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Lochland Holdings, LLC v. Duarte
State: Hawaii
Court: Court of Appeals
Docket No: 24171
Case Date: 01/22/2004
Preview:NOT FOR PUBLICATION NO. 24171 IN THE INTERMEDIATE COURT OF APPEALS OF THE STATE OF HAWAI#I LOCHLAND HOLDINGS LLC, Plaintiff/Counterclaim Defendant-Appellee, v. HARRY DUARTE; LEIMOMI HO; EMANUEL DUARTE; NINA PAYNE; RICHARD DUARTE; RENELL WARD; SHARON DUARTE; LEIMOMI MIYAKE; BETTY SNOWDEN; BEVERLY KAPAHU; GERALD DUARTE; DAMIEN DUARTE; MABEL KAMPSTRA; TERRENCE DUARTE; RACHELLE MAIKUI, Defendants/Counterclaimants/Cross-Claimants-Appellees and AMERICAN TRUST CO. OF HAWAII, INC., Trustee under Trust Agreement No. 90-01489; MARTHA K. KAPUNIAI; PAUL KAPUNIAI; THELMA KAPUNIAI; ROBERT K. KAPUNIAI, SR.; EUNICE KAPUNIAI ABLEIDINGER; KATHERINE KAPUNIAI PAHNKA; UNA MAY KAPUNIAI KUHLMAN aka UNA MAY KAPUNIAI MONIZ; CHARLOTTE MOMOHARA TOLENTINO; GEORGETTE SHERMAN ALBINA; CHARLES ARTHUR SHERMAN; ALVIN KAMAHALO BEECH; PENNY NALANI CHUNG; LAWRENCE K. KAPUNIAI; GEORGE M. KAPUNIAI; BERYL SOUZA; EUGENE H.K. AH MOOK SANG; ANTHONY H. SANG, SR.; JOY K. LINDSEY; BRADLEY SANG; NORA MAUDE PUAOI KAHAULELIO; ERNEST KALANI PUAOI; BERNICE LEILANI BRIGGS; WILLIAM JAMES PUAOI; JOHN B. PUAOI, SR.; EILEEN NALANI PUAOI HILL; MARYANN PUAOI DE COTA; ARLETTE MOANA LAHELA RITTMEISTER ADAMS; PEACHES RITTMEISTER CULLEN; WILLIAM F. RITTMEISTER, Defendants/Cross-Claim Defendants-Appellees, and LEILANI MIYAKE; TERYN MALIA MANOI; EDWARDIAN NAPUA MANOI GRANTHAM; LORRIN KALANI MANOI; JENNIE ANN PIHANA MANOI; FLAVIANA KALEHUA MANOI VIDINHA; CHARLENE PUA MANOI CRUZ; LEILANI DUARTE-MIYAKI; LUCILLE KANOELANI MATTOS; MILTON RALPH SANTOS, Defendants-Appellees, and JEAN P. BRINDLEY; MARGUERITE LUHIA RUST, Defendants/Cross-Claim Defendants-Appellants, and LESLIE APIU KULOLOIO; DANA NAONE HALL, Defendants/Counterclaimants/Cross-Claim Plaintiffs, and KELEAU; NALAUHULU (K); LILIA KAHU (W); LILIA KEALOHA; ABBIE PRESTIDGE, AKA MRS. WILL (ABEGAIL) PRESTIDGE; KELIILAWAIA (K); JOHN KAPOHAKIMOHEWA; DAVID KAPOHAKIMOHEWA; KALAHANOHANO; OKELA; KAHULA (K); KAWAI MAHALO (K); ROBERT KAPUNIAI; STATE OF HAWAI#I; COUNTY OF MAUI; and Heirs and Assigns of persons named above who are deceased,

