Justia Washington Supreme Court Opinion Summaries

Articles Posted in Civil Procedure
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The issue this case presented to the Supreme Court centered on proceedings to determine the fair value of shares in a closely held corporation. The primary question presented was whether the respondents, shareholders who disagreed with the corporation's estimate of that fair value, presented sufficient evidence to defeat the corporation's motion for summary judgment. Secondarily, the Court was asked to decide whether the trial court properly awarded attorney and expert fees to the corporation. After review, the Supreme Court held that respondents did not provide sufficient evidence to defeat the corporation's motion for summary judgment. Furthermore, the Court held respondents did not act in a manner that justified the trial court's award of fees to the corporation. Therefore, the Court of Appeals was reversed as to the summary judgment issue and affirmed as to the fees. View "SentinelC3 v. Hunt" on Justia Law

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In this case and its companion, LK Operating, LLC v. Collection Grp., LLC,(No. 88132-4), the central issues on appeal arose from a joint venture agreement regarding a debt collection business. The debt collection business operated according to the terms of the joint venture agreement, as originally proposed, from approximately winter 2005 through summer 2007. In this opinion, the issue presented to the Supreme Court was whether the trial court erred in applying the doctrine of equitable indemnification (known as the "ABC Rule") to hold that the legal malpractice plaintiffs here suffered no compensable damages as a matter of law and that summary judgment dismissal was appropriate. "Where the only damages claimed by a legal malpractice plaintiff are attorney fees incurred in a separate litigation and the only legal basis on which plaintiff asserts those fees are compensable is the ABC Rule, then the defendant is entitled to summary judgment dismissal if the ABC Rule does not apply to the undisputed facts as a matter of law." That was the situation presented in this case, and as such, affirmed the trial court. View "LK Operating, LLC v. Collection Grp., LLC" on Justia Law

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Ignacio Encarnacion and Norma Karla Farias were sued for unlawful detainer even though they had a valid lease and did nothing to warrant eviction. The case settled. They moved to amend the Superior Court Management Information System (SCOMIS) indices to replace their full names with their initials in order to hide the fact that they were defendants to the unlawful detainer action. Encarnacion and Farias argued that even though the unlawful detainer action was meritless, they could not obtain sufficient rental housing after prospective landlords learned that they had an unlawful detainer action filed against them. The superior court granted their motion and ordered that the indices be changed to show only their initials. The King County Superior Court Office of Judicial Administration objected and appealed the order. The Court of Appeals reversed. The Supreme Court reversed: "[a]lthough we sympathize with Encarnacion and Farias, and other renters in similar situations . . .[t]he public's interest in the open administration of justice prohibits the redaction of the indices in this case." View "Hundtofte v. Encarnacion" on Justia Law

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Expedia (and several other hotel booking websites, collectively, "Petitioners") has been subject to approximately 80 underlying lawsuits by states, counties, and municipalities (collectively, taxing authorities) for purportedly failing to collect the right amount of local occupancy taxes from its hotel customers. Expedia tendered most of the suits to its insurer, Zurich, although some were tendered late. Zurich refused to defend Expedia on a number of grounds, including late tender and that the underlying suits may be excluded from the policies' coverage. The trial court declined to make a determination of Zurich's duty to defend Expedia, instead ordering discovery that Expedia claimed was prejudicial to the underlying actions. Petitioners sought adjudication of their summary judgment motion concerning their respective insurers' duty to defend them in cases brought by local taxing authorities. They further requested a stay of discovery in the coverage action that could prejudice them in the underlying litigation. Upon review of the matter, the Washington Supreme Court held that the trial court erred by delaying adjudication of Zurich's duty to defend Expedia. Accordingly, the Court vacated the trial court's order. The case was remanded to the trial court to determine Zurich's duty to defend Expedia in each of the 54 underlying cases subject to Expedia's motion. The trial court was furthermore ordered to stay discovery in the coverage action until it could make a factual determination as to which parts of discovery are potentially prejudicial to Expedia in the underlying actions. View "Expedia, Inc. v. Steadfast Ins. Co." on Justia Law

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Petitioner David Brown appealed a Court of Appeals holding that venue for this sexual harassment suit was proper in Clark County. Respondents Robin Eubanks and Erin Gray alleged Brown engaged in sexual harassment against then from September 2007 to July 2010 while Brown was a deputy prosecuting attorney in the Klickitat County Prosecuting Attorney's Office. Eubanks mistakenly believed that RCW 36.01.050 allowed for venue in any neighboring county, rather than the two nearest judicial districts. Upon realizing it was only the two nearest judicial districts, Eubanks moved to transfer venue to an appropriate county, Clark County Superior Court. Brown responded, claiming that under RCW 4.12.020(2), only Klickitat County Superior Court was an appropriate venue for the claims. However, his response did not request a change of venue to Klickitat County Superior Court or ask the Benton County Superior Court to deny the transfer of venue to Clark County Superior Court. Benton County Superior Court granted the motion to transfer venue to Clark County Superior Court. After the change of venue to Clark County Superior Court, Brown moved for a dismissal or a change of venue to Klickitat County Superior Court based on RCW 4.12.025(1) and RCW 4.12.020(2). He argued that venue was proper in Klickitat County Superior Court because he resided there and, alternatively, because the alleged tortious acts occurred in virtue of his public office and took place there. Clark County Superior Court denied Brown's motion to dismiss or motion to change venue on both grounds. The Court of Appeals affirmed. Brown argued on appeal to the Supreme Court that RCW 4.12.020(2) required that suits against public officers for acts done "in virtue of his or her office" proceed in the county where the acts occurred. The Supreme Court affirmed venue was proper in Clark County because the Court held that the acts alleged in this complaint were not "in virtue of" Brown's public office under RCW 4.14.020(2). View "Eubanks v. Brown" on Justia Law