Kuhnert v. Allison

868 P.2d 457, 76 Haw. 39, 1994 Haw. LEXIS 12
CourtHawaii Supreme Court
DecidedFebruary 25, 1994
Docket16607
StatusPublished
Cited by14 cases

This text of 868 P.2d 457 (Kuhnert v. Allison) 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
Kuhnert v. Allison, 868 P.2d 457, 76 Haw. 39, 1994 Haw. LEXIS 12 (haw 1994).

Opinion

RAMIL, Justice.

Plaintiffs-Appellants Heinz and Sherilyn Kuhnert (Kuhnerts) were awarded compensatory and punitive damages in a real estate fraud case. The Kuhnerts are now attempting to collect their punitive damages from the Real Estate Recovery Fund (RERF). Respondent-Appellee State of Hawai'i, Real Estate Commission (Commission) contends that the RERF does not provide for the recovery of punitive damages. In the alternative, the Commission argues that the Kuhnerts failed to comply with the statutory requirements that would entitle them to recover. The circuit court denied the Kuhnerts’ request to recover punitive damages from the RERF. We affirm.

I. Facts

In 1983, the Kuhnerts listed their Nu’uanu home for sale with Libbie & Company, a real estate firm, whose principal and broker was Marion Kamisugi (Kamisugi). The listing agent of the Kuhnerts’ home was Clyde Allison (Allison). Allison was also the vice-president of Libbie & Company.

Eventually, the Kuhnerts entered into a Deposit Receipt Offer & Acceptance (DROA) and a sale with Darlene and Herbert Osterman (Ostermans), pursuant to which the Kuhnerts received cash and the Ostermans’ condominium. When the condominium’s inflated value was discovered, the Kuhnerts filed suit.

On July 31, 1987, the Kuhnerts filed a complaint based upon fraud against the Ostermans, Allison, Kamisugi and Libbie & Company (collectively Defendants). The Kuhnerts alleged that Mrs. Osterman was a licensed real estate agent and that the Oster-mans, Allison, Kamisugi and Libbie & Company knew that the value of the condominium was inflated and that the transaction constituted an intentional fraud. The Kuhnerts sought compensatory and punitive damages.

Pursuant to Hawai'i Revised Statutes (HRS) § 467-18(a) (1985), 1 the Kuhnerts notified the Commission on July 31, 1987 that they had commenced a civil action that could result in collection from the RERF. Thereafter, on August 10, 1987, Gary Young (Young), the RERF’s counsel, wrote to the Kuhnerts’ attorney and asked that copies of all pleadings be served on him.

The circuit court dismissed the Kuhnerts’ complaint on October 7, 1988, on the grounds that the Kuhnerts had not timely served Defendants with the complaint. This order was not served on Young and was not obtained by the Commission until September 2, 1992.

The Kuhnerts filed a second complaint against Defendants on October 13, 1988. *42 The Commission was not notified of the second complaint.

After trial in May 1990, the jury returned a verdict in favor of the Kuhnerts and against all Defendants, awarding the Kuhnerts both compensatory and punitive damages. On a motion for new trial, the circuit court remitted portions of both the compensatory and punitive damages and granted a new trial in the event that the Kuhnerts did not accept the remittitur. The Kuhnerts accepted the remittitur, but Defendants filed a notice of appeal. This court affirmed the judgment of the circuit court.

Since this court’s affirmation of the circuit court judgment, the Kuhnerts have been unable to collect the punitive damages awarded against Allison and Mrs. Osterman — $200,000 and $125,000, respectively. On August 28, 1992, the Kuhnerts filed a motion for an order directing payment from the RERF for the punitive damages assessed against Allison and Mrs. Osterman. The Commission opposed the motion, which the circuit court denied on October 21, 1992. The Kuhnerts filed this appeal on November 9, 1992, contending that the denial of their motion was in error.

II. Discussion

A.

Before we address the merits of this appeal, we first address the Commission’s contention that the Kuhnerts are barred from collecting from the RERF because they did not inform the Commission of the commencement of the second lawsuit. 2 Specifically, the Commission alleges two errors in violation of HRS § 467-18: 3 (1) the second complaint was filed more than two years after the accrual of the cause of action; and (2) the Commission was not served with notice of the second complaint. 4

1.

HRS § 467-18 prescribes that an action resulting in an order for collection from the RERF must be filed within two years from the accrual of the cause of action.

HRS § 467-18 is clear and unambiguous. Myers v. Beatty, 70 Haw. 586, 538, 777 P.2d 709, 710 (1989) (appellants waived the right to recover from the RERF, where notice of the commencement of an action was given eight months after the action had been commenced). “There is nothing in the legislative history to indicate that the legislature did not mean what it said when it required the Commission to be notified in writing of the commencement of the action at the time the action was commenced, nor is there anything to indicate that the legislature did not mean that a failure to comply with that requirement would constitute a waiver under HRS § 467-23.” Id. at 538, 777 P.2d at 710. Thus, the remaining question is the date the Kuhnerts’ cause of action accrued.

HRS § 467-16 (Supp.1992) is a remedial statute and must be construed liberally in order to accomplish the purpose for which it was intended. Flores v. United Air Lines, Inc., 70 Haw. 1, 12, 757 P.2d 641, 647 (1988) (remedial statutes are those which provide a remedy or improve or facilitate remedies already in existence for the enforcement of rights and the redress of injuries).

Here, the Kuhnerts’ cause of action accrued at the time of sale of the condominium. The sale of the condominium established the damages sustained by the Kuhnerts as a result of the fraud. Thus, the Kuhnerts’ cause of action did not accrue until 1987, when they sold the condominium, and, therefore, the second complaint filed in October 1988 was timely.

*43 2.

The Commission also argues that the Kuhnerts failed to notify it of the dismissal of the first complaint and of the filing of the second complaint. The Commission has not alleged that it was prejudiced in any way by these failures. It does, however, argue that HRS Chapter 467 should be strictly construed.

Clearly, the Commission was properly notified of the first complaint.

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

Related

Lima, Jr. v. Deutsche Bank National Trust Company
494 P.3d 1190 (Hawaii Supreme Court, 2021)
Peer News LLC v. City and County of Honolulu.
376 P.3d 1 (Hawaii Supreme Court, 2016)
Panoke v. Reef Development of Hawaii, Inc.
363 P.3d 296 (Hawaii Supreme Court, 2015)
State v. Atwood.
301 P.3d 1255 (Hawaii Supreme Court, 2013)
Tauese v. State, Department of Labor & Industrial Relations
147 P.3d 785 (Hawaii Supreme Court, 2006)
Bynum v. Magno
101 P.3d 1149 (Hawaii Supreme Court, 2004)
Sugarman v. Kapu
85 P.3d 644 (Hawaii Supreme Court, 2004)
State v. Dudoit
978 P.2d 700 (Hawaii Supreme Court, 1999)
Hunt v. First Ins. Co. of Hawaii Ltd.
922 P.2d 976 (Hawaii Intermediate Court of Appeals, 1996)
BLT Advertisement Co. v. Edades
909 P.2d 598 (Hawaii Intermediate Court of Appeals, 1995)

Cite This Page — Counsel Stack

Bluebook (online)
868 P.2d 457, 76 Haw. 39, 1994 Haw. LEXIS 12, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kuhnert-v-allison-haw-1994.