PROPOSED FINDINGS OF FACT AND CONCLUSIONS OF LAW RESPECTING PROPOSED STIPULATED NON-DISCHARGEABLE JUDGMENT IN FAVOR OF PLAINITFF DANE S. FIELD AND AGAINST DEFENDANT HOLLY L. HOAEAE; EXHIBITS "1" and "2"
JAMES A. WAGNER, Bankruptcy Judge.
PROPOSED FINDINGS OF FACTAND CONCLUSIONS OF LAW RESPECTING PROPOSED STIPULATED NON-DISCHARGEABLE JUDGMENT IN FAVOR OF PLAINITFF DANES. FIELD AND AGAINST DEFENDANT HOLLY L. HOAEAE
On September 20, 2011, Dane S. Field, Trustee for the Debtor, The Mortgage Store, Inc. ("The Mortgage Store"), and Plaintiff in the instant adversary proceeding, filed Trustee's Motion to Approve Settlement Agreement With George Lindell, Karen Lindell, Holly Hoaeae and Kamakana Hoaeae (the "Motion to Approve Settlement Agreement") in the underlying bankruptcy action. A copy of the Settlement Agreement is attached hereto as Exhibit "1". This motion came on for hearing on October 19, 2011, before the Honorable Robert J. Faris, United States Bankruptcy Judge. Simon Klevansky, Esq., appeared on behalf of the Trustee Dane S. Field, who was also in attendance. James Wagner, Esq., appeared on behalf of George William Lindell, Karen Kesseler Lindell, Holly Hoaeae and Kamakana Hoaeae. Creditors of The Mortgage Store were given notice of the hearing on the Motion. No opposition to the Motion was made.
The Settlement Agreement contemplates entry of a proposed Stipulated Non-Dischargeable Judgment in Favor of Plaintiff Dane S. Field and Against Defendant Holly L. Hoaeae (the" Stipulated Non-Dischargeable Judgment").1 See Stipulated Non-Dischargeable Judgment, which is Exhibit "B" to the Settlement Agreement, and is attached hereto as Exhibit "2". Plaintiff has requested that the Stipulated Non-Dischargeable Judgment be entered by the United States District Court, in order to avoid any uncertainties in enforcement which might arise under Stern v. Marshall 131 S.Ct. 2594 (2011); and Defendant Holly L. Hoaeae does not oppose this procedure. Good cause appearing therefore, and pursuant to 28 U.S.C. § 157(c), the Court submits these Proposed Findings of Fact and Conclusions of Law, and the proposed Stipulated Non-Dischargeable Judgment, to the United States District Court for the District of Hawaii for entry of a final judgment in this case.
FINDINGS OF FACT
The Court has considered the Motion to Approve Settlement Agreement, the memorandum in support of the motion, the exhibit and declaration filed therewith, and has heard the arguments of counsel at the hearing, and finds as follows:
1. Plaintiff filed suit against Defendant Holly L. Hoaeae (" Defendant Hoaeae"), among others, alleging a variety of claims, including fraud.
2. Plaintiff and Defendant Hoaeae have agreed to settle these claims.
3. Pursuant to the Settlement Agreement, a copy of which is attached hereto as Exhibit "1", Defendant Hoaeae has agreed to entry of judgment against her, in substantially the form set forth in the Stipulated Non-Dischargeable Judgment, a copy of which is attached hereto as Exhibit "2".
4. Defendant Hoaeae has been represented by experienced, capable counsel at all stages of this litigation, and has determined that, in consideration of the benefits to be gained by the Settlement Agreement, she is prepared to have the proposed Stipulated Non-Dischargeable Judgment entered against her.
5. The Settlement Agreement was considered by the Court in In re The Mortgage Store, Inc., Bankr. Case No. 10-03454, and notice was properly given. No objections were made; and the Court has approved the Settlement Agreement.
CONCLUSIONS OF LAW
1. The parties are entitled to implementation of the Settlement Agreement, including entry of the Stipulated Non-Dischargeable Judgment.
2. The Stipulated Non-Dischargeable Judgment, in the form agreed to by the parties, shall be entered.
3. The Settlement Agreement negotiated by the parties in the instant case satisfies the legal standard of being fair and equitable, under the criteria set forth in In re Woodson, 839 F.2d 610, 620 (9th Cir. 1988).
SETTLEMENT AGREEMENT
This SETTLEMENT AGREEMENT (the "Agreement"), is made this ___ day of ________, 2011, by and between DANE S. FIELD (the "Trustee"), bankruptcy trustee in the bankruptcy proceeding entitled In re The Mortgage Store. Inc., Bk. No. 10-03454, United States Bankruptcy Court for the District of Hawaii, whose address is c/o Klevansky Piper, LLP, 841 Bishop Street, Suite 1707, Honolulu, Hawaii 96813, and GEORGE WILLIAM LINDELL ("George Lindell"), KAREN KESSELER LINDELL ("Karen Linden"), HOLLY HOAEAE ("Holly Hoaeae") and KAMAKANA HOAEAE ("Kamakana Hoaeae"), whose address is c/o Wagner Choi & Verbrugge, 745 Fort Street, Suite 1900, Honolulu, Hawaii 96813.
RECITALS
A. George Lindell and Karen Lindell, husband and wife, are the current owners of that certain real property located at 122 Pua Niu Way, Apt. "B", Lahaina, Maui, Hawaii, identified by Tax Map Key No. (2) 4-7-009-079-0002 (the "Residential Property"). George Lindell and Karen Lindell have represented to the Trustee that the Residential Property is listed for sale.
B. George Lindell and Karen Lindell each owned an undivided ¼ interest in that certain unimproved real property located at Haniu Way and described as Lot 6 Makila Plantation 1, Lahaina, Maui Hawaii, identified by Tax Map Key No. (2) 4-7-011-006 (the "Investment Property").
C. George Lindell has represented that he holds tide to a 2002 Ford F-250 Truck (the "Truck"), which the Trustee contends was purchased with funds of The Mortgage Store, Inc.
D. George Lindell has represented that he has a 50% interest in Mid-Pacific Resource LLC, a Hawaii limited liability company ("Mid-Pacific Resource").
E. George Lindell has also represented that he has a 50% interest in Mid-Pacific Contractors, LLC, a Hawaii limited liability company ("Mid-Pacific Contractors LLC").
F. From 1996 through 2008, George Lindell was the president and sole shareholder of The Mortgage Store, Inc. (the "Debtor").
G. On or about December 31, 2008, George Lindell transferred his interest and ownership in the Debtor to Holly Hoaeae, pursuant to a "Sale of Stock and Employment Agreement".
H. On November 12, 2010, the Debtor filed for Chapter 7 bankruptcy commencing the proceeding In re The Mortgage Store, Inc., Bk. No. 10-03454, in the United States Bankruptcy Court for the District of Hawaii (the "Bankruptcy Court").
I. The Trustee was duly appointed as bankruptcy trustee of the Debtor's bankruptcy estate.
J. The Trustee contends that George Lindell and Holly Hoaeae, among other things, fraudulently transferred monies from the Debtor to, or for the benefit of, themselves and their spouses. For the purposes of this Agreement and any subsequent bankruptcy filings by George Lindell and Holly Hoaeae, George Lindell and Holly Hoaeae do not dispute that such transfers were made and were fraudulent.
K. On December 3, 2010, the Trustee filed a Complaint against George Lindell, his wife Karen Lindell, and others, commencing the adversary proceeding entitled Dane S. Field v. George W. Lindell, et al., Adv. Pro. No. 10-90146 ("Lindell Adversary Proceeding"). In the Complaint, the Trustee, among other things, alleged claims against George Lindell and/or Karen Lindell (collectively the "Lindell Claims") for the following:
a. Count I — Fraudulent transfers under 11 U.S.C. § 548(a) (Lindell Payments);
b. Count II — Fraudulent transfers under Haw.Rev.Stat. § 651C-4 and 11 U.S.C. § 544(b) (Lindell Payments);
c. Count III — Civil Conspiracy;
d. Count IV — Fraudulent transfers under 11 U.S.C. § 548(a) (Transfers Regarding Raymondville Plaza);
e. Count V — Fraudulent transfers under Haw.Rev.Stat. § 651C-4 and 11 U.S.C. § 544(b) (Transfers Regarding Raymondville Plaza);
f. Count VI — Fraudulent transfers under 11 U.S.C. § 548(a) (Transfers Regarding Apartment Complexes);
g. Count VII — Fraudulent transfers under Haw.Rev.Stat. §651C-4 and 11 U.S.C. § 544(b) (Transfers Regarding Apartment Complexes);
h. Count VIII — Breach of Fiduciary Duties;
i. Count IX — Fraud and Defalcation;
j. Count X — Unjust Enrichment;
k. Count XI — Monies Had and Received; and
l. Count XII — Punitive Damages
L. On March 30, 2011, the Trustee filed a Complaint against Holly Hoaeae and her husband Kamakana Hoaeae commencing the adversary proceeding entitled Dane S. Field v. Hollv L. Hoaeae. et al., Adv. Pro. No. 11-90028 ("Hoaeae Adversary Proceeding"). In the Complaint, the Trustee, among other things, alleged claims against Holly Hoaeae and/or Kamakana Hoaeae (collectively the "Hoaeae Claims") for the following:
a. Count I — Fraudulent transfers under 11 U.S.C. § 548(a) (Hoaeae Payments);
b. Count II — Fraudulent transfers under Haw.Rev.Stat. §651C-4 and 11 U.S.C. § 544(b) (Hoaeae Payments);
c. Count III — Fraudulent transfers under Haw.Rev.Stat. §651C-5(a) and 11 U.S.C. § 544(b) (Hoaeae Payments);
d. Count IV — Fraudulent transfers under Haw.Rev.Stat. §651C-5(b) and 11 U.S.C. § 544(b) (Hoaeae Payments);
e. Count V — Breach of Fiduciary Duty;
f. Count VI — Fraud and Defalcation;
g. Count VII — Unjust Enrichment;
h. Count VIII — Monies Had and Received; and
i. Count IX — Punitive Damages
M. The parties have determined it is in their respective best interests to settle the Lindell Claims and Hoaeae Claims, pursuant to the terms set forth herein, subject to approval by the Bankruptcy Court.
NOW THEREFORE, for and in consideration of good and valuable consideration, the sufficiency of which is hereby acknowledged, the parties agree as follows:
JUDGMENTS AGAINST GEORGE LINDELL AND HOLLY HOAEAE
1. George Lindell Stipulated Judgment ($5M). George Lindell will execute that certain Stipulated Judgment (the "Lindell Judgment"), substantially in the form attached hereto as Exhibit "A", in which George Lindell will stipulate to a non-dischargeable judgment in the amount of $5,000,000. The Trustee shall be entitled to immediately record the Lindell Judgment and execute upon the Lindell Judgment.
