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Lahaina Fashions, Inc. v. Bank of Hawaii

Citations: 129 Haw. 250; 297 P.3d 1106; 2013 Haw. App. LEXIS 115Docket: No. 30644

Court: Hawaii Intermediate Court of Appeals; February 20, 2013; Hawaii; State Appellate Court

Narrative Opinion Summary

Lahaina Fashions, Inc. appealed the Circuit Court's decision favoring several defendants, including the Bank of Hawai'i, following a jury verdict. The appeal contested the denial of Lahaina’s motion to correct the verdict, exclusion of Exhibit 81, and a ruling on attorney-client privilege. Lahaina’s claims involved allegations of fraud, conspiracy, breach of fiduciary duty, and tortious interference. The Circuit Court granted Judgment as a Matter of Law on the breach-of-fiduciary-duty claim, finding no fiduciary relationship existed. The jury awarded Lahaina damages for tortious interference but found that the statute of limitations barred the claim. The Circuit Court denied Lahaina’s post-trial motions, asserting the jury's verdict was final upon discharge. The appellate court affirmed the Circuit Court’s rulings, emphasizing the finality of a jury’s verdict post-discharge and the absence of a fiduciary relationship. The court also upheld the exclusion of evidence under the Hawai'i Rules of Evidence and the limited waiver of attorney-client privilege. The defendants' cross-appeal regarding the statute of limitations was rendered moot, and the Circuit Court's judgment was affirmed in full.

Legal Issues Addressed

Denial of Motion to Correct Verdict

Application: The Circuit Court's denial of Lahaina's motion to correct the verdict was affirmed as the jury had been discharged and could not amend its verdict.

Reasoning: Lahaina argues that the case of Pare aligns with Manipon, asserting that a jury can amend its verdict under the trial court’s direction. However, the current case differs because the jury rendered a verdict, which was polled and confirmed by eleven of the twelve jurors in open court before being entered into the record.

Exclusion of Evidence Under Hawai'i Rules of Evidence

Application: The Circuit Court did not abuse its discretion in excluding Exhibit 81, as its probative value was outweighed by potential prejudices.

Reasoning: The Email's potential to confuse or prejudice the jury outweighed its limited relevance, which Lahaina failed to address adequately.

Fiduciary Duty in Vendor-Purchaser Relationship

Application: The court found no fiduciary relationship between Lahaina and the Defendants, as the relationship was that of a vendor and purchaser, not trustee and beneficiary.

Reasoning: The relationship between the vendor and purchaser is distinct from that of a trustee and beneficiary, as the vendor does not have a fiduciary duty to the purchaser.

Jury Discharge and Verdict Finality

Application: Once a jury is formally discharged, it cannot amend its verdict, as their duties are considered complete.

Reasoning: Once the trial court accepts and records the jury's verdict and discharges the jury, the trial concludes and the jury ceases to exist as a legal entity.

Standards of Review for JMOL

Application: Judgment as a Matter of Law is reviewed de novo, and the Circuit Court's decision on Lahaina's breach-of-fiduciary-duty claim was upheld.

Reasoning: Motions for Judgment as a Matter of Law (JMOL) are subject to de novo review by appellate courts.

Waiver of Attorney-Client Privilege

Application: The Circuit Court limited discovery of attorney-client communications, finding no broad waiver of privilege by the Defendants.

Reasoning: Lahaina argued that the commentary to HRE 511 supported broader discovery rights, but the court did not err in limiting the scope of the waiver as it did.