Opinion ID: 1190415
Heading Depth: 2
Heading Rank: 3

Heading: Trial Court's Final Judgment

Text: Amfac contends that the trial court's FOF Nos. 27, 29, 30, 31, 32, and 35 are clearly erroneous. In substance, these FOFs found that Amfac, represented by Fujikawa, and WBIC, represented by Kaneshige and Chun, jointly participated in a meeting with Saunders prior to January 31, 1985. At this meeting, as a condition of the Group's execution of a sewer easement, Saunders required a lump sum payment equal to a proportionate share of the Group's leasehold rental obligation to WDC and Queens from 1980 to that time, together with an assumption of a like proportionate share of the Group's future leasehold obligations through the life of the Group's leasehold estate. (FOF No. 30.) Amfac argues that these FOFs are clearly erroneous because the trial testimony of Amfac's Tom, Hiatt, and Fujikawa, and the corroborating testimony of Saunders, substantially support the fact that no meeting took place among Amfac, WBIC, and Saunders before WBIC's January 31, 1985 purchase of the WBH. WBIC counters that the five FOFs were substantially supported by the testimony of WBIC's Kaneshige and Reynolds, as well as certain deposition testimony of Amfac's Fujikawa that he later disavowed at trial. A FOF is clearly erroneous when, despite evidence to support the finding, the appellate court is left with the definite and firm conviction in reviewing the entire evidence that a mistake has been committed. State v. Batson, 73 Haw. 236, 246, 831 P.2d 924, 930 (1992); State v. Nelson, 69 Haw. 461, 469, 748 P.2d 365, 370 (1987); Gadd v. Kelley, 66 Haw. 431, 442-43, 667 P.2d 251, 259 (1983). Where there is substantial evidence, which is credible evidence of sufficient quantity and probative value to justify a reasonable person in reaching conclusions that support the FOFs, the FOFs cannot be set aside. MPM Hawaiian, Inc. v. Amigos, Inc., 63 Haw. 485, 486-87, 630 P.2d 1075, 1077 (1981). Moreover, `[a]n appellate court will not pass upon issues dependent upon credibility of witnesses and the weight of the evidence; this is the province of the trial judge.' Nani Koolau Co. v. K & M Construction, Inc., 5 Haw.App. 137, 140, 681 P.2d 580, 584 (1984) (quoting Shannon v. Murphy, 49 Haw. 661, 667, 426 P.2d 816, 820 (1967)). A review of the trial record reveals that the witnesses' testimony is in conflict regarding whether the meeting in question was held prior to the closing of the sale of the WBH to WBIC. At trial, Amfac's Fujikawa, Tom, and Hiatt and the Group's Saunders testified that no such meeting took place; WBIC's Kaneshige and Reynolds' testified that the meeting did in fact occur. The record reflects that the trial court based its FOFs on Kaneshige and Reynold's trial testimony and Fujikawa's deposition testimony which, although disavowed at trial, was admissible for substantive purposes. See Hawaii Rules of Evidence (HRE) 613(b) and 802.1 (1985). Apparently, the trial court found Fujikawa's deposition testimony more credible than his inconsistent trial testimony. [9] In Keller v. La Rissa, Inc., 60 Haw. 1, 3-4, 586 P.2d 1017, 1019 (1978), this court stated: It is apparent that conflicts between appellant's testimony at the trial and in her deposition, as well as the documentary evidence, cast doubt on her credibility. We have said repeatedly that it is the province of the trial judge to pass upon issues dependent on the credibility of witnesses and the weight of the evidence, and that we will not pass on such issues. Lee v. Wong, 57 Haw. 137, 143, 552 P.2d 635, 640 (1976); Ed Klein, Inc. v. Hotel Kaimana, Inc., 51 Haw. 268, 457 P.2d 210 (1969). We accept the findings as binding upon us in this appeal. Accepting the trial court's implicit finding that Fujikawa's deposition testimony was the more credible, we cannot say that Fujikawa's deposition testimony in conjunction with Kaneshige and Reynold's trial testimony is not substantial evidence sufficient to support the trial court's FOFs. [10] Likewise, we are not left with a definite and firm conviction that a mistake has been committed. Accordingly, FOF Nos. 27, 29, 30, 31, 32, and 35 are not clearly erroneous and we will not disturb them on appeal.
