Property Center, Inc. v. Sudaria

153 Haw. 249
CourtHawaii Intermediate Court of Appeals
DecidedJune 26, 2023
DocketCAAP-18-0000045
StatusPublished

This text of 153 Haw. 249 (Property Center, Inc. v. Sudaria) 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
Property Center, Inc. v. Sudaria, 153 Haw. 249 (hawapp 2023).

Opinion

NOT FOR PUBLICATION IN WEST'S HAWAI‘I REPORTS AND PACIFIC REPORTER

Electronically Filed Intermediate Court of Appeals CAAP-XX-XXXXXXX 26-JUN-2023 08:46 AM Dkt. 83 MO

NO. CAAP-XX-XXXXXXX

IN THE INTERMEDIATE COURT OF APPEALS

OF THE STATE OF HAWAI‘I

PROPERTY CENTER, INC., Managing Agent, Plaintiff-Appellee, v. JR SUDARIA and SCOTTY GEDDINGS, Defendants-Appellants.

APPEAL FROM THE DISTRICT COURT OF THE FIRST CIRCUIT HONOLULU DIVISION (CIVIL CASE NO. 1RC17-1-04580)

MEMORANDUM OPINION (By: Ginoza, Chief Judge, Nakasone and McCullen, JJ.)

Defendants-Appellants JR Sudaria and Scotty Geddings

appeal from the District Court of the First Circuit, Honolulu

Division, Regular Claims' (1) December 26, 2017 Denial of

Defendants' Motion to Set Aside Default Judgment and Stay of

Garnishment and (2) January 29, 2018 Order Denying Defendants'

Motion to Set Aside Default, Judgment and Stay Garnishment

(Filed December 8, 2017). 1

1 The Honorable James C. McWhinnie presided. NOT FOR PUBLICATION IN WEST'S HAWAIʻI REPORTS AND PACIFIC REPORTER

On appeal, Sudaria and Geddings contend that the

default judgment was void under Hawai‘i District Court Rules of

Civil Procedure (DCRCP) Rule 60(b)(4). Sudaria and Geddings

argue that they were deprived of due process, DCRCP Rule 55 was

not satisfied, and they met the requirements under BDM, Inc. v.

Sageco, Inc., 57 Haw. 73, 76-77, 549 P.2d 1147, 1150 (1976). 2

For all of these arguments, Sudaria and Geddings primarily rely

on the assertion that notice was improper. For the reasons

discussed below, we vacate and remand.

I. BACKGROUND

A. Small Claims Case – Geddings et al. v. Pirslin (Return of Security Deposit)

Before the complaint in the case underlying this

appeal was filed, Sudaria and Geddings (self-represented) filed

a complaint on May 30, 2017 in the District Court of the First

2Sudaria and Geddings also assert that (1) DCRCP Rule 55 was not satisfied because there was no supporting affidavit, the complaint was not verified, "and no one appeared at the hearing" to request a default; and (2) Plaintiff-Appellee Property Center, Inc. (Property Center) lacked standing because it was not a real party in interest. However, these points were not raised in their motion to set aside and, thus, we consider these points waived. See Ass'n of Apartment Owners of Wailea Elua v. Wailea Resort Co., 100 Hawai‘i 97, 107, 58 P.3d 608, 618 (2002) ("Legal issues not raised in the trial court are ordinarily deemed waived on appeal"); Lagondino v. Maldonado, 7 Haw. App. 591, 596, 789 P.2d 1129, 1132-33 (1990) (explaining that "a real party in interest objection raised for the first time on appeal is untimely").

2 NOT FOR PUBLICATION IN WEST'S HAWAIʻI REPORTS AND PACIFIC REPORTER

Circuit, Small Claims for return of their security deposit from

their former landlord Snezana Pirslin (Pirslin). 3

During the August 23, 2017 hearing on the Small Claims

matter, Geddings and Sudaria were present, along with Pirslin's

property managers, Lynn and Malcolm Shiroma, at District Court

in courtroom 10B at 1:36 p.m. 4 The court minutes stated,

MRS SHIROMA REPRESENTED THAT SHE AND MR SHIROMA REPRESENT SNEZANA PIRSLIN AND THAT THERE IS A DAMAGES CLAIM AGAINST PLTFFS SET ON 9/5/17 10B. BY ORDER OF THE COURT, CASE CONTINUED FOR STATUS TO 10/25/17 10B 1:30 PM. REMINDER NOTICE PROVIDED TO PARTIES. MRS SHIROMA REQUESTS THAT THE DEFENDANT BE AMENDED TO PROPERTY CENTER INC; DENIED.

