U.S. Bank National Association v. Spence
Spence
Court
Hawaii Intermediate Court of Appeals
Decided
June 20, 2025
Jurisdiction
SA
Importance
45%
Practice Areas
Case Summary
NOT FOR PUBLICATION IN WEST'S HAWAI I REPORTS AND PACIFIC REPORTER Electronically Filed Intermediate Court of Appeals CAAP-XX-XXXXXXX 20-JUN-2025 08:58 AM Dkt. 63 OGMD NO. CAAP-XX-XXXXXXX IN THE INTERMEDIATE COURT OF APPEALS OF THE STATE OF HAWAI I U.S. BANK NATIONAL ASSOCIATION, AS TRUSTEE FOR NEW CENTURY ALTERNATIVE MORTGAGE LOAN TRUST 2006-ALT2, Plaintiff-Appellee, v. DANIEL JOSEPH SPENCE; ELAINE DUMLAO SPENCE, Defendants-Appellants, and WILMINGTON SAVINGS FUND SOCIETY, FSB, NOT IN ITS INDIVIDUAL CAPACITY BUT SOLELY AS TRUSTEE FOR EASTERN SAT TRUST; MILILANI TOWN ASSOCIATION, Defendants-Appellees, and JOHN DOES 1-50; JANE DOES 1-50; DOE PARTNERSHIPS 1-50; DOE CORPORATIONS 1-50; DOE ENTITIES 1-50; and DOE GOVERNMENTAL UNITS 1-50, Defendants. APPEAL FROM THE CIRCUIT COURT OF THE FIRST CIRCUIT (CIVIL NO. 1CC141000573) ORDER GRANTING MOTION TO DISMISS APPEAL (By: Leonard, Acting Chief Judge, Hiraoka, Wadsworth, JJ.) Upon consideration of the Motion to Dismiss Appeal as Moot filed by Plaintiff-Appellee U.S. Bank National Association, as Trustee for New Century Alternative Mortgage Loan Trust 2006-ALT2 on June 6, 2025, the response filed by Defendants- Appellants Daniel Joseph Spence and Elaine Dumlao Spence on June 13, 2025, and the record, it appears that: 1. On April 29, 2025, we temporarily remanded this appeal to the Circuit Court in accordance with Wilmington Savings Fund Society, FSB v. Domingo, SCWC-XX-XXXXXXX & SCWC-XX-XXXXXXX, NOT FOR PUBLICATION IN WEST'S HAWAI I REPORTS AND PACIFIC REPORTER 2023 WL 2017392 (Haw. Feb. 15, 2023) (mem. op.) to determine whether the Property at issue in the foreclosure proceeding had been sold to a good-faith purchaser; 2. The Circuit Court conducted an evidentiary hearing and, on May 23, 2025, entered Findings of Fact, Conclusions of Law, and Order as to Third-Party Purchasers' Good Faith Purchaser Status in Accordance with Temporary Remand to Circuit Court; 3. The Circuit Court's findings of fact were supported by substantial evidence in the record and were not clearly erroneous, see Est. of Klink ex rel. Klink v. State, 113 Hawai i 332, 351, 152 P.3d 504, 523 (2007); 4. The Circuit Court's conclusions of law were right, see Wilmington Sav. Fund Soc'y, FSB v. Domingo, 155 Hawai i 1, 9, 556 P.3d 347, 355 (2024); 5. The Circuit Court's conclusion that "(1) Mark Nicholas Chin and Jeanie Chi Hyon Chin, as tenants by the entirety; (2) Properinvest, LLC; (3) Kelakela 1069 LLC; (4) Zenith Realty Group, LLC; and (5) Small Pond Partners, LLC), were and are good faith purchasers of the Property under Hawai i law" was supported by its findings of fact and reflected an application of the correct rule of law, Domingo, 155 Hawai i at 9, 12, 556 P.3d at 355, 358; and 6. The Spences' appeal is moot, Bank of New York Mellon v. R. Onaga, Inc., 140 Hawai i 358, 370, 400 P.3d 559, 570 (2017) (holding that if no stay is obtained and the foreclosed property is sold to a good faith purchaser, the appeal should be dismissed as moot). 2
Case Details
Case Details
Legal case information
Status
Decided
Date Decided
June 20, 2025
Jurisdiction
SA
Court Type
federal
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Case Summary
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Case Overview
Case Name: U.S. Bank National Association v. Spence
Court: Hawaii Intermediate Court of Appeals
Date: June 20, 2025
Jurisdiction: SA
In this case, U.S. Bank National Association, acting as trustee for the New Century Alternative Mortgage Loan Trust 2006-ALT2, appealed against Daniel Joseph Spence and Elaine Dumlao Spence, the defendants-appellants, in a foreclosure matter. The appeal was dismissed as moot following a temporary remand to the Circuit Court to assess the status of the property in question.
Key Legal Issues
- Mootness of Appeal: Whether the appeal should be dismissed due to the sale of the property to a good faith purchaser.
- Good Faith Purchaser Status: Determining if the purchasers of the property met the criteria under Hawaii law.
Court's Decision
The Hawaii Intermediate Court of Appeals granted the Motion to Dismiss Appeal as moot, concluding that the Circuit Court's findings were supported by substantial evidence and correctly applied the law regarding good faith purchasers.
Legal Reasoning
- The court temporarily remanded the case to the Circuit Court to evaluate whether the property had been sold to a good faith purchaser, referencing the precedent set in Wilmington Savings Fund Society, FSB v. Domingo.
- Following an evidentiary hearing, the Circuit Court found that several entities were good faith purchasers, which was supported by substantial evidence.
- The court emphasized that the appeal was moot because the property had been sold without a stay, aligning with the precedent in Bank of New York Mellon v. R. Onaga, Inc..
Key Holdings
- The Circuit Court's findings of fact were not clearly erroneous and were backed by substantial evidence.
- The conclusion that certain entities were good faith purchasers was consistent with Hawaii law.
- The appeal was dismissed as moot due to the sale of the property to a good faith purchaser without a stay.
Precedents and Citations
- Wilmington Savings Fund Society, FSB v. Domingo, SCWC-XX-XXXXXXX (2023)
- Est. of Klink ex rel. Klink v. State, 113 Hawai i 332 (2007)
- Bank of New York Mellon v. R. Onaga, Inc., 140 Hawai i 358 (2017)
Practical Implications
This case underscores the importance of obtaining a stay during foreclosure proceedings. It illustrates how the sale of property to a good faith purchaser can render appeals moot, thereby limiting the options for homeowners facing foreclosure. Legal practitioners should advise clients on the necessity of timely actions to protect their interests in foreclosure situations. Additionally, the case reinforces the standards for establishing good faith purchaser status under Hawaii law, which can be pivotal in similar future cases.
Understanding the implications of this ruling can help both legal professionals and individuals navigate the complexities of foreclosure law in Hawaii effectively.
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Case Details
Legal case information
Status
Decided
Date Decided
June 20, 2025
Jurisdiction
SA
Court Type
federal
Legal Significance
Case importance metrics
Metadata
Additional information
Quick Actions
Case management tools