A COL is not binding upon an appellate court and is freely reviewable for its correctness. See, e.g., Nani Koolau Co., 5 Haw.App. at 141, 681 P.2d at 585 (citing Molokoa Village Development Co. v. Kauai Electric Co., 60 Haw. 582, 593 P.2d 375 (1979)). A COL that is supported by the trial court's FOFs and that reflects an application of the correct rule of law will not be overturned. Id. 5 Haw.App. at 141, 681 P.2d at 585 (citing Friedrich v. Department of Transportation, 60 Haw. 32, 586 P.2d 1037 (1978)). However, a COL that presents mixed questions of fact and law is reviewed under the clearly erroneous standard because the court's conclusions are dependent upon the facts and circumstances of each individual case. Coll v. McCarthy, 72 Haw. 20, 28, 804 P.2d 881, 886 (1991); see Cho Mark Oriental Food v. K & K International, 836 P.2d 1057, 1061 (Haw.1992). Both parties challenge a number of the trial court's COLs and we review them seriatim.
Amfac contends that the trial court erred in COL No. 19 because it violated the law of the case doctrine when it did not limit or restrict WBIC's recovery of damages to the standard of reasonableness required under indemnity contracts, as recognized by the circuit court's previous interlocutory order denying WBIC's motion for determination of damages. [11] The trial court did not limit WBIC's damages to the reasonableness standard for indemnity contracts because it concluded that the Indemnification Agreement, in addition to being an indemnity contract as provided for in paragraph 1, was also a bilateral executory contract as described in paragraphs 2(a) and 2(b). The Hawaii Intermediate Court of Appeals (ICA) has defined the law of the case doctrine as follows: The phrase law of the case has ... been used in discussing, inter alia, the question whether a trial court judge is bound to follow a prior interlocutory decision of fact or law made in the same case by another judge of the same court. [5 Am.Jur.2d Appeal and Error § 744 (1962)]. This is a rule of practice based on considerations of efficiency, courtesy, and comity. Wong v. City and County of Honolulu, 66 Haw. 389, 665 P.2d 157 (1983); Gallas v. Sanchez, 48 Haw. 370, 405 P.2d 772 (1965); Annot., 132 A.L.R. 14-89 (1941). State v. Goodwin, 7 Haw.App. 261, 263 n. 2, 752 P.2d 598, 600 n. 2 (1988). However, the doctrine is inapplicable to this case because the circuit court's interlocutory order did not address the question whether the Indemnification Agreement was also a bilateral executory contract; neither did it address the question whether reasonableness was the only applicable standard for measuring damages recoverable under an indemnity contract. Therefore, the trial court did not violate the law of the case doctrine and COL No. 19 is not clearly erroneous.
Amfac argues that the trial court erred in COL No. 21 when it concluded that WBIC was not required to notify Amfac or demand that it perform its obligations under paragraphs 2(a) and 2(b) of ... [the Indemnification Agreement] as a prerequisite to its right to recover damages. We disagree. As correctly noted by the trial court in COL No. 20, no notice or demand for performance is required ... [w]here a contracting party's executory obligation to perform is complete and unconditional under the terms of the contract, and where the obligor has the same means to perform his obligation as the party to whom performance is due.... See, e.g., Ramesbotham v. Farmers Elevator Co., 428 N.W.2d 542 (S.D.1988) (citing 17 Am.Jur.2d Contracts § 356 (1964)); Witherell v. Lasky, 286 A.D. 533, 145 N.Y.S.2d 624, 627 (1955); Cole v. Findley Tool & Die Co., 290 Mich. 199, 204, 287 N.W. 433, 435 (1939). Our review of paragraph 2(a) of the Indemnification Agreement confirms that Amfac's obligation to obtain and file of record a sewer easement became absolute and unconditional when WBIC closed the sale of the WBH. Amfac's obligation was not altered by the Letter Agreement because that instrument merely provided that the indemnity provisions of the Indemnification Agreement would terminate upon Amfac's performance of either of two alternatives, i.e., the Group's grant of a sewer easement in favor of Lot 54 or verification by TGH that such an easement existed. Accordingly, COL No. 21 is not clearly erroneous.
