United States District Court, D. Hawaii
ORDER FINDING DEFENDANT BRENDA STATON'S CLAIM
THAT THE FORECLOSURE SALE FAILS TO PROTECT HER INTEREST IN
THE PROPERTY TO BE WITHOUT MERIT
C. Kay Sr. United States District Judge.
reasons set forth below, the Court FINDS Defendant Brenda
Staton's claim that the foreclosure sale fails to protect
her interest in the property to be without merit.
purposes of this Order, the Court will not recount this
case's lengthy procedural history beginning in 2012. The
Court only discusses those facts of specific relevance to
Defendant Brenda Staton's (“Mrs. Staton”)
August 31, 2015, the Court granted Plaintiff's Motion for
Summary Judgment on the Third Claim in the Complaint and
issued an Order of Foreclosure and Judicial Sale
(“Foreclosure Order”) of the Staton's home
(the “Property”). ECF Nos. 157, 158. On September
1, 2015, Defendant Ronald Staton (“Mr. Staton”)
filed a petition for relief under 11 U.S.C. § 301 in the
United States Bankruptcy Court for the District of Hawaii.
ECF No. 160-1. In view of Mr. Staton's bankruptcy
petition, the Court stayed the instant case. ECF No. 161. On
December 7, 2015, the court reinstated the Foreclosure Order
in response to the Bankruptcy Court's Order Granting
United States' Motion for Relief from Automatic Stay. ECF
November 16, 2016, Mr. Staton filed a second petition for
relief under 11 U.S.C. § 301 in the United States
Bankruptcy Court for the District of Hawaii. ECF No. 208. In
view of Mr. Staton's bankruptcy petition, the Court again
stayed the instant case. ECF No. 209. After Mr. Staton's
second petition for relief under 11 U.S.C. § 301 was
dismissed, the Court, on April 24, 2017, reinstated its
Foreclosure Order and directed the parties to proceed in
accordance therewith. ECF No. 212.
20, 2017, the day before the scheduled foreclosure sale
auction, Defendant Mrs. Staton filed a petition for relief
under 11 U.S.C. § 301 in the United States Bankruptcy
Court for the District of Hawaii. ECF No. 214. In light of
Mrs. Staton's bankruptcy petition, the Court, again,
stayed the case. ECF No. 215.
August 7, 2017, Plaintiff filed a Motion for Relief from
Automatic Stay in the Bankruptcy Court. On October 6, 2017,
the Bankruptcy Court entered an order granting
Plaintiff's Motion for Relief from Automatic Stay. In
light of the Bankruptcy Court's ruling, the Court again
unstayed the case and reinstated its Foreclosure Order and
directed the parties to proceed in accordance therewith. ECF
December 8, 2017, Defendant Ronald B. Staton filed an
Emergency Motion to Strike Notice of Lis Pendens (NOPA), ECF.
No. 226, together with a Supplement to the Emergency Motion,
ECF No. 227. Defendant Staton represented that he obtained
financing in the amount of $1, 032, 000 to pay off all liens
on the property with a closing date set for December 8, 2017.
The foreclosure sale of the Property was set for December 20,
2017. ECF No. 230. On December 11, 2017, the Court held a
hearing on this matter and ordered the parties to have a
settlement conference with Magistrate Judge Chang. ECF No.
December 18, 2017, a settlement conference was held and was
ended by Magistrate Judge Chang because the Statons could not
produce a loan commitment letter from the lender for the
previously described financing. ECF No. 244. Later that day,
the Statons filed an Emergency Motion Regarding Foreclosure
and Request for a Hearing and Stay Pending Hearing. ECF No.
241. The Court held a hearing that same day and concluded
that the foreclosure of the property will proceed on December
20, 2017. ECF No. 243.
December 19, 2017, the Statons filed a Notice Re: Conditional
Loan Approval Letter and requested a stay of the foreclosure
sale. ECF No. 245. The Court held a hearing the morning of
December 20, 2017 regarding the Notice. ECF No. 251. The
Court denied the request for a stay and ordered the
foreclosure sale to proceed. Id. The foreclosure
sale proceeded on December 20, 2017 around 12:00pm on the
steps of the U.S. District Court for the District of Hawaii.
December 21, 2017, the Commissioner filed a Notice of Sale,
informing the Court that the subject property was sold at
foreclosure sale on December 20, 2017 to a third-party bidder
for $1, 135, 000.00 subject to confirmation by the Court. ECF
December 21, 2017, the United States filed Notice of
Defendant Ronald Staton's Bankruptcy Case, stating that
on December 20, 2017, Defendant Ronald Staton filed a new
bankruptcy case, and that the United States seeks to intend a
lifting of the stay on that bankruptcy case so that the
Commissioner's sale can be confirmed. ECF No. 253.
December 22, 2017, Defendant Brenda Staton filed a Notice of
Pendency of Action, asserting that she is contesting the
validity of the foreclosure sale as having been filed in
violation of Mr. Staton's bankruptcy, which she asserts
was filed at 11:54am, and that the aforementioned sale ...