HSC Rejects the "Plausibility" Standard in 12(b)(6) Motions and Confirms a Cause of Action for Wrongful Foreclosure

In Reyes-Toledo II, the Hawaii Supreme Court rejected the “plausibility” standard that the US Supreme Court announced in Twombly/Igbal.

As to the first issue, this court has never adopted the Twombly/Iqbal “plausibility” pleading standard, and we now expressly reject it. We reaffirm that in Hawaiʻi state courts, the traditional “notice” pleading standard governs. This provides citizen access to the courts and to justice.

The Court went on to confirm that a homeowner need not wait until a foreclosure is executed to have a cause of action to bring suit against the foreclosing party for wrongful foreclosure.