Kona Enterprises, Inc. v. Estate of Bishop ex rel. Peters

This case involves an award of attorneys’ fees to defendants. Plaintiffs Kona Enterprises, Inc. (“Kona”), Tach One, Balanced Value Fund (“BVF”), Wayne M. Rogers (“Rogers”), and Jack Gertino (“Gertino”) (collectively “plaintiffs”) appeal the district court’s order granting defen *880 dants’ 1 Fed.R.Civ.P. 54(d) motion for attorneys’ fees pursuant to Haw.Rev.Stat. § 607-14. 2 Plaintiffs challenge the district court’s determinations under Hawai’i law that plaintiffs’ entire action is “in the nature of assumpsit,” that Rogers, Gertino, Tach One, and BVF are each “losing parties,” and that defendants are “prevailing parties.” Plaintiffs also challenge the district court’s decision denying their motion for reconsideration by which plaintiffs raised a choice-of-law issue for the first time.

We affirm in part, reverse in part, and remand for further proceedings.

I.

A. Factual Background

In the underlying diversity action, plaintiffs’ Second Amended Complaint 3 filed on September 7, 1995 (the “Complaint”) sought $4 million in damages as well as costs, interest, and attorneys’ fees based on five causes of action: (1) breach of fiduciary duty; (2) breach of the covenant of good faith and…