Summary
The Supreme Court of Hawai‘i considers whether a Child Support Enforcement Agency lien recorded in 1997 has priority over an attorney’s lien arising from a later personal-injury action. The court holds that the child-support lien takes priority under Hawai‘i Revised Statutes § 576D-10.5 and that Hawai‘i Revised Statutes § 507-81 does not provide the attorney with a superior or independent property interest in the judgment. The court affirms the Intermediate Court of Appeals.
Holdings
- A CSEA lien recorded before an attorney's lien arises has priority over the attorney's lien, except as otherwise provided for tax liens.
- HRS § 507-81 creates a lien securing the attorney's fees; it does not create a superior or independent ownership interest that is immune from a prior recorded lien.
- HRS § 576D-10.5 is not ambiguous, and equitable or public-policy considerations cannot override the statutes' express lien-priority rules.
- The application of the lien statutes did not violate procedural or substantive due process.
Questions Presented
- Whether HRS § 576D-10.5 was ambiguous concerning the priority and reach of a recorded CSEA child-support lien.
- Whether HRS § 507-81 creates a superior or independent attorney property interest in a judgment that takes priority over a previously recorded CSEA lien.
- Whether applying the statutory lien-priority scheme violated due process or required priority to be determined by equitable and public-policy considerations.
Disposition
affirmed
Cases Cited (20)
- Lopez v. State, No. CAAP-11-0000512, 2012 WL 5520465 (Haw. App. Nov. 13, 2012)(followed and affirmed)
- Haole v. State, 111 Hawai‘i 144, 140 P.3d 377 (2006)(cited)
- Kaleikini v. Yoshioka, 128 Hawai‘i 53, 67, 283 P.3d 60, 74 (2012)(followed)
- First Ins. Co. of Hawai‘i v. A&B Props., Inc., 126 Hawai‘i 406, 414, 271 P.3d 1165, 1173 (2012)(followed)
- State v. Wheeler, 121 Hawai‘i 383, 390, 219 P.3d 1170, 1177 (2009)(cited)
- Banaitis v. Commissioner of Internal Revenue, 340 F.3d 1074 (9th Cir. 2003)(distinguished)
- Commissioner of Internal Revenue v. Banks, 543 U.S. 426 (2005)(followed)
- Rockwood Water District v. Steve Smith Contracting, Inc., 80 Or. App. 136, 720 P.2d 1332 (1986)(distinguished)
- Nicoletti v. Lizzoli, 124 Cal. App. 3d 361, 368, 177 Cal. Rptr. 685 (1981)(distinguished)
- In re Applications of Herrick, 82 Hawai‘i 329, 349, 922 P.2d 942, 962 (1996)(followed)
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