(Emphasis added.)

As stated in the court minutes, the Small Claims court

continued the Small Claims case to October 25, 2017 "for status"

and denied Lynn Shiroma's request that "Defendant be amended to

Property Center, Inc." (Formatting altered.)

B. Regular Claims Case - Property Center v. Sudaria et al. (Assumpsit-Money Owed)

On July 17, 2017, while the Small Claims case was

pending, Property Center (represented by counsel), filed a

"Complaint (Assumpsit-Money Owed); Declaration; Exhibit(s);

Summons" in Regular Claims court. (Formatting altered.) In the

3 We take judicial notice of this Small Claims case, Case Number 1SC17- 1-001105. See Roxas v. Marcos, 89 Hawai‘i 91, 110 n.9, 969 P.2d 1209, 1228 n.9 (1998) (explaining that "courts have generally recognized that they may, in appropriate circumstances, take notice of proceedings in other courts, both within and without their judicial system, if those proceedings have a direct relation to the matter at issue") (citations and brackets omitted).

4 The Honorable Hilary B. Gangnes presided.

3 NOT FOR PUBLICATION IN WEST'S HAWAIʻI REPORTS AND PACIFIC REPORTER

Complaint, Property Center asked for judgment in the principal

amount of $8,289.65. Attached to the Complaint were the

following:

(1) A copy of the rental agreement;

(2) A revised tenant ledger showing $8,289.65 owed to

Property Center ($1,950.00 in rental and late

fees, $7,814.65 in repairs, and $75.00 for

security key and garage opener replacements, less

$1,550.00 security deposit) plus attorney's fees

and costs;

(3) An invoice from PLS Builders showing repair work

totaling $7,814.65; and

(4) A two-page summons.

The first page of the summons required the defendant

to appear, stating:

"IF YOU OR YOUR ATTORNEY FAIL TO ATTEND THE COURT HEARING AT THE TIME AND PLACE DESIGNATED, DEFAULT AND DEFAULT JUDMGENT WILL BE TAKEN AGAINST YOU FOR THE RELIEF DEMANDED IN THE COMPLAINT."

(Formatting altered.) The second page of the summons identified

the location as "Honolulu Division, 1111 Alakea Street, 10th

floor Courtroom 10A or 10B" and the time as "1:30 p.m. on the

second Monday following date of service[.]"

The return of service stated that the "Complaint

(Assumpsit, Summary Possession/Landlord-Tenant, Damages;)

4 NOT FOR PUBLICATION IN WEST'S HAWAIʻI REPORTS AND PACIFIC REPORTER

Declaration Exhibits(s)" were served on Sudaria and Geddings

personally on August 23, 2017, 1:04 p.m. at "1111 Alakea Street

10th Floor Honolulu, Hawaii 96813[,]" which was the same day and

place as the hearing in the Small Claims case. (Formatting

altered.)

On September 5, 2017, the day after the second Monday

following the service of the Complaint, the court minutes show

that neither party appeared, and the Regular Claims court

entered default against Sudaria and Geddings:

"ATTY RICHARD YANAGI NOT PRESENT FOR PLTFF PROPERTY CENTER . . . . DEFTS JR SUDARIA AND SCOTTY GEDDINGS NOT PRESENT, BY ORDER OF THE COURT, DEFAULT ENTERED-VERIFIED."

In late September 2017, Property Center filed an "Ex

Parte Motion for Default Judgment; Declaration; Exhibit(s)

1 through 5; Declaration of Counsel re: Attorney's Fees; Order." 5

(Formatting altered.) On September 28, 2017, the Regular Claims

court granted the Ex Parte Motion for Default Judgment, awarding

the principal amount of $8,289.65 requested in the Complaint

plus $1,000.00 in attorney's fees and costs, for a total of

$9,289.65. The Regular Claims court entered a default judgment

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153 Haw. 249, Counsel Stack Legal Research, https://law.counselstack.com/opinion/property-center-inc-v-sudaria-hawapp-2023.