NOT FOR PUBLICATION or persons holding under said Heirs; ROBERT K. KAPUNIAI, JR.; LUANA E. MANAKUA; THELMA M. MEDEIROS; JOHN DE CASTRO, JR.; WILMA O. AH NEE; LOUISE K. LAPERA; ALVINA NAPUA PUAOI; GEORGE EDWARD PUAOI; EDWARD SCOTT MAKAEA PUAOI; NOREEN KAPIOLANI PUAOI INOKE; WILLIAM KENNETH PUAOI; GENE PUAOI; HANNAH PUAOI RITTMEISTER YOUNG; KEITH DUARTE; RUSSELL DUARTE; DOES 50 THROUGH 100; and all other persons or corporations unknown claiming any right, title, estate, lien or interest in the real property described in Plaintiff's Complaint, adverse to Plaintiff's ownership and TO ALL WHOM IT MAY CONCERN, Defendants/Cross-Claim Defendants APPEAL FROM THE SECOND CIRCUIT COURT (CIVIL NO. 96-0755(2)) MEMORANDUM OPINION Burns, C.J., Watanabe and Foley, JJ.)

(By:

Defendants/Cross-Claim Defendants-Appellants Jean P. Brindley (Brindley) and Marguerite Luhia Rust (collectively Appellants) appeal from the Final Judgment and Decree filed March 12, 2001 in the Circuit Court of the Second Circuit1 (circuit court). Appellants contend the circuit court erred by granting summary judgment in favor of Plaintiff/Counterclaim DefendantAppellee Lochland Holdings, LLC (Lochland) and by entering the Final Judgment and Decree based upon the erroneous finding and conclusion that all parties, including Brindley, had agreed to the settlement agreement. We agree and therefore vacate the

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The Honorable Shackley F. Raffetto presided.

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NOT FOR PUBLICATION Final Judgment and Decree and the underlying March 12, 2001 "Order On Plaintiff's Motion for Summary Judgment." I. FACTS

On September 18, 1996, pursuant to Hawaii Revised Statutes (HRS) Chapters 668 and 669, Lochland2 filed a Complaint to Quiet Title on five parcels of land. following Defendants: Lochland named the

Keleau; Nalauhulu (k); Lilia Kahu (w);

Lilia Kealoha; Abbie Prestidge, aka Mrs. Will (Abegail) Prestidge; Keliilawaia (k); John Kapohakimohewa; David Kapohakimohewa; Kalahanohano; Okela; Kahula (k); Kawai Mahalo (k); Robert Kapuniai; State of Hawai#i; County of Maui; American Trust Co. of Hawaii, Inc., Trustee under Trust Agreement No. 9001489; Heirs and Assigns of persons named above who are deceased, or persons holding under said Heirs; Does 1 through 100; and other persons or corporations claiming any right, title, estate, lien or interest in the real property described in the complaint. Lochland alleged that it was in possession of and was the owner in fee simple of Royal Patent Grant Nos. 2074, 2076, 2225 Apana 1, and 2792. Lochland also alleged that it was in

possession of and was the owner in fee simple of an undivided two-thirds interest (with Defendant American Trust Co. of Hawaii

On July 28, 1998, Lochland was substituted as the plaintiff for CarterMakena Limited Partnership, a Hawai#i Limited Partnership, by "Order on Motion for Substitution of Plaintiff."

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NOT FOR PUBLICATION holding the other one-third interest) in Royal Patent Grant No. 2844 Apana 1. On November 20, 1996, Lochland moved to serve notice by (1) publication on the individual defendants named in the complaint and their heirs and assigns or persons holding under said heirs, who might claim right, title, or interest in Royal Patent Grant Nos. 2074, 2076, 2225 Apana 1, 2792, and 2844 Apana 1; and (2) by posting a copy of the notice of action and summons on the subject property. The circuit court granted the motion,

and service was effected by publication and posting. Pursuant to a motion to name Doe Defendants, Martha K. Kapuniai, Paul Kapuniai, Thelma Kapuniai, Robert K. Kapuniai, Sr., Eunice Kapuniai Ableidinger, Katherine Kapuniai Pahnka, Una May Kapuniai Kuhlman, Charlotte Momohara Tolentino, Georgette Sherman Albina, Charles Arthur Sherman (collectively the Kapuniais), Alvin Kamahalo Beech, Penny Nalani Chung, Marguerite Luhia Rust, and Jean Brindley were added as defendants on February 12, 1997. On February 28, 1997, Harry Duarte, Leimomi Ho, Emanuel Duarte, Nina Payne, Richard Duarte, Renell Ward, Sharon Duarte, Leimomi Miyake, Beverly Kapahu, Gerald Duarte, Damien Duarte, Mabel Kampstra, Terrence Duarte, Rachelle Maikui, and Betty Snowden (collectively the Snowdens) filed an amended answer to

