Justia Washington Supreme Court Opinion Summaries

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

In this case and its companion, LK Operating, LLC v. Collection Grp., LLC, (No. 88846-9) (Wash. July 31, 2014), 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. This opinion addressed whether the trial court proceedings complied with due process requirements; whether, as a matter of law, the joint venture proposal was entered by an attorney in violation of one or both of former RPCs 1.7 (1995) and 1.8(a) (2000); and, if so, whether the remedy imposed by the trial court and affirmed on appeal is appropriate. The Supreme Court found: (1) the trial court proceedings satisfied the requirements of procedural due process; (2) though on different reasoning from that used by the Court of Appeals, that the undisputed facts established as a matter of law that the joint venture proposal contemplated a business transaction subject to, agreed to, and entered into in violation of former RPC 1.8(a). The Court affirmed that the former RPC 1.8(a) violation rendered the terms of the business transaction unenforceable under the circumstances presented and the remedy imposed was appropriate. Furthermore, the Court affirmed that the business transaction was entered in violation of former RPC 1. 7. The Court declined to determine whether the former RPC 1.7 violation would have also justified the remedy imposed. View "LK Operating, LLC v. Collection Grp., LLC" on Justia Law

Jennifer Holmes and James Lindsay entered the home of Laurence Wilkey, Holmes's former boyfriend. They tied him up, beat him, and took a number of items from his home. The State charged Holmes and Lindsay with first degree robbery, burglary, kidnapping, assault, and firearm theft. Holmes and Lindsay argued that they did not intend to commit a felony but were instead repossessing things that Wilkey had originally stolen from Holmes. A jury convicted them on most, but not all, counts. On appeal, Holmes and Lindsay argued that the prosecutor's remarks, particularly during closing arguments, constituted misconduct that prejudiced both defendants. The Court of Appeals agreed that the prosecutor committed misconduct but split as to whether that misconduct caused prejudice. "[G]iven the magnitude of the problem and the lawyers' inability to control their conduct," the Supreme Court agreed with the Court of Appeals' dissent and reversed the trial court. View "Washington v. Lindsay" on Justia Law

Stewart Title Guaranty Company hired the law firm Witherspoon, Kelley, Davenport & Toole, PS to defend its insured, Sterling Savings Bank, from a claim of lien priority on real property by a construction company. The claim was resolved in favor of the construction company, and Stewart Title sued the firm for malpractice. Witherspoon moved for summary judgment arguing it owed a duty to the client Sterling Bank and not Stewart Title, and that the alleged malfeasance (not arguing equitable subrogation) was not a viable argument in the lien priority suit. The trial court ruled against Witherspoon on the first, no-duty, ground but agreed with it on the second, no-breach, ground. The court therefore granted summary judgment in favor of Witherspoon. Stewart Title appealed. Upon review, the Supreme Court affirmed the trial court in dismissing Stewart Title's malpractice case on the basis that Witherspoon owed Stewart Title no duty. The Court did not address the subrogation issue. View "Stewart Title Guar. Co. v. Sterling Sav. Bank" on Justia Law

Jared Barton sued Korrine Linvog, her parents Thomas and Madonna Linvog, and the State. Barton reached a settlement with the Linvogs through which the Linvogs agreed to advance Barton money in exchange for his promise not to execute a judgment against them above their insurance policy limits. Neither Barton nor the Linvogs disclosed this settlement to the court or to the State. After a jury trial, Barton was awarded $3.6 million, and the trial court entered judgment against the State and the Linvogs. In the process of paying the judgment, the State discovered the agreement. The State then moved to vacate the judgment on grounds of fraud and misrepresentation. The trial court denied the motion but sanctioned Barton's attorney for failing to disclose the terms of the agreement. Barton's attorney appealed the sanction. Finding no abuse of discretion in its sanction against Barton's attorney, the Supreme Court affirmed. View "Barton v. Dep't of Transp." on Justia Law