2. Holly Hoaeae Stipulated Judgment ($1M). Holly Hoaeae will execute that certain Stipulated Judgment (the "Hoaeae Judgment"), substantially in the form attached hereto as Exhibit "B", in which Holly Hoaeae will stipulate to a non-dischargeable judgment in the amount of $1,000,000. The Trustee shall be entitled to immediately record the Hoaeae Judgment and execute upon the Hoaeae Judgment.
LIQUIDATION OF ASSETS/APPLICATION TO JUDGMENTS
3. Sale of Residential Propertv/Convevance of Residential Property. George Lindell and Karen Lindell shall continue to market and list for sale the Residential Property. Any sale of the Residential Property shall be subject to the written approval of the Trustee. If a sale of the Residential Property closes prior to date of the entry of an order approving this Settlement Agreement, the proceeds from the sale of the Residential Property, after the payment of all liens, mortgages, encumbrances, costs of sale, and commissions have been paid (the "Residential Property Proceeds"), shall be disbursed to the law firm of Klevansky Piper, LLP, as counsel for the Trustee, and held in that law firm's client's trust account, until the Bankruptcy Court enters an order approving this Settlement Agreement, at which time, it shall thereafter be disbursed to the Trustee. If a sale of the Residential Property does not close prior to the date of the entry of an order approving this Setdement Agreement, George Lindell and Karen Lindell shall execute that certain Warranty Deed, in substantially the form attached hereto as Exhibit "C", conveying the Residential Property to the Trustee.
4. Rental Income from Residential Property. Within two (2) business days of execution of this Settlement Agreement, George Lindell shall transfer to the Trustee's counsel, Klevansky Piper, LLP (to be held in that law firm's client's trust account until Bankruptcy Court approval of this Settlement Agreement) all proceeds from the rental of the Residential Property, from and after June 1, 2011, less only amounts (i) paid to Bank of Hawaii upon obligations secured by mortgages upon the Residential Property, and (ii) expenses for maintenance of the Residential Property to which the Trustee has heretofore consented.
5. Sale of Investment Property. With the Trustee's approval, George Lindell and Karen Lindell have listed and sold the Investment Property. The proceeds from the sale of the Investment Property, after the payment of all liens, mortgages, encumbrances, costs of sale, and commissions have been paid (the "Investment Property Proceeds"), were disbursed to the law firm of Klevansky Piper, LLP, as counsel for the Trustee, and are being held in that law firm's client's trust account, until the Bankruptcy Court enters an order approving this Settlement Agreement, at which time, it shall thereafter be disbursed to the Trustee.
6. Mortgage on Investment Property. George Lindell and Karen Lindell hereby represent that on or about January 19, 2011, they received the sum of $150,000 pursuant to a loan made by Shirley Johnson and that said loan is secured by that certain Mortgage dated January 19, 2011 (the "Johnson Mortgage"), and recorded on January 24, 2011 in the Bureau of Conveyances of the State of Hawaii as Document No. 2011-013739, establishing a mortgage lien on the Investment Property. The Trustee relying on this representation agrees that he will not challenge the Johnson Mortgage.
7. Liquidation and Turnover of Amounts in Bank Accounts. Within five (5) business days after the Bankruptcy Court enters an Order Approving the Settlement Agreement, George Lindell and Karen Lindell shall liquidate the amounts in the following bank accounts and turn over to the Trustee all funds in these accounts:
• Bank of Hawaii — Account No. 0001060112
• Bank of Hawaii — Account No.0006643876
• Bank of Hawaii — Account No. 0007032323
• Wells Fargo Bank, N.A. — Account No. 7782030089
• Wells Fargo Bank, N.A. — Account No. 6861143151
• Wells Fargo Bank, N.A. — Account No. 9474305654
• Compass Bank — Account No. 2513916879
• Any other accounts in which George Lindell and/or Karen Lindell has, as of May 31, 2011, had signature authority, except for that certain Bank of Hawaii — Account No. 0005026296 (in which Karen Lindell has an interest) Copies of bank statements for the period January 1,2007 through the time of the liquidation shall be turned over to the Trustee concurrently with the proceeds from the accounts.
8. Payment for Truck. Within five (5) business days after the Bankruptcy Court enters an Order Approving the Settlement Agreement, George Lindell shall pay to the Trustee the sum of $7,775 for the 2002 Ford F250 truck, which amount represents the Kelly Blue Book value for a private-party sale as of May 26, 2011 for the truck in "good" condition.
9. Assignment of Interests in Mid-Pacific Resource. Within five (5) business days after the Bankruptcy Court enters an Order Approving the Setdement Agreement, George Lindell and the Trustee shall enter into an Assignment and Bill of Sale, in substantially the form attached hereto as Exhibit "D", pursuant to which George Lindell shall assign his interest in Mid-Pacific Resource to the Taistee.
10. Assignment of Interests in Mid-Pacific Contractors. Within five (5) business days after the Bankruptcy Court enters an Order Approving the Setdement Agreement, George Lindell and the Trustee shall enter into an Assignment and Bill of Sale, in substantially the form attached hereto as Exhibit "E", pursuant to which George Lindell shall assign his interest in Mid-Pacific Contractors to the Trustee.
11. Transfer to the Trustee of Other Assets (George and Karen Lindell). George and Karen Lindell shall transfer, convey, and surrender all other real and personal property, financial assets, accounts, claims and choses in action, whether current or contingent, and oilier assets and interests in the same, belonging to each of them or both of them, to the Trustee, subject only to those assets retained by George and Karen Lindell under the below paragraph 17.
12. Transfer to the Trustee of Other Assets (Hollv and Kamakana Hoaeae). Holly and Kamakana Hoaeae shall transfer, convey, and surrender all other real and personal property, financial assets, accounts, claims and choses in action, whether current or contingent, and other assets and interests in the same, belonging to each of them or both of them, to the Trustee, subject only to those assets retained by Holly and Kamakana Hoaeae under the below paragraph 18.
13. Credit to Lindell Judgment. The net proceeds received by the Trustee from the liquidation of Lindell's assets described above after payment of all liens and encumbrances, and fees and costs of liquidation, shall be credited towards the Lindell Judgment.
14. Credit to Hoaeae Judgment. The net proceeds received by the Trustee from the liquidation of Hoaeae's assets described above, after payment of all liens and encumbrances, and fees and costs of liquidation, shall be credited towards the Hoaeae Judgment.
DISCLOSURE OF FINANCIAL INFORMATION
15. Financial Records/Tax Returns. All financial records and tax returns of George Lindell, Karen Lindell, Holly Hoaeae and Kamakana Hoaeae from January 1, 2007 to the present shall be turned over to the Trustee, or made available for inspection in Honolulu, Hawaii, and copying by the Trustee.
16. Bankruptcy Schedules and Statements of Financial Affairs. George Lindell and Karen Lindell (the "Lindells"), and Holly Hoaeae and Kamakana Hoaeae (the "Hoaeaes") shall each complete a set of Bankruptcy Schedules and a Statement of Financial Affairs (extending back to January 1, 2006), and shall complete a declaration testifying under penalty of perjury that the information set forth in the Bankruptcy Schedules and Statement of Financial Affairs is accurate. These Schedules, Statements, and Declarations in the form and content set forth in the attached Exhibits "F" and "G", respectively, shall be furnished to the Trustee at the time of the execution of this Settlement Agreement.
RETENTION OF ASSETS BY LINDELL AND KAMAKANA PARTIES
17. Retention of Assets by George and Karen Lindell. The only assets to be retained by George and Karen Lindell are (i) personal and household effects not to exceed $20,000 in aggregate value, as set forth in Exhibit "H" attached hereto, and (ii) retirement accounts, not including deposits made from and after June 30, 2007.
18. Retention of Assets by Hollv and Kamakana Hoaeae. The only assets to be retained by Holly and Kamakana Hoaeae are personal and household effects, not to exceed $15,000 in aggregate value, as set forth in Exhibit "I" attached hereto.
RELEASES/WAIVER OF RIGHTS/DISMISSALS OF ACTIONS
19. Release by Lindells. George Lindell and Karen Lindell, and each of them do hereby fully, completely, and forever release and discharge all claims, rights and causes of action of any kind, which either or both of them have or may have, whether known or unknown, contingent or fixed, liquidated or unliquidated, matured or unmatured, whether based on federal or state law, or the law of another jurisdiction, and whether based on a theory of tort, contract, statute, or any other legal theory against the Trustee, the Debtor, and the bankruptcy estate of the Debtor.
20. Waiver of Rights Regarding Tenancy by the Entireties Property by Lindells. George Lindell and Karen Lindell, and each of them, do hereby waive and fully and completely release and discharge any right or claim, as against the Trustee, that any property nominally held by George Lindell or Karen Lindell is held as tenants by the entireties and may therefore be exempt from any claim of the Trustee.
21. Release by Hoaeaes. Holly Hoaeae and Kamakana Hoaeae, and each of them do hereby fully, completely, and forever release and discharge all claims, rights and causes of action of any kind, which either or both of them have or may have, whether known or unknown, contingent or fixed, liquidated or unliquidated, matured or unmanned, whether based on federal or state law, or the law of another jurisdiction, and whether based on a theory of tort, contract, statute, or any other legal theory against the Trustee, the Debtor, and the bankruptcy estate of the Debtor.
22. Waiver of Rights Regarding Tenancy by the Entireties Property by Hoaeaes. Holly Hoaeae and Kamakana Hoaeae, and each of them, do hereby waive and fully and completely release and discharge any right or claim, as against the Trustee, that any property nominally held by Holly Hoaeae and Kamakana Hoaeae is held as tenants by the entireties and may therefore be exempt from any claim of the Trustee.
23. Dismissal of Claims against George and Karen Lindell. Within five (5) business days after the Bankruptcy Court enters an Order Approving the Settlement Agreement, and George Lindell and Karen Lindell have conveyed the real property, personal property, and monies to the Trustee as set forth in this Settlement Agreement, the Trustee and George Lindell and Karen Lindell shall enter into a Stipulation to Dismiss Claims, in substantially the form attached hereto as Exhibit "J", pursuant to which the Trustee shall dismiss with prejudice the claims filed against Karen Lindell in the Lindell Adversary Proceeding and shall dismiss without prejudice the claims filed against George Lindell in the Lindell Adversary Proceeding, and not heretofore or hereunder reduced to judgment. The Stipulation to Dismiss Claims shall not diminish or affect, in any way, the claims against the remaining parties in the Lindell Adversary Proceeding, or any other persons or entities, all of which claims are specifically reserved.
24. Dismissal of Claims against Hollv and Kamakana Hoaeae. Within five (5) business days after the Bankruptcy Court enters an Order Approving the Settlement Agreement, and Holly Hoaeae and Kamakana Hoaeae have conveyed the personal property to the Trustee as set forth in this Settlement Agreement, the Trustee and Holly Hoaeae and Kamakana Hoaeae shall enter into a Stipulation to Dismiss Claims, in substantially the form attached hereto as Exhibit "K", pursuant to which the Trustee shall dismiss with prejudice the claims filed against Kamakana Hoaeae in the Hoaeae Adversary Proceeding and shall dismiss without prejudice the claims filed against Holly Hoaeae in the Hoaeae Adversary Proceeding and not heretofore or hereunder reduced to judgment. The Stipulation to Dismiss Claims shall not diminish or affect, in any way, the claims against the remaining parties in the Hoaeae Adversary Proceeding, or any other persons or entities, all of which claims are specifically reserved.
