McKay v. Guez

549 P.3d 341, 154 Haw. 256
CourtHawaii Intermediate Court of Appeals
DecidedMay 21, 2024
DocketCAAP-19-0000396
StatusPublished

This text of 549 P.3d 341 (McKay v. Guez) 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
McKay v. Guez, 549 P.3d 341, 154 Haw. 256 (hawapp 2024).

Opinion

NOT FOR PUBLICATION IN WEST'S HAWAI#I REPORTS AND PACIFIC REPORTER

Electronically Filed Intermediate Court of Appeals CAAP-XX-XXXXXXX 21-MAY-2024 07:53 AM Dkt. 43 SO

NO. CAAP-XX-XXXXXXX

IN THE INTERMEDIATE COURT OF APPEALS OF THE STATE OF HAWAI#I

MADELEINE M. MCKAY, as Trustee of the Revocable Trust of Madeleine M. McKay, Plaintiff-Appellee, v. HUBERT GUEZ, Individually, and as Trustee of the Guez Living Trust, Defendant-Appellant, and DOE DEFENDANTS 1-10, Defendants

APPEAL FROM THE CIRCUIT COURT OF THE FIRST CIRCUIT (CIVIL NO. 18-1-0975)

SUMMARY DISPOSITION ORDER (By: Leonard, Acting Chief Judge, Wadsworth and Nakasone, JJ.)

Defendant-Appellant Hubert Guez, individually, and as

trustee of the Guez Living Trust (Guez), appeals pro se from the

April 30, 2019 Judgment (Judgment) entered by the Circuit Court

of the First Circuit (Circuit Court),1 in favor of Plaintiff-

Appellee Madeleine M. McKay, as trustee of the Revocable Trust of

Madeleine M. McKay (McKay). Guez also challenges the April 24,

2019 (1) Order Granting [McKay's] Motion for Summary Judgment

(Order Granting MSJ) and (2) Order Denying [Guez's] Motion to

1 The Honorable James S. Kawashima presided. NOT FOR PUBLICATION IN WEST'S HAWAI#I REPORTS AND PACIFIC REPORTER

Dismiss or, in the Alternative, for Summary Judgment for Lack of

Personal Jurisdiction (Order Denying Motion to Dismiss).

McKay and her late husband were family friends with

Guez. After McKay's husband died in 2001, Guez provided advice

and counsel to McKay regarding her finances, and on eight

occasions between 2003 and 2005, McKay loaned Guez a total amount

of $3,150,000, subject to interest, from three separate trusts:

the Revocable Trust of Madeleine M. McKay (Revocable Trust), the

George G.C. McKay Marital Trust (Marital Trust), and the McKay

Family Trust (Family Trust) (collectively, the Trusts). Guez

executed eight promissory notes (Notes), stating that he received

certain specified sums, stating certain (various) rates of

interest, permitting McKay to demand payment at any time on three

or six months notice; on behalf of himself and the Guez Living

Trust, Guez stated that he "jointly guarantee[d] the full amount

of this note."

Guez made some interest payments on these Notes up

until February 2018. On March 1, 2018, McKay, as trustee of the

Trusts, demanded that Guez pay the principal and interest due

(Demand). In the Demand, McKay demanded, inter alia, that Guez

"pay back all of the amounts I loaned you." Guez made no further

payments.

After filing a June 20, 2018 Complaint alleging the

breach of four of the foregoing promissory notes, McKay amended

her Complaint and filed a First Amended Complaint (FAC) on

October 18, 2018, adding that Guez breached four additional

promissory notes. McKay acknowledged in the FAC that Guez is a

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

resident of California. McKay alleged that in 2003, Guez

approached her about extending him a loan from the proceeds from

her screenplay and funds inherited from her late husband.

McKay alleged that after executing the Notes, Guez made

full interest payments only until 2008, thereafter remitted

partial payments, then, in February 2018, stopped making any

payments. McKay alleged that she sent Guez the Demand. McKay

requested that Guez pay her the sum of $3,150,000, all interest

owed, and for attorneys' fees. Guez filed an Answer on November 5, 2018, admitting

that he entered into various loan agreements with certain trusts

associated with McKay, denying the total amount due because

principal allegedly had been repaid in part, denying that the

Notes called for monthly interest payments and that he fell into

arrears, and admitting that McKay made demand for payment and

that he has not remitted payments of principal or interest since

the Demand. Guez further denied, inter alia, that any Hawai#i

court has personal jurisdiction over him.