Amfac contends the trial court erred in COL No. 23 by concluding that Amfac assumed the risk of all the obligations undertaken by WBIC to the Group under [The Joinder Agreement]. We agree with Amfac. The assumption of risk defense is generally applied to claims for relief sounding in tort. See Annotation, Contributory Negligence or Assumption of Risk as Defense to Action for Personal Injury, Death, or Property Damage Resulting From Alleged Breach of Implied Warranty, 4 A.L.R.3d 501, 502 (1965) [12] ; Annotation, Distinction Between Assumption of Risk and Contributory Negligence, 82 A.L.R.2d 1218, 1221 (1962). The assumption of risk doctrine has most frequently been applied, within the context of contractual relationships, in master-servant cases or other cases involving a contract for services or other consensual relationships, such as host and guest or carrier and passenger. Id. at 1222-23; see also Haworth v. State, 60 Haw. 557, 561, 592 P.2d 820, 823 (1979). In the present case, because WBIC's claim for damages was premised solely on Amfac's breach of the Indemnification Agreement and not on any claim that Amfac had committed a tort against WBIC, the trial court erroneously applied the assumption of risk doctrine to dispose of Amfac's argument that WBIC had made payments to the Group voluntarily and WBIC's counter-argument that Amfac had assumed the risk of WBIC's actions when Amfac breached the Indemnification Agreement. Whether Amfac should be liable to WBIC for the amounts that WBIC paid to the Group to secure its execution of the Joinder Agreement was properly adjudicated pursuant to the contract doctrine of foreseeability of damages. [13] Therefore, although we hold that the trial court erred in applying the assumption of risk defense to the present case, the error was harmless because it was irrelevant to the adjudication of Amfac's liability to WBIC arising out of Amfac's breach of the Indemnification Agreement.
Pursuant to COL Nos. 24 and 25, the trial court awarded WBIC the sum of $200,000.00, being the initial lump sum payment WBIC made to the Group on April 30, 1987 as partial consideration for the Group's execution of the Joinder Agreement, as damages by reason of Amfac's breach of the Indemnification Agreement. Amfac argues that these COLs are erroneous because the contemplation of the parties to the Indemnification Agreement was that the costs referred to in paragraph 2(a) would be determined judicially on the basis of fair market value considerations; from this premise Amfac urges that WBIC's execution of the Joinder Agreement (obligating WBIC, inter alia, to pay the Group the sum of $200,000.00) was neither foreseeable nor contemplated by the parties at the time Amfac executed the Indemnification Agreement. Amfac supports its argument on the basis of Tom's testimony that, as co-drafter of the Indemnification Agreement, he intended that the language any and all costs would be subject to fair market valuation. Amfac's position is misplaced, however, because parol evidence regarding the parties' intent as to the language used in a contract may be considered only when the contract language is ambiguous. See, e.g., MPM Hawaiian, Inc. v. World Square, 4 Haw.App. 341, 345-46, 666 P.2d 622, 625 (1983) (where the contract was unambiguous, the parol evidence rule was applicable and `extrinsic evidence of the surrounding facts and circumstances existing prior to, contemporaneously with and subsequent to [its] execution' could not be considered) (citing Midkiff v. Castle & Cooke, Inc., 45 Haw. 409, 422, 368 P.2d 887, 894 (1962)). In the present case, the trial court concluded in COL No. 9 that the Indemnification Agreement was unambiguous. On appeal, Amfac has not challenged this COL and therefore we treat it as binding on this court. See Hawaii Rules of Appellate Procedure (HRAP) Rule 28(b)(4)(C) (1984); cf. Leibert v. Finance Factors, Ltd., 71 Haw. 285, 288, 788 P.2d 833, 835 (1990). Because the Indemnification Agreement is unambiguous, the parol evidence rule precludes Tom's testimony as to the meaning of the phrase any and all costs in paragraph 2(a). [14] Nevertheless, COL Nos. 24 and 25 are clearly erroneous because, according to the trial court's own FOFs, not all of WBIC's $200,000.00 lump sum payment to the Group was foreseeable. In FOF No. 30, the trial court found that: At the meeting [held prior to January 31, 1985] ..., Saunders demanded, as a condition to the Group's execution of a sewer easement for the Sewer Line, a lump sum payment equal to a proportionate share of the Group's leasehold rental obligations to WDC and Queens from 1980 to that time. ... Saunders determined the proportionate share by dividing the total square foot area of Lot 30-A into the total square foot area of Roadway Easement H on Lot 30-A. This proportionate figure was approximately 