No. SCAP-23-0000335 and No. SCAP-23-0000531, Tuesday, April 15, 2025, 9 a.m.

NO. SCAP-23-0000335:
LARRY W. MCCULLOUGH, DERROL E. ESTRELLA, JUANITA F. ESTRELLA, JOHN A. MATUSEK, SUNDAY M. MATUSEK, ARTHUR M. AQUINO, MILAGROS N. AQUINO, NEVILLE T. PRITCHARD, and BARBARA M PRITCHARD, Plaintiffs-Appellants, vs. BANK OF AMERICA, N.A., MORTGAGE ELECTRONIC REGISTRATION SYSTEMS, INC., DAMION C. CLARK, GENTRY L. CLARK, QUICKEN LOANS, INC., JAMES SOR, AMERICAN SAVINGS BANK, F.S.B., BRADLEY ALAN LOEFFLER AND BARBARA JEAN LOEFFLER, INDIVIDUALLY AND AS TRUSTEES OF THE LOEFFLER 2011 FAMILY TRUST DATED DECEMBER 22, 2011, Defendants-Appellees, and ERIC TUCKER, MICHELLE TUCKER, and U.S. BANK NATIONAL ASSOCIATION, Defendants-Appellees.

NO. SCAP-23-0000531:
ROBERT R. HEMSHER, JR., BRIDGETTE B. HEMSHER, STEPHEN P. CANO, NINA Q. CANO, RAYMOND PINEDA, Plaintiffs-Appellants, vs. BANK OF AMERICA, N.A., MORTGAGE ELECTRONIC REGISTRATION SYSTEMS, INC., WAYNE MICHAEL TILKA, DOROTHY JEAN TILKA, MAUNA LANI GOLF H2, LLC, WAYNE BOTELHO, KATHLEEN P. BOTELHO, JASON J. BOTELHO, and WELLS FARGO BANK, N.A., Defendants-Appellees.

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The above-captioned cases have been set for oral argument on the merits at:

Supreme Court Courtroom
Ali‘iōlani Hale, 2^nd Floor
417 South King Street
Honolulu, HI 96813

The oral argument will also be livestreamed for public viewing via the Judiciary’s YouTube channel at YouTube.com/hawaiicourts and ‘Olelo at olelo.org/tv-schedule/.

Attorneys for Plaintiffs-Appellants LARRY W. MCCULLOUGH, DERROL  E. ESTRELLA, JUANITA F. ESTRELLA,JOHN A. MATUSEK, SUNDAY M. MATUSEK, ARTHUR M. AQUINO, MILAGROS N. AQUINO, NEVILLE T. PRITCHARD and BARBARA M. PRITCHARD:

     James J. Bickerton and Bridget G. Morgan-Bickerton of Bickerton Law Group and Van-Alan H. Shima of Affinity Law Group, LLLC

Attorneys for Defendants-Appellees ERIC TUCKER, MICHELLE TUCKER and U.S. BANK, N.A.:   

     Pamela W. Bunn and Madisson L. Heinze of Dentons US LLP

Attorneys for Defendant-Appellee BANK OF AMERICA, N.A.:

     Allison Mizuo Lee and Patricia J. McHenry of Cades Schutte LLP and Elizabeth Z. Timmermans of McGuirewoods LLP

Attorney for Defendants-Appellees JAMES SOR, AMERICAN SAVINGS BANK, F.S.B., BRADLEY ALAN LOEFFLER, BARBARA JEAN LOEFFLER, INDIVIDUALLY AND AS TRUSTEES OF THE LOEFFLER 2011 FAMILY TRUST DATED DECEMBER 22, 2011:

     Charles A. Price of Koshiba & Price

Attorneys for Plaintiffs-Appellants ROBERT R. HEMSHER, JR., BRIDGETTE B. HEMSHER, STEPHEN P. CANO, NINA Q. CANO and RAYMOND PINEDA:

     James J. Bickerton and Bridget G. Morgan-Bickerton of Bickerton Law Group and Van-Alan H. Shima of Affinity Law Group, LLLC 

Attorneys for Defendant-Appellee MAUNA LANI GOLF H2, LLC:

     Michael C. Bird, Summer H. Kaiawe and Vanessa D. Wen of Watanabe Ing LLP

Attorneys for Defendant-Appellee BANK OF AMERICA, N.A.:

     Allison Mizuo Lee and Patricia J. McHenry of Cades Schutte LLP and Elizabeth Z. Timmermans of McGuirewoods LLP

Attorney for Defendants-Appellees WAYNE MICHAEL TILKA and DOROTHY JEAN TILKA:

     Charles A. Price of Koshiba & Price

NOTE: Order accepting application for transfer in 1) SCAP-23-0000335, filed 05/02/24; 2) SCAP-23-0000531, filed 05/06/24.

NOTE: Order consolidating SCAP-23-0000335 and SCAP-23-0000531 for oral argument only, filed 03/05/25.

NOTE:  Recktenwald, C.J., McKenna, Eddins, Ginoza, and Devens, JJ.

Brief Description:

These cases, consolidated for oral argument only, arise from non-judicial foreclosures between 2008 and 2011.

Plaintiffs in both cases filed wrongful foreclosure lawsuits in the circuit court against Bank of America, N.A. and quiet title and ejectment actions against the defendants currently holding title to the foreclosed-on properties.  This court granted both parties’ applications for transfer from the Intermediate Court of Appeals.

The central issue to this case is whether a purchaser is on constructive notice of defects in a non-judicial foreclosure pursuant to HRS § 667-5 (repealed) based on a foreclosure affidavit recorded in the property’s chain of title.  Defendants to the quiet title and ejectment action argue that they are bona fide purchasers and, therefore, even if the foreclosure was procedurally defective, Plaintiffs cannot pursue their quiet title and ejectment claim.  Plaintiffs argue that the Defendants’ bona fide purchaser defense fails because the affidavit of foreclosure placed Defendants on constructive notice of a procedurally defective foreclosure.