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IV. CONCLUSION <br /> Defendants' breach of contract claim against the County is based upon the rarely <br /> successfully theory of"piercing the corporate veil". However,it is undisputed that the County <br /> never owned WWH and therefore, it cannot he liable under this theory. <br /> Defendants' fraudulent conveyance cause of action is likewise without merit. It is based <br /> upon the termination of a lease and Defendants were clearly not injured as a result. The County <br /> provided $40 million in financing and had a valid mortgage on the leasehold which was valued at <br /> $9.5 million. <br /> Finally, the lis pendens must be expunged since the fraudulent conveyance cause of <br /> action is without merit. However, even if the fraudulent conveyance cause of action survives,it <br /> is not one which seeks title or an interest in real property. Furthermore, it is contrary to HRS <br /> §46-1.5(16) and public policy to permit a lis pendens upon public lands. There is no legitimate <br /> reason for a lis pendens in this case and if it is not expunged, it will likely have significant <br /> impact upon the affordable housing project and the citizens of Hawaii County. <br /> It would truly be unjust and outrageous to permit Defendants to delay a necessary public <br /> housing project based upon invoices submitted to the County which serve the basis for violations <br /> under the False Claims Act contained in HRS § 46-171. <br /> DATED: Hilo, Hawaii, AT vl� <br /> Respectfully Submitted, <br /> av��� <br /> LAUREEN L. MARTIN <br /> Deputy Corporation Counsel <br /> 20 <br />