14%.... Testimony of Melvin Kaneshige; Deposition testimony of George Fujikawa, read and disavowed at trial. (Emphasis added.) Kaneshige testified that Saunders had wanted some money for ... what he considered `rent' for past use of the sewer easement. However, the record reflects that the entire lump sum payment of $200,000.00 comprised more than the Group's lease rent payments from 1980 to January 31, 1985. Saunders testified that he derived a lump sum rent figure of $167,713.32 based on seventy-nine months of prior use of Lot 30-A multiplied by fourteen percent of the Group's monthly lease rents to Queen's under the master lease and to WDC under the sublease. [15] The difference between the lump sum of $200,000.00 and the $167,713.32 rent amount represented the proportionate figure that Saunders estimated was due and owing for real property taxes. Fourteen percent of the Group's lease rent obligations from 1980 to January 31, 1985 obviously does not include real property taxes and, therefore, by the express terms of FOF No. 30, the payment of monies for such taxes would not have been foreseeable, i.e., in the contemplation of the parties at the time the Indemnification Agreement was executed. See Jones v. Johnson, 41 Haw. 389, 394, reh'g denied, 41 Haw. 651 (1956); Bow v. Nakamura, 6 Haw.App. 290, 293, 719 P.2d 1103, 1106 (1986). Accordingly, we hold that COL Nos. 24 and 25 are clearly erroneous and that WBIC is not entitled to recover from Amfac that portion of the $200,000.00 lump sum payment allocable to the Group's estimated real property taxes.
In COL Nos. 26 and 27, the trial court ruled that WBIC was not entitled to compensation for payments that it agreed to make to the Group, under the Joinder Agreement, as partial reimbursement for the Group's future lease rent and real property tax obligations because these payments were beyond the contemplation or foreseeability of the parties when they negotiated the Indemnification Agreement. WBIC contends that the trial court erred by misapplying the doctrine of foreseeability, thereby depriving WBIC of the full compensation to which it was entitled as a result of Amfac's breach of the Indemnification Agreement. We agree. It is now a well established principle in the law of damages that, when one sustains a loss by breach of a contract, he is entitled to have just compensation commensurate with his loss and that damages awarded should be in such amount as will actually or as precisely as possible compensate the injured party. Ferreira v. Honolulu Star-Bulletin, Ltd., 44 Haw. 567, 573-74, 356 P.2d 651, 655, reh'g denied, 44 Haw. 581, 357 P.2d 112 (1960). The Ferreira rule is limited by the doctrines of legal causation and foreseeability enunciated by the court in Jones as follows: The general rule is that in an action for damages for breach of contract only such damages can be recovered as are the natural and proximate consequence of its breach; that the damages recover-able must be incidental to the contract and be caused by its breach; as the cases express it, such as may reasonably be supposed to have been in the contemplation of the parties at the time the contract was entered into. 41 Haw. at 393 (citation omitted) (quoted in Bow, 6 Haw.App. at 293, 719 P.2d at 1106). Kaneshige testified that at the first meeting between representatives of Amfac, WBIC, and the Group, held prior to January 31, 1985, Saunders took the position that the Group required partial compensation both for past rent allocable to the use of the sewer easement and for future rent for the sewer easement so long as he and ... [the Group] had [a] leasehold position on the property. He testified that Saunders wanted to determine the amount to be paid for the Group's consent to the sewer easement based on the percentage of land area that was taken by the sewer easement and he did it on a two-dimensional basis; put differently, Saunders wanted to use the ratio of the square footage of Easement H to the total square footage of Lot 30-A multiplied by the Group's total rent obligation with respect to Lot 30-A to determine the consideration to be paid by WBIC for the sewer easement. Although the exact amount of the consideration to be paid by WBIC for the sewer easement was not specifically quantified at the meeting, the arithmetic computation could readily have been performed because the Group's rent obligations were expressly fixed by the master lease and sublease governing Lot 30-A. Indeed, Saunders performed this precise computation when he derived the fourteen percent payment figure reflected in the Joinder Agreement. [16] Therefore, at the time the Indemnification Agreement was executed, both Amfac and WBIC were aware that the Group would require lump sum consideration from WBIC representing past use of the sewer easement, as well as future monthly payments for its