Title Guaranty Escrow Services, Inc. v. Mililani Town Association

Opinion

Electronically Filed Intermediate Court of Appeals CAAP-XX-XXXXXXX 11-OCT-2024 08:54 AM Dkt. 194 ORD

NO. CAAP-XX-XXXXXXX

IN THE INTERMEDIATE COURT OF APPEALS

OF THE STATE OF HAWAIʻI

TITLE GUARANTY ESCROW SERVICES, INC., Plaintiff-Appellee/ Cross-Appellee v. MILILANI TOWN ASSOCIATION, Defendant/Cross- Claim Plaintiff/Cross-Claim Defendant-Appellee/Cross-Appellant, and SVMM INVESTMENTS LLC, Defendant/Cross-Claim Defendant/ Cross-Claim Plaintiff-Appellee/Cross-Appellee, and MAXIMUM LEGAL SERVICES CORPORATION, as Successor Personal Representative of the Estate of Pauline Isaacs-Lean, Defendant/Cross-Claim Defendant-Appellant/Cross-Appellee, and FIRST HAWAIIAN BANK, Defendant/Cross-Claim Defendant- Appellee/Cross-Appellee, and DOE PERSONS AND ENTITIES 1-10, Defendants.

APPEAL FROM THE CIRCUIT COURT OF THE FIRST CIRCUIT (CIVIL NO. 15-1-1750)

ORDER (By: Wadsworth, Presiding Judge, McCullen, J., and Circuit Court Judge Nakamoto, in place of Leonard, Acting Chief Judge, Hiraoka and Nakasone, JJ., recused)

Upon consideration of Defendant/Cross-Claim Defendant-

Appellant/Cross-Appellee Maximum Legal Services Corporation's

(Max Corp) September 30, 2024 "Motion: (1) to Extend Time of Remand of this Matter to the Circuit Court for the Limited

Purpose of Determining Whether the Settlements are Good Faith

Settlements Pursuant to [Hawai‘i Revised Statutes (HRS)]

Chapter 663; and (2) to Extend the Stay of Entry of the Judgment

on Appeal," the papers in support, the record, and noting no

opposition it appears that:

(1) This court entered its memorandum opinion in this

case on April 17, 2024;

(2) On May 22, 2024, Max Corp moved this court to

refer this case to mediation and stay entry of judgment on

appeal to allow mediation;

(3) In late July 2024, Max Corp and SVMM Investments

LLC reached a settlement;

(4) On August 2, 2024, Max Corp moved to temporarily

remand this case to circuit court to determine whether there was

a good faith settlement in the case pursuant to HRS Chapter 663;

(5) On August 5, 2024, this court entered an order

granting Max Corp's request to postpone entry of judgment on

appeal for 60 days, requiring a motion to be filed detailing

"the status of mediation and any other efforts to resolve the

matter" if additional time was needed, and denying all other

requests in the motion;

(6) On September 10, 2024, this court entered an

order for temporary remand requiring the circuit court to hold a

2 hearing within 30 days to determine if there was a good faith

settlement and enter findings and file a supplemental record on

appeal within 35 days;

(7) The order for temporary remand also stated

jurisdiction would revert to this court upon the filing of the

supplemental record on appeal, and if a party moved to extend

the temporary remand period their motion must explain why they

were requesting the extension, and indicate the amount of time

needed to decide the settlement issue;

(8) On September 10, 2024, Max Corp and Mililani Town

Association reached a settlement;

(9) On September 30, 2024, Max Corp filed its Motion

requesting this court extend the temporary remand period to

allow the circuit court to determine whether the settlement

between it and Association is a good faith settlement, extend

the stay of the entry of judgment on appeal, and enter an order

allowing the parties to dismiss the appeal;

(10) Max Corp filed copies of "Confidential Settlement

Term Sheet[s]" for each settlement as appendices to its Motion,

noting each settlement is "conditioned on: (1) the Circuit Court

finding and determining that the settlement is a good faith

settlement pursuant to [HRS] Chapter 663[,] and the Probate

Court approving the two settlements";

3 (11) On October 8, 2024, Max Corp filed a supplemental

declaration of counsel noting Max Corp was preparing a motion

for approval of both settlements which it intended to file in

the probate court and filed a "Confidential Settlement Term

Sheet" signed by it and Association as an exhibit to the

supplemental declaration of counsel;

(12) Hawai‘i Rules of Appellate Procedure (HRAP)

Rule 36 requires that an appellate court rendering a decision in

an appeal, "shall prepare and submit to the appellate clerk for

filing the judgment on appeal" after a "final decision, other

than an order of dismissal, has been filed in an appeal";

(13) This court "may suspend the requirements or

provisions of any of these rules in a particular case on

application of a party . . . and may order proceedings in

accordance with its direction[,]" for good cause shown following

HRAP Rule 2; and

(14) As the Motion detailed the status of mediation in

the case and noted the efforts used to "resolve the matter"

following this court's previous orders in this case, and the law

favors settlements and their finality, Max Corp demonstrated

good cause for suspending requirements outlined in the appellate

4 rules, see HRAP Rule 2, Dowsett v. Cashman, 2 Haw. App. 77, 82,

625 P.2d 1064, 1068 (1981);

Therefore, IT IS ORDERED as follows:

(1) The request for an extension of time to allow the

circuit court to determine whether the settlement between Max

Corp and Association was made in good faith and to allow Max

Corp to file a petition in probate court to obtain an order from

the probate court approving the settlement between Max Corp and

SVMM and Max Corp and Association, is granted for a period of

thirty (30) days from the date of this order;

(2) Within thirty-five (35) days from the date of

this order, the circuit court clerk shall file in this court a

supplemental record on appeal that includes the circuit court's

determination regarding the issue set forth in paragraph 1;

(3) Within thirty-five (35) days from the date of

this order, the circuit court clerk shall also file a copy of

the probate court's order in this case regarding the issue set

forth in paragraph 1, provided a petition to obtain an order

approving the settlements as set forth in paragraph 1 has been

filed in probate court;

(4) Jurisdiction shall automatically revert to this

court thirty-six days from the date of this order;

(5) In the event the circuit court and/or probate

court are unable to enter the order approving the settlements as

5 set forth above, the circuit court clerk, shall file a notice in

this case providing an explanation;

(6) In the event any party desires to extend the

temporary remand period the party may file a motion to extend,

which shall explain the reasons for the requested extension that

is supported by declarations as appropriate;

(7) The appellate clerk shall serve a copy of this

order on the circuit court clerk who shall provide a copy to the

presiding circuit court judge and probate court judge,

respectively;

(8) The request to extend the stay of the entry of

the judgment on appeal is granted from October 4, 2024 until

forty (40) days from the date of this order; and

(9) All other requests are denied.

DATED: Honolulu, Hawai‘i, October 11, 2024.

/s/ Clyde J. Wadsworth Presiding Judge

/s/ Sonja M.P. McCullen Associate Judge

/s/ Henry T. Nakamoto Circuit Court Judge