Lee v. HSBC BANK USA

Opinion of the Court by

DUFFY, J.

The United States District Court for the District of Hawaii (District Court) certified the following question of law to the Hawaii Supreme Court:

Where a mortgagor cures its default prior to a foreclosure proceeding pursuant to [Hawaii Revised Statutes (HRS) ] § 667-5, but an auction inadvertently goes forward, is a valid agreement created entitling the high bidder at the auction to lost profits?

Based on the analysis below, we hold that a valid agreement is not created in such a situation and that the high bidder is entitled only to a return of his or her…