use. Both parties were likewise aware of the formula by which the Group would compute these amounts. Although the trial court correctly concluded in COL No. 17 that [f]oreseeability does not require an actual recognition by the parties at the time of contracting of the details or specifics of the injury or the damages which thereafter followed, it nevertheless restricted WBIC's recovery to the lump sum payment for past use of the sewer easement (COL Nos. 24 and 25) and did not hold Amfac liable for future payments to the Group for the same use (COL Nos. 26 and 27). COL Nos. 24 and 25 are logically inconsistent with COL Nos. 26 and 27 because WBIC's obligations to compensate the Group for past and future use of the sewer easement were equally foreseeable and contemplated by the parties at the time the Indemnification Agreement was executed. [17] Amfac argues that, simply because it was aware of the Group's longstanding demand that the WBH owner obtain sewer easement rights, it does not follow that Amfac contemplated the same requirement at the time the Indemnification Agreement was executed. Amfac contends that mutual assent is required for such contemplation and that mutual assent was lacking when it expressly rejected the Group's demands after the first meeting with Saunders. We disagree. It is well established that a court will construe the plain and unambiguous language of a contract in determining whether particular damages were reasonably within the contemplation of the parties. See Restatement (Second) of Contracts § 351 cmt. a & b (1981); A. Corbin, Corbin on Contracts § 1010 (1964). Moreover, [d]amages ... which might have been prevented if the parties had acted according to the scope of the agreement are direct, and should be awarded. Mortimer v. Otto, 206 N.Y. 89, 99 N.E. 189, 190 (1912) (cited in Kenford Co., Inc. v. County of Erie, 73 N.Y.2d 312, 319, 537 N.E.2d 176, 179, 540 N.Y.S.2d 1, 4 (1989)). Had Amfac secured a sewer easement from the Group, as paragraph 2(a) of the Indemnification Agreement obligated Amfac to do, in 1985, WBIC would not have been faced with the potential inability to close the sale of the WBH to Azabu for failure to produce marketable title resulting from the lack of a recorded sewer easement. WBIC was left with little choice but to secure the sewer easement from the Group by way of the Joinder Agreement. Without the sewer easement, WBIC risked losing a profit of $13,000.000.00 [18] and subjecting itself to a potential lawsuit from Azabu for damages or specific performance. [19] Thus, by discharging its obligation under the Indemnification Agreement, Amfac could have rescued WBIC from having to incur the cost (which included fourteen percent of the Group's past and future rent obligations to Queens, as master lessor, and WDC, as sublessor) of the Joinder Agreement. Because WBIC's counterclaim sought to recover this cost from Amfac as damages for Amfac's breach of its contractual obligation to obtain and file of record a sewer easement in favor of Lot 54, the trial court erred in not ordering Amfac to assume WBIC's obligation to make partial future payments of lease rent under the Joinder Agreement. It therefore follows, and we so hold, that both the portion of the $200,000.00 lump sum payment attributable to past lease rent payments and the future monthly payments of lease rent required by the Joinder Agreement were within the contemplation of the parties at the time the Indemnification Agreement was executed, and WBIC is entitled to recover these amounts from Amfac. However, as we have discussed, lease rent does not include real property taxes; therefore, WBIC's obligation to pay fourteen percent of the Group's future real property taxes, as required by the Joinder Agreement, was not within the contemplation of the parties at the time the Indemnification Agreement was executed. Accordingly, we hold that Amfac is not liable to WBIC for any such future payments. [20]
In COL No. 37, the trial court concluded in relevant part: WBIC is ... the prevailing party as to Amfac's Complaint for Declaratory Relief, which Complaint did not seek an imposition of monetary liability, but solely an adjudication of rights. Where a party prevails on a claim which did not seek an award of monetary damages, he is entitled under § 607-17, H.R.S. to an unlimited reasonable attorney's fees [sic] for services reasonably and necessarily incurred. Smothers v. Renander, [2 Haw.App. 400, 406-07, 633 P.2d 556, 562-63 (1981)]; Food Pantry v. Waikiki Business Plaza, 58 Haw. 606, 618[-21, 575 P.2d 869, 878-80] (1978). WBIC is entitled to an award of reasonable attorney's fees for the claims asserted in Amfac's Complaint of $42,455.35. Amfac contends that the trial court erred in COL No. 37 by concluding that attorney's fees awardable to WBIC, as the prevailing party on Amfac's