Sawada v. Endo, 57 Haw. 608, 561 P.2d 1291 (Haw. 1977)
Sawada v. Endo is a cornerstone Property case addressing whether a creditor of one spouse may satisfy a judgment from real property held by both spouses as tenants by the entirety.
Whether a judgment creditor of one spouse may levy on or set aside as a fraudulent conveyance a transfer of real property held by the debtor spouse and non-debtor spouse as tenants by the entirety.
In Hawai'i, an estate by the entirety is not subject to the claims of the separate creditors of either spouse during coverture. Only joint creditors of both spouses may reach entireties property. Consequently, a transfer by both spouses of entireties property cannot be set aside as a fraudulent conveyance at the behest of a separate creditor of only one spouse, because that creditor had no legal right to reach the property in the first place.
The court affirmed judgment for the defendants, holding that entireties property is immune from levy and execution by the separate creditors of either spouse during marriage, and that the plaintiffs could not set aside the spouses' conveyance to their sons as a fraudulent transfer.
Sawada v. Endo is foundational for understanding tenancy by the entirety, creditor remedies, and fraudulent conveyance doctrine. It clarifies that in Hawai'i (and many jurisdictions), the family-protective nature of TBE prevails over the interests of separate creditors, including involuntary tort creditors. The case also illustrates a key exam theme: a fraudulent transfer claim fails if the asset was never legally reachable by the complaining creditor. For practice, Sawada informs lender strategy (requiring both spouses' signatures) and tort litigation risk assessment when a defendant's wealth is tied up in entireties property.