James McCarty v. Gcp Management, LLC

MEMORANDUM

James and Victoria McCarty appeal the district court’s order granting summary judgment in favor of GCP Management, LLC (“GCP”) and Gateway Capital Partners, LLC, and its subsequent confirmation of the foreclosure sale of the mortgaged property to GCP. We have jurisdiction under 28 U.S.C. § 1291 , and we affirm. Because the parties are familiar with the history of this case, we need not recount it here.

I

Contrary to the McCartys’ claim, the defendants are not prohibited under Hawaii law from defending this action because neither entity holds a state certificate of authority to transact business in Hawaii. Hawaii law expressly permits a foreign limited liability company to defend an action instituted against it in a Hawaii court. Haw.Rev.Stat. § 428-1008(b). Moreover, because the provision of mortgage loans does not qualify as “transacting business” within the meaning of Haw.Rev. Stat. § 428-1008, that provision does not bar GCP’s counterclaim. Haw.Rev.Stat. § 428-1003.

II

We have carefully reviewed the district court’s grant of summary judgment de novo, see Bamonte v. City of Mesa, 598 F.3d 1217, 1220 (9th Cir.2010), and affirm the judgment of the district court…