25. Effect of Efforts bv George or Karen Lindell to Avoid Transfers in Settlement. Any dismissals or releases in favor of George Lindell or Karen Lindell, shall be effective upon a date 366 days following the last conveyance of property to the Trustee under this Agreement, without the dismissed or released party having first been the subject of a personal bankruptcy proceeding, and, in the event of such a bankruptcy, shall only be effective upon expiration of the last date upon which a proceeding may be filed to avoid the effect of such conveyance without such an avoidance proceeding having been filed. In the event claims against such persons have first been dismissed for administrative purposes, they shall be reinstated, or re-filed, and the dismissed or released parties waive any defense of res judicata, collateral estoppel, statute of limitation, laches, or any other defense or doctrine of like import.
26. Effect of Efforts by Hollv or Kamakana Hoaeae to Avoid Transfers in Settlement. Any dismissals or releases in favor of Holly Hoaeae or Kamakana Hoaeae, shall be effective upon a date 91 days following the last conveyance of property to the Trustee under this Agreement, without the dismissed or released party having first been the subject of a personal bankruptcy proceeding, and, in the event of such a bankruptcy, shall only be effective upon expiration of the last date upon which a proceeding may be filed to avoid the effect of such conveyance without such an avoidance proceeding having been filed. In the event claims against such persons have first been dismissed for administrative purposes, they shall be reinstated, or re-filed, and the dismissed or released parties waive any defense of res judicata, collateral estoppel, statute of limitation, laches, or any other defense or doctrine of like import.
MISCELLANEOUS
27. Court Approval and Binding Effect. This Agreement is subject to and shall not become effective until and unless it is executed by all parties and approved by their respective counsel, and a final unstayed order is entered by the Bankruptcy Court approving all of the terms and conditions set forth in this Agreement.
28. No Benefit to Third Parties. The parties agree that this Agreement is made for the benefit of the parties alone to the extent and in the manner expressly set forth herein, and, accordingly, no third party shall be benefitted by this Agreement, and no party to this Agreement does or shall be deemed to release or diminish its claims against third parties by reason of this Agreement, all of which rights are expressly reserved.
29. Good Faith Settlement Determination. The Trustee, George Lindell, Karen Lindell, Holly Hoaeae and Kamakana Hoaeae agree that a condition of this Agreement: is that the parties obtain approval of this settlement as a "good faith settlement" pursuant to Hawaii's Uniform Contribution Among Tortfeasor Act, and specifically Haw. Rev. Stat. §663-15.5.
30. Proposed Settlement Based on Assumption of Full Disclosure. The terms of the proposed Settlement, as set forth herein, are based on the assumption that George Lindell, Karen Lindell, Holly Hoaeae and Kamakana Hoaeae have heretofore disclosed all assets to the Trustee. In the event it is discovered that any of these parties has an interest in, or owns, any additional asset, or has conveyed to another an asset not disclosed to the Trustee, with a value in excess of $1,000, or with an aggregate value of all such assets in excess of $5,000, such asset(s) shall be immediately turned over to the Trustee and liquidated, or the Trustee shall have a right to such recovery of the asset(s). The proceeds from the liquidation of such assets shall not be credited, as otherwise applicable, towards the Lindell Judgment or the Hoaeae Judgment. Further, in the event there has been a failure of disclosure by the Lindells or any of them the claims dismissed as against George Lindell and Karen Lindell shall then be reinstated, and the parties waive any defense of res judicata, collateral estoppel, statute of limitations, laches, or any other defense or doctrine of like import, and in the event there has been a failure of disclosure by the Hoaeaes or any of them the claims dismissed as against Holly Hoaeae and Kamakana Hoaeae shall then be reinstated, and the parties waive any defense of res judicata, collateral estoppel, statute of limitations, laches, or any other defense or doctrine of like import.
31. Further Assurances. The parties agree to do such acts as are necessary to carry out the terms and provisions of this Agreement.
32. Attorneys' Fees. Each party shall bear its own costs, expenses, and fees, including attorneys' fees, incurred by each of them regarding this matter up to and including this Agreement. In the event of litigation concerning this Agreement, the losing party shall pay the reasonable attorneys' fees and costs of the prevailing party.
33. Amendments. This Agreement shall not be altered, amended, modified, or otherwise changed, in any respect or particular whatsoever, except by writing duly executed by the parties hereto. The parties hereby acknowledge and agree that they will make no claim at any time that this Agreement has been orally altered or modified in any respect whatsoever. This Agreement constitutes a single integrated written contract, expresses the entire agreement among the parties hereto, and supersedes all prior oral and written agreements, representations, negotiations, and correspondence with respect to the matters addressed herein.
34. Construction. The parties have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any of the provisions of this Agreement.
35. No Representations. None of the parties herein, nor anyone acting on their behalf, has relied on any representations, statements, or opinions of any other party or their representatives in entering into and executing this Agreement, other than as expressly set forth herein provided, however, that the Taistee has relied upon the representations and statements required to be produced by this Agreement, including but not limited to those Bankruptcy Schedules and Statements of Financial Affairs of George Lindell, Karen Lindell, Holly Hoaeae and Kamakana Hoaeae, provided to the Trustee as set forth in paragraphs 15 and 29, and upon the representations and statements being false the releases given herein by the Trustee shall be void and of no force and effect. The parties to this Agreement acknowledge that the terms of this Agreement have been negotiated at arms' length with the advice of independent legal counsel.
36. Capacity. Each of the parties herein represents, warrants, and covenants that each person executing this Agreement in a representative capacity is duly authorized to do so. Each person executing this Agreement in a representative capacity represents and warrants that he or she is duly authorized to do so.
37. Headings. The descriptive headings of the several sections of this Agreement are inserted for the convenience of reference only and do not constitute a part of this Agreement.
38. Successors and Assigns. This Agreement shall inure to the benefit of, and be binding upon, the parties and their respective agents, legal representatives, predecessors, successors, and assigns.
39. Counterparts and Facsimile Signature. This Agreement may be executed in counterparts, each of which shall, for all purposes, be deemed to be an original and all of which shall constitute but one and the same Agreement. Further, the parties agree that when this Agreement is executed by any party, a facsimile or electronic copy of that party's signature shall be deemed to be an original signature for any and all purposes.
40. Governing Law. This Agreement shall in all respects be interpreted, enforced and governed under the laws of the State of Hawaii (except insofar as it is subject to and governed by provisions of the United States Bankruptcy Code).
41. Jurisdiction and Venue. Any controversies regarding this Agreement shall be resolved in the Bankruptcy Court. Any action related to, based upon, or arising from a breach of this Agreement shall be brought only in the Bankruptcy Court, which shall retain jurisdiction over the subject matter and parties for this purpose.
IN WITNESS THEREOF, the parties have executed this Agreement as of the day and year first above written.
_________________________________
DANES. FIELD
Bankruptcy Trustee of the Estate of
The Mortgage Store, Inc.
APPROVED AS TO FORM
______________________________
SIMON KLEVANSKY
ALKAL. PIPER
Attorneys for Dane S. Field, Trustee
_________________________________
GEORGE WILLIAM LINDELL
__________________________________
KAREN KESSELER LINDELL
___________________________________
HOLLY HO AEAE
___________________________________
KAMAKANA HOAEAE
APPROVED AS TO FORM
___________________________
JAMES A. WAGNER
Attorney for George Lindell, Karen Lindell,
Holly Hoaeae, and Kamakana Hoaeae
EXHIBIT LIST
A — Stipulated Non-Dischargeable Judgment Against George Lindell ($5M)
B — Stipulated Non-Dischargeable Judgment Against Holly Hoaeae ($1M)
C — Limited Warranty Deed (Residential Property)
D — Assignment and Bill of Sale (Mid-Pacific Resource, LLC)
E — Assignment and Bill of Sale (Mid-Pacific Contractors, LLC)
F — Bankruptcy Schedules, Statement of Financial Affairs (George and Karen Lindell)
G — Bankruptcy Schedules, Statement of Financial Affairs (Holly and Kamakana Hoaeae)
H — List of Personal and Household Effects Retained by George and Karen Lindell
I — List of Personal and Household Effects Retained by Holly and Kamakana Hoaeae
J — Stipulation to Dismiss Claims against George and Karen Lindell
K — Stipulation to Dismiss Claims against Holly and Kamakana Hoaeae
EXHIBIT "A"
Stipulated Non-Dischargeable Judgment in Favor of Plaintiff Dane S. Field and Against Defendant George W. Lindell
In re Case No. 10-03454
(Chapter 7)
THE MORTGAGE STORE, INC.,
Debtor.
DANE S. FIELD, Adversary Proceeding No. 10-90146
Plaintiff, STIPULATED NON-DISCHARGEABLE
JUDGMENT IN
v. FAVOR OF PLAINTIFF DANE S.
FIELD AND AGAINST
GEORGE W. LINDELL; KAREN K. DEFENDANT GEORGE W.
LINDELL; MANO-Y&M, LTD., a LINDELL
Texas limited partnership; HECTOR &
ALICIA INVESTMENTS, LLC, a
Texas limited liability company;
HECTOR GUERRA; JOHN DOES 1-50; Related Docket No.: 62
JANE DOES 1-50; DOE
PARTNERSHIPS 1-50; DOE
CORPORATIONS 1-50; DOE
ENTITIES 1-50; and DOE
GOVERNMENTAL ENTITIES 1-50,
Defendants.
STIPULATED NON-DISCHARGEABLE JUDGMENT IN FAVOR OF PLAINTIFF DANE S. FIELD AND AGAINST DEFENDANT GEORGE W. LINDELL
Pursuant to the Stipulation below of Defendant George W. Lindell ("George Lindell"), the Court finds and concludes that:
1. While George Lindell was in control of the Mortgage Store, Inc. (the "Mortgage Store"), George Lindell regularly caused the Mortgage Store to transfer funds of the Mortgage Store to or for the benefit of George Lindell and members of his family.
2. These transfers were made with an actual intent to hinder, delay or defraud creditors of the Mortgage Store.
3. As a result, George Lindell incurred debt to the Mortgage Store and its creditors by fraud and/or defalcation, while George Lindell was acting in a fiduciary capacity with respect to the Mortgage Store.
4. The transfers resulted in damages to the Mortgage Store in excess of $5,000,000.
NOW THEREFORE, IT IS HEREBY ORDERED, ADJUDGED AND DECREED THAT:
1. Judgment shall be and hereby is entered in favor of Plaintiff Dane S. Field, as bankruptcy trustee of the Mortgage Store and against George Lindell in the principal amount of FIVE MILLION AND 00/100 DOLLARS ($5,000,000.00) (the "Lindell Judgment").
