Zhang v. Wu

Summary

The Hawaiʻi Intermediate Court of Appeals held that an unregistered ten-year lease of Land Court property may operate as an enforceable contract between the parties and may confer a possessory interest, even though it does not bind the land or operate as a conveyance against third parties. The court concluded that the district court erred in granting summary judgment and entering judgment for possession based solely on the lease's lack of registration. The court also held that the appeal was not moot because the alleged lease remained in effect until 2031, and it vacated the relevant orders, judgment, and writ of possession.

Holdings

1. The appeal was not moot because the alleged lease remained in effect until July 2031, its validity presented a live justiciable issue, and effective relief might still be available.
2. An unregistered lease of Land Court property for a term of one year or more does not operate as a conveyance or bind the land against third parties, but under HRS § 501-101 it operates as a contract between the parties and, if otherwise valid, may confer a possessory interest in the property.
3. Summary judgment and the resulting judgment for possession and writ of possession were improper because the District Court incorrectly ruled as a matter of law that the unregistered alleged lease could not confer any possessory interest.

Questions Presented

1. Whether Wu's appeal was moot after he vacated the Land Court property before execution of the writ of possession.
2. Whether an unregistered lease of Land Court property for a term of one year or more is invalid between the parties and incapable of conferring a possessory interest under Hawaiʻi Revised Statutes §§ 501-101 and 501-121.
3. Whether summary judgment was improper because genuine issues of material fact existed regarding the existence and validity of the alleged lease.
4. Whether the District Court abused its discretion by denying a continuance of the summary-judgment hearing under District Court Rules of Civil Procedure Rule 56(f).

Disposition

vacated