Romspen Inv. Corp. v. L&E Ranch LLC

• Docket Number: CAAP-19-0000048
• Decision Date: 24 April 2024
• Parties: ROMSPEN INVESTMENT CORPORATION, an Ontario Corporation, Plaintiff-Appellee, v. L & E RANCH LLC, a Hawaiʻi limited liability company, Defendant-Appellant, and HUGH JOHN COFLIN; JANET DAWN STEPHENSON COFLIN; THE BANK OF NEW YORK MELLON, a New York Corporation; DEPARTMENT OF TAXATION, STATE OF HAWAIʻI; JPMORGAN CHASE BANK, NATIONAL ASSOCIATION; TERRY LYNNE OHARA MOSELEY; ASSOCIATION OF APARTMENT OWNERS OF KAI MALU AT WAILEA; ASSOCIATION OF APARTMENT OWNERS OF WAILEA FAIRWAY VILLAS; ASSOCIATION OF APARTMENT OWNERS OF MAKENA SURF; DEAN S. ARASHIRO; MARGARET C. GARCIA; MARGARET C. GARCIA, DDS, INC.; DEAN S. ARASHIRO, DDS, MS, LTD.; MAUI MIAMI AUMAKA PARTNERS LIMITED PARTNERSHIP, Defendants-Appellees, and JOHN DOES 2-50; JANE DOES 2-50; DOE PARTNERSHIPS 2-50; DOE CORPORATIONS 2-50; DOE ENTITIES 2-50 and DOE GOVERNMENTAL UNITS 1-50, Defendants.
• Court: Hawaii Court of Appeals

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ROMSPEN INVESTMENT CORPORATION, an Ontario Corporation, Plaintiff-Appellee,
v.
L & E RANCH LLC, a Hawaiʻi limited liability company, Defendant-Appellant,

and HUGH JOHN COFLIN; JANET DAWN STEPHENSON COFLIN; THE BANK OF NEW YORK MELLON, a New York Corporation; DEPARTMENT OF TAXATION, STATE OF HAWAIʻI; JPMORGAN CHASE BANK, NATIONAL ASSOCIATION; TERRY LYNNE OHARA MOSELEY; ASSOCIATION OF APARTMENT OWNERS OF KAI MALU AT WAILEA; ASSOCIATION OF APARTMENT OWNERS OF WAILEA FAIRWAY VILLAS; ASSOCIATION OF APARTMENT OWNERS OF MAKENA SURF; DEAN S. ARASHIRO; MARGARET C. GARCIA; MARGARET C. GARCIA, DDS, INC.; DEAN S. ARASHIRO, DDS, MS, LTD.; MAUI MIAMI AUMAKA PARTNERS LIMITED PARTNERSHIP, Defendants-Appellees, and JOHN DOES 2-50; JANE DOES 2-50; DOE PARTNERSHIPS 2-50; DOE CORPORATIONS 2-50; DOE ENTITIES 2-50 and DOE GOVERNMENTAL UNITS 1-50, Defendants.

No. CAAP-19-0000048

Intermediate Court of Appeals of Hawaii

April 24, 2024

NOT FOR PUBLICATION IN WEST'S HAWAIʻI REPORTS AND PACIFIC REPORTER

Appeal from the Circuit Court of the Second Circuit (Civil No. 2CC161000470)

On the briefs:

Frederick J. Arensmeyer, for Defendant-Appellant.

D. Scott MacKinnon, Marguerite S.N. Fujie, (McCorriston Miller Mukai MacKinnon) for Plaintiff-Appellee.

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Leonard, Acting Chief Judge, Nakasone and McCullen, JJ.

SUMMARY DISPOSITION ORDER

Defendant-Appellant L&E Ranch LLC (L&E Ranch) appeals from the Circuit Court of the Second Circuit's: ^[1] (1) November 2, 2018 Order Granting Motion for Order Approving Report of Commissioner, Confirming Sale of Real Property at Public Auction, Directing Distribution of Proceeds, and for Issuance of a Writ of Possession Filed on August 2, 2018 (Order Confirming Sale); (2) November 23, 2018 Judgment on Order Confirming Sale (Judgment); and (3) February 5, 2019 denial of L&E Ranch's Nonhearing Motion for Rehearing/Reconsideration.

L&E Ranch raises two points of error, contending the circuit court abused its discretion when it confirmed the foreclosure auction sale of two of its real properties (together, Ranch Property) to Plaintiff-Appellee Romspen Investment Corporation (Romspen) because: (1) the bid price from Romspen was so low that it shocks the conscience; and (2) the circuit court did not hold an evidentiary hearing to determine the fair market value of the Ranch Property.

Upon careful review of the record and the briefs submitted by the parties and having given due consideration to

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the issues raised and the arguments advanced, we resolve the points of error^[2] as discussed below, and affirm.

(1) L&E Ranch contends the bid price of $15,300,000.00 shocks the conscience because the Ranch Property was appraised at $34 million in 2014 and $48 million in 2017, and it says it received purchase offers for $22 million, $31 million, and $32 million for the Ranch Property from other parties.

A mortgagee is not required to obtain fair market value when foreclosing on real...