PJ Visionary PTE. LTD. v. Five Senses LLC.

CourtHawaii Intermediate Court of Appeals
DecidedApril 24, 2025
DocketCAAP-22-0000033
StatusPublished

This text of PJ Visionary PTE. LTD. v. Five Senses LLC. (PJ Visionary PTE. LTD. v. Five Senses LLC.) 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
PJ Visionary PTE. LTD. v. Five Senses LLC., (hawapp 2025).

Opinion

FOR PUBLICATION IN WEST'S HAWAI‘I REPORTS AND PACIFIC REPORTER

Electronically Filed Intermediate Court of Appeals CAAP-XX-XXXXXXX 24-APR-2025 07:47 AM Dkt. 75 OP

IN THE INTERMEDIATE COURT OF APPEALS

OF THE STATE OF HAWAI‘I

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PJ VISIONARY PTE. LTD., Plaintiff-Appellant/Cross-Appellee, v. FIVE SENSES LLC, FIVE SENSES RESTAURANT LLC, FIVE SENSES CAFÉ LLC, Defendants-Appellees/Cross-Appellees, and JN GROUP, INC., Defendant-Appellee/Cross-Appellant, and JOHN DOES 1-50, JANE DOES 1-50, DOE PARTNERSHIPS 1-50, DOE CORPORATIONS 1-50, DOE ENTITIES 1-50, and DOE GOVERNMENTAL UNITS 1-50, Defendants

NO. CAAP-XX-XXXXXXX

APPEAL FROM THE CIRCUIT COURT OF THE FIRST CIRCUIT (CIVIL NO. 1CCV-XX-XXXXXXX)

APRIL 24, 2025

LEONARD, ACTING CHIEF JUDGE, NAKASONE AND MCCULLEN, JJ. FOR PUBLICATION IN WEST'S HAWAI‘I REPORTS AND PACIFIC REPORTER

OPINION OF THE COURT BY NAKASONE, J.

This appeal concerns the application of Hawai‘i law regarding the identification of the debtor in UCC-1 financing statements. Plaintiff-Appellant/Cross-Appellee PJ Visionary PTE. Ltd. (PJ Visionary) appeals from the January 19, 2022 "Final Judgment" entered in favor of Defendant-Appellee/Cross-Appellant JN Group, Inc. (JN Group); June 2, 2021 "Inclination"; June 10, 2021 "Order Denying [PJ Visionary]'s Motion for Summary Judgment" (Order Denying MSJ); and June 10, 2021 "Order Granting [JN Group]'s Motion for Partial Summary Judgment" (Order Granting MPSJ), all filed and entered by the Circuit Court of the First Circuit (Circuit Court).1 On appeal, PJ Visionary contends the Circuit Court "erred in concluding as a matter of law that [JN Group]'s financing statement had priority over [PJ Visionary]'s [f]inancing [s]tatement." JN Group cross-appeals from the Circuit Court's July 6, 2021 "Order Denying [JN Group]'s Request for an Award of Attorneys' Fees" (Order Denying Attorneys' Fees), and contends the Circuit Court abused its discretion by denying its attorneys' fees. We hold that PJ Visionary's financing statement identifying the parent company, Five Senses LLC, as debtor, perfected its security in collateral belonging to Five Senses LLC; and PJ Visionary's financing statement did not perfect a security interest in the collateral of Five Senses LLC's subsidiaries, Five Senses Restaurant LLC (Restaurant LLC) and

1 The Honorable Jeffrey P. Crabtree presided.

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Five Senses Café LLC (Café LLC). We affirm both the grant of summary judgment and the denial of JN Group's attorneys' fees. I. BACKGROUND The following background is from the record of the parties' cross-motions for summary judgment. JN Group's 2016 lease with Restaurant LLC and Café LLC On March 31, 2016, JN Group executed separate leases with Restaurant LLC and Café LLC for the use of commercial space in the building located at 888 Kapiolani Boulevard in Honolulu (Leases). The Leases provided JN Group with a security interest in "all goods, inventory, equipment, fixtures, furniture, improvements, and other personal property [(FFE)] of [Café and Restaurant] presently situated, or which may in the future be situated . . . and all proceeds from such property" (collectively, collateral). JN Group did not file a UCC-1 financing statement contemporaneously or near the March 31, 2016 date of the Leases. PJ Visionary's 2018 loan to Five Senses LLC On January 30, 2018, PJ Visionary and Five Senses LLC executed an $800,000 loan agreement, with Five Senses LLC as the borrower. PJ Visionary's 1/29/18 financing statement PJ Visionary recorded a January 29, 2018 UCC-1 financing statement the day before the loan execution, reflecting itself as the secured party and "Five Senses LLC" as the debtor. This financing statement identified the collateral as the FFE "of the Borrower now and hereafter placed upon the premises located at 888 Kapiolani Boulevard, Space No. 101 and 102, Honolulu, Hawaii."

