Title Guaranty Escrow Services, Inc v. Wailea Resort Company, LTD.
CAAP-21-0000039
| Haw. App. | Aug 28, 2024Background
- The case centers on a dispute over a May 5, 1999 Land Sales Contract between Wailea Resort Company, Ltd. (Wailea) and Michael J. Szymanski for property in Maui.
- A $50,000 deposit paid by Szymanski was held in escrow; subsequent litigation ensued over the disbursal of these funds and entitlement to interest.
- In 2019, the Hawai‘i Supreme Court vacated a prior judgment that awarded the escrow funds to Wailea and remanded the matter for further proceedings on the disbursal of funds.
- On remand, the circuit court ordered disbursal of the funds (and accrued interest) to Szymanski, who refused the payment to preserve his argument for prejudgment interest.
- Szymanski appealed the circuit court’s decisions, claiming errors in the proceedings regarding evidentiary hearings, prejudgment interest, and party joinder.
Issues
| Issue | Szymanski's Argument | Wailea's Argument | Held |
|---|---|---|---|
| Failure to hold evidentiary hearing on alleged breach | Circuit Court should determine if/when Wailea breached contract | Previous rulings found Szymanski breached; issue settled | No error; law of the case applies |
| No hearing on disbursal of $50,000 deposit | Due process required hearing re: disbursal of non-contract funds | Szymanski received funds; no due process violation | No error; funds disbursed per prior orders |
| Denial of additional prejudgment interest | Entitled to prejudgment interest beyond account accrual; hearing required | Parties stipulated to interest-bearing account; no more owed | No abuse of discretion; stipulation governs |
| Failure to add parties (A&B entities) as indispensable parties | Joinder necessary to ensure full recovery | Not necessary; Szymanski has been paid | No error; request addressed and denied |
Key Cases Cited
- Fought & Co. v. Steel Eng'g & Erection, Inc., [citation="87 Hawai'i 37"] (law of the case doctrine precludes revisiting issues already decided)
- Amfac, Inc. v. Waikiki Beachcomber Inv. Co., 74 Haw. 85 (setting abuse of discretion standard for prejudgment interest)
- Chun v. Bd. of Trs. of the Emps.' Ret. Sys. of State of Hawaii, [citation="92 Hawai'i 432"] (affirming stability of prior appellate rulings)