U.S. Bank National Association v. Thede

NOT FOR PUBLICATION IN WEST'S HAWAI#I REPORTS AND PACIFIC REPORTER

Electronically Filed
Intermediate Court of Appeals
CAAP-XX-XXXXXXX
30-APR-2026
07:51 AM
Dkt. 52 SO

NO. CAAP-XX-XXXXXXX

IN THE INTERMEDIATE COURT OF APPEALS

OF THE STATE OF HAWAI#I

U.S. BANK NATIONAL ASSOCIATION, a National Banking Association
as Trustee for SARM 05-19XS, Plaintiff-Appellee,
v.
DYLAN THEDE, Defendant-Appellant, and
ASSOCIATION OF APARTMENT OWNERS OF VILLAS ON THE PRINCE;
PRINCEVILLE II COMMUNITY ASSOCIATION; MEB LOAN TRUST II;
U.S. BANK NATIONAL ASSOCIATION,
not in its Individual Capacity but Solely as Trustee;
BANK OF AMERICA, N.A., Defendants-Appellees
and JOHN DOES 1-50; JANE DOES 1-50; DOE PARTNERSHIPS 1-50;
DOE CORPORATIONS 1-50; DOE ENTITIES 1-50;
and DOE GOVERNMENTAL UNITS 1-50, Defendants

APPEAL FROM THE CIRCUIT COURT OF THE FIFTH CIRCUIT
(CASE NO. 5CC121000114)

SUMMARY DISPOSITION ORDER
(By: Nakasone, Chief Judge, Hiraoka and Wadsworth, JJ.)
Dylan Thede appeals from the August 29, 2024 Judgment
for U.S. Bank NA entered by the Circuit Court of the Fifth
Circuit.1 We affirm.
Bank sued Thede to foreclose a mortgage. The circuit
court granted Bank's motion for summary judgment and decree of
foreclosure. Thede appealed. We vacated and remanded, holding
that Bank did not establish standing to foreclose. U.S. Bank v.
Thede, No. CAAP-XX-XXXXXXX, 2020 WL 1686161 (Haw. App. April 6,
2020) (SDO).

1
The Honorable Randal G.B. Valenciano presided.
NOT FOR PUBLICATION IN WEST'S HAWAI#I REPORTS AND PACIFIC REPORTER

Bank amended its complaint on June 1, 2023. It again
moved for summary judgment and a decree of foreclosure. The
circuit court granted the motion and entered the Judgment. Thede
appeals.
We review a circuit court's grant of summary judgment
de novo. Wells Fargo Bank v. Behrendt, 142 Hawai#i 37, 41, 414
P.3d 89, 93 (2018).
(1) Thede argues the circuit court "erred in holding
that the applicable date for determining whether US Bank and its
predecessor had possession of the note was the date of the first
amended complaint . . . rather than the date the original
complaint was filed[.]"
A "foreclosing plaintiff must establish its standing to
bring a lawsuit at the commencement of the proceeding[.]" U.S.
Bank Trust v. Verhagen, 149 Hawai#i 315, 327, 489 P.3d 419, 431
(2021). Thede argues that even though Bank filed an amended
complaint, it still had to prove it was a holder of Thede's note
when the original complaint was filed. The argument lacks merit.
An amended complaint supercedes the original complaint, which
then has no legal effect. Beneficial Haw., Inc. v. Casey, 98
Hawai#i 159, 167, 45 P.3d 359, 367 (2002).
Thede does not argue that Bank didn't show it was a
holder of his note when its amended complaint was filed. The
circuit court did not err by concluding that Bank had standing to
foreclose. U.S. Bank v. Swink, No. CAAP-XX-XXXXXXX, 2025 WL
2093151, at *2 (Haw. App. July 25, 2025) (SDO), cert. granted,
SCWC-XX-XXXXXXX, 2025 WL 3488334 (Haw. Dec. 4, 2025).
(2) Thede argues Bank's incorporated records were
inadmissible because Bank didn't establish they were trustworthy.
Bank's incorporated records were authenticated by Maria Ayala's
declaration. Ayala was employed by Bank's attorney in fact,
Nationstar. She stated:

The information regarding the Loan transferred to Nationstar
from the Prior Servicer has been validated in many ways,
including, but not limited to, going through a due diligence
phase, review of hard copy documents, and review of the
payment history and accounting of other fees, costs, and
expenses charged to the loan by Prior Servicer.

