ORDER DENYING MOTION TO SEAL SETTLEMENT AGREEMENT AND REDACT RELATED INFORMATION Related Dkt. No.: 47. ROBERT J. FARIS , Backruptcy Judge . The bankruptcy estate includes claims that Bank of America, N.A. ("BANA"), improperly foreclosed a mortgage made by the debtor, Judith Lynn Gibbs. The trustee and BANA have negotiated a settlement of the claims. They jointly ask the court to file under seal their settlement agreement and to permit the trustee to redact the settlement amount from any...
FINDINGS OF FACT AND CONCLUSIONS OF LAW Related Dkt. No. 1. ROBERT J. FARIS , Bankruptcy Judge . On September 19-22, 2017, the court conducted the trial of this adversary proceeding and an evidentiary hearing on the plaintiff's objection to the defendant's proof of claim in the main bankruptcy case. 1 Chuck C. Choi, Esq. and Alison A. Ito, Esq. appeared for plaintiff/objector Cuzco Development U.S.A., LLC ("Cuzco USA"), and Christopher J. Muzzi, Esq. appeared for defendant/claimant...
AMENDED FINDINGS OF FACT AND CONCLUSIONS OF LAW RE: UNITED STATES TRUSTEE'S MOTION TO COMPEL DISGORGEMENT OF FEES UNDER 11 U.S.C. 329 AND TO SANCTION ATTORNEYS FOR VIOLATIONS OF 11 U.S.C. 526 Robert J. Faris , United States Bankruptcy Judge . The United States Trustee's Motion To Compel Disgorgement Of Fees Under 11 U.S.C. 329 And To Sanction Attorneys For Violations Of 11 U.S.C. 526 ("Motion") came on for hearing on September 18, 2017. Curtis Ching appeared for the United States...
MEMORANDUM OF DECISION ON TRUSTEE'S MOTION FOR INSTRUCTIONS AS TO DISTRIBUTION RIGHTS OF CERTAIN CREDITORS Robert J. Faris , United States Bankruptcy Judge . The question presented is whether, in a Ponzi scheme case, the timely-filed claims of investors for lost profits should be paid before or after the untimely-filed claims of investors for lost principal. I conclude that the timely claims should be paid first, including the lost profits portion of the timely claims. I. FACTS Maui...
ORDER DISMISSING CASE Re: Docket No. 46 ROBERT J. FAIRS , Bankruptcy Judge . Pursuant to the memorandum decision entered on August 17, 2017, it is hereby ordered that this chapter 12 case is DISMISSED.
MEMORANDUM OF DECISION ON APPLICATION FOR FINAL COMPENSATION Related Dkt. 479 ROBERT J. FARIS , Bankruptcy Judge . Choi & Ito, counsel for the debtor in possession in this hotly contested chapter 11 case, seeks allowance of final compensation and reimbursement of expenses. I approved a portion of the amount requested on an interim basis and took the balance of the request under advisement. 1 I am now prepared to grant the application in its entirety. This case has an extensive and...
MEMORANDUM OF DECISION ON MOTION FOR PARTIAL SUMMARY JUDGMENT Robert J. Faris , United States Bankruptcy Judge . This adversary proceeding presents the question of whether a transfer of $123,716.23 to defendant, Thomas Coulson, is an avoidable preference under section 547(b) of the Bankruptcy Code, based on Mr. Coulson's status as a secured or unsecured creditor. I. Background Most of the historical facts are undisputed. In 2002, Mr. Coulson sought to purchase real property located...
MEMORANDUM DECISION ON MOTION FOR PARTIAL SUMMARY JUDGMENT BY DEFENDANTS DENNIS AND STANLEY NARVAES Re: Dkt. No. 111. ROBERT J. FARIS , Bankruptcy Judge . The question presented is whether the bankruptcy court should adjudicate the rights of certain beneficiaries in a trust, even though the court has decided that the bankruptcy estate of one of the beneficiaries has no claim against the trust. I conclude that the answer is no. Antonio Narvaes is the late husband of Ah Mei Chun, the...
FINDINGS OF FACT, CONCLUSIONS OF LAW, AND ORDER GRANTING KMT INVESTMENT LLC'S MOTION TO DISMISS COMPLAINT Related Docket No. 16 ROBERT J. FARIS , Judge . On March 21, 2017, Plaintiffs Gabriel Canencia and Natlie Lynn-Briones Canencia ("Canencias") filed their Compliant to Recover Fraudulently Conveyed Property ("Complaint"). On April 20, 2017 Defendant KMT Investment LLC, a Hawaii limited liability company ("KMT"), filed KMT's 1) Motion to Dismiss Complaint, and 2) Joinder as to...
SUPPLEMENTAL FINDINGS OF FACT SUPPORTING PRELIMINARY INJUNCTION Dkt. No. 2. ROBERT J. FARIS , Bankruptcy Judge . On May 17 and 24, 2017, the court held an evidentiary hearing on a motion for a preliminary injunction filed by plaintiff GemCap Lending I, LLC ("GemCap"). The court has entered an order granting the motion. 1 The order includes certain findings of fact and conclusions of law. The purpose of this document is to supplement the findings contained in section A of the preliminary...
