Opinion ID: 2584287
Heading Depth: 3
Heading Rank: 1

Heading: Circuit Court Lawsuit

Text: The procedural history of this case is summarized in the ICA's Memorandum Opinion: When CEI defaulted on its debt to Fong, Fong sued CEI, Myung, Semin, David Tamura, Anne Tamura, Michael Tamura, Celia and Renato Vito Batle (Renato). Fong's complaint alleges that Semin and Myung are obligors of approximately $120,000, and David Tamura, Anne Tamura, Michael Tamura, Celia and Renato are guarantors. It further states that CEI owed Fong $120,000 secured by the assets of CEI and Celia's residence. Semin and Myung counterclaimed against Fong.[ [8] ] Semin and Myung cross-claimed against Celia. Semin and Myung filed a Third-Party Complaint against Kiuchi.[ [9] ] On December 17, 2003, the court entered a stipulated judgment in favor of Fong and against David Jon Tamura and Anne Ju Tamura in the amount of $112,000 together with pre-judgment interest of ten percent (10%) from April 16, 2001 through October 7, 2003[.] On November 15, 2004, Fong filed a motion for summary judgment (MFSJ). Although not clearly stated, it appears that Fong's MFSJ was against [] Semin and Myung. On November 18, 2004, Kiuchi filed a MFSJ against Semin and Myung. On January 3, 2005, in light of Celia's discharge in bankruptcy, the court dismissed all claims by Fong, Semin, and Myung against Celia, without prejudice. On January 7, 2005, the court entered an order granting Fong's MFSJ against Semin and Myung. On January 12, 2005, Fong, Semin, and Myung stipulated that the amount due on the Promissory Note including interest, but not including costs, expenses and attorneys' fees, is $136,400.00[.] On January 18, 2005, the court entered an order granting Kiuchi's MFSJ against Semin and Myung. On January 20, 2005, Semin and Myung filed a motion for reconsideration (MFR) of both summary judgment orders. In the MFR, Semin and Myung argued: It is the position of [Semin and Myung] that both [Fong] and [Kiuchi] may be held liable to [Semin and Myung] for failing to disclose, prior to [Semin and Myung's] purchase of the stock of [CEI] that the seller of the stock, [Celia], was illegally selling untaxed cigarettes from the store premises leased by [CEI]. In [Semin and Myung's] view, the fact that a significant portion of the income from the store was due to illegal sales is a material fact within the purview of relevant Hawaii appellate court decisions. Although Fong was not nominally the seller of the stock, [Semin and Myung] contend that she may be held liable as an agent of the seller under the provisions of the Uniform Securities Act, as well as common law theories of fraud and negligent misrepresentation. Kiuchi's duty to disclose arose from his undertaking to act as escrow in the sale of the stock. This MFR was denied on March 21, 2005. On February 15, 2005, the court entered an order granting Fong's request for attorney fees in the amount of $34,000. Presumptively, this order is against Semin and Myung. On August 12, 2005, the court entered a default judgment in favor of Fong and against CEI for the following amounts: $148,000.00 principal 59,200.00 interest (5-30-01 to 4-1-05) 41,440.00 attorney fees _________ 248,640.00 subtotal -150,000.00 payment ___________ $ 98,640.00 Judgment On October 4, 2005, Fong voluntarily dismissed all claims against Michael Tamura and Renato Batle. On November 2, 2005, the court entered a Final Judgment in favor of Fong and against CEI for $98,640; in favor of Fong and against David Jon Tamura and Anne Ju Tamura (correct legal name is Ann Ju Ji) in the amount of $112,000 plus pre-judgment interest of 10% from April 16, 2001 through October 7, 2003; in favor of Fong and against Semin and Myung in the amount of $22,679; and in favor of Kiuchi and against Semin and Myung. Memo Op at 7-9 (alterations in original). The Ohs appealed.