KONA ENTERPRISES, INC. v. ESTATE OF BISHOP

No. 98-16197.

179 F.3d 767 (1999)

KONA ENTERPRISES, INC., individually and derivatively on behalf of Hanford's, Inc., Nationwide Industries, Inc., Plaintiff-Appellant, and Balanced Value Fund; Tach One, on behalf of Montrose Nationwide Limited Partnership; Wayne M. Rogers; Jack M. Gertino, Plaintiffs, v. ESTATE OF Bernice Pauahi BISHOP, by and through its trustees, Henry H. Peters, Myron B. Thompson, Oswald K. Stender, Richard S.H. Wong, and Lokelani Lindsey; Matsuo Takabuki, individually; William S. Richardson, individually; Myron B. Thompson, individually; Henry H. Peters, Jr., individually; Hanford's Inc.; Nationwide Industries, Inc.; Montrose Nationwide Limited Partnership; Snap Products, Inc.; Hanford's Creations, Inc.; John Does 1-10, Defendants-Appellees.

United States Court of Appeals, Ninth Circuit.

Decided June 4, 1999.


Attorney(s) appearing for the Case

Russell S. Walker, Woodbury & Kesler, Salt Lake City, Utah, for the plaintiff-appellant.

David Schulmeister, C. Michael Hare, Kelly G. LaPorte, Cades Schutte Fleming & Wright, Honolulu, Hawaii, for the defendants-appellees.

Before: FARRIS, NOONAN and GRABER, Circuit Judges.


FARRIS, Circuit Judge:

Background

Kona Enterprises was used as a vehicle for several investors, including Defendants, to gain control of Hanford's, Inc., a seasonal decorations company, and Nationwide, an automobile products manufacturer. We refer to Hanford's and Nationwide collectively as the "Companies." The Bishop Estate provided several letters of credit to avoid foreclosure by the Companies' creditor. After allegedly rejecting alternative financing...

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