complaint for declaratory judgment, were unconstrained by the twenty-five percent limit set forth in HRS § 607-17 (1985). We disagree. HRS § 607-17 provides in relevant part: Any other law to the contrary notwithstanding, where an action is instituted in the district or circuit court on a promissory note or other contract in writing which provides for an attorney's fee the following rates shall prevail and shall be awarded to the successful party, whether plaintiff or defendant: (1) Where the note or other contract in writing provides for a fee of twenty-five per cent or more, or provides for a reasonable attorney's fee, not more than twenty-five per cent shall be allowed; . . . . . provided that the fee allowed in any of the above cases shall not exceed that which is deemed reasonable by the court. In Food Pantry, Ltd. v. Waikiki Business Plaza, Inc., 58 Haw. 606, 575 P.2d 869 (1978), this court recognized the inequity of enforcing the twenty-five percent statutory ceiling against the prevailing party on an award of nominal damages and held that, in cases where no monetary judgment has been sought, the prevailing party is entitled to attorney's fees reasonably and necessarily incurred in the action. 58 Haw. at 621, 575 P.2d at 880. The rationale of the Food Pantry rule is that if no money damages are sought or awarded, as in a complaint for declaratory judgment, there is no monetary amount on the basis of which to calculate the twenty-five percent statutory ceiling for attorney's fees. The Food Pantry rule has been followed in subsequent appellate decisions. See, e.g., Tradewinds Hotel, Inc. v. Cochran, 8 Haw.App. 256, 270, 799 P.2d 60, 68 (1990) (declaratory judgment on question of lease violation); Smothers v. Renander, 2 Haw.App. 400, 407, 633 P.2d 556, 563 (1981) (adjudication of contract rights where no money damages at issue). In its complaint, Amfac was not seeking a monetary judgment, but rather a declaration that it had performed its obligations under the Indemnification Agreement and, therefore, had not breached the agreement. The application of the Food Pantry rule entitles WBIC, as the prevailing party, to attorney's fees reasonably and necessarily incurred in defending against Amfac's declaratory judgment action. Nevertheless, Amfac contends that application of the Food Pantry rule to this case place[s] form over substance because the attorney's fees incurred in defense of Amfac's [c]omplaint ... are the same as those incurred in establishing the right to indemnification under the [c]ounterclaim. However, Amfac does not challenge FOF No. 82, in which the trial court found that WBIC had incurred $42,445.35 in attorney's fees specifically attributable to Amfac's declaratory judgment action and $83,351.33 specifically attributable to WBIC's counterclaim. Alleged error in findings of fact not expressly challenged on appeal will be disregarded in the absence of plain error. See Hawaii Rules of Appellate Procedure (HRAP) 28(b)(4)(C). Moreover, Amfac does not support its contention that WBIC's attorney's fees incurred in connection with the complaint and counterclaim are the same with any evidence whatsoever. Finally, we note that if Amfac had prevailed on its declaratory judgment action, it most likely would be arguing that the Food Pantry rule should be applied. Thus, we hold that COL No. 37 was not clearly erroneous in concluding that the twenty-five percent limit on attorney's fees set forth in HRS § 607-17 was inapplicable to Amfac's declaratory judgment action and that, under the Food Pantry rule, WBIC was entitled to recover attorney's fees reasonably and necessarily incurred in defending against Amfac's action. [21]
In COL No. 36, pursuant to HRS § 607-17, the trial court awarded WBIC attorney's fees in the amount of $50,000.00 (being twenty-five percent of $200,000.00) incurred in successfully prosecuting its counterclaim. [22] WBIC contends that COL No. 36 is erroneous because the trial court failed to include prejudgment interest and the monthly partial payments paid by WBIC to the Group for future rent and real property taxes on Lot 54, as required by the Joinder Agreement, in the judgment amount upon which the attorney's fees were calculated. We agree in part. The trial court did not abuse its discretion in denying WBIC prejudgment interest as part of the judgment. See Section II. C.2.h., infra. However, in accordance with our discussion and holding in Section II. C.2.e. of this opinion, the trial court should have considered, in calculating WBIC's attorney's fees, the monthly payments made pursuant to the Joinder Agreement reflecting fourteen percent of the Group's future lease rent obligations. Accordingly, we hold that the trial court abused its discretion when it awarded WBIC $50,000.00 for attorney's fees without taking these monthly payments into account.
