Source: http://legalblog.hawaii-attorney.net/category/civil-procedure-and-trial-practice/
Timestamp: 2013-12-09 15:48:38
Document Index: 124743753

Matched Legal Cases: ['§ 634', '§ 634', '§ 480', '§ 480', '§ 480', '§ 480', '§ 480', '§ 480', '§ 480', '§ 480', '§ 480', '§ 480', '§ 480', '§ 480']

Civil Procedure and Trial Practice - Hawaii Attorney Blog
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In Hawaii, a Notice of Pendency of Action, or Lis Pendens, is a written notice, filed in the Bureau of Conveyances, stating that there is a pending lawsuit regarding the ownership of that specific real property. Although seemingly simple, a Notice of Pendency of Action is an enormous encumbrance on a piece of property, and should be used sparingly. In fact, once the lis pendens is filed, the property becomes nearly impossible to transfer because a buyer will not purchase property whose title is in question. HRS § 634–51, which authorizes a Notice of Pendency of Action provides as follows:
Recording notice of pendency of action. In any action concerning real property or affecting title or the right of possession of real property, the plaintiff, at the time of filing the complaint, and any other party at the time of filing a pleading in which affirmative relief is claimed, or at any time afterwards, may record in the bureau of conveyances a notice of the pendency of the action, containing the names or designations of the parties, as set out in the summons or pleading, the object of the action or claim for affirmative relief, and a description of the property affected thereby. From and after the time of recording the notice, a person who becomes a purchaser or incumbrancer of the property affected shall be deemed to have constructive notice of the pendency of the action and be bound by any judgment entered therein if the person claims through a party to the action; provided that in the case of registered land, section 501–151 shall govern.
The Notice of Pendency of Action had such a potential for litigation abuse that in 1994, the Hawaii Supreme Court in S. Utsunomiya Enterprises, Inc. v. Moomuku Country Club, 75 Haw. 480, 866 P.2d 951 (Hawaii 1994), clarified the limited use of the NOPA. In Utsunomiya, the Hawaii Supreme Court wrote that “a lis pendens may only be filed in connection with an action (1) ‘concerning real property,’ (2) ‘affecting title’ to real property, or (3) ‘affecting … the right of possession of real property.’” (quoting Kaapu v. Aloha Tower Dev. Corp., 72 Haw. 267, 269–70, 814 P.2d 396, 397 (1991) (citing HRS § 634–51)). Furthermore, the Court stated that, “a]lthough the lis pendens doctrine may be applied to actions other than foreclosures, application of the doctrine must be restricted ‘in order to avoid its abuse.’” Utsunomiya, 75 Haw. at 513. Finally, the court held that “the lis pendens statute must be strictly construed and … the application of lis pendens should be limited to actions directly seeking to obtain title to or possession of real property.” Id. at 510.
Tags: Big Island Lawyer, H.R.S. 634-51, Hawaii, Hawaii Lawyer, Hawaii Real Estate Litigation, Hawaii Real Estate Litigator, Honolulu Lawyer, Kauai Lawyer, Lis Pendens, Maui Lawyer, Notice of Pendency of Action, real estate litigation, S. Utsunomiya Enterprises v. Moomuku Country Club Posted in Civil Procedure and Trial Practice, Hawaii Real Estate Litigation | Comments Off
Consumers injured by deceptive marketing materials have recourse in the State of Hawaii. We have previously written concerning the Hawaii Unfair and Deceptive Trade Practices Act. H.R.S. § 480-2 H.R.S. § 480-2 is a powerful tool to protect consumers and investors from advertisers whose marketing materials have a “tendency to mislead.” Under H.R.S. § 480-2, an injured “investor or consumer” may be awarded treble damages, costs, and attorney’s fees under H.R.S. § 480-13. The Hawaii Supreme Court has upheld this statute in multiple opinions. The United States Court of Appeals for the Ninth Circuit has also written an important opinion applying H.R.S. § 480-2 in the federal courts. Yokoyama v. Midland Nat’l Life Insurance Co., 594 F.3d 1087 (9th Cir. 2010). In Yokoyama, the Court affirmed that a person alleging a H.R.S. § 480-2 claim need not show that they were actually deceived. Rather, the § 480-2 claimant need only establish that the advertising material in question had “the capacity to deceive.” Yokoyama at 1093. The facts of Yokoyama illustrate the power of the Act. In Yokoyama, the plaintiffs were a group of senior citizens living in Hawaii. Yokoyama v. Midland Nat’l Life Insurance Co., 243 F.R.D. 400, 401 (D. Hawaii 2007). Each purchased annuities sold by Midland National Life Insurance. Id. The plaintiffs did not purchase the annuities directly from Midland, but rather each plaintiff bought their annuities from an independent broker. Id. at 403 The independent brokers were required to give a prospective purchaser a brochure created by Midland prior to selling the annuity. Id. Additionally, the independent brokers were allowed to “discuss, promote, or disparage” the annuities, as long as they were truthful. Id. The buyers claimed that the brochures provided by Midland, but given to them by the independent brokers, were deceptive. Id.
The plaintiffs then brought a § 480-2 claim against Midland and asked the Court to certify their action as a class action. Yokoyama, 243 F.R.D. at 405. The District Court denied certification. Id. It reasoned that because each plaintiff was counseled by independent brokers, the individual plaintiffs would each have a different understanding of Midland’s brochure – some plaintiffs might not have even been deceived. Id. Thus, it determined that class certification would not properly serve the plaintiffs. Id.
The Ninth Circuit disagreed. On appeal, the Ninth Circuit determined that the District Court erred when it, in essence, required the plaintiffs to show that Midland’s brochure actually deceived them in order to state an H.R.S. § 480-2 claim. Yokoyama v. Midland Nat’l Life Insurance Co., 594 F.3d 1087, 1092 (9th Cir. 2010). Relying on Hawaii authority, the Ninth Circuit determined that a H.R.S. § 480-2 claim does not require that the plaintiff to actually be deceived. Id. The question is whether the brochure had “the capacity to deceive.” Id. The Ninth Circuit reversed the District Court’s decision and remanded for further proceedings. Id. at 1093.
The Yokoyama case is a strong affirmation of Hawaii law and the Hawaii courts’ interpretation of H.R.S. § 480-2. Both the Federal and State courts are clear. A plaintiff does not need to demonstrate that they were actually deceived in order to sustain an H.R.S. § 480-2 claim – only that the marketing materials in question have the “capacity to deceive.”
Tags: 9th Circuit, Consumer rights, consumer rights Hawaii, Deceptive advertising Hawaii, Deceptive practices Hawaii, false advertising Hawaii, false advertising Honolulu, Hawaii, Hawaii civil procedure, Hawaii commercial litigation, Hawaii Lawyer, Hawaii Unfair and Deceptive Trade Practices Act, Honolulu consumer law, Honolulu Lawyer, HRS 480-2, investor law Honolulu, investor rights Hawaii, Kauai Lawyer, Maui Lawyer, Oahu, Yokoyama Posted in Civil Procedure and Trial Practice, Commercial Litigation | Leave a Comment »