Justia Hawaii Supreme Court Opinion Summaries

Respondents, the Castro family, executed a mortgage encumbering their property that was assigned to Petitioner, U.S. Bank. When the Castros defaulted on their loan, U.S. Bank purchased the property at a foreclosure auction. Because the Castros failed to vacate the property as instructed, U.S. bank filed a two complaints for summary possession and ejectment against the Castros. The district court entered a judgment for possession and a writ of possession in favor of U.S. Bank and a separate order granting summary judgment for U.S. Bank. The intermediate court of appeals vacated the district court's judgment, concluding that the district court lacked jurisdiction over the case because the action was one in which title to real estate would come into question. The Supreme Court reversed, holding that the district court properly exercised subject matter jurisdiction over the case because the Castros failed to demonstrate the action was one in which title to the subject property would come into question. View "U.S. Bank Nat'l Ass'n v. Castro" on Justia Law

Plaintiffs granted Eastern Savings Bank, FSB (Eastern) a mortgage on property as security for a loan. Plaintiffs defaulted on the loan, and Eastern filed an action to foreclose the mortgage. The circuit court foreclosed on the mortgage, and a public auction was held to sell the property. Eastern purchased the property and filed a motion for confirmation of sale. Plaintiffs subsequently filed a complaint in the U.S. district court seeking a declaratory judgment that the promissory note and mortgage had been timely cancelled pursuant to the federal Trust-in-Lending Act (TILA). The circuit court took judicial notice of Plaintiffs' pending federal case but declined to stay confirmation of the foreclosure sale in the meantime. Thereafter, the circuit court concluded Plaintiffs' pending TILA case did not bar confirmation of the sale of the property, confirmed the sale of the property to Eastern, and entered a deficiency judgment against Plaintiffs. The Supreme Court affirmed, holding that res judicata principles prohibit a debtor from asserting TILA rescission rights after a foreclosure judgment has become final, despite the rescission attempt being held within the time limit provided by TILA. View "E. Savings Bank, FSB v. Esteban" on Justia Law