Deutsche Bank National Trust Company v. Mendonza

── Deutsche Bank National Trust Company v. Mendonza ── Court: Hawaii Intermediate Court of Appeals Date: May 22, 2026 Category: General FOR PUBLICATION IN WEST'S HAWAI#I REPORTS AND PACIFIC REPORTER Electronically Filed Intermediate Court of Appeals CAAP-XX-XXXXXXX 22-MAY-2026 08:35 AM Dkt. 68 OP IN THE INTERMEDIATE COURT OF APPEALS OF THE STATE OF HAWAI#I ---o0o--- DEUTSCHE BANK NATIONAL TRUST COMPANY, AS TRUSTEE FOR THE BCAP LLC TRUST 2007-AA4 MORTGAGE PASS-THROUGH CERTIFICATES SERIES, 2007-AA4, Plaintiff-Appellee, v. TAMARA RUTH KALEIMOMI MENDONZA; EWA VILLAGES OWNERS ASSOCIATION; CITY AND COUNTY OF HONOLULU; SAMUEL L. GOMES A/K/A SAMUEL LELEKU GOMES; DAYNE PANAKONAU#E KAHAU, Defendants-Appellees, and KMT INVESTMENT LLC, Defendant-Appellant, and JOHN and MARY DOES 1-20; DOE PARTNERSHIPS, CORPORATIONS or OTHER ENTITIES 3-20, Defendants NO. CAAP-XX-XXXXXXX APPEAL FROM THE CIRCUIT COURT OF THE FIRST CIRCUIT (CASE NO. 1CC151000836) MAY 22, 2026 LEONARD, PRESIDING JUDGE, HIRAOKA AND MCCULLEN, JJ. OPINION OF THE COURT BY HIRAOKA, J. Deutsche Bank National Trust Company nonjudicially foreclosed a residential mortgage and purchased the property at auction, but did not pay assessments to the #Ewa Villages Owners  FOR PUBLICATION IN WEST'S HAWAI#I REPORTS AND PACIFIC REPORTER Association. Five years later, Deutsche Bank sued to invalidate its foreclosure, reinstate the mortgage, and judicially foreclose the mortgage. The Association then nonjudicially foreclosed its lien for unpaid assessments. KMT Investment LLC purchased the property at auction. Deutsche Bank added KMT to its lawsuit and sought to invalidate the Association's foreclosure, too. The Circuit Court of the First Circuit rescinded both foreclosures and entered a Hawai#i Rules of Civil Procedure Rule 54(b)- certified Amended Judgment for Deutsche Bank on those claims.1 KMT appeals. We hold that Deutsche Bank's nonjudicial foreclosure was valid; even if it had been voidable, the mortgagor was the only person who could have voided it and the deadline to do so has passed. We also hold that Deutsche Bank did not sustain its burden, as summary judgment movant, to show the Association's foreclosure was invalid or that the Association would not be able to prove its foreclosure was valid. We vacate the Amended Judgment and remand for further proceedings. I. BACKGROUND These facts are uncontroverted: Tamara Mendonza signed a promissory Note and a Mortgage on Property in #Ewa Villages. The Property was registered in Land Court. The Mortgage was recorded. An assignment of the Mortgage to Deutsche Bank was also recorded. 1 The Honorable James H. Ashford presided. 2  FOR PUBLICATION IN WEST'S HAWAI#I REPORTS AND PACIFIC REPORTER Mendonza defaulted on the Note. Deutsche Bank nonjudicially foreclosed the Mortgage. It purchased the Property at the foreclosure auction for $320,000. It recorded a Mortgagee's Affidavit of Foreclosure Under Power of Sale in January 2010. A quitclaim deed transferring title to Deutsche Bank was recorded in June 2010, and a transfer certificate of title (TCT)2 was issued to Deutsche Bank. Deutsche Bank stopped paying assessments to the Association. The Association recorded a Notice of Default and Lien against the Property in March 201