Nakata v. Nakata

641 P.2d 333, 3 Haw. App. 51, 1982 Haw. App. LEXIS 114
CourtHawaii Intermediate Court of Appeals
DecidedMarch 1, 1982
DocketNO. 7947
StatusPublished
Cited by10 cases

This text of 641 P.2d 333 (Nakata v. Nakata) 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
Nakata v. Nakata, 641 P.2d 333, 3 Haw. App. 51, 1982 Haw. App. LEXIS 114 (hawapp 1982).

Opinion

OPINION- OF THE COURT BY

BURNS, J.

Defendant-Appellant Paul T. Nakata (Paul) appeals the lower court’s refusal to enforce its consent decree so as to allow him to purchase the marital residence by paying 75% of its “net equity” value. We hold that the family court abused its discretion when it amended its consent decree, and we reverse.

Plaintiff-Appellee Linda Bow Kam Nakata (Linda) and Paul were married on September 22,1962. They have four children who, at the filing of the complaint, were ages 15, 13, 8, and 6.

*52 Linda filed her complaint for divorce on June 2, 1978. On August 24, 1978, Linda and Paul entered into a comprehensive Agreement Incident to and in Contemplation of Divorce (Agreement).

The Agreement called for Linda to be awarded custody and child support but no spousal support.

The Agreement also contained the following:

7. RESIDENTIAL PREMISES, 1257 ALA ALOALO STREET, HONOLULU, HAWAII. Wife shall have the exclusive right to possession and to occupy the residential premises located at 1257 Ala Aloalo Street, Honolulu, Hawaii until sale of the premises which sale shall be on the following terms:
“Net Equity” is defined hereinafter as $127,000.00 less the outstanding encumbrances less the costs of sale, if any, at time of payment.
Wife shall have six months in which to come up with payment of 25 % of the net equity in the residence based upon the appraisal of Larry Medeiros dated June 15, 1978, which appraisal is attached hereto and incorporated herein by reference as Exhibit “C” setting the Fair Market value of said residence at $127,000.00. That the Wife must make at least one-half of such payment in cash and the rest by way of a promissory note at 6% per annum interest, payable in five years.
That should wife sell either or both of her parcels of real estate on the island of Molokai within said 6 months, Husband will as a credit against payment of the 25% of the net equity by Wife accept 50% of the costs of such sale of Molokai real estate.
That should Wife be unable to come up with said 25% payment, it is agreed between the parties that the residence shall be listed with a broker to be mutually selected by the parties’ attorneys and the first offer received at or in excess of the Fair Market appraisal shall be accepted provided that such offer is by way of a cash purchase.
That either party to this action may purchase the residence at any time subsequent to the elapsing of six months from the date that this document is executed.
That in the event of a sale to a third party the net equity *53 shall be divided between the parties, seventy-five percent (75%) to the Wife and twenty-five percent (25%) to the Husband.

The record indicates that the residence was subject to a $40,000 mortgage payable at the rate of $440 per month.

A Decree Granting Absolute Divorce and Awarding Child Custody, filed on September 27, 1978, approved the Agreement and incorporated it by reference.

On April 16,1979, Paul moved for and caused the issuance of an Order to Show Cause After Decree because “[s]ix months have elapsed and [Linda] has not complied with the payoff provision in said agreement. [Paul] is now willing and able to purchase the residence and has offered to purchase the property pursuant to said agreement.”

The case was presented to the lower court via memos. Linda’s position was that although the Agreement did not specifically say so, it was always understood and agreed that her purchase was conditioned upon the sale of her Molokai property, that she did her best to sell the Molokai property and finally sold it but not before the six months expired, and that the court had the power to and should extend the six months to allow her to purchase the house upon the favorable terms stated in the decree.

Paul’s position was that Linda had six months to buy the premises but failed to do so and that he was now entitled to buy it by paying 75% of the “net equity” value.

On June 3, 1980, the lower court issued a Decision and Order as follows:

IT IS HEREBY ORDERED, ADJUDGED AND DECREED that:
A. Both parties shall forthwith obtain by mutual agreement a current appraisal of the residence at 1257 Ala Aloalo Street, Honolulu, Hawaii.
B. Upon obtaining such an appraisal, the parties shall forthwith determine the net equity as follows:
“Net equity” is defined hereinafter as agreed current appraisal less encumbrances less costs of sale.
C. Further, the plaintiff will be given credit for her mortgage payments, taxes, interest and fire insurance during the interim period, said figure for the credit, however, to be *54 increased proportionately to reflect the rate of the increase in the equity during the interim from the time of the previous order and not merely the actual dollar amount paid.
D. The plaintiff must make at least one half of such payment of the purchase price in cash and the rest by way of a promissory note at 6% per annum interest, payable in five years and the plaintiff must exercise this right to purchase within three months of this order.
E. Upon the plaintiffs failure to exercise the right to purchase within three months of this order, the defendant shall be afforded three months thereafter to purchase the aforedescribed property at the appraisal amount described in paragraph B above, provided that the defendant do so by cash purchase and provided further that the plaintiff be given the further credits as described in paragraph C above.
F. In the event that either party is unable to purchase the residential premises during the time indicated above, the parties shall immediately list said property with a broker to be mutually selected by the parties and the first offer received at or in excess of the appraisal shall be accepted provided that such offer is by way of a cash purchase.
G. In the event of a sale to a third party, the net equity shall be divided between the parties, seventy-five per cent (75%) to the plaintiff and twenty-five per cent (25%) to the defendant.

The stated basis for the lower court’s decision was:

Plaintiff failed to meet the six months deadline because of her inability to sell either one or both of her parcels of real property on the island of Molokai; the parties both anticipated and recognized in the Agreement that the plaintiffs ability to purchase the defendant’s interest in the marital residence at 1257 Ala Aloalo Street, Honolulu, Hawaii, was contingent upon the sale of the Molokai property; it does not appear that the failure to sell the Molokai property within the six months was wholly within the plaintiffs control, and that she acted at all times in other than good faith in attempting to sell said Molokai property.

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Bluebook (online)
641 P.2d 333, 3 Haw. App. 51, 1982 Haw. App. LEXIS 114, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nakata-v-nakata-hawapp-1982.