2. In any subsequent bankruptcy filing in which George Lindell is a debtor, the Lindell Judgment shall NOT be discharged, and is nondischargeable pursuant to 11 U.S.C. § 523(a)(4), since it arose from a debt for fraud and/or defalcation incurred by George Lindell, while he acted in a fiduciary capacity with respect to the Mortgage Store.
3. Interest shall accrue on the Lindell Judgment at the legal rate on federal judgments from and after the date of the Lindell Judgment until the same is fully paid.
4. There is no just reason for delay and the Court expressly directs that this Lindell Judgment shall be entered forthwith as, and shall constitute, a final judgment pursuant to Federal Rule of Bankruptcy Procedure 7054(a) and Federal Rule of Civil Procedure 54(b).
APPROVED AND SO STIPULATED:
_________________________________
GEORGE W. LINDELL
WITH APPROVAL AS TO FORM BY:
__________________________________
JAMES A. WAGNER, ESQ.
ALLISON A. ITO, ESQ.
Attorneys for Defendants George W. Lindell
and Karen K. Lindell
EXHIBIT "B"
Stipulated Non-Dischargeable Judgment in Favor of Plaintiff Dane S. Field and Against Defendant Holly L. Hoaeae
In re Case No. 10-03454
(Chapter 7)
THE MORTGAGE STORE, INC.,
Debtor.
DANES. FIELD, Adversary Proceeding No. 11-90028
Plaintiff, STIPULATED NON-DISCHARGEABLE
JUDGMENT IN
v. FAVOR OF PLAINTIFF DANE S.
FIELD AND AGAINST
HOLLY L. HOAEAE; KAMAKANA DEFENDANT HOLLY L. HOAEAE
K. HOAEAE; JOHN DOES 1-50;
JANE DOES 1-50; DOE
PARTNERSHIPS 1-50; DOE
CORPORATIONS 1-50; DOE
ENTITIES 1-50; and DOE
GOVERNMENTAL ENTITIES 1-50,
Defendants.
STIPULATED NON-DISCHARGEABLE JUDGMENT IN FAVOR OF PLAINTIFF DANE S. FIELD AND AGAINST DEFENDANT HOLLY L. HOAEAE
Pursuant to the Stipulation below of Defendant Holly L. Hoaeae ("Holly Hoaeae"), the Court finds and concludes that:
1. While Holly Hoaeae was in control of the Mortgage Store, Inc. (the "Mortgage Store"), Holly Hoaeae regularly caused the Mortgage Store to transfer funds of the Mortgage Store to or for the benefit of Holly Hoaeae and members of her family.
2. These transfers were made with an actual intent to hinder, delay or defraud creditors of the Mortgage Store.
3. As a result, Holly Hoaeae incurred debt to the Mortgage Store and its creditors by fraud and/or defalcation, while Holly Hoaeae was acting in a fiduciary capacity with respect to the Mortgage Store.
4. The transfers resulted in damages to the Mortgage Store in excess of $1,000,000.
NOW THEREFORE, IT IS HEREBY ORDERED, ADJUDGED AND DECREED THAT:
1. Judgment shall be and hereby is entered in favor of Plaintiff Dane S. Field, as bankruptcy trustee of the Mortgage Store and against Holly Hoaeae in the principal amount of ONE MILLION AND 00/100 DOLLARS ($1,000,000.00) (the "Hoaeae Judgment").
2. In any subsequent bankruptcy filing in which Holly Hoaeae is a debtor, the Hoaeae Judgment shall NOT be discharged, and is nondischargeable pursuant to 11 U.S.C. § 523(a)(4), since it arose from a debt for fraud and/or defalcation incurred by Holly Hoaeae, while she acted in a fiduciary capacity with respect to the Mortgage Store.
3. Interest shall accrue on the Hoaeae Judgment at the legal rate on federal judgments from and after the date of the Hoaeae Judgment until the same is fully paid.
4. There is no just reason for delay and the Court expressly directs that this Hoaeae Judgment shall be entered forthwith as, and shall constitute, a final judgment pursuant to Federal Rule of Bankruptcy Procedure 7054(a) and Federal Rule of Civil Procedure 54(b).
APPROVED AND SO STIPULATED:
_______________________________
HOLLY L. HOAEAE
WITH APPROVAL AS TO FORM BY:
________________________________
JAMES A. WAGNER, ESQ.
ALLISON A. ITO, ESQ.
Attorneys for Defendants Holly L. Hoaeae
and Kamakana Hoaeae
EXHIBIT "C"
[Limited] Warranty Deed (Residential Property: TMK (2) 4-7-009-079)
LAND COURT SYSTEM REGULAR SYSTEM
AFTER RECORDATION, RETURN BY: MAIL () PICK UP ()
Simon Klevansky, Esq.
c/o Klevansky Piper, LLP
841 Bishop Street, Suite 1707
Honolulu, Hawaii 96813
Telephone: 536-0200
This document contains pages.
TITLE OF DOCUMENT:
WARRANTY DEED
PARTIES TO DOCUMENT:
Grantor: GEORGE WILLIAM LINDELL
KAREN KESSLER LINDELL
Husband and wife
Grantee: DANE S. FIELD, as bankruptcy trustee in the bankruptcy proceeding entitled In
re The Mortgage Store. Inc., Bk. No. 10-03454, United States Bankruptcy Court
for the District of Hawaii
Tax Map Key No: (2) 4-7-009-079
WARRANTY DEED
THIS WARRANTY DEED is made this ____ day of ____, 2011, by GEORGE WILLIAM LINDELL and KAREN KESSLER LINDELL, husband and wife, as Tenants by the Entirety, hereinafter collectively the "Grantors", in favor of DANE S. FIELD, as bankruptcy trustee in the bankruptcy proceeding entitled In re The Mortgage Store, Inc., Bk. No. 10-03454, United States Bankruptcy Court for the District of Hawaii, whose address is c/o Klevansky Piper, LLP, 841 Bishop Street, Suite 1707, Honolulu, Hawaii 96813, herein called "Grantee";
WITNESSETH:
In consideration of the sum of TEN DOLLARS ($10.00) and other valuable consideration paid by the Grantee, the receipt and sufficiency whereof are hereby acknowledged, Grantors do hereby grant, bargain, sell, transfer, assign, and convey unto the Grantee, his successors and assigns, all of the following:
All of that certain real property more particularly described in Exhibit "A" attached hereto and by this reference made a part hereof, subject, however, to the encumbrances, exceptions, restrictions, reservations and other matters, if any, set forth therein or herein,
And the reversions, remainders, rents, issues and profits thereof, and all of the estate, right, title and interest of Grantors, both at law and in equity, therein and thereto;
TO HAVE AND TO HOLD the same, together with all buildings, improvements, rights, easements, privileges and appurtenances thereunto belonging or appertaining or held and enjoyed in connection therewith unto the Grantee, as aforesaid, in FEE SIMPLE, FOREVER.
AND, in consideration of the premises, Grantors do hereby covenant and agree with the Grantee that Grantors are lawfully seised of the property herein described in fee simple, that said, property is free and clear of and from all liens and encumbrances, except as noted on Exhibit "A" and except for the lien of real property taxes not yet by law required to be paid and except as hereinabove or hereinafter mentioned, that Grantors have good right, power and authority to sell and convey said property, as aforesaid, and that Grantors will WARRANT AND DEFEND the same unto the Grantee against the lawful claims and demands of all persons whomsoever, except as mentioned hereinabove or hereinafter.
It is expressly agreed and intended that the property covered by these presents are being conveyed to Grantee subject to the mortgages and encumbrances set forth in Exhibit" A". It is not the intent of Grantors or Grantee that there be a merger of estates upon Grantee acquiring the property covered by these presents. There shall be no merger of estates, despite Ihe owner of the fee simple property and the holder of any lesser estate (including any mortgage or encumbrance set forth in Exhibit "A") being the same person.
The terms "Grantors", "Grantee", or any pronoun in place thereof, as and when used hereinabove or hereinbelow, shall mean and include the masculine or feminine, the singular or plural number, individuals, trustees, partnerships, limited partnerships, corporations, limited liability partnerships, limited liability companies, other legal entities, and their and each of their respective heirs, devisees, personal representatives, successors and assigns. The words "herein described" mean described in this deed.
IN WITNESS WHEREOF, Grantors have executed these presents on the date first above-written.
GEORGE WILLIAM LINDELL
KAREN KESSLER LINDELL
"Grantor"
STATE OF _____________)
) SS.
COUNTY OF ____________)
On this ____ day of ____, 2011, before me personally appeared
GEORGE WILLIAM LINDELL, to me personally known, who, being by me duly sworn or
affirmed, did say that such person executed the foregoing instrument as the free act and deed of
such person, and if applicable in the capacity shown, having been duly authorized to execute
such instalment in such capacity.
NOTARY STAMP OR SEAL __________________________________
Signature
__________________________________
Name (typed or printed)
Notary Public, State of __________
My commission expires:
Doc. Date: __________________ # Pages:
Doc. Description: WARRANTY DEED
_______________________ Date: __________
Notary Signature
Print Name: ____________________________
Notary Public, _____________ Judicial Circuit
Notary Stamp or Seal
NOTARY CERTIFICATION
STATE OF _____________)
) SS.
COUNTY OF ____________)
On this ____ day of ______, 2011, before me personally appeared
KAREN KESSLER LINDELL, to me personally known, who, being by me duly sworn or
affirmed, did say that such person executed the foregoing instrument as the free act and deed of
such person, and if applicable in the capacity shown, having been duly authorized to execute
such instrument in such capacity.
NOTARY STAMP OR SEAL ___________________________________________
Signature
___________________________________________
Name (typed or printed)
Notary Public, State of ___________________
My commission expires:
Doc. Date: _______________ # Pages: _________
Doc. Description: WARRANTY DEED
_______________________ Date: __________________
Notary Signature
Print Name: __________________________________
Notary Public, ___________ Judicial Circuit
Notary Stamp or Seal
NOTARY CERTIFICATION
EXHIBIT "A"
—FIRST:—
Apartment No. B of the Condominium Project known as "D. G. CONDOMINIUM", as established by Declaration of Condominium Property Regime dated November 29, 2006, recorded in the Bureau of Conveyances of the State of Hawaii as Document No. 2007-016731, and as shown on Condominium File Plan No. 4372, and any amendments thereto.
Together with appurtenant easements as follows:
(a) Non-exclusive easements in the common elements designed for such purposes for ingress to, egress from, utility services for and support of said Apartment; in the other common elements for use according to their respective purposes.
(b) Exclusive easements to use other limited common elements appurtenant thereto designated for its exclusive use by the Declaration.
—SECOND:—
An undivided 50% interest in all common elements of the Project and in the land on which said Project is located as established for said Apartment by the Declaration or such other interest as hereinafter established for said Apartment by any amendment of the Declaration, as Tenant in Common with the other owners and tenants thereof.
