U.S. Bank National Association as Trustee for Csmc Mortgage Loan Trust 2006-7 v. Compton (Hawaii 2021)

Summary

The Hawaii Supreme Court held that a promissory note is not hearsay and need not satisfy the business‑records exception, and that under the incorporated records doctrine a party may rely on testimony about its own record‑keeping rather than the creator’s. Accordingly, the court vacated the Intermediate Court of Appeals’ reversal of summary judgment and remanded for a determination of whether admissible evidence supports U.S. Bank’s claim.

Holding

Whether a promissory note must satisfy the business‑records exception to be admissible as evidence.. A promissory note is not hearsay because it has independent legal significance and therefore need not satisfy the business‑records exception.

Whether a party that incorporates a third‑party’s records must present testimony about the third party’s record‑keeping to satisfy the business‑records exception.. Testimony from a custodian or other qualified witness about the record‑keeping practices of the incorporating business suffices; testimony about the creator’s practices is not required.

Whether the Intermediate Court of Appeals erred in reversing the circuit court’s grant of summary judgment and finding U.S. Bank lacked standing.. The Intermediate Court erred; its memorandum opinion and judgment are vacated and the case is remanded for the circuit court to determine whether admissible evidence shows U.S. Bank is entitled to summary judgment.