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NOT FOR PUBLICATION the complaint, a counterclaim, and a cross-claim. The Snowdens

claimed a 50% interest in Royal Patent Grant No. 2844, Apana 1. On March 11, 1997, Alvin Kamahalo Beech, Penny Nalani Chung, Marguerite Luhia Rust, and Jean Brindley filed an answer to Lochland's complaint, claiming an interest in Royal Patent Grant No. 2844 Apana 1. On March 12, 1997, these defendants On March 21, 1997,

filed an answer to the Snowdens' cross-claim.

Lochland filed a reply to the Snowdens' counterclaim. On April 4, 1997, the circuit court granted partial summary judgment in favor of Lochland on Royal Patent Grant Nos. 2074 and 2225 Apana 1. On April 30, 1997, the State of Hawai#i On May 16, 1997, the

filed its answer to Lochland's complaint.

circuit court granted partial summary judgment in favor of Lochland on Royal Patent Grant Nos. 2076 and 2792. Lochland filed a motion on June 19, 1998 for service of process of its complaint, by publication and by posting on the property, on the following: Heirs of Mabel Hussey, whose mother

was Puniia Kahula; Abby Puaoi Ah Mook Sang aka Abegail Ah Mook Sang, Emily Puaoi Palapala and Hannah Puaoi Rittemeister, daughters of William Puaoi and Abegail Nahinu Holi; Heirs of William Puaoi; Arlette Cobb-Adams, Peaches Rittemeister (whose husband is Martin) and William Rittemeister (whose wife is Judy), all three of whom are children of Hannah Puaoi Rittemeister; Beryl Souza; Kalena aka Kalena Kamahalo; and Kavao aka Kawao aka

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NOT FOR PUBLICATION Kawao Kamahalo; and their Heirs and Assigns, or persons holding under said Heirs, who might claim right, title, or interest in Royal Patent Grant No. 2844 Apana 1. publication and by posting. Service was effected by

Luana E. Palapala Hamakua, William

F. Rittmeister, and Arlette Moana Lahela Rittmeister Adams appeared at the August 12, 1998 publication return date hearing. On July 20, 1998, Beryl Souza filed a pro se answer to Lochland's complaint, claiming an interest in Royal Patent Grant No. 2844 Apana 1. On August 3, 1998, Eugene H.K. Ah Mook Sang,

Anthony H. Sang. Sr., Joy K. Lindsey, and Bradley Sang filed pro se answers to Lochland's complaint, claiming an interest in Royal Patent Grant No. 2844 Apana 1. On August 12, 1998, Thelma M. Medeiros, Louise K. Lapera, John De Castro, Jr., Wilma O. Ah Nee, Nora Maude Puaoi Kahaulelio, Ernest Kalani Puaoi, Bernice Leilani Briggs, Alvina Napua Puaoi, William James Puaoi, and John B. Puaoi, Sr. filed pro se answers to Lochland's complaint. On September 2, 1998, Arlette Moana Lahela Rittmeister Adams, Peaches Rittmeister Cullen, William F. Rittmeister (collectively the Rittmeisters), and Hannah Puao Rittmeister Young filed their amended answer to Lochland's complaint. On August 26, 1998, the Snowdens filed a "Motion for Relief from Judgment," pursuant to Hawai#i Rules of Civil Procedure (HRCP) 60(b)(4) and (6), asking the circuit court to

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NOT FOR PUBLICATION vacate the grant of partial summary judgment to Lochland on Royal Patent Grant No. 2074. On November 19, 1998, the circuit court summary judgment

granted the Snowdens' motion and set aside the as to Royal Patent Grant No. 2074.