The land upon which said Condominium Project "D. G. CONDOMINIUM" is located is described as follows:
All of that certain parcel of land (being portion(s) of land(s) described in and covered by Royal Patent Number 1358, Land Commission Award Number 82 to Thomas Phillips) situate, lying and being at Launiupoko, Lahaina, Island and County of Maui, State of Hawaii, being LOT 34, of the "MAHANALUA NUI SUBDIVISION, PHASE IV", being a portion of Lot 33 of Mahanalua Nui Subdivision, Phase I, containing an area of 124,278 square feet or 2.843 acres, more or less.
Together with non-exclusive, perpetual easements for vehicular and pedestrian access and for the maintenance, operation, repair, and replacement of an access roadway, wires and lines for electricity, telephone, cable TV and other utilities and other landscaping purposes over (a) Kai Hele Ku Street (Lot B-2), more particularly described by Non-Exclusive, Perpetual Easement for Roadway purposes Kai Hele Ku made by Launiupoko Associates LLC, dated June 14, 1999, Recorded as Document No. 99-102456, and (b) all other roads in Mahanalua Nui Subdivision Phases 1, 2, & 3 as more particularly described in the declaration of Non-Exclusive Perpetual Easements for Roadway Purposes (Road within Mahanalua Nui Subdivision Phases 1 & 2 dated July 1, 1999, recorded as Document No. 99-107599, as amended, which documents are incorporated by reference herein; provided, however, that if and when any such road shall be conveyed to or acquired by any governmental authority as a public highway, then all private easement rights granted hereby in said road lots shall automatically terminate.
Together also with the membership in the Mahanalua Nui Homeowners Association, Inc., and all rights, easements and use of common areas appurtenant to the property conveyed herein, as set forth in the Amended and Restated Declaration of Covenants, Conditions and Restrictions for the Mahanalua Nui Subdivision at Launiupoko dated July 13, 1999, recorded as Document No. 99-114891, as amended.
Said premises being more particularly described in Declaration of Condominium Property Regime dated November 29, 2006, recorded in said Bureau of Conveyances as Document No. 2007-016731, and any amendments thereto.
BEING THE PREMISES ACQUIRED BY APARTMENT DEED
GRANTOR : GEORGE WILLIAM LINDELL and KAREN KESSLER
LINDELL, husband and wife, and DAVID ALLEN PARKER and
VELMA L. PARKER, husband and wife
GRANTEE : GEORGE WILLIAM LINDELL and KAREN KESSLER
LINDELL, husband and wife, as Tenants by the Entirety
DATED : May 2, 2008
RECORDED : Document No. 2008-073511
SUBJECT, HOWEVER, to the following:
1 Real Property Taxes, if any, that may be due and owing.
Tax Key: (2)4-7-009-079 C.P.R. No. 0002 Apt. No. B
2. Mineral and water rights of any nature in favor of the State of Hawaii.
3. Free flowage of Launiupoko Stream, as shown on Tax Map (2) 4-7-001.
4. LEASE
TO : MAUI ELECTRIC COMPANY, LIMITED and GTE
HAWAIIAN TELEPHONE COMPANY
INCORPORATED, now known as HAWAIIAN
TELCOM, INC.
DATED : October 13, 1967
RECORDED : Liber 5893 Page 226
GRANTING : rights-of-way, each twenty-five (25) feet in width, to build,
construct, reconstruct, rebuild, repair, maintain and operate
pole and wire lines, etc., as may be necessary for the transmission
of electricity
5. The terms and provisions contained in the following:
INSTRUMENT : SUBDIVISION AGREEMENT (AGRICULTURAL USE)
DATED : June 18, 1992
RECORDED : Document No. 92-103494
PARTIES : PIONEER MILL COMPANY, LIMITED, and the
COUNTY OF MAUI, through its Department of Public
Works, a body politic and corporate, and a political
subdivision of the State of Hawaii
6. The terms and provisions contained in the following:
INSTRUMENT: PRIVATE WATER SYSTEM AGREEMENT
DATED : September 29, 1992
RECORDED : Document No. 92-164418
PARTIES : PIONEER MILL COMPANY, LIMITED, and the
DEPARTMENT OF WATER SUPPLY of the County of
Maui
7. The terms and provisions contained in the following:
INSTRUMENT: DECLARATION OF COVENANTS, RESERVATIONS
AND RESTRICTIONS
DATED : November 28, 1997
RECORDED : Document No. 97-166433
The foregoing includes, but is not limited to, matters relating to reservations in favor of Pioneer Mill Company, Limited, a Hawaii corporation, said reservations being more particularly described therein.
By ASSIGNMENT AND ASSUMPTION AGREEMENT dated January 16, 2001, recorded as Document No. 2001-006061, PIONEER MILL COMPANY, LIMITED, a Hawaii corporation, assigns to AMFAC/JMB HAWAII, L.L.C., a Hawaii limited liability company and MAKILA LAND CO., LLC, a Hawaii limited liability company, all of its rights, interests and obligations under the foregoing Declaration.
8. The terms and provisions contained in the following:
INSTRUMENT: DEED AND RESERVATION OF RIGHTS
DATED : November 28, 1997
RECORDED : Document No. 97-166434
9. The terms and provisions contained in the following:
INSTRUMENT : DECLARATION OF RESTRICTIVE COVENANTS
DATED : November 25, 1998
RECORDED : Document No. 98-186637
Said Declaration was amended by instrument dated November 9, 2004, recorded as Document No. 2004-231124.
10. The terms and provisions contained in the following:
INSTRUMENT: SUBDIVISION AGREEMENT (AGRICULTURAL USE)
DATED : April 8,1999
RECORDED : Document No. 99-071686
PARTIES : LAUNTUPOKO ASSOCIATES, LLC, a Hawaii limited
liability company, and the COUNTY OF MAUI, through
its Department of Public Works and Waste Management, a
body politic and corporate, and a political subdivision of
the State of Hawaii
11. The terms and provisions contained in the following:
INSTRUMENT: SUBDIVISION AGREEMENT (AGRICULTURAL USE)
DATED: April 8, 1999
RECORDED: Document No. 99-071687
PARTIES: LAUNTUPOKO ASSOCIATES, LLC, a Hawaii limited
liability company, and the COUNTY OF MAUI, through
its Department of Public Works and Waste Management, a
body politic and corporate, and a political subdivision of
the State of Hawaii
12. GRANT OF EASEMENT in favor of MAUI ELECTRIC COMPANY, LIMITED and GTE HAWAIIAN TELEPHONE COMPANY INCORPORATED, now known as HAWAIIAN TELCOM, INC., dated May 25, 1999, recorded as Document No. 99-101191; re: a perpetual right and easement for utility purposes.
13. The terms and provisions contained in the following:
INSTRUMENT: AMENDED AND RESTATED DECLARATION OF
COVENANTS, CONDITIONS AND RESTRICTIONS
FOR THE MAHANALUA NUI SUBDIVISION AT
LAUNIUPOKO
DATED : July 13, 1999
RECORDED : Document No. 99-114891
The foregoing Amended and Restated Declaration restates the original Declaration dated June 1, 1999, recorded as Document No. 99-102455, and any amendments thereto.
Said Amended and Restated Declaration was amended by instruments dated February 25, 2003, recorded as Document No. 2003-038050, dated November 9, 2004, recorded as Document No. 2004-231124, and dated March 16, 2005, recorded as Document No. 2005-060479.
14. The terms and provisions contained in the following:
INSTRUMENT : WARRANTY DEED
DATED : September 14, 1999
RECORDED : Document No. 99-151174
15. The terms and provisions contained in the following:
INSTRUMENT : AGREEMENT FOR RESERVATION OF FUTURE
SUBDIVISION RIGHTS
DATED : September 17, 1999
RECORDED : Document No. 99-152675
PARTIES : ROBERT STEVENS HARVEY and MELINDA LEI
KAHAKAUWJLA, husband and wife, "Buyer", and
LAUNIUPOKO ASSOCIATES LLC, a Hawaii limited
liability company, "Seller"
16. The terms and provisions contained in the following:
INSTRUMENT : AGREEMENT FOR ALLOCATION OF FUTURE
SUBDIVISION POTENTIAL
DATED : October 23, 2002
RECORDED : Document No. 2002-200710
PARTIES : ROBERT STEVENS HARVEY and MELINDA LEI
KAHAKAUWILA, husband and wife, "Owner'", and
COUNTY OF MAUI, through its Department of Public
Works and Waste Management, a political subdivision of the
State of Hawaii, "County"
17. The terms and provisions contained in the following:
INSTRUMENT: SUBDIVISION AGREEMENT (AGRICULTURAL USE)
DATED : April 30,2003
RECORDED : Document No. 2003-090524
PARTIES : LAUNTUPOKO ASSOCIATES, LLC, a Hawaii limited
liability company, "Owner", and the COUNTY OF MAUI, through
its Department of Public Works and Environmental
Management, a body politic and corporate, and
a political subdivision of the State of Hawaii
18. The terms and provisions contained in the following:
INSTRUMENT: SUBDIVISION AGREEMENT (AGRICULTURAL USE)
DATED : — (acknowledged March 4,2004 and May 28, 2004)
RECORDED : Document No. 2004-113873
PARTIES : LAUNIUPOKO ASSOCIATES LLC, a Hawaii limited
liability company," Owner", and the COUNTY OF MAUI,
through its Department of Planning, a body politic and
corporate, and a political subdivision of the State of Hawaii
19. The terms and provisions contained in the following:
INSTRUMENT : AMENDED AND RESTATED AGREEMENT FOR ALLOCATION OF FUTURE SUBDIVISION
POTENTIAL
DATED : June 7, 2004
RECORDED : Document No. 2004-121416
PARTIES : LAUNIUPOKO ASSOCIATES, LLC, a Hawaii limited
liability company, ROBERT STEVENS HARVEY and
MELINDA LEI KAHAKAUWILA, husband and wife,
"Subdivider", and COUNTY OF MAUI, through its
Department of Public Works and Environmental
Management, a political subdivision of the State of Hawaii,
"County"
Said above Amended and Restated Agreement amends and supercedes, in its entirety, the Agreement for Allocation of Future Subdivision Potential dated April 30, 2003, recorded as Document No. 2003-090523.
