No. SCAP-22-0000547, Thursday, February 15, 2024, 10 a.m.

RONNIE R. LLANES; SHARON L. LLANES; MICHAEL CODIE; and LAUREN C. CODIE, Plaintiffs-Appellants, vs. BANK OF AMERICA, N.A.; CHRIS EDWARD K. KAM; KRISTEN M. KAM; JP MORGAN CHASE BANK, N.A.; AKIKO MIYAZAKI, Individually and as Trustee of the Akiko Miyazaki Revocable Living Trust Dated September 7, 2017; MORTGAGE ELECTRONIC REGISTRATION SYSTEMS, INC.; and HIGHTECHLENDING, INC., Defendants-Appellees.

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The above-captioned case was set for oral argument on the merits at:

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

The oral argument was also livestreamed for public viewing via the Judiciary’s YouTube channel at YouTube.com/hawaiicourts and ʻŌlelo Community Television on OLELO55.  

Attorneys for Plaintiffs-Appellants RONNIE R. LLANES, et al.:

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

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

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

NOTE: Order assigning Circuit Judge Dean E. Ochiai and Circuit Judge Paul B.K. Wong due to vacancies, filed 08/23/23.

NOTE: Certificate of Recusal, by Circuit Judge Dean E. Ochiai, filed 08/25/23.

NOTE: Order assigning Circuit Judge Gary W.B. Chang, in place of Circuit Judge Ochiai, recused, filed 08/28/23.

NOTE: Order granting Application for Transfer, filed 08/29/23.

NOTE: Certificate of Recusal, by Circuit Judge Gary W.B. Chang, filed 09/08/23.

NOTE: Order assigning Circuit Judge Rowena A. Somerville, in place of Circuit Judge Gary W.B. Chang, recused, filed 09/13/23.

COURT: Recktenwald, C.J., McKenna and Eddins, JJ., and Circuit Judge Wong and Circuit Judge Somerville, assigned by reason of vacancies

Brief Description:

Plaintiffs-Appellants Ronnie and Sharon Llanes and Michael and Lauren Codie (“Borrowers”) purchased homes with mortgages from Defendant-Appellee Bank of America, N.A. (“Lender”).  After the mortgages entered default, the mortgaged properties were sold in nonjudicial foreclosure sales, offsetting Borrowers’ respective outstanding debts.  Borrowers then sued lender, alleging (1) wrongful foreclosure and (2) unfair and deceptive trade practices, and seeking to recover out-of-pocket expenses related to the foreclosed properties.

The Circuit Court of the Third Circuit granted summary judgment to Lender.  This appeal followed and was transferred to this Court.

The issue on appeal is whether, under Lima v. Deutsche Bank Nat’l Tr. Co., 149 Hawai‘i 457 (2021), and Santiago v. Tanaka, 137 Hawai‘i 137 (2016), out-of-pocket expenses allegedly lost in a wrongful nonjudicial foreclosure include forgiven mortgage debt.