Hancock v. Kulana Partners, LLCAnnotate this Case
The Supreme Court answered three modified questions certified to it by the United States District Court for the District of Hawai'i in a federal court lawsuit where a grantor asserted that an escrow company's alleged deletion of an easement from the property description attached to a deed he executed rendered the deed a forged deed that was void ab initio and the escrow company and grantee asserted that the grantor's claim sounded in fraud and was barred by a statute of limitations.
The Supreme Court held (1) a deed is void ab initio for fraud such that a claim challenging the validity of the deed is not subject to a statute of limitations under certain circumstances; (2) the six-year "catch-all" statute of limitations under Haw. Rev. Stat. 647-1(4) applies to a claim that a deed was procured by fraud of the type that does not render it void ab initio, such as fraud in the inducement and constructive fraud; and (3) the statute of limitations begins to run on a grantor's claim that a deed was procured by fraud of the type that does not render it void ab initio when the grantor discovers or should have discovered the existence of the claim or the person liable for the claim.