Nationstar Mortgage LLC v. KanaheleAnnotate this Case
In this foreclosure action, the Supreme Court affirmed the judgment of the intermediate court of appeals (ICA) vacating the circuit court's grant of summary judgment for Nationstar Mortgage, LLC but corrected the ICA's reasoning, holding that the ICA erred in holding that Nationstar's business records were trustworthy under the business records exception to hearsay and that Daniel Kaleoaloha Kanahele's affirmative defenses should have been addressed by the circuit court.
After Kanahele defaulted on a loan, Nationstar initiated this foreclosure action. The circuit court issued final judgment in favor of Nationstar. Although the ICA vacated the judgment and remanded for further proceedings, Kanahele asked the Supreme Court to review additional issues he argued were either incorrectly resolved or left unresolved by the ICA. The Supreme Court held that the ICA erred with respect to two issues and that Kanahele would be prejudiced on remand absent the Court's further review. Specifically, the Court held (1) in light of Nationstar's failure adequately to explain material discrepancies in its business records and its presentation of contradictory declarations regarding which of several versions of Kanahele's note was the original, the ICA should have vacated the circuit court's order on this ground as well; and (2) the ICA should have clarified whether Nationstar was subject to Kanahele's affirmative defenses.