2
NOT FOR PUBLICATION IN WEST'S HAWAI#I REPORTS AND PACIFIC REPORTER

Ayala's testimony established circumstances indicating
the trustworthiness of the incorporated records. Verhagen, 149
Hawai#i at 326, 489 P.3d at 430.
(3) Thede argues "Bank cannot show that the default
letter was mailed to Mr. Thede." The record contains two default
letters to Thede: one from Countrywide dated April 16, 2009, and
another from Nationstar dated November 29, 2022.
Thede argues Countrywide's letter wasn't authenticated
because "the Ayala declaration does not adequately explain how
she is familiar with the record-keeping system of Countrywide[.]"
Thede misreads Verhagen. There, the supreme court held "when an
entity incorporates records prepared by another entity into its
own records, they are admissible as business records of the
incorporating entity provided that it relies on the records,
there are other indicia of reliability, and the requirements of
HRE Rule 803(b)(6) are otherwise satisfied." 149 Hawai#i at 325,
489 P.3d at 429 (italics added). Thus,

when a record is treated as created by the receiving
business, a person is qualified to authenticate it if the
person has enough familiarity with the record-keeping system
of the business that created the record, i.e., the receiving
or incorporating business. Accordingly, a person may be
qualified to authenticate an incorporated record even if the
person lacks familiarity with the records or record-keeping
practices of the entity that actually created the record.

Id. (italics added) (cleaned up).
Ayala's declaration authenticated the Countrywide
letter. Even if it hadn't, Bank's amended complaint was filed
after the deadline for Thede to cure his default stated in
Nationstar's default letter. Bank of N.Y. Mellon v. White,
No. CAAP-XX-XXXXXXX, 2024 WL 5245129, at *2 (Haw. App. Dec. 30,
2024) (SDO), aff'd, 156 Hawai#i 246, 573 P.3d 629 (2025). Bank
satisfied the condition precedent to its right to foreclose
either way.
(4) Thede argues Countrywide's assignment of his
mortgage to Bank wasn't valid. Thede lacks standing to challenge

3
NOT FOR PUBLICATION IN WEST'S HAWAI#I REPORTS AND PACIFIC REPORTER

the assignment of his mortgage. U.S. Bank v. Salvacion, 134
Hawai#i 170, 175, 338 P.3d 1185, 1190 (App. 2014).
What's more, Bank was not required to show a valid
assignment of the mortgage because the mortgage follows the note.
See Bank of Am., N.A. v. Reyes-Toledo, 139 Hawai#i 361, 371 n.17,
390 P.3d 1248, 1258 n.17 (2017) (recognizing "the security
follows the debt").
At any rate, Thede argues that Countrywide "merged into
Bank of America" a year before the assignment was executed.
Countrywide didn't sign the assignment; MERS did. Thede's
mortgage states that MERS is the "nominee for Lender
[Countrywide] and Lender's successors and assigns." On this
record, the assignment was valid.
(5) Thede challenges the circuit court's findings of
fact nos. 12, 13, and 15. They are supported by substantial
evidence in the record and are not clearly erroneous. Cowan v.
Exclusive Resorts PBL1, LLC, 156 Hawai#i 268, 272, 574 P.3d 288,
292 (2025).
Thede challenges conclusions of law nos. 4, 7, 9, and
11. Those determinations are actually mixed findings of fact and
conclusions of law. They are not clearly erroneous and correctly
apply the law. Id.
The August 29, 2024 Judgment is affirmed.
DATED: Honolulu, Hawai#i, April 30, 2026.

On the briefs:
/s/ Karen T. Nakasone
Keith M. Kiuchi, Chief Judge
for Defendant-Appellant
Dylan Thede. /s/ Keith K. Hiraoka
Associate Judge
Matthew P. Holm,
for Plaintiff-Appellee /s/ Clyde J. Wadsworth
U.S. Bank National Associate Judge
Association, a National
Banking Association as
Trustee for SARM 05-19XS.

