Nancy E. Sutherland and Donald Sutherland and Stephen Newnham, Trustees of the Ralph L. Evans Trust v. Kaonohi Ohana, Ltd., Kaonohi Ohana, Ltd. v. Nancy E. Sutherland

776 F.2d 1425 Nancy E. SUTHERLAND; and Donald Sutherland and Stephen Newnham, Trustees of the Ralph L. Evans Trust, Plaintiffs-Appellants, v. KAONOHI OHANA, LTD., Defendant-Appellee, KAONOHI OHANA, LTD., Plaintiff-Appellee, v. Nancy E. SUTHERLAND, Defendant-Appellant. No. 84-2618. United States Court of Appeals, Ninth Circuit. Argued and Submitted Aug. 16, 1985. Decided Nov. 22, 1985. Alexander C. Marrack, Honolulu, Hawaii, for plaintiffs-appellants, defendant-appellant. Boyce R. Brown, Jr., Brown & Johnston, Honolulu, Hawaii, for Kaonohi Ohana, Ltd. Appeal from the United States District Court for the District of Hawaii. Before NORRIS and REINHARDT, Circuit Judges, and GILLIAM, * District Judge. PER CURIAM: I. BACKGROUND 1 Appellee Kaonohi Ohana, Ltd. is a Hawaii corporation that was formed pursuant to a reorganization plan in a Chapter 11 bankruptcy proceeding in which a Dr. Alex Ferreira was the debtor. Pursuant to the plan, Ferreira assigned title to a 5.5 acre parcel of land on the island of Kauai, Hawaii to appellee corporation. Ferreira's creditors were to assign their claims to appellee in return for shares of its stock. When appellee sold the land, its only asset, it…