SUPPLEMENTAL FINDINGS OF FACT SUPPORTING PRELIMINARY INJUNCTION Dkt. No. 2 ROBERT J. FARIS , Bankruptcy Judge . On May 17 and 24, 2017, the court held an evidentiary hearing on a motion for a preliminary injunction filed by plaintiff GemCap Lending I, LLC ("GemCap"). The court has entered an order granting the motion. 1 The order includes certain findings of fact and conclusions of law. The purpose of this document is to supplement the findings contained in section A of the preliminary...
FINDINGS OF FACT AND CONCLUSIONS OF LAW ON PLAINTIFF'S MOTION FOR DEFAULT JUDGMENT, OR ALTERNATIVELY FOR SUMMARY JUDGMENT Related Document No. 83. ROBERT J. FARIS , Bankruptcy Judge . Plaintiff State of Hawaii Office of Consumer Protection's Motion for Default Judgment, Or Alternatively Summary Judgment, filed March 20, 2017 (the "Motion"), came on for hearing before the Honorable Robert J. Faris on April 27, 2017, pursuant to notice. James F. Evers, Esq., appeared on behalf of Plaintiff...
MEMORANDUM OF DECISION REGARDING PLAN CONFIRMATION Docket No. 2. ROBERT J. FARIS , Bankruptcy Judge . The debtor, Lynn Uedoi, commenced her case on December 31, 2016 and timely filed a chapter 13 plan. Unsecured creditor, Bank of Hawaii, objects to confirmation. I agree with some, but not all, of Bank of Hawaii's contentions. Because Ms. Uedoi's plan fails to apply all projected disposable income toward the payment of allowed unsecured claims, I will deny confirmation. In order to...
MEMORANDUM OF DECISION ON MOTION FOR RECONSIDERATION Re: Dkt. 32. ROBERT J. FARIS , Bankruptcy Judge . In this "wrongful foreclosure" action, the plaintiff seeks reconsideration of my decision 1 that, under Hawaii law, a defective nonjudicial foreclosure is voidable, not void. For the reasons that follow, I will deny the motion but reserve decision on whether to certify the question to the Hawaii Supreme Court until a later stage of the litigation. The plaintiff in this case ("Trustee")...
MEMORANDUM OF DECISION REGARDING PLAN CONFIRMATION Docket No. 24 ROBERT J. FARIS , Bankruptcy Judge . David and Michele Peru ("Debtors") commenced their case on September 21, 2016. After the court denied confirmation of their initial chapter 13 plan, Debtors timely filed a second plan 1 on January 24, 2017. The standing chapter 13 trustee and creditor, City and County of Honolulu, object to confirmation. The City and County of Honolulu has filed a proof of claim contending that it...
FINDINGS OF FACT, CONCLUSIONS OF LAW UNDER 11 U.S.C. 1126 AND 1129(a) CONFIRMING THIRD AMENDED CHAPTER 11 PLAN OF REORGANIZATION FOR DEBTOR DATED AS OF FEBRUARY 10, 2017 [Relate to Docket No. 369] ROBERT J. FARIS , Bankruptcy Judge . The hearing on confirming ("Confirmation Hearing") of the Third Amended Chapter 11 Plan of Reorganization for Debtor Dated as of February 10, 2017 as amended pursuant to the confirmation order, the ("Plan"), filed by CUZCO DEVELOPMENT USA, LLC, the...
FINDINGS OF FACT AND CONCLUSIONS OF LAW Re: Docket No. 140 ROBERT J. FARIS , Bankruptcy Judge . Debtor Z3 Sports Academy LLC ("Z3") filed a motion to assume a lease with AG-Metric KTC Owner, LLC ("Landlord"). 1 Landlord opposed the motion. The court scheduled an evidentiary hearing on two disputed factual issues: (a) the amount of delinquent rent and other amounts due under the lease as of the petition date; and (b) the amount of any offsets that Z3 may have against its prepetition...
FINDINGS OF FACT AND CONCLUSIONS OF LAW Robert J. Faris , United States Bankruptcy Judge . The evidentiary hearing on plaintiff Julia Riihimaki's Motion to Enforce Settlement 1 was held on September 6 and 7, October 27, and December 5, 7, and 14, 2016. Ronald Ogomori and Ronald Sakimura represented Mrs. Riihimaki, and Christopher Muzzi represented defendants Young Hui Kim ("Reverend Kim"), Glory of God Presbyterian Church ("Church"), and Pacific Eagle Realty, LLC ("Realty"). I have...
MEMORANDUM OF DECISION ON MOTION TO DISMISS Robert J. Faris , United States Bankruptcy Judge This is a "wrongful foreclosure" action. Defendant HSBC Bank USA, N.A. ("HSBC"), joined by the other defendants except defendant American Savings Bank, F.S.B., moves the court to dismiss this adversary proceeding. For the reasons that follow, I will grant the motion in one respect and deny it in all other respects. I. FACTS This section very briefly summarizes the allegations of the complaint....
ORDER OVERRULING OBJECTION TO PLAN CONFIRMATION Re: Docket No. 12. ROBERT J. FARIS , Bankruptcy Judge . The chapter 13 trustee has objected to confirmation of the debtor's chapter 13 plan. He claims that the plan fails the "disposable income" test. For the following reasons, I will overrule the objection. If the trustee or an unsecured creditor objects, the court may not confirm a chapter 13 plan unless the plan provides for full payment of unsecured claims or the plan provides that all...