4

NOT FOR PUBLICATION IN WEST'S HAWAI#I REPORTS AND PACIFIC REPORTER

Electronically Filed
Intermediate Court of Appeals
CAAP-XX-XXXXXXX
30-APR-2026
07:51 AM
Dkt. 52 SO

NO. CAAP-XX-XXXXXXX

IN THE INTERMEDIATE COURT OF APPEALS

OF THE STATE OF HAWAI#I

U.S. BANK NATIONAL ASSOCIATION, a National Banking Association
as Trustee for SARM 05-19XS, Plaintiff-Appellee,
v.
DYLAN THEDE, Defendant-Appellant, and
ASSOCIATION OF APARTMENT OWNERS OF VILLAS ON THE PRINCE;
PRINCEVILLE II COMMUNITY ASSOCIATION; MEB LOAN TRUST II;
U.S. BANK NATIONAL ASSOCIATION,
not in its Individual Capacity but Solely as Trustee;
BANK OF AMERICA, N.A., Defendants-Appellees
and JOHN DOES 1-50; JANE DOES 1-50; DOE PARTNERSHIPS 1-50;
DOE CORPORATIONS 1-50; DOE ENTITIES 1-50;
and DOE GOVERNMENTAL UNITS 1-50, Defendants

APPEAL FROM THE CIRCUIT COURT OF THE FIFTH CIRCUIT
(CASE NO. 5CC121000114)

SUMMARY DISPOSITION ORDER
(By: Nakasone, Chief Judge, Hiraoka and Wadsworth, JJ.)

Dylan Thede appeals from the August 29, 2024 Judgment
for U.S. Bank NA entered by the Circuit Court of the Fifth
Circuit.1 We affirm.
Bank sued Thede to foreclose a mortgage. The circuit
court granted Bank's motion for summary judgment and decree of
foreclosure. Thede appealed. We vacated and remanded, holding
that Bank did not establish standing to foreclose. U.S. Bank v.
Thede, No. CAAP-XX-XXXXXXX, 2020 WL 1686161 (Haw. App. April 6,
2020) (SDO).

1
The Honorable Randal G.B. Valenciano presided.
NOT FOR PUBLICATION IN WEST'S HAWAI#I REPORTS AND PACIFIC REPORTER

Bank amended its complaint on June 1, 2023. It again
moved for summary judgment and a decree of foreclosure. The
circuit court granted the motion and entered the Judgment. Thede
appeals.
We review a circuit court's grant of summary judgment
de novo. Wells Fargo Bank v. Behrendt, 142 Hawai#i 37, 41, 414
P.3d 89, 93 (2018).
(1) Thede argues the circuit court "erred in holding
that the applicable date for determining whether US Bank and its
predecessor had possession of the note was the date of the first
amended complaint . . . rather than the date the original
complaint was filed[.]"
A "foreclosing plaintiff must establish its standing to
bring a lawsuit at the commencement of the proceeding[.]" U.S.
Bank Trust v. Verhagen, 149 Hawai#i 315, 327, 489 P.3d 419, 431
(2021). Thede argues that even though Bank filed an amended
complaint, it still had to prove it was a holder of Thede's note
when the original complaint was filed. The argument lacks merit.
An amended complaint supercedes the original complaint, which
then has no legal effect. Beneficial Haw., Inc. v. Casey, 98
Hawai#i 159, 167, 45 P.3d 359, 367 (2002).
Thede does not argue that Bank didn't show it was a
holder of his note when its amended complaint was filed. The
circuit court did not err by concluding that Bank had standing to
foreclose. U.S. Bank v. Swink, No. CAAP-XX-XXXXXXX, 2025 WL
2093151, at *2 (Haw. App. July 25, 2025) (SDO), cert. granted,
SCWC-XX-XXXXXXX, 2025 WL 3488334 (Haw. Dec. 4, 2025).
(2) Thede argues Bank's incorporated records were
inadmissible because Bank didn't establish they were trustworthy.
Bank's incorporated records were authenticated by Maria Ayala's
declaration. Ayala was employed by Bank's attorney in fact,
Nationstar. She stated:

The information regarding the Loan transferred to Nationstar
from the Prior Servicer has been validated in many ways,
including, but not limited to, going through a due diligence
phase, review of hard copy documents, and review of the
payment history and accounting of other fees, costs, and
expenses charged to the loan by Prior Servicer.