20. The terms and provisions contained in the following:
INSTRUMENT : SUPPLEMENTAL DECLARATION OF COVENANTS, CONDITIONS
AND RESTRICTIONS FOR MAHANALUA NUI
SUBDIVISION AT LAUNIUPOKO, PHASE IV
DATED : November 9,2004
RECORDED : Document No. 2004-231123
21. The terms and provisions contained in the following:
INSTRUMENT : WARRANTY DEED
DATED : May 12,2005
RECORDED : Document No. 2005-101486
22. The terms and provisions contained in the following:
INSTRUMENT: UNILATERAL AGREEMENT AND DECLARATION FOR CONSTRUCTION
OF A FARM DWELLING ON LANDS ZONED COUNTY
AGRICULTURAL DISTRICT OR DESIGNATED
STATE AGRICULTURAL DISTRICT
DATED : August 30,2006
RECORDED : Document No. 2006-194849
23. The terms and provisions contained in the following:
INSTRUMENT: DECLARATION OF CONDOMINIUM PROPERTY
REGIME FOR "D.G. CONDOMINIUM" CONDOMINIUM PROJECT
DATED : November 29,2006
RECORDED : Document No. 2007-016731
MAP : 4372 and any amendments thereto
24. The terms and provisions contained in the following:
INSTRUMENT: BY-LAWS OF THE ASSOCIATION OF UNIT OWNERS
DATED : — (acknowledged November 29, 2006)
RECORDED : Document No. 2007-016732
25. MORTGAGE
LOAN/ACCOUNT NO. 2262738
MORTGAGEE : GEORGE WILLIAM LINDELL and KAREN KESSLER
LINDELL, husband and wife
MORTGAGOR : BANK OF HAWAII, a Hawaii corporation
DATED : May 2, 2008
RECORDED : Document No. 2008-073512
AMOUNT : $1,000,000.00
26. MORTGAGE
LOAN/ACCOUNT NO. 00090669873/1
MORTGAGOR: GEORGE WILLIAM LINDELL and KAREN KESSLER
LINDELL, husband and wife
MORTGAGEE: BANK OF HAWAII, a Hawaii corporation
DATED : August 19, 2008
RECORDED : Document No. 2008-134262
AMOUNT : Revolving Line of Credit Agreement, up to a maximum
amount of $500,000.00
EXHIBIT "D
Assignment and Bill of Sale (Membership Interest in Mid-Pacific Resource, LLC)
ASSIGNMENT AND BILL OF SALE (MEMBERSHIP INTEREST IN MID-PACIFIC RESOURCE, LLC)
THIS ASSIGNMENT AGREEMENT dated _____________, 2011 (the "Agreement") is made and entered into by and between GEORGE WILLIAM LINDELL ("Assignor") and Parker Equipment, Inc. ("Parker"), to and in favor of DANE S. FlELD, bankruptcy trustee in the bankruptcy proceeding entitled In re The Mortgage Store, Inc., Bk. No. 10-03454, United States Bankruptcy Court for the District of Hawaii ("Assignee").
WHEREAS Assignor is the owner and holder of a member interest (the "Member Interest") in Mid-Pacific Resource, LLC, a Hawaii limited liability company (the "Company").
WHEREAS, Parker holds all other member interest in the Company.
WHEREAS, the Company owns the personal property (the "Company Property") described in Exhibit "A" attached hereto
WHEREAS as part of a Settlement Agreement between Assignor and Assignee (and others), Assignor wishes to transfer the Member Interest and any and all other interest which Assignor may hold in the Company to Assignee.
WHEREAS, Parker consents to such assignment.
NOW THEREFORE, in consideration of the sum of TEN AND NO/100 DOLLARS ($10.00), the mutual covenants and agreements hereinafter set forth, and for other good and valuable consideration, the receipt and sufficiency whereof is hereby acknowledged, the parties hereto agree as follows:
1. Alignment of Interest. On the terms and conditions herein, and effective as of the date of he Closing Date (as herein defined), Assignor hereby transfers and assigns to Assignee all of his right, title and interest in and to the Member Interest in the Company and the Company Property, as set forth in the list attached hereto as Exhibit "A".
2. Closing Subject to the terms and conditions hereof, the closing of the assignment of the Member Interest shall occur within five (5) business days after the United States Bankruptcy Court for the District of Hawaii enters an order approving the Settlement Agreement between Assignor and Assignee, as described above (the "Closing Date").
3. Parker's Approval and Consent. Parker approves and consents to the transfer of the Member Interest to Assignee and releases, discharges, waives and acquits any right, title or interest or claim to such Member Interest.
4 Mutual Representations and Warranties. Each of the parties hereto represents and warrants that this Agreement has been duly executed and delivered by it and constitutes its legal, valid, and binding obligation, enforceable in accordance with its terms.
5. Representations and Warranties of Assignor. Assignor hereby represents and warrants to Assignee as follows:
a. Assignor is the lawful owner of the Member Interest;
b The Member Interest owned by Assignor is free and clear of any encumbrance, liens, security interests, or interests of any third parties;
c. Assignor has the right to assign, transfer, sell, and convey the Member Interest; and
d. Assignor will warrant and defend the above unto Assignee against any loss or liability of Assignee resulting from Assignor's breach of the representations and warranties in the above Sections 6.a, b, and c, of this Agreement.
6. Notice. All notices between parties shall be in writing and shall be delivered either personally, by certified mail, or by overnight courier, to the following addresses:
If to Assignor, to:
GEORGE WILLIAM LINDELL
c/o James Wagner, Esq.
Wagner Choi & Verbrugge
745 Fort Street, Suite 1900
Honolulu, Hawaii 96813
If to Assignee, to:
Dane S. Field
c/o Simon Klevansky, Esq.
Klevansky Piper, LLP
841 Bishop Street, Suite 1707
Honolulu, Hawaii 96813
7. Binding Effect. This Agreement shall be binding upon and shall inure to the benefit of Assignor, Assignee, and their respective heirs, successors, and, if permitted, assigns. All representations and warranties made herein shall survive the execution and delivery of this Agreement.
8. Miscellaneous. Assignor hereby acknowledges and agrees that upon the execution of this Assignment by all of the parties hereto, Assignee shall have the right to assign transfer, sell and convey the Member Interest to a third party of Assignees choosing and at the discretion of Assignee.
9. counterparts; Facsimile Signature. This Agreement may be executed in one or more counterparts each of which shall be deemed an original, but a of which together shall constitute one and the same instrument. This Agreement may be executed by facsimile signature, provided that the party or parties so signing shall execute an original and provide the same to the other party within three (3) business days.
10. waiver; Amendments. No failure on the part of either party hereto to exercise, and no delay in exercising, any right hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right hereunder preclude any other or further exercise thereof or the exercise of any other right. The remedies herein provided are cumulative and not exclusive of any remedies provided by law. The provisos of this Agreement may be amended, waived, modified, or supplemented only by an instrument in writing executed by each party hereto.
11. Costs and Expenses. Assignor and Assignee agree that each party shall bear its own costs and expenses in connection with the preparation and execution of this Agreement and the transfer of the claims. In the event of a breach of this Agreement and legal action to enforce the Agreement, the prevailing party shall be entitled to an award of reasonable attorneys' fees and costs incurred in connects with the action.
12. No Admissions of Fault. Each party agrees that the covenants and releases contained herein, and the consideration for this Agreement are not to be deemed or construed as an admission of any illegal or improper conduct, liability or fault of any kind whatsoever by any party or any other person or entity whatsoever but are to be construed strictly as a compromise and settlement among the parties for the purpose of avoiding further controversy, litigation and expense related to the claims. Each party agrees that all claims or allegations of fault, liability or legal responsibility are denied by the other party.
13. Entire Agreement. This Agreement constitutes the entire agreement and understanding of the parties hereto with respect to the subject matter hereof and supersedes all oral communications and all prior or contemporaneous negotiations promises, covenants, agreements, writing or representations with respect hereto, all of which are merged herein.
14. Governing Law. This Agreement shall be governed by and construed in accordance with the law of the State of Hawaii without reference to conflicts of law.
IN WITNESS WHEREOF, the undersigned have caused this Agreement to be executed and delivered as of the date first above stated.
_________________________________________
GEORGE WILLIAM LINDELL
"Assignor"
__________________________________________
DANE S. FIELD, bankruptcy trustee in the
bankruptcy proceeding entitled In re The
Mortgage Store. Inc., Bk. No. 10-03454, United
States Bankruptcy Court for the District of
Hawaii
"Assignee"
PARKER EQUIPMENT, INC.
By. ______________________________
Its
"Parker"
EXHIBIT "A"
EXHIBIT "E"
Assignment and Bill of Sale (Membership Interest in Mid-Pacific Contractors, LLC)
ASSIGNMENT AND BILL OF SALE (MEMBERSHIP INTEREST IN MID-PACIFIC CONTRACTORS, LLC)
THIS ASSIGNMENT AGREEMENT dated ________________, 2011 (the "Agreement") is made and entered into by and between GEORGE WILLIAM LINDELL ("Assignor") and David Parker ("Parker"), to and in favor of DANE S. FIELD, bankruptcy trustee in the bankruptcy proceeding entitled In re The Mortgage Store. Inc., Bk. No. 10-03454, United States Bankruptcy Court for the District of Hawaii ("Assignee").
WHEREAS, Assignor is the owner and holder of a member interest (the "Member Interest") in Mid-Pacific Contractors, LLC, a Hawaii limited liability company (the "Company").
WHEREAS, Parker holds all other member interest in the Company.
WHEREAS, the Company owns the personal property (the "Company Property") described in Exhibit "A" attached hereto.
WHEREAS, as part of a Settlement Agreement between Assignor and Assignee (and others), Assignor wishes to transfer the Member Interest and any and all other interest which Assignor may hold in the Company to Assignee.
WHEREAS, Parker consents to such assignment.
NOW, THEREFORE, in consideration of the sum of TEN AND NO/100 DOLLARS ($10.00), the mutual covenants and agreements hereinafter set forth, and for other good and valuable consideration, the receipt and sufficiency whereof is hereby acknowledged, the parties hereto agree as follows:
1. Assignment of Interest. On the terms and conditions herein, and effective as of the date of the Closing Date (as herein defined), Assignor hereby transfers and assigns to Assignee all of his right, title and interest in and to the Member Interest in the Company and the Company Property, as set forth in the list attached hereto as Exhibit "A".
2. Closing. Subject to the terms and conditions hereof, the closing of the assignment of the Member Interest shall occur within five (5) business days after the United States Bankruptcy Court for the District of Hawaii enters an order approving the Settlement Agreement between Assignor and Assignee, as described above (the "Closing Date").
3. Parker's Approval and Consent. Parker approves and consents to the transfer of the Member Interest to Assignee and releases, discharges, waives and acquits any right, title or interest or claim to such Member Interest.
4. Mutual Representations and Warranties. Each of the parties hereto represents and warrants that this Agreement has been duly executed and delivered by it and constitutes its legal, valid, and binding obligation, enforceable in accordance with its terms.
5. Representations and Warranties of Assignor. Assignor hereby represents and warrants to Assignee as follows:
a. Assignor is the lawful owner of the Member Interest;
b. The Member Interest owned by Assignor is free and clear of any encumbrance, liens, security interests, or interests of any third parties;
c. Assignor has the right to assign, transfer, sell, and convey the Member Interest; and
d. Assignor will warrant and defend the above unto Assignee against any loss or liability of Assignee resulting from Assignor's breach of the representations and warranties in the above Sections 6.a, b, and c, of this Agreement.
6. Notice. All notices between parties shall be in writing and shall be delivered either personally, by certified mail, or by overnight courier, to the following addresses:
If to Assignor, to:
GEORGE WILLIAM LINDELL
c/o James Wagner, Esq.
Wagner Choi & Verbrugge
745 Fort Street, Suite 1900
Honolulu, Hawaii 96813
If to Assignee, to:
Dane S. Field
c/o Simon Klevansky, Esq.
