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State Savings & Loan Association v. Kauaian Development Co.

Supreme Court of Hawaii
445 P.2d 109 (1968)


Kauaian Development Company (Kauaian) (defendant) signed a number of agreements selling land and condominium units that had not yet been built. Subsequently, State Savings & Loan Association (State Savings) (plaintiff), with knowledge of these agreements, issued a construction loan to Kauaian. Kauaian defaulted on the construction loan. State Savings commenced foreclosure proceedings on the condominium properties, including the interests of the purchasers under the sales contracts with Kauaian. The purchasers claimed that their rights under the land sale contracts were superior to those of State Savings. The trial court ruled in favor of State Savings. The purchasers appealed.

Rule of Law


Holding and Reasoning (Levinson, J.)

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