Edward Scott Makaea Puaoi, Noreen Kapiolani Puaoi Inoke, William Kenneth Puaoi, and Gene Puaoi were added as heirs pursuant to a "Disclaimer of Interest of Alvina Puaoi" filed January 13, 1999. On January 29, 1999, Mary Ann L. De Cota filed her answer. answer. On February 8, 1999, Eileen N. Puaoi Hill filed her On February 19, 1999, George Puaoi filed his answer. On

July 18, 1999, Milton Ralph Santos and Lucille Kanoelani Mattos filed their answer. On February 22, 2000, Leslie Apiu Kuloloio

and Dana Naone Hall filed an answer, counterclaim, and crossclaim. On September 29, 2000, Lochland filed a motion for partial summary judgment pursuant to HRCP Rule 12(c) as to George Edward Puaoi. The circuit court determined that George Edward

Puaoi had no interest in the real property that was the subject of the action and granted Lochland's motion on November 1, 2000. On December 19, 2000, Lochland filed a Motion for Summary Judgment on Certain Titles and for Final Judgment. Lochland informed the circuit court that a settlement had been

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NOT FOR PUBLICATION reached and asked the court to follow the terms of the settlement agreement and enter a final judgment as follows:
Grant 2074 is owned by the Plaintiff, Lochland Holdings LLC. Grant 2844 Apana 1 is owned by Betty Snowden, Trustee of the Puni'ia Ohana 2000 Trust. Grants 2792:2 and 2225:2 are owned by the Bank of Hawaii under Trust Agreement No. 90-01489, the beneficiaries of that Trust being Defendants the Kapuniai family, Alvin K. Beech, Jean P. Brindley, Penny N. Chung and Margaret Rust. The Court rule that all of the parcels mentioned above are owned in fee simple absolute, free and clear of all claims, liens, clouds and encumbrances of any kind. Finally [Lochland] requests that this Court confirm and determine that the Settlement Agreement and the Pond Use Agreement are in full force and effect and are part of this Court's judgment.

Prior to the February 9, 2001 settlement conference, various parties filed settlement conference statements. In her

January 23, 2001, settlement conference statement, Brindley stated that she "does not agree to the proposed settlement as set forth by the Plaintiff in its Motion for Summary Judgment." Brindley also filed her January 26, 2001 memorandum in opposition to the Motion for Summary Judgment in which she claimed an interest in Royal Patent Grant Nos. 2844 Apana 1, Grant 2792 Apana 2, and Grant 2225 Apana 2. Brindley stated

that, based on her research into her genealogy, she did not believe the Snowdens and others had an interest in the subject property. The Snowdens were claiming through Puniia, daughter of

Kahula; however, Brindley's research showed that Kahula did not have a daughter. Brindly stated that she needed more time to 8

NOT FOR PUBLICATION work on her research and discovery. She also stated that she had

never agreed to any settlement in this case and had not agreed to convey her interest in the subject property to the Snowdens. On February 9, 2001, a settlement conference was held in which the circuit court acknowledged that Jean Brindley had not agreed to settle the case. At the conference, Alvin Beech

told the court that he, Penny Chung, and Margaret (aka Marguerite) Rust agreed with the settlement agreement. On March 12, 2001, the circuit court entered an order granting Lochland's Motion for Summary Judgment and a Final Judgment and Decree. The order granting the motion for summary judgment and the Final Judgment and Decree stated in part that: (1) this was an action to quiet title and a partition under HRS Chapters 668 and 669, which Chapter 668 was in equity and thus this court had equitable powers in addition to its legal powers; (2) the parties to the case had entered into a Settlement Agreement, which was incorporated by reference; (3) the parties to the settlement agreement were receiving valuable assets in land or money or in other rights, which assets exchanged were of equal value; (4) the Settlement Agreement was fair and equitable to all parties; (5) by the power vested in the circuit court by HRCP Rule 70 and HRS
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