2
NOT FOR PUBLICATION IN WEST'S HAWAI#I REPORTS AND PACIFIC REPORTER

Ayala's testimony established circumstances indicating
the trustworthiness of the incorporated records. Verhagen, 149
Hawai#i at 326, 489 P.3d at 430.
(3) Thede argues "Bank cannot show that the default
letter was mailed to Mr. Thede." The record contains two default
letters to Thede: one from Countrywide dated April 16, 2009, and
another from Nationstar dated November 29, 2022.
Thede argues Countrywide's letter wasn't authenticated
because "the Ayala declaration does not adequately explain how
she is familiar with the record-keeping system of Countrywide[.]"
Thede misreads Verhagen. There, the supreme court held "when an
entity incorporates records prepared by another entity into its
own records, they are admissible as business records of the
incorporating entity provided that it relies on the records,
there are other indicia of reliability, and the requirements of
HRE Rule 803(b)(6) are otherwise satisfied." 149 Hawai#i at 325,
489 P.3d at 429 (italics added). Thus,

when a record is treated as created by the receiving
business, a person is qualified to authenticate it if the
person has enough familiarity with the record-keeping system
of the business that created the record, i.e., the receiving
or incorporating business. Accordingly, a person may be
qualified to authenticate an incorporated record even if the
person lacks familiarity with the records or record-keeping
practices of the entity that actually created the record.

Id. (italics added) (cleaned up).
Ayala's declaration authenticated the Countrywide
letter. Even if it hadn't, Bank's amended complaint was filed
after the deadline for Thede to cure his default stated in
Nationstar's default letter. Bank of N.Y. Mellon v. White,
No. CAAP-XX-XXXXXXX, 2024 WL 5245129, at *2 (Haw. App. Dec. 30,
2024) (SDO), aff'd, 156 Hawai#i 246, 573 P.3d 629 (2025). Bank
satisfied the condition precedent to its right to foreclose
either way.
(4) Thede argues Countrywide's assignment of his
mortgage to Bank wasn't valid. Thede lacks standing to challenge

3
NOT FOR PUBLICATION IN WEST'S HAWAI#I REPORTS AND PACIFIC REPORTER

the assignment of his mortgage. U.S. Bank v. Salvacion, 134
Hawai#i 170, 175, 338 P.3d 1185, 1190 (App. 2014).
What's more, Bank was not required to show a valid
assignment of the mortgage because the mortgage follows the note.
See Bank of Am., N.A. v. Reyes-Toledo, 139 Hawai#i 361, 371 n.17,
390 P.3d 1248, 1258 n.17 (2017) (recognizing "the security
follows the debt").
At any rate, Thede argues that Countrywide "merged into
Bank of America" a year before the assignment was executed.
Countrywide didn't sign the assignment; MERS did. Thede's
mortgage states that MERS is the "nominee for Lender
[Countrywide] and Lender's successors and assigns." On this
record, the assignment was valid.
(5) Thede challenges the circuit court's findings of
fact nos. 12, 13, and 15. They are supported by substantial
evidence in the record and are not clearly erroneous. Cowan v.
Exclusive Resorts PBL1, LLC, 156 Hawai#i 268, 272, 574 P.3d 288,
292 (2025).
Thede challenges conclusions of law nos. 4, 7, 9, and
11. Those determinations are actually mixed findings of fact and
conclusions of law. They are not clearly erroneous and correctly
apply the law. Id.
The August 29, 2024 Judgment is affirmed.
DATED: Honolulu, Hawai#i, April 30, 2026.

On the briefs:
/s/ Karen T. Nakasone
Keith M. Kiuchi, Chief Judge
for Defendant-Appellant
Dylan Thede. /s/ Keith K. Hiraoka
Associate Judge
Matthew P. Holm,
for Plaintiff-Appellee /s/ Clyde J. Wadsworth
U.S. Bank National Associate Judge
Association, a National
Banking Association as
Trustee for SARM 05-19XS.

4