On February 21, 2019, Guez moved to dismiss (or for

summary judgment in his favor) based on a lack of personal

jurisdiction (Motion to Dismiss). On March 7, 2019, McKay filed

a motion for summary judgment on the debt evidenced by the Notes

(MSJ). The parties opposed each other's motions, with Guez also

filing a separate list of objections to the admissibility of

McKay's submissions in support of summary judgment. Guez filed

an ex parte motion to appear telephonically. The Circuit Court

received it, but then gave notice to the parties that due to its

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

improper ex parte nature, the court would not be acting on the ex

parte communication.2

A hearing was held on April 3, 2019. The Circuit Court

denied the Motion to Dismiss, noting that Guez took McKay's

money, the corpus of which was located in Hawai#i, that domicile

in Hawai#i is not necessary to establish jurisdiction, and that

issues of fact concerning the court's jurisdiction over Guez

precluded granting him summary judgment. The Circuit Court also

granted the MSJ. The written orders and Judgment were entered thereafter. Guez timely filed a notice of appeal.

Guez raises five points of error on appeal, contending

that the Circuit Court: (1) improperly exercised personal

jurisdiction over him; (2) failed to provide Guez with notice and

an opportunity to be heard at the April 3, 2019 hearing on the

[Guez's] Motion to Dismiss and McKay's MSJ; (3) erred in entering

a money judgment in favor of McKay; (4) failed to find an issue

of material fact as to the amount claimed by McKay; and (5)

improperly awarded McKay attorneys' fees.

Upon careful review of the record and the briefs

submitted by the parties, and having given due consideration to

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

resolve Guez's points of error as follows:

(1) Guez argues that he is not subject to the personal

jurisdiction of the Hawai#i courts because, inter alia, he is a

2 Guez made no other attempt to secure permission to appear telephonically.

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

resident of California, and he did not purposefully avail himself

of the privilege of conducting business in Hawai#i. "A trial court's determination to exercise personal jurisdiction is a question of law reviewable de novo when the underlying facts are undisputed." Shaw v. N. Am. Title Co., 76 Hawai#i 323, 326, 876 P.2d 1291, 1294 (1994) (citing Bourassa v. Desrochers, 938 F.2d 1056, 1057 (9th Cir. 1991)). Plaintiffs "need make only a prima facie showing that: (1) [defendant's] activities in Hawai #i fall into a category specified by Hawaii's long-arm statute, [Hawai #i Revised Statutes (HRS)] § 634–35; and (2) the application of HRS § 634–35 comports with due process." Id. at 327, 876 P.2d at 1295 (citing Cowan v. First Ins. Co. of Hawai #i, 61 Haw.

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

Related

International Shoe Co. v. Washington
326 U.S. 310 (Supreme Court, 1945)
World-Wide Volkswagen Corp. v. Woodson
444 U.S. 286 (Supreme Court, 1980)
Burger King Corp. v. Rudzewicz
471 U.S. 462 (Supreme Court, 1985)
Decker Coal Company v. Commonwealth Edison Company
805 F.2d 834 (Ninth Circuit, 1986)
Pacific Concrete Federal Credit Union v. Kauanoe
614 P.2d 936 (Hawaii Supreme Court, 1980)
Cowan v. First Ins. Co. of Hawaii, Ltd.
608 P.2d 394 (Hawaii Supreme Court, 1980)
Shaw v. North American Title Co.
876 P.2d 1291 (Hawaii Supreme Court, 1994)
United States v. Lieto
6 F. Supp. 32 (N.D. Texas, 1934)
County of Hawai'i v. C & J Coupe Family Ltd. Partnership
198 P.3d 615 (Hawaii Supreme Court, 2008)
Hawaii Community Federal Credit Union v. Keka
11 P.3d 1 (Hawaii Supreme Court, 2000)
Norris v. Six Flags Theme Parks, Inc.
74 P.3d 26 (Hawaii Supreme Court, 2003)
Ford Motor Co. v. Montana Eighth Judicial Dist.
592 U.S. 351 (Supreme Court, 2021)
Barranco v. 3D Systems Corp.
6 F. Supp. 3d 1068 (D. Hawaii, 2014)
BPI Development Group, L.C. v. Grange
181 F. Supp. 3d 604 (S.D. Iowa, 2016)
Impossible Foods Inc. v. Impossible X LLC
80 F.4th 1079 (Ninth Circuit, 2023)
Womble Bond Dickinson v. Kim
537 P.3d 1154 (Hawaii Supreme Court, 2023)

Cite This Page — Counsel Stack

Bluebook (online)
549 P.3d 341, 154 Haw. 256, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mckay-v-guez-hawapp-2024.