APPEAL FROM THE CIRCUIT COURT OF THE SECOND CIRCUIT (CIVIL NO. 10-1-0310)
NOT FOR PUBLICATION IN WEST'S HAWAII REPORTS AND PACIFIC REPORTER
(By: Foley, Presiding J., Fujise and Ginoza, JJ.)
In this appeal arising out of a loan dispute, Defendants-Appellants Tricia Morris (Morris) and Herman-Morris Enterprises, Inc., dba Hawaii's Premiere Mortgage Company (HPMC) appeal from the July 28, 2011 Final Judgment (Judgment) and the July 28, 2011 "Rule 54(b) Final Judgment on Count III: Breach of Guaranty of Verified Complaint against Defendants Tricia Morris and Herman-Morris Enterprises, Inc., d.b.a. Hawaii's Premiere Mortgage Company" (Certified-Judgment) both entered in the Circuit Court of the Second Circuit *fn1 (circuit court). Judgment was entered in favor of Plaintiffs-Appellees Arthur Tai and Cathy Tai (collectively, Tais) and against Morris, HPMC and DefendantAppellee Richard Leonard Radford (Radford).
The Tais loaned $210,000 to Radford. Morris executed a guaranty that is at issue in this appeal. Radford defaulted on his contractual promise to repay the loan. On May 13, 2010, the Tais filed a Verified Complaint (Complaint) against Radford, Morris and HPMC asserting three counts:
(1) breach of contract against Radford;
(2) quantum meruit against Radford; and
(3) breach of guaranty against Morris and HPMC.
On June 16, 2010, Morris and HPMC filed their Verified Answer (Answer) to the Tais' Complaint. Radford failed to answer the Tais' Complaint and on June 30, 2010, the circuit court entered a default against Radford. On May 23, 2011, the circuit court resolved the remaining claims by granting the Tais' motion for partial summary judgment.
On July 28, 2011, the circuit court entered Judgment in favor of the Tais and against Radford on Count 1 and Count 2 and in favor of the Tais and against Morris and HPMC on Count 3. On the same day, the circuit court entered a Hawaii Rules of Civil Procedure Rule 54(b) Certified-Judgment in favor of the Tais and against Morris and HPMC on Count 3.
On August 22, 2011, Morris and HPMC filed a notice of appeal from the Judgment and Certified-Judgment.
On appeal, Morris and HPMC contend the circuit court erred in granting the Tais' motion for partial summary judgment because it "was not appropriate in view of disputed facts material to contract issues of ambiguity and consideration[.]" Morris and HPMC also contend the circuit court erred in granting the Tais' motion for ...