Prejudgment interest, where appropriate, is awardable under HRS § 636-16 (1985) in the discretion of the trial court. Schmidt v. The Bd. of Dirs. of The Association of Apartment Owners of The Marco Polo Apartments, 836 P.2d 479, 483 (Haw.1992); Leibert v. Finance Factors, Ltd., 71 Haw. 285, 293, 788 P.2d 833, 838 (1990). We review the trial court's denial of WBIC's claim for prejudgment interest for an abuse of discretion. HRS § 636-16 provides: In awarding interest in civil cases, the judge is authorized to designate the commencement date to conform with the circumstances of each case, provided that the earliest commencement date in cases arising in tort, may be the date when the injury first occurred and in cases arising by breach of contract, it may be the date when the breach first occurred. The purpose of the statute ... [is] to allow the court to designate the commencement date of interest in order to correct injustice when a judgment is delayed for a long period of time for any reason, including litigation delays. Schmidt, 836 P.2d at 483; Leibert, 71 Haw. at 293, 788 P.2d at 838; see also Wiegand v. Colbert 68 Haw. 472, 477-78, 718 P.2d 1080, 1084 (1986) ([T]he legislative history shows [that] the purposes of the statute were to permit more equitable results and to more speedily resolve cases.) Because there is no evidence in the record that any of Amfac's conduct unduly delayed the proceedings in this case, we hold that the trial court did not abuse its discretion in denying WBIC prejudgment interest.
In COL Nos. 29 and 31, the trial court denied WBIC's prayer for punitive damages, concluding that WBIC's claim was not supported by the evidence and being unable to find any intentional or deliberate action by Amfac which [would] warrant[] or justif[y] such an award. WBIC contends that these COLs are erroneous because the manifest weight of evidence supports ... an award of punitive damages. Amfac counters that the trial court correctly denied WBIC's punitive damage claim because there is an absence of clear and convincing evidence that Amfac breached the Indemnification Agreement maliciously or wantonly. Award or denial of punitive damages is within the sound discretion of the trier of fact. See, e.g., Sterling v. Velsicol Chemical Corp., 647 F.Supp. 303, 323 (W.D.Tenn.1986), rev'd in part on other grounds, 855 F.2d 1188 (1988); Haskins v. Shelden, 558 P.2d 487, 494 (Alaska 1976); Newman v. Basin Motor Co., 98 N.M. 39, 644 P.2d 553, 558 (N.M.Ct.App.1982); Restatement (Second) of Torts § 908 cmt. d (1979). The trier of fact's decision to grant or deny punitive damages will be reversed only for a clear abuse of discretion. Haskins, 558 P.2d at 494. In Masaki v. General Motors Corp., 71 Haw. 1, 16-17, 780 P.2d 566, 575 (1989), we established the requisite standard of proof in this jurisdiction to support an award of punitive damages: [F]or ... punitive damage claims we adopt the clear and convincing standard of proof. The plaintiff must prove by clear and convincing evidence that the defendant has acted wantonly or oppressively or with such malice as implies a spirit of mischief or criminal indifference to civil obligations, or where there has been some wilful misconduct or that entire want of care which would raise the presumption of a conscious indifference to consequences. (Citation omitted.) Upon review of the record, we conclude that there is no clear and convincing evidence that Amfac wantonly, oppressively, maliciously, or wilfully breached the Indemnification and Letter Agreements such as to warrant the imposition of punitive damages. [23] Accordingly, we hold that the trial court did not abuse its discretion in denying WBIC's punitive damages claim.