Nishitani v. Baker

921 P.2d 1182, 82 Haw. 281, 1996 Haw. App. LEXIS 76
CourtHawaii Intermediate Court of Appeals
DecidedJune 28, 1996
Docket16372
StatusPublished
Cited by18 cases

This text of 921 P.2d 1182 (Nishitani v. Baker) 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
Nishitani v. Baker, 921 P.2d 1182, 82 Haw. 281, 1996 Haw. App. LEXIS 76 (hawapp 1996).

Opinion

WATANABE, Judge.

In this foreclosure action, Defendants-Appellants Frederick Hering Kekaulike Baker, Jr., also known as Pali Kekaulike Wong, and Haunani Young-Baker, also known as Yvonne Haunani Wong, husband and wife (collectively,' Defendants), appeal from the Third Circuit Court’s July 7, 1992 Order Approving Report of Commissioner, Confirming Sale of Real Property at Public Auction, and Directing Distribution of Proceeds (July 7, 1992 Order), in favor of Plaintiff-Appellee Sam Nishitani (Plaintiff), Personal Representative Under the Will and of the Estate of Walter John MacLean (MacLean), 1 deceased.

We affirm.

I. BACKGROUND

A. Facts

This dispute involves several parcels of real property located in the Puna district on the island of Hawaii.

*284 On August 80, 1984, Defendants borrowed $21,000 from MacLean. In return, Defendants, jointly and severally, executed and delivered to MacLean a $21,000 promissory note (1984 note), which required them to repay the loan, plus interest at a rate of ten percent per annum, in monthly installments of $172.60, beginning on September 30, 1984. The note provided that if, after five years from the due date of the first payment, Defendants still owed principal and/or interest under the note, they were liable for the full amount outstanding on that date. To secure the note, Defendants executed a purchase money mortgage (1984 mortgage) on a three-acre parcel of land they owned in Keahialaka, Puna, creating a lien on the property pursuant to Hawaii Revised Statutes (HRS) chapter 506, 2 in favor of MacLean. The mortgage was recorded at the State of Hawaii Bureau of Conveyances (the Bureau of Conveyances).

On March 19, 1985, Defendants borrowed an additional $6,250 from MacLean and jointly and severally executed a promissory note (1985 note) for this loan with an interest rate of eleven percent per annum. Under the terms of the note, monthly payments of $135.90 were to begin on May 19, 1985, and Defendants were liable for the full amount outstanding after five years. To secure the note, Defendants executed purchase money mortgages (1985 mortgages) on two parcels of land they owned in Waiakahiula, Puna, again creating liens on the property in favor of MacLean. Both mortgages were recorded at the Bureau of Conveyances.

MacLean died on March 2, 1989 in King County, Washington. As of that date, Defendants had not paid any amounts owed on either the 1984 or 1985 promissory notes.

Plaintiff, as MacLean’s personal representative, attempted to collect on the promissory notes after MacLean’s death. After this attempt failed, Plaintiff brought a foreclosure action against Defendants and Ke‘opi‘o O Puna, 3 a nonprofit organization that claimed an interest in the subject property arising from a lease agreement. 4 Ke‘opi‘o O Puna faded to answer Plaintiffs complaint, and Plaintiff obtained an entry of default against the organization on October 23,1991.

In the meantime, Plaintiff filed a motion for summary judgment and interlocutory decree of foreclosure, which the court denied on February 20,1991. Plaintiff again moved for summary judgment and interlocutory decree of foreclosure on September 17, 1991. A hearing on the motion was held on October 3, 1991, at which Defendants and Ke‘opi‘o O Puna failed to appear. On November 22, 1991, the court issued its Findings of Fact, Conclusions of Law, Order Granting Motion for Summary Judgment and for Interlocutory Decree of Foreclosure (summary judgment order), in favor of Plaintiff and against Defendants.

As to the 1984 note, the court found that Defendants were in default and Plaintiff was *285 entitled to enforce the note, 5 with amounts due and owing to Plaintiff as follows:

Principal balance $21,000.00
Accrued interest 14,794.75
(from 9/30/84 to 10/18/91)
Late charges 2,110.77
(from 2/28/85 to 10/18/91)
TOTAL: $37,905.52

The court also found that Defendants were responsible for interest on the principal amount, which was continuing to accrue at the rate of $5.75 per day, in addition to other charges, costs, taxes, insurance, and attorney fees.

In regard to the 1985 note, the court found that (1) the 1985 mortgages on the Waiakahi-ula properties were valid first mortgages and liens belonging to MacLean’s estate; (2) Defendants were in default under the terms of the note; and (3) Plaintiff was entitled to foreclose on the 1985 mortgages. The court found that the amounts due and owing to Plaintiff under the 1985 note were as follows:

Principal balance $ 6,250.00
Accrued Interest 4,526.04
(from 3/19/85 to 10/18/91)
Late charges 1,046.43
(from 5/19/85 to 10/18/91)
TOTAL: $11,822.47

In addition, the court found that Defendants were responsible for interest on the principal amount, which was continuing to accrue at the rate of $1.88 per day, in addition to other charges, costs, taxes, insurance, and attorney fees.

Finally, the court found that Plaintiff had the right to terminate the lease contract between Defendants and Ke'opi'o O Puna.

The court concluded that Plaintiff was entitled to summary judgment as to the issues of liability and damages, and authorized and directed the court-appointed Commissioner to take possession of the Waiakahiula properties, collect rent, publish notice of foreclosure, and sell the property at public auction.

B. Procedural History

On December 26,1991, Defendants appealed the summary judgment order (Appeal No. 15821), but the Hawaii. Supreme Court dismissed the appeal for lack of jurisdiction because final judgment had not been entered as to Ke‘opi‘o O Puna, and the summary judgment order being appealed from had not been certified as a final judgment pursuant to Hawaii Rules of Civil Procedure (HRCP) Rule 54(b).

On April 8,1992, Defendants filed a second appeal (Appeal No. 16040), this time from the circuit court’s Order on Commissioner’s Motion for Instructions, filed March 10, 1992. 6 Plaintiff again moved to dismiss the appeal. The supreme court granted the motion to dismiss, stating that (1) Defendants had appealed an interlocutory order without proper leave of court; (2) final judgment had not been entered against Ke‘opi‘o O Puna; and (3) judgment against Defendants had not been certified pursuant to HRCP Rule 54(b).

On April 14, 1992, K.

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Bluebook (online)
921 P.2d 1182, 82 Haw. 281, 1996 Haw. App. LEXIS 76, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nishitani-v-baker-hawapp-1996.