Klevansky Piper, LLP
841 Bishop Street, Suite 1707
Honolulu, Hawaii 96813
7. Binding Effect. This Agreement shall be binding upon and shall inure to the benefit of Assignor, Assignee, and their respective heirs, successors, and, if permitted, assigns. All representations and warranties made herein shall survive the execution and delivery of this Agreement.
8. Miscellaneous. Assignor hereby acknowledges and agrees that upon the execution of this Assignment by all of the parties hereto, Assignee shall have the right to assign, transfer, sell, and convey the Member Interest to a third party of Assignee's choosing and at the discretion of Assignee.
9. Counterparts: Facsimile Signature. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. This Agreement may be executed by facsimile signature, provided that the party or parties so signing shall execute an original and provide the same to the other party within three (3) business days.
10. Waiver; Amendments. No failure on the part of either party hereto to exercise, and no delay in exercising, any right hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right hereunder preclude any other or further exercise thereof or the exercise of any other right. The remedies herein provided are cumulative and not exclusive of any remedies provided by law. The provisions of this Agreement may be amended, waived, modified, or supplemented only by an instrument in writing executed by each party hereto.
11. Costs and Expenses. Assignor and Assignee agree that each party shall bear its own costs and expenses in connection with the preparation and execution of this Agreement and the transfer of the claims. In the event of a breach of this Agreement and legal action to enforce the Agreement, the prevailing party shall be entitled to an award of reasonable attorneys' fees and costs incurred in connection with the action.
12. No Admissions of Fault. Each party agrees that the covenants and releases contained herein, and the consideration for this Agreement, are not to be deemed or construed as an admission of any illegal or improper conduct, liability or fault of any kind whatsoever by any party or any other person or entity whatsoever, but are to be construed strictly as a compromise and settlement among the parties for the purpose of avoiding further controversy, litigation and expense related to the claims. Each party agrees that all claims or allegations of fault, liability or legal responsibility are denied by the other party.
13. Entire Agreement. This Agreement constitutes the entire agreement and understanding of the parties hereto with respect to the subject matter hereof and supersedes all oral communications and all prior or contemporaneous negotiations, promises, covenants, agreements, writing or representations with respect hereto, all of which are merged herein.
14. Governing Law. This Agreement shall be governed by and construed in accordance with the law of the State of Hawaii without reference to conflicts of law.
IN WITNESS WHEREOF, the undersigned have caused this Agreement to be executed and delivered as of the date first above stated.
____________________________________
GEORGE WILLIAM LINDELL
"Assignor"
DANE S. FIELD, bankruptcy trustee in the
bankruptcy proceeding entitled In re The
Mortgage Store, Inc., Bk. No. 10-03454, United
States Bankruptcy Court for the District of
Hawaii
"Assignee"
_______________________________________
DAVID PARKER
"Parker"
EXHIBIT "A"
That certain 30 foot commercially licensed fishing boat named" Holo Kai"
EXHIBIT "F"
Bankruptcy Schedules, Statement of Financial Affairs (George and Karen Lindell)
UNITED STATES BANKRUPTCY COURT DISTRICT OF HAWAII
SUMMARY OF SCHEDULES
SCHEDULE A-REAL PROPERTY
SCHEDULE B-PERSONAL PROPERTY
SCHEDULE B-PERSONAL PROPERTY
SCHEDULE B-PERSONAL PROPERTY
SCHEDULE B-PERSONAL PROPERTY
SCHEDULE B-PERSONAL PROPERTY
SCHEDULE C-PROPERTY CLAIMED AS EXEMPT
SCHEDULE D — CREDITORS HOLDING SECURED CLAIMS
SCHEDULE D — CREDITORS HOLDING SECURED CLAIMS
SCHEDULE E — CREDITORS HOLDING UNSECURED PRIORITY CLAIMS
SCHEDULE F — CREDITORS HOLDING UNSECURED NONPRIORITY CLAIMS
SCHEDULE F — CREDITORS HOLDING UNSECURED NONPRIORITY CLAIMS
SCHEDULE G-EXECUTORY CONTRACTS AND UNEXPIRED LEASES
SCHEDULE G-EXECUTORY CONTRACTS AND UNEXPIRED LEASES
SCHEDULE H-CODEBTORS
SCHEDULE I — CURRENT INCOME OF INDIVIDUAL DEBTOR(S)
SCHEDULE J-CURRENT EXPENDITURES OF INDIVIDUAL DEBTOR
DECLARATION CONCERNING DEBTOR'S SCHEDULES
DECLARATION UNDER PENALTY OF PERJURY BY AN INDIVIDUAL DEBTOR
UNITED STATES BANKRUPTCY COURT DISTRICT OF HAWAII
SCHEDULE 10
Lindell Real Property Transactions Between July 1, 2005 and July 15, 2011
• As of My 1, 2005,
º George Lindell and David Parker each held 50% tenant in common interest in the property identified with Tax Map Key No. (2) 4-7-009-037 (the "Condo Master Lot") and located on Pua Niu Way for $1.3 million. Lindell had paid $650,000 downpayment. A $650,000 Mortgage was taken out to pay for the balance.
º The Lindell's held fee simple title to condominium unit with street address 432 Kai Hele Ku, #A, Lahaina, HI 96761 and identified with Tax Map Key No. (2)4-7-009-040-0001 ("Unit 29-A") as tenants by the entirety.
• June 8, 2006
º George Lindell and David Parker added wives (Karen Lindell and Velma Parker, Respectively) on title to the Condo Master Lot. A new mortgage is taken out for approximately $660,000 to pay-off 2005 Mortgage in the principal amount of $650,000. The 2005 Mortgage is subsequently released.
• January 29, 2007
º Declaration of Condorninium Regime recorded against Condo Master Lot, which created units A & B, commonly referred to as 122 Pua Niu Way, #A, and 122 Pua Niu Way, #B.
• Spring 2007
º Lindell's entered into a contract to sell Unit 29-A to Linda Stowe. Ms. Stowe paid a $1.299 million deposit.
• April 24, 2008
º Lindell's sell Unit 29-A to Linda Stowe for $2.3 million. Approximately $124,000 disbursed to Lindell's at closing.
• May 8, 2008
º Lindell's are conveyed 122 Pua Niu Way, #B, Lahaina, Hawaii. Lindell's also give Bank of Hawaii a $1.1 million 1st Mortgage (portion of which was used to pay off 2006 Mortgage).
• May 13, 2008
º Parkers are conveyed 122 Pua Niu Way, #A, Lahaina, Hawaii.
• June 18, 2008
º Release of the 2006 Mortgage was recorded in Bureau as Doc. No. 2008-098098
• August 25, 2008
º Lindell's take out a $500,000 Equity line of credit on 122 Pua Niu Way, #B, Lahaina, Hawaii.
• February 25, 2009
º George and Karen Lindell each acquire 25% interest in property identified with Tax Map Key No. (2) 4-7-011-006 (with street address 722 Kai Hele Ku Street, Lahaina, Hawaii 96761).
• July 27, 2011
º George and Karen Lindell sell their interest in 722 Kai Hele Ku Street, with net proceeds in the amount of $398,968.
EXHIBIT "G"
Bankruptcy Schedules, Statement of Financial Affairs (Holly and Kamakana Hoaeae)
SUMMARY OF SCHEDULES
SCHEDULE A-REAL PROPERTY
SCHEDULE B-PERSONAL PROPERTY
SCHEDULE C-PROPERTY CLAIMED AS EXEMPT
SCHEDULE D — CREDITORS HOLDING SECURED CLAIMS
SCHEDULE E — CREDITORS HOLDING UNSECURED PRIORITY CLAIMS
SCHEDULE F — CREDITORS HOLDING UNSECURED NONPRIORITY CLAIMS
SCHEDULE G — EXECUTORY CONTRACTS AND UNEXPIRED LEASES
SCHEDULE H-CODEBTORS
SCHEDULE I — CURRENT INCOME OF INDIVIDUAL DEBTOR(S)
SCHEDULE J-CURRENT EXPENDITURES OF INDIVIDUAL DEBTOR
SCHEDULE 10
2005
July 1, 2005: As of July 1. 2005, we owned:
• 125 Kealaloa Ave Makawao. HI 96768 ("Makawao House") (purchased with 100% financing) in 2002. There was a 1st and 2nd mortgage (80% 1st and 20% 2nd). Hoaeae's refinanced in 2005 taking $75,000 cash out to pay bills and miscellaneous expenses. A few months later, Hoaeae's refinanced in 2005 for a lower rate and payments (no cash out) just prior to buying the Kihei home (47 Honuea Place Kihei, HI 96753). The 1st and 2nd mortgage transferred from one Lender to another twice. These are the name of the companies and the account numbers.
GMAC — 0359151886
America's Servicing Co. — 1205188818
GMAC — 0307602909
New Century Mortgage — 0001611426
Fremont-7000137965
Fremont-7000138183
• 47 Honuea Place Kihei. HI 96753 (purchased in June 2005) with 100% financing.
• Countrywide — 15t mortgage for $640,000
• Countrywide — 2nd mortgage HELOC (Home Equity Line of Credit) for $160,000 Acct #1010812052
December 2005: Sold the Makawao House to Fedrico Gustavo Pecora & Marcia Lynn Pecora for $560,000.
2006
January/February 2006: Borrowed $160,000 from Gay Partin (now deceased — 106 Alahele Kihei, HI 96753)).
April 2006: Received proceeds from car accident. Purchased Ford Fl 50 and Mini Cooper.
June/July 2006: Repaid Gay Partin
November 2006: Refinanced 47 Honuea Place Kihei, HI 96753:
— 1st New Century Mortgage ("NCM") for $720,000 #1010812052
— 2nd New Century Mortgage for $180,000 # 1010812560
— Received cash out of $89,742
2007
NCM prior 1st and 2nd mortgage transferred to:
— 1st Saxon (same loan amount of $720,000) #2000242813
— 2nd Home EQ (loan transfer amount of $178,952 — this
is less because the 2nd mortgage
is principle and interest payments vs.
the 1 is interest only).#0000326065570
2009
Saxon 1st & Home EQ 2nd mortgage transferred to:
— 1st Ocwen [Ref. No. #0071697759]
— 2nd Ocwen [Ref. No. #706087103] 2010
Approx. December 2010: Lexus sold.
EXHIBIT "H
List of Personal and Household Effects Retained by George and Karen Lindell
EXHIBIT "I
List of Personal and Household Effects Retained by Holly and Kamakana Hoaeae
EXHIBIT "J
Stipulation to Dismiss Claims against George and Karen Lindell
KLEVANSKY PIPER, LLP
A Limited Liability Law Partnership
SIMON KLEVANSKY 3217-0
ALIKAL. PIPER 6949-0
NICOLE D. STUCKI 9151-0
841 Bishop Street, Suite 1707
Honolulu, Hawaii 96813
Telephone: (808) 536-0200
Facsimile: (808) 237-5757
E-Mail: sklevansky@kplawhawaii.com;
apiper@kplawhawaii.com;
nstucki@kplawhawaii.com
Attorneys for Trustee DANE S. FIELD
IN THE UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF HAWAII
In re Case No. 10-03454
(Chapter 7)
THE MORTGAGE STORE, INC.,
Debtor.
