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Enos v. Pacific Transfer & Warehouse Inc.9/26/1995
OPINION OF THE COURT BY MOON, C.J.
Appellant Leslie S. Fukumoto, the attorney representing plaintiffs-appellants John and Aileen Enos (collectively, the Enoses) in their personal injury action against defendants-appellees Pacific Transfer & Warehouse, Inc. and Maynard Koa (collectively, Pacific Transfer), appeals from the First Circuit Court's order imposing sanctions against him for his post-verdict efforts to enforce the judgment in favor of the Enoses. For the reasons discussed below, we reverse.
I. BACKGROUND
Fukumoto represented the Enoses in their claims against Pacific Transfer, arising out of a motor vehicle accident that occurred on December 10, 1985. The jury, by special verdict, awarded damages in favor of the Enoses against Pacific Transfer in the amount of $905,000.00, and judgment was entered on April 9, 1994. Subsequent to the entry of judgment, the following events occurred:
June 3, 1994 Pacific Transfer timely filed its notice of appeal, pursuant to an order extending the time to appeal.
June 20, 1994 The Enoses filed their notice of cross-appeal.
June 21, 1994 Pacific Transfer submitted a supersedeas bond to the circuit court for approval.
June 27, 1994 Certificate of service of the supersedeas bond was mailed to Fukumoto.
July 1, 1994 The circuit court entered its order denying Pacific Transfer's motion for judgment notwithstanding the verdict or in the alternative, for new trial, and motion for remittitur.
July 6, 1994 Pacific Transfer filed an amended notice of appeal.
July 11, 1994 The Enoses filed an ex parte "Motion for Order for Examination of Alvin A. Tanaka, Person having Knowledge of the Affairs or Property of Defendant Pacific Transfer & Warehouse, Inc." [hereinafter, motion for examination], which was signed by Pamela O'Leary Tower, an associate in Fukumoto's law office. Attached to the motion was an affidavit by Tower made in support of the motion for examination.
July 11, 1994 The circuit court entered its order granting the motion for examination [hereinafter, order for examination] and scheduled the examination for August 1, 1994.
July 15, 1994 The circuit court approved and entered the supersedeas bond, resulting in a stay on the execution of judgment and proceedings for enforcement.
The Enoses filed an amended notice of cross-appeal.
July 20, 1994 Tower filed a "Corrective Affidavit of Counsel in Support of [the motion for examination]."
July 21, 1994 Pacific Transfer filed a "Motion for Order to Set Aside Plaintiffs' Ex Parte Motion for Order for Examination of Alvin A. Tanaka, Person Having Knowledge of the Affairs or Property of Defendant Pacific Transfer & Warehouse, Inc. filed July 11, 1994 and for Rule 11 Sanctions" [hereinafter, motion for sanctions]. The motion for sanctions was scheduled to be heard on August 1, 1994.
July 26, 1994 The Enoses filed a notice of withdrawal of the motion for examination, which was signed by Fukumoto and dated July 22, 1994.
At the hearing on its motion for sanctions on August 1, 1994, Pacific Transfer argued that the order for examination should be set aside because Tower's original affidavit in support of the motion for examination contained misrepresentations. Specifically, Pacific Transfer argued that Tower's representation that the final judgment in the case "has not been appealed from, reversed, modified, set aside or satisfied, and still remains in full force and effect" was erroneous.
In response, Tower explained that, prior to the filing of any notices of appeal, she
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