Intermediate Court of Appeals, 2020)
Kondaur Capital Corporation v. Matsuyoshi.
361 P.3d 454 (Hawaii Supreme Court, 2015)