Eastern Savings Bank, FSB v. Esteban.

Opinion of the Court by

McKENNA, J.

I. Introduction

Defendants-Appellants Eduardson Esteban and Emalyn P. Gabriel-Esteban (“the Estebans”), borrowers and mortgagors under a residential mortgage loan, appeal the Circuit Court of the Fifth Circuit’s (“circuit court”) judgment confirming the foreclosure sale of real property to Plaintiff-Appellee Eastern Savings Bank, FSB (“Eastern”). 1 This court accepted a discretionary transfer of the case.

The issue presented is whether Hawai'i res judicata principles prohibit a debtor from asserting federal Truth in Lending Act (“TILA”) rescission rights after…