McCormick 106, LLC v. Young

── McCormick 106, LLC v. Young ── Court: Hawaii Intermediate Court of Appeals Date: May 29, 2026 Category: General NOT FOR PUBLICATION IN WEST'S HAWAIʻI REPORTS AND PACIFIC REPORTER Electronically Filed Intermediate Court of Appeals CAAP-XX-XXXXXXX 29-MAY-2026 10:19 AM Dkt. 74 MO NO. CAAP-XX-XXXXXXX IN THE INTERMEDIATE COURT OF APPEALS OF THE STATE OF HAWAIʻI McCORMICK 106, LLC, Plaintiff-Appellant, v. NANCY P. YOUNG, aka PATSY P. YOUNG; JACK B. YOUNG; ALOIAU, INC.; RIDGEWAY RENTALS LIMITED LIABILITY PARTNERSHIP, Defendants-Appellees, and DOES 1 through 20, inclusive, Defendants-Appellees. APPEAL FROM THE CIRCUIT COURT OF THE FIFTH CIRCUIT (CASE NO. 5CC121000191) MEMORANDUM OPINION (By: Nakasone, Chief Judge, Leonard and McCullen, JJ.) Plaintiff-Appellant McCormick 106, LLC appeals from the Circuit Court of the Fifth Circuit's August 20, 2024 "Order Denying Plaintiff's Motion to Enter Agreed Consent Judgment of Foreclosure" (Denial Order) and November 6, 2024 Final Judgment. 1 On appeal, McCormick contends the circuit court erred and abused its discretion by not entering the Consent Judgment 1 The Honorable Kathleen N.A. Watanabe presided.  NOT FOR PUBLICATION IN WEST'S HAWAIʻI REPORTS AND PACIFIC REPORTER of foreclosure, which was McCormick's express remedy under the Settlement Agreement. We affirm. I. BACKGROUND In May 2007, Defendants-Appellees Nancy P. Young, Jack B. Young, and Ridgeway Rentals, LLLP (collectively, Ridgeway) received a $650,000.00 loan from McCormick's predecessor-in-interest that was secured by a mortgage on real property at 4597 Lehua Street, Kapaʻa, Kauaʻi (Property). 2 Ridgeway subsequently defaulted on the loan, and in June 2012, McCormick's predecessor-in-interest filed a complaint in the circuit court to foreclose on its mortgage on the Property. After more than a decade of pre-trial litigation, attempted settlements, and continuances, a bench trial was set for May 2023. On the eve of trial, McCormick and Ridgeway entered a Settlement Agreement. Under the terms of the agreement, McCormick agreed to a $762,500.00 Short Payoff of the outstanding debt in exchange for a release of the mortgage. Additionally, Ridgeway was also required to make a $100,000.00 non-refundable deposit into escrow (Escrow Deposit) and "remit all net rental payments" received from the Property, together 2 The Property appears to be a commercial rental property from which Ridgeway Rentals generates income for Units A and C, while Ridgeway occupies Unit B. It also appears that the foreclosure sought is limited to the improvements on the Property, not the Property itself, which is leased from Defendant Aloiau, Inc., who did not participate on appeal. 2  NOT FOR PUBLICATION IN WEST'S HAWAIʻI REPORTS AND PACIFIC REPORTER with the governing leases, from January 1 through receipt of the Short Payoff (Rents). By the terms of the agreement, which recited that "TIME IS OF THE ESSENCE," if Ridgeway failed to pay the Short Payoff, Escrow Deposit, or Rents by July 27, 2023 (Payment Date), Ridgeway agreed that McCormick "may immediately proceed with foreclosure of the Property via: (1) the Consent Judgment of Foreclosure attached to this [Settlement] Agreement as Exhibit '1' ('Consent Judgment'); and/or (2) the Deed-[i]n-Lieu of Foreclosure ('Deed in Lieu') attached to this [Settlement] Agreement as Exhibit '2.'" The Settlemen