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2010-04-15_County_of_Hawaii_Motion_to_Dismiss_Counter_Claim_to_Expunge_Lis_Pendens
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2010-04-15_County_of_Hawaii_Motion_to_Dismiss_Counter_Claim_to_Expunge_Lis_Pendens
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7/15/2011 4:36:27 PM
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%W °'0 <br /> Concerts, Inc., 453 U.S. 247, 101 S.Ct. 2748 (1981). Therefore, Courts have found that certain <br /> remedies are not available against municipalities when the remedy is contrary to the public good. <br /> The lis pendens filed is clearly contrary to the public good and serves no legitimate <br /> purpose. There is simply no need for a lis pendens. The County will he able to satisfy any <br /> damages in the unlikely event that Defendants prevail on the fraudulent conveyance theory. <br /> However, the imposition of the lis pendens has the potential to cause significant negative impact <br /> against the citizens of Hawaii County. Therefore, the lis pendens must be expunged. <br /> 3. The ADSA Prohibits the Filing of a Lis Pendens by Defendants <br /> As noted,the lis pendens represents a "cloud"on the title which according to the Hawaii <br /> Supreme Court, effectively prevents the transfer of the property and the ability to obtain <br /> financing on the property. S. Utsunomiya Enterprises, Inc. v. Moomuku Country Club, 75 Haw. <br /> 480, 503, 866 P.2d 951, 963 (1994). The County is attempting to proceed with the affordable <br /> housing project and intends to sell individual homes to qualified buyers. The buyers will be <br /> required to secure their own financing for the home. See Exhibit "J". Therefore, it is likely the <br /> lis pendens will prevent or delay the progress of the project. <br /> The ADSA states the following: <br /> UniDev agrees, however, that it shall not attempt to delay the Project by seeking an <br /> injunction or similar legal remedy that could delay the Project. <br /> See¶ 14(a)of Exhibit 2 to the counterclaim, attached as Exhibit`B". <br /> The lis pendens operates as in an injunction which will effectively prevent the transfer of <br /> the land to homeowners. Clearly, such action "could delay the Project" and hence, the lis <br /> pendens is prohibited by the express terms of the ADSA. <br /> 19 <br />
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