DANE S. FIELD, Adversary Proceeding No. 10-90146
Plaintiff,
STIPULATION FOR DISMISSAL
v. (I) WITHOUT PREJUDICE OF
ALL CLAIMS AGAINST
GEORGE W. LINDELL; KAREN K. DEFENDANT GEORGE W.
LINDELL; MANO-Y&M, LTD., a LINDELL AND (H) WITH
Texas limited partnership; HECTOR & PREJUDICE OF ALL CLAIMS
ALICIA INVESTMENTS, LLC, a AGAINST DEFENDANT KAREN K.
Texas limited liability company; LINDELL and ORDER
HECTOR GUERRA; JOHN DOES 1-50;
JANE DOES 1-50; DOE
PARTNERSHIPS 1-50; DOE
CORPORATIONS 1-50; DOE
ENTITIES 1-50; and DOE
GOVERNMENTAL ENTITIES 1-50,
Defendants.
STIPULATION FOR DISMISSAL (I) WITHOUT PREJUDICE OF ALL CLAIMS AGAINST DEFENDANT GEORGE W. LINDELL AND (H) WITH PREJUDICE OF ALL CLAIMS AGAINST DEFENDANT KAREN K. LINDELL
IT IS HEREBY STIPULATED, pursuant to Rule 41(a)(1)(ii) of the Federal Rules of Civil Procedure, made applicable to this proceeding by Fed. R. Bankr. P. 7041, by and between Plaintiff Dane S. Field ("Plaintiff') and Defendants George W. Lindell ("G. Lindell"), and Karen K. Lindell ("K. Lindell") that:
1. All claims filed by Plaintiff against G. Lindell not reduced to judgment in this proceeding are DISMISSED WITHOUT PREJUDICE.
2. All claims filed by Plaintiff against K. Lindell in this proceeding are DISMISSED WITH PREJUDICE.
3. This Stipulation, including but not limited to the foregoing dismissals in paragraph 1 and 2 above, shall not alter, diminish or affect, in any way, that certain "Stipulated Final Partial Judgment Upon Counts I and II of the Complaint, Granting an Equitable Lien and Imposing a Constructive Trust, in Favor of Plaintiff Dane S. Field and Against Defendants George W. Lindell and Karen K. Lindell", entered on May 23, 2011 and that certain "Stipulated Non-Dischargeable Judgment in Favor of Plaintiff Dane S. Field and Against Defendant Georg; W. Lindell", entered on __________, 2011 (collectively the "Lindell Judgments"), and the rights of Plaintiff with respect to the Lindell Judgments. The Lindell Judgments shall remain in full force and effect notwithstanding the foregoing dismissals in paragraphs 1 and 2.
4. This Stipulation, including but not limited to the foregoing dismissal in paragraphs 1 and 2 above, shall not alter, diminish or affect, in any way, Plaintiff's remaining claims against the other parties in this action, all of which claims are specifically reserved.
5. Each party shall bear its own attorneys' fees and costs.
DATED: Honolulu, Hawaii ____________________________________
____________________________________
JAMES A. WAGNER
Attorney for Defendants George W.
Lindell and Karen K. Lindell
______________________________________
SIMON KLEVANSKY
ALIKA L. PIPER
Attorneys for Plaintiff Dane S. Field
APPROVED AND SO ORDERED:
EXHIBIT "K"
Stipulation to Dismiss Claims against Holly and Kamakana Hoaeae
KLEVANSKY PIPER, LLP
A Limited Liability Law Partnership
SIMON KLEVANSKY 3217-0
ALIKA L. PIPER 6949-0
NICOLE D. STUCKI 9151-0
841 Bishop Street, Suite 1707
Honolulu, Hawaii 96813
Telephone: (808) 536-0200
Facsimile: (808) 237-5757
E-Mail: sklevansky@kplawhawaii.com;
apiper@kplawhawaii.com;
nstucki@kplawhawaii.com
Attorneys for Trustee DANE S. FIELD
IN THE UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF HAWAII
In re Case No. 10-03454
(Chapter 7)
THE MORTGAGE STORE, INC.,
Debtor.
DANE S. FIELD, Adversary Proceeding No. 11-90028
Plaintiff, STIPULATION FOR DISMISSAL
(I) WITHOUT PREJUDICE OF
v. ALL CLAIMS AGAINST
DEFENDANT HOLLY L. HOAEAE
HOLLY L. HOAEAE; KAMAKANA AND (II) WITH PREJUDICE OF
K. HOAEAE; JOHN DOES 1-50; ALL CLAIMS AGAINST
JANE DOES 1-50; DOE DEFENDANT KAMAKANA K.
PARTNERSHIPS 1-50; DOE HOAEAE and ORDER
CORPORATIONS 1-50; DOE
ENTITIES 1-50; and DOE
GOVERNMENTAL ENTITIES 1-50,
Defendants.
STIPULATION FOR DISMISSAL (I) WITHOUT PREJUDICE OF ALL CLAIMS AGAINST DEFENDANT HOLLY L. HOAEAE AND (II) WITH PREJUDICE OF ALL CLAIMS AGAINST DEFENDANT KAMAKANA K. HOAEAE AND ORDER
IT IS HEREBY STIPULATED, pursuant to Rule 41(a)(1)(ii) of the Federal Rules of Civil Procedure, made applicable to this proceeding by Fed. R. Bankr. P. 7041, by and between Plaintiff Dane S. Field ("Plaintiff") and Defendants Holly K. Hoaeae ("H. Hoaeae"), and Kamakana K. Hoaeae ("K. Hoaeae") that:
1. All claims filed by Plaintiff against H. Hoaeae not reduced to judgment in this proceeding are DISMISSED WITHOUT PREJUDICE.
2. All claims filed by Plaintiff against K. Kamakana in this proceeding are DISMISSED WITH PREJUDICE.
3. This Stipulation, including but not limited to the foregoing dismissals in paragraph 1 and 2 above, shall not alter, diminish or affect, in any way, that certain "Stipulated Non-Dischargeable Judgment in Favor of Plaintiff Dane; S. Field and Against Defendant Holly K. Hoaeae", entered on _____________, 2011 (the "Hoaeae Judgment"), and the rights of Plaintiff with respect to the Hoaeae Judgment. The Hoaeae Judgment shall remain in full force and effect notwithstanding the foregoing dismissals in paragraphs 1 and 2.
4. This Stipulation, including but not limited to the foregoing dismissal in paragraphs 1 and 2 above, shall not alter, diminish or affect, in any way, Plaintiff's remaining claims against the other parties in this action, all of which claims are specifically reserved.
5. Each party shall bear its own attorneys' fees and costs.
DATED: Honolulu, Hawaii _______________________________________
_______________________________________
JAMES A. WAGNER
Attorney for Defendants Holly L.
Hoaeae and Kamakana K. Hoaeae
_______________________________________
SIMON KLEVANSKY
ALIKA L. PIPER
Attorneys for Plaintiff Dane S. Field
APPROVED AND SO ORDERED:
EXHIBIT "2"
KLEVANSKY PIPER, LLP
A Limited Liability Law Partnership
SIMON KLEVANSKY 3217-0
ALIKA L. PIPER 6949-0
NICOLE D. STUCKI 9151-0
841 Bishop Street, Suite 1707
Honolulu, Hawaii 96813
Telephone: (808) 536-0200
Facsimile: (808) 237-5757
E-Mail: sklevansky@kplawhawaii.com;
apiper@kplawhawaii.com;
nstucki@kplawhawaii.com
Attorneys for Trustee DANE S. FIELD
IN THE UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF HAWAII
In re Case No. 10-03454
(Chapter 7)
THE MORTGAGE STORE, INC.,
Debtor.
DANE S. FIELD, Adversary Proceeding No. 11-90028
Plaintiff, STIPULATED NON-DISCHARGEABLE
JUDGMENT IN
v. FAVOR OF PLAINTIFF DANE S.
FIELD AND AGAINST
HOLLY L. HOAEAE; KAMAKANA DEFENDANT HOLLY L. HOAEAE
K. HOAEAE; JOHN DOES 1-50;
JANE DOES 1-50; DOE
PARTNERSHIPS 1-50; DOE
CORPORATIONS 1-50; DOE
ENTITIES 1-50; and DOE
GOVERNMENTAL ENTITIES 1-50,
Defendants.
STIPULATED NON-DISCHARGEABLE JUDGMENT IN FAVOR OF PLAINTIFF DANE S. FIELD AND AGAINST DEFENDANT HOLLY L. HOAEAE
Pursuant to the Stipulation below of Defendant Holly L. Hoaeae ("Holly Hoaeae"), the Court finds and concludes that:
1. While Holly Hoaeae was in control of the Mortgage Store, Inc. (the "Mortgage Store"), Holly Hoaeae regularly caused the Mortgage Store to transfer funds of the Mortgage Store to or for the benefit of Holly Hoaeae and members of her family.
2. These transfers were made with an actual intent to hinder, delay or defraud creditors of the Mortgage Store.
3. As a result, Holly Hoaeae incurred debt to the Mortgage Store and its creditors by fraud and/or defalcation, while Holly Hoaeae was acting in a fiduciary capacity with respect to the Mortgage Store.
4. The transfers resulted in damages to the Mortgage Store in excess of $1,000,000.
NOW THEREFORE, IT IS HEREBY ORDERED, ADJUDGED AND DECREED THAT:
1. Judgment shall be and hereby is entered in favor of Plaintiff Dane S. Field, as bankruptcy trustee of the Mortgage Store and against Holly Hoaeae in the principal amount of ONE MILLION AND 00/100 DOLLARS ($1,000,000.00) (the "Hoaeae Judgment").
2. In any subsequent bankruptcy filing in which Holly Hoaeae is a debtor, the Hoaeae Judgment shall NOT be discharged, and is nondischargeable pursuant to 11 U.S.C. § 523(a)(4), since it arose from a debt for fraud and/or defalcation incurred by Holly Hoaeae, while she acted in a fiduciary capacity with respect to the Mortgage Store.
3. Interest shall accrue on the Hoaeae Judgment at the legal rate on federal judgments from and after the date of the Hoaeae Judgment until the same is fully paid.
4. There is no just reason for delay and the Court expressly directs that this Hoaeae Judgment shall be entered forthwith as, and shall, constitute, a final judgment pursuant to Federal Rule of Bankruptcy Procedure 7054(a) and Federal Rule of Civil Procedure 54(b).
APPROVED AND SO STIPULATED:
___________________________
HOLLY L. HOAEAE
WITH APPROVAL AS TO FORM BY:
___________________________
JAMES A. WAGNER, ESQ.
ALLISON A. ITO, ESQ.
Attorneys for Defendants Holly L. Hoaeae
and Kamakana Hoaeae