The Hawaii Supreme Court has accepted a case concerning the appropriate remedies for wrongful foreclosure. This decision affects Gerald K. Mount, Jr. and Jane R. Mount, who are seeking compensation after a foreclosure they claim was improperly executed. The court's ruling will clarify how courts should handle similar cases in the future.
The case, titled Mount, Jr. v. Apao, was filed on August 24, 2026, under docket number SCWC-23-0000590. The Mounts are the respondents in this case, while Margaret Apao and others are the petitioners. The court's decision will address the legal implications of a previous ruling regarding the Mounts' rights as property owners.
The dispute began when the Mounts faced foreclosure on their property, which they allege was conducted improperly by U.S. Bank National Association. The Mounts claim they were innocent purchasers for value and that the foreclosure was wrongful. This case has been ongoing since a previous ruling in 2016, which stated that if the Mounts were found to be innocent purchasers, the circuit court must determine an appropriate remedy, typically an award of damages.
The Hawaii Supreme Court's recent order accepts the application for a writ of certiorari from the petitioners. The court ruled that no oral argument will be held unless further ordered. The parties involved are required to submit supplemental briefs addressing whether there has been compliance with the court's previous remand mandate.
The court ruled, "Has there been compliance with this court’s remand mandate in Mount v. Apao, 139 Hawaiʻi 167, 384 P.3d 1268 (2016)..."
This ruling is significant as it will clarify how courts should respond to wrongful foreclosure cases in Hawaii. The court's decision will provide guidance on what constitutes compliance with previous mandates and how damages should be awarded in similar situations. The judges involved in this ruling include Chief Justice Vladimir P. Devens, Justices Sabrina S. McKenna, Todd W. Eddins, Lisa M. Ginoza, and Circuit Judge Michelle L. Drewyer.
The impact of this ruling could extend beyond the immediate parties involved. It may set a precedent for future wrongful foreclosure cases in Hawaii, affecting how courts interpret property rights and the remedies available to those who have been wrongfully foreclosed upon. Homeowners and financial institutions alike will be closely monitoring the outcome of this case.
As for what’s next, both parties are required to file their supplemental briefs within twenty days of the court's order. They may also respond to each other's briefs within ten days thereafter. The court has not indicated whether it will allow oral arguments, but the option remains open. This case may also influence other pending cases related to wrongful foreclosures in Hawaii.