Lambert v. Teisina.Â
131 Haw. 457
Haw.2014Background
- The Lambert family sought partition of two adjacent Laie parcels (Parcel 33 and a Kuleana parcel); a commissioner was appointed to sell the property at public auction after a summary judgment ordering partition.
- The Teisinas occupied a ~10,000 sq. ft. portion of Parcel 33 and built a home there; the court found the Teisinas had a small fractional legal interest (3/5824) but allowed the home to be included in the sale.
- At auction Trustee Lambert successfully purchased Parcel 33 for $425,000 (excluding the Teisinas’ house); the court’s Confirmation Order allocated $150,000 of the purchase price to the value of the Teisinas’ house and ordered disbursements and surrender of the house within a set period.
- No separate final judgment resolving all claims was entered as to Parcel 33 when the Teisinas appealed the Confirmation Order to the ICA.
- The ICA dismissed the appeal for lack of jurisdiction because HRCP Rule 58 required a separate final judgment; the Teisinas sought certiorari to the Hawai‘i Supreme Court arguing the Confirmation Order was appealable under the Forgay doctrine (hardship/irreparable injury exception).
- The Hawai‘i Supreme Court held the Confirmation Order was appealable under the Forgay doctrine, vacated the ICA’s dismissal, and remanded for disposition on the merits.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether an order confirming a partition sale and directing distribution is appealable in the absence of a separate final judgment | Lambert: No final judgment was entered; the Confirmation Order is not appealable and Forgay does not apply; allowing appeal would undermine final-judgment rule and encourage piecemeal appeals | Teisinas: Forgay doctrine applies because the Confirmation Order effectively terminates property rights and will inflict irreparable harm if appellate review is delayed | The Confirmation Order is appealable under the Forgay (hardship/irreparable injury) doctrine; ICA’s dismissal for lack of jurisdiction is vacated and appeal remanded |
Key Cases Cited
- Forgay v. Conrad, 47 U.S. 201 (1848) (establishes hardship/irreparable-injury exception permitting appeal from orders directing immediate transfer of property)
- Ciesla v. Reddish, 78 Hawai
i 18, 889 P.2d 702 (1995) (discusses Forgay exception in Hawaii and its narrow scope) - Jenkins v. Cades Schutte Fleming & Wright, 76 Hawai`i 115, 869 P.2d 1334 (1994) (HRCP Rule 58 requires separate judgment before appeal absent an exception)
- Sekaquaptewa v. MacDonald, 575 F.2d 239 (9th Cir. 1978) (applied Forgay to a partition judgment that effectively deprived parties of possession and held it sufficiently final for appeal)
- International Sav. & Loan Ass’n v. Woods, 69 Haw. 11, 731 P.2d 151 (1987) (foreclosure decree ordering sale held appealable under Forgay due to irreparable injury)
- Waimanalo Village Residents’ Corp. v. Young, 87 Hawai`i 353, 956 P.2d 1285 (1998) (judgment for possession accompanied by writ of possession held appealable under Forgay)
