Tracy v. Choi & Ito

CourtHawaii Intermediate Court of Appeals
DecidedApril 2, 2025
DocketCAAP-21-0000488
StatusPublished

This text of Tracy v. Choi & Ito (Tracy v. Choi & Ito) 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
Tracy v. Choi & Ito, (hawapp 2025).

Opinion

NOT FOR PUBLICATION IN WEST'S HAWAIʻI REPORTS AND PACIFIC REPORTER

Electronically Filed Intermediate Court of Appeals CAAP-XX-XXXXXXX 02-APR-2025 08:44 AM Dkt. 45 SO

NO. CAAP-XX-XXXXXXX

IN THE INTERMEDIATE COURT OF APPEALS OF THE STATE OF HAWAI‘I

DAVID TRACY, as co-trustee of the TRACY TREVILLYAN REVOCABLE TRUST, and JANEEN TREVILLYAN, as co-trustee of the TRACY TREVILLYAN REVOCABLE TRUST, Plaintiffs-Appellants, v. CHOI & ITO, fka WAGNER, CHOI & VERBRUGGE, CHUCK C. CHOI, ALLISON A. ITO, Defendants-Appellees, and JOHN DOES 1-10, JANE DOES 1-10, DOE CORPORATIONS 1-10, and DOE ENTITIES 1-10, Defendants

APPEAL FROM THE CIRCUIT COURT OF THE FIRST CIRCUIT (CIVIL NO. 1CC181000894)

SUMMARY DISPOSITION ORDER (By: Leonard, Acting Chief Judge, Nakasone and McCullen, JJ.)

This appeal arises out of a grant of summary judgment on plaintiff's claims of legal malpractice against its former NOT FOR PUBLICATION IN WEST'S HAWAIʻI REPORTS AND PACIFIC REPORTER

law firm on statute of limitations grounds. We affirm in part and vacate in part. Plaintiffs-Appellants David Tracy (Tracy), as co- trustee of the Tracy Trevillyan Revocable Trust, and Janeen Trevillyan, as co-trustee of the Tracy Trevillyan Revocable Trust (collectively, Tracy Trust) appeal from the August 10, 2021 "Final Judgment," entered by the Circuit Court of the First Circuit (Circuit Court). 1 The Circuit Court granted two motions for partial summary judgment (MPSJs) filed by the Tracy Trust's former law firm, Choi & Ito, fka Wagner, Choi & Verbrugge, Chuck C. Choi, Allison A. Ito, John Does 1-10, Jane Does 1-10, Doe Corporations 1-10, and Doe Entities 1-10 (collectively, the Choi Firm), on the Tracy Trust's claims that the Choi Firm committed legal malpractice by (1) alleged excessive billing for legal work constituting a breach of the Choi Firm's fiduciary duty to the Tracy Trust (excessive billing claims), and (2) alleged negligent failure to investigate the availability of insurance for the defense of counterclaims against the Tracy Trust and alleged delayed tender of those claims to the insurer (delayed tender claims). The claims in this case arose out of the Choi Firm's 2007 to 2011 representation of the Tracy Trust in a 2007 foreclosure litigation in the Circuit Court of the Third Circuit, in which the Choi Firm sued multiple defendants on behalf of the Tracy Trust over a real estate transaction (2007 foreclosure litigation). The defendants in the 2007 foreclosure litigation asserted counterclaims against the Tracy Trust, which the Tracy Trust tendered to its multiple insurers. The delayed tender claims stem from the Tracy Trust's efforts to obtain a defense and reimbursement for the legal fees incurred from one

1 The Honorable Dean E. Ochiai presided.

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

of its insurers, 21st Century Insurance (21st Century or insurer). The excessive billing claims stem from the legal invoices the Choi Firm billed to the Tracy Trust during its representation of the Tracy Trust for the 2007 foreclosure litigation. On appeal, the Tracy Trust contends the Circuit Court erred by: (1) failing to apply the discovery rule and instead concluding the "statute of limitations for such claims accrues upon the termination of the representation between the lawyer and client" in granting both of the MPSJs; (2) granting the MPSJ on the excessive billing claims; (3) granting the MPSJ on the delayed tender claims; and (4) granting attorneys' fees and costs. 2 Upon careful review of the record and the briefs submitted by the parties and having given due consideration to the arguments advanced and the issues raised, we resolve the contentions as follows. On June 5, 2018, the Tracy Trust filed a Complaint against the Choi Firm alleging Breach of Fiduciary Duty (Count 1) for "billing the Trust unfair, unreasonable and unconscionable attorneys' fees and costs"; Professional Negligence (Count 2) for "failing to investigate, or advise the Trust to investigate, whether any insurance policies existed which might provide the Trust with a defense of . . . [c]ounterclaims"; and Unjust Enrichment (Count 3) for "invoices that contained excessive, unearned and unreasonable attorneys' fees and costs."

2 We have restated and reordered the Tracy Trust's points of error for clarity.

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MPSJ on excessive billing claims On August 23, 2020, the Choi Firm filed its MPSJ on the excessive billing claims, contending, inter alia, that assuming arguendo any billings were excessive, such claims were "time-barred" by the six-year statute of limitations in Hawaii Revised Statutes (HRS) § 657-1(1) 3 because the claims accrued when "Tracy Trust paid all of [the Choi Firm's] invoices months before the end of 2011." (Emphasis omitted.) In opposition, the Tracy Trust argued that "triable issues of fact exist[ed]" as to whether the Choi Firm was "estopped from asserting the statute of limitations defense" because the Tracy Trust "reasonably relied on [the Choi Firm's] agreement to delay an audit so they did not discover the excessive billings until a later date." The Tracy Trust further contended that "a question of fact exist[ed] as to when [the Tracy Trust] reasonably discovered or should have discovered" the Choi Firm's excessive billing and "unnecessary and wasteful legal services." The Choi Firm's reply pointed to legal authority that "the statute of limitations for claims involving legal billing begin[s] to run when a plaintiff receives the bill." (Italicization omitted.) MPSJ on delayed tender claims On September 15, 2020, the Choi Firm filed its MPSJ on the delayed tender claims, contending that these claims were also time-barred by the six-year statute of limitations under HRS § 657-1(1). The Choi Firm argued that the claims "accrued

3 HRS § 657-1 (2016), entitled "Six years," provides in pertinent part that the "following actions shall be commenced within six years next after the cause of action accrued, and not after: (1) Actions for the recovery of any debt founded upon any contract, obligation, or liability, excepting such as are brought upon the judgment or decree of a court[.]"

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Bluebook (online)
Tracy v. Choi & Ito, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tracy-v-choi-ito-hawapp-2025.