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JN Group's 7/23/18 financing statement On July 23, 2018, JN Group recorded a UCC-1 financing statement that listed Restaurant LLC and Café LLC as the debtors, and itself as the secured party. JN Group's financing statement identified the collateral as the FFE "of Tenant (Café LLC and Restaurant LLC) presently situated, or which may in the future be situated, on the Premises (Space Nos. 201[2] and 102 within the Commercial Unit located at 888 Kapiolani Boulevard, Honolulu, Hawaii 96813)[.]" (Footnote added.) 2019 default on PJ Visionary's loan According to PJ Visionary's complaint in this case, on February 1, 2019, the amounts became due, and Five Senses LLC failed to make payment. 2020 default on JN Group's lease On May 1, 2020, Restaurant LLC and Café LLC defaulted on the Leases with JN Group. Current proceeding On December 7, 2020, PJ Visionary filed a Complaint against Five Senses LLC and JN Group, alleging that: Five Senses LLC breached the loan agreement (Count 1); foreclosure of PJ Visionary's security interest in the collateral (Count 2); PJ Visionary's right to priority over JN Group in the collateral (Count 3); and conversion of the collateral by JN Group (Count 4). On April 23, 2021, JN Group filed its MPSJ on Counts 2, 3, and 4, contending that: PJ Visionary "does not hold a perfected security interest in the collateral" owned by Restaurant LLC or Café LLC; PJ Visionary's financing statement "does not establish a security interest against the assets of

2 The record reflects that Restaurant's lease was amended to designate "the Premises" as "Space No. 201" even though "[t]he location of the Premises ha[d] not changed[.]"

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Five Senses LLC's subsidiaries"; and PJ Visionary's financing statement "is seriously misleading and thus, not perfected, if its intent was to provide [PJ Visionary] with a security interest against the assets of Five Senses LLC's subsidiaries." On May 26, 2021, PJ Visionary filed an opposition, arguing that it "holds a perfected security interest" in the FFE "placed and used at 888 Kapiolani Blvd. Suites 101 and 201 (formerly 102)." PJ Visionary further contended that its financing statement was not seriously misleading because: JN Group "had knowledge that Five Senses LLC was the parent company of [Restaurant LLC] and [Café LLC]"; if JN Group "searched the financing statement filings at the Bureau of Conveyances, it would have found that Five Senses LLC had granted a security interest in the [FFE] situated at 888 Kapiolani Blvd"; and "[a]ssuming arguendo that [PJ Visionary]'s filing was deficient in that the words 'restaurant' and 'café' were not included with the words 'Five Senses' in the name of the debtor, the missing words were not fatal to [PJ Visionary]'s priority position." On April 26, 2021, PJ Visionary filed its MSJ, arguing that its "UCC-1 financing statement has priority," to which JN Group filed a May 26, 2021 opposition, and PJ Visionary filed a May 28, 2021 reply. PJ Visionary's MSJ argued that "Five Senses LLC is the holding company for [Restaurant LLC] and [Café LLC]"; and pointed to similarities between the three LLCs -- that they were formed on the same date, shared the same officers and directors, and Five Senses LLC provided funding for Restaurant LLC and Café LLC. At the June 3, 2021 hearing on the cross-motions, the Circuit Court orally granted JN Group's MPSJ and denied PJ Visionary's MSJ, stating: "naming the parent in a financing

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Bluebook (online)
PJ Visionary PTE. LTD. v. Five Senses LLC., Counsel Stack Legal Research, https://law.counselstack.com/opinion/pj-visionary-pte-ltd-v-five-senses-llc-hawapp-2025.