Bank of America, N.A. v. Reyes-ToledoAnnotate this Case
The Supreme Court expressly rejected the Twombly/Iqbal “plausibility” pleading standard in this case and reaffirmed that in Hawai’i state courts, the traditional “notice” pleading standard governs.
On the first appeal before the Supreme Court, the Court vacated a foreclosure decree based on issues of fact regarding whether Bank of America, N.A. held the note at the time the foreclosure lawsuit was filed. The Court remanded the case to the intermediate court of appeals (ICA) for a determination of whether the circuit court erred by dismissing the homeowner’s counterclaim before granting summary judgment for foreclosure in favor of Bank of America. On remand, the ICA upheld the dismissal of three counts, including a wrongful foreclosure count, in the homeowner’s counterclaim. The homeowner appealed, arguing that the ICA applied the wrong pleading standard. The Supreme Court vacated the ICA’s judgment on appeal, holding (1) a pleading must meet the traditional “notice” standard to overcome a Haw. R. Civ. P. 12(b)(6) motion to dismiss; and (2) a party may bring a claim for wrongful foreclosure before the foreclosure actually occurs.