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GGS (HI), Inc. v. New York Diamond, Inc.

Citations: 85 Haw. 398; 944 P.2d 1341; 1997 Haw. App. LEXIS 107Docket: No. 18948

Court: Hawaii Intermediate Court of Appeals; July 28, 1997; Hawaii; State Appellate Court

Narrative Opinion Summary

In this case, a real estate company, GGS, appealed a circuit court order denying its motion to expunge lis pendens and a stipulated judgment from its land court certificate of title. The dispute arose from a breach of contract lawsuit involving various parties over a property transaction, where N.Y. Diamond and its president had recorded a lis pendens. The core legal issues centered on the jurisdiction of courts to expunge such notices and the validity of the lis pendens and stipulated judgment as liens on the property. The court highlighted that the land court, rather than the circuit court, holds exclusive jurisdiction to expunge entries from a certificate of title, although the circuit court can assess document validity. It found the lis pendens and supplemental lis pendens invalid under HRS § 501-151, which restricts filings to actions affecting property title. Furthermore, the court ruled that the stipulated judgment did not create a valid lien, as it was non-final. Despite recording releases, the case was not moot due to potential collateral consequences for the appellant. Ultimately, the court vacated the lower court's rulings and remanded the case for further proceedings, recognizing the invalidity of the lis pendens and stipulated judgments.

Legal Issues Addressed

Equitable Liens and Stipulated Judgments

Application: The stipulated judgment in question did not create an equitable lien on GGS's property as it was not recognized as a formal judgment.

Reasoning: The December 23, 1992 stipulated judgment and the November 18, 1993 stipulated dismissal did not establish an equitable lien on GGS's property.

Jurisdiction Over Expungement of Lis Pendens

Application: The court determined that only the land court has the authority to expunge entries from a certificate of title, despite the circuit court's concurrent jurisdiction to assess the validity of lis pendens.

Reasoning: The court agreed on the circuit court's jurisdiction to hear the motion but concluded that only the land court could expunge entries from a certificate of title.

Mootness and Expungement of Lis Pendens

Application: Despite the recorded release of lis pendens, the court determined the issue was not moot due to the ongoing potential for collateral consequences.

Reasoning: This potential action indicates that the issue is not moot.

Non-Final Judgments and Judgment Liens

Application: A non-final stipulated judgment does not create a judgment lien on real property; thus, the stipulated judgment in this case did not establish a lien on GGS's property.

Reasoning: The recorded 'stipulated judgment and order' does not constitute a judgment lien on GGS's property because it is not final.

Validity of Lis Pendens Under Hawaii Revised Statutes

Application: The lis pendens and supplemental lis pendens were deemed invalid due to non-compliance with HRS § 501-151, which restricts filings to actions affecting real property title.

Reasoning: Consequently, both the initial and supplemental lis pendens filed by them were improperly recorded.