Justia Washington Supreme Court Opinion Summaries

Daniel Pashniak, purchaser of two condominiums at a foreclosure sale, wanted to withdraw his bids. The judgment creditor, Sixty-01 Association of Apartment Owners, wanted to confirm the sales. RCW 6.21.11 0(2) states, "The judgment creditor or successful purchaser at the sheriffs sale is entitled to an order confirming the sale." The issue this case presented was whether a successful purchaser has a right to withdraw his or her bid prior to confirmation or if a judgment creditor is entitled to confirmation of the sale absent substantial irregularities, even if the purchaser no longer wishes to purchase the property. The Supreme Court held that a third party purchaser does not have a unilateral right to withdraw a successful bid before confirmation. Either the purchaser or the judgment creditor can move for confirmation, and the sale should be confirmed by the court unless a debtor or a nondefaulting party who received notice proves there were substantial irregularities in the proceedings. "[W]hile a court may invalidate a sale based on equitable considerations, this situation does not merit such a remedy." View "Sixty-01 Ass'n of Apt. Owners v. Parsons" on Justia Law

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

Jeanne Lewis purchased a condominium with a $277,000 loan from Bank of America. The condominium association recorded its declaration in 2006. Bank of America recorded its deed of trust in 2007. Lewis defaulted on her condominium assessments in 2008. In 2009, the condominium association initiated a judicial foreclosure proceeding under chapter 64.34 RCW. Michael Fulbright bought the condominium at the trustee's sale for less than $15,000, which under the statute would extinguish Bank of America's lien. Bank of America attempted to redeem the condominium under the redemption statute, RCW 6.23.010. Because Bank of America recorded its deed of trust before Lewis defaulted on her assessments, the trial court and Court of Appeals held that Bank of America did not record its mortgage "subsequent in time" to the condominium's lien and therefore under RCW 6.23.010, Bank of America did not have a statutory right of redemption. The Supreme Court reversed the Court of Appeals, holding that a condominium association establishes its priority to collect unpaid condominium assessments at the time the condominium declaration is recorded, even though it is not enforceable until the unit owner defaults on his or her assessments. The Condominium Act creates an exception to the recording act and can alter the established priorities. Here, the effect of the foreclosure lawsuit was to give the Condominium Association's lien priority over Bank of America's interest, bringing Bank of America within the redemption statute provisions. View "BAC Home Loans Servicing, LP v. Fulbright" on Justia Law

Chiwawa Communities Association appealed the trial court's grant of summary judgment to owners of homes in the Chiwawa River Pines community. Respondents Ross and Cindy Wilkinson asked the trial court to invalidate a 2011 amendment to the community covenants prohibiting rental of their homes for less than 30 days. The issue this case presented for the Supreme Court was whether short-term vacation rentals conflicted with the covenants in place prior to 2011, if the Association validly amended the covenants to prohibit them, and if the trial court erred by striking portions of the offered evidence. Upon review, the Court concluded that short-term rentals did not violate the covenants barring commercial use of the property or restricting lots to single-family residential use. Furthermore, the Court held the Association exceeded its power to amend the covenants when it prohibited short-term vacation rentals in 2011, and the trial court did not err by granting in part motions brought by the Wilkinsons to strike evidence. View "Wilkinson v. Chiwawa Cmtys. Ass'n" on Justia Law

Steve and Karen Donatelli hired D.R. Strong Consulting Engineers Inc. to help the Donatellis develop their real property. Before development could be completed, the Donatellis suffered substantial financial losses and lost the property in foreclosure. The Donatellis sued D.R. Strong for breach of contract, violation of the Consumer Protection Act (CPA), negligence, and negligent misrepresentation. D.R. Strong moved for partial summary judgment on the CPA and negligence claims. D.R. Strong argued that the negligence claims should have been dismissed under the economic loss rule because the relationship between the parties was governed by contract and the damages claimed by the Donatellis were purely economic. The trial court and Court of Appeals held that as a matter of law, the Donatellis' negligence claims were not barred. Finding no error in that analysis, the Supreme Court affirmed. View "Donatelli v. D.R. Strong Consulting Eng'rs, Inc." on Justia Law

After years of negotiation and lawsuits, Snohomish County agreed to let King County build a sewage treatment plant in south Snohomish County. As part of the settlement, King County agreed to provide a substantial mitigation package for the local Snohomish County community near the plant. The cost of the mitigation was included in the capital cost of the plant. Two local utility districts that contract with King County for sewage treatment filed suit, arguing that the mitigation package was excessive, among many other claims. The trial judge largely rejected the districts' claims. After careful consideration of the record, the Supreme Court largely affirmed. View "Cedar River Water & Sewer Dist. v. King County" on Justia Law

The issue before the Supreme Court in this case involved the validity of an amended rule from the Department of Ecology that reserved water from the Skagit River system for future year-round out-of-stream uses, despite the fact that in times of low stream flows these uses would impair established minimum in-stream flows necessary for fish, wildlife, recreation, navigation, scenic and aesthetic values. The Swinomish Indian Tribal Community (Tribe) sued, challenging the validity of Ecology's amended rule reserving the water. The trial court upheld the amended rule and dismissed the Tribe's petition. After its review, the Supreme Court concluded that Ecology erroneously interpreted the statutory exception as broad authority to reallocate water for new beneficial uses when the requirements for appropriating water for these uses otherwise cannot be met. "The exception is very narrow, however, and requires extraordinary circumstances before the minimum flow water right can be impaired." Because the amended rule exceeded Ecology's authority under the statute, the amended rule reserving the water was invalid under the Administrative Procedure Act (APA). View "Swinomish Indian Tribal Comm'y v. Dep't of Ecology" 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

Applicants challenged a Department of Development and Environmental Services order declaring the use of the property at issue here was not compliant with King County zoning ordinances. The assertion was that the use was established before the ordinances were revised and characterized as non-conforming. The hearing examiner found for the landowner (and county) on all relevant issues, but the superior court reversed. The appellate court reversed the superior court, and the Supreme Court reversed the appellate court. The Supreme Court held that the landowner's use was not established within the meaning of the county code. View "King County Dep't of Dev. & Envtl. Servs. v. King County" on Justia Law

Petitioner Patrick Kofmehl bought a piece of land from Baseline Lake, LLC. By closing, the parties disputed the amount of land to be covered by their sales contract. Petitioner was willing to close only if the disputed parcel was included; the sale ultimately failed to close. The trial court invalidated the contract for failing to comply with the statute of frauds and denied specific performance to either party. The issue on appeal to the Supreme Court was whether Petitioner was entitled to recover his down payment before the dispute arise. Upon review, the Court concluded that because neither party breached the contract. The Court affirmed the appellate court which reversed the grant of summary judgment that granted restitution. View "Kofmehl v. Baseline Lake, LLC" on Justia Law