Today's 13 opinions in 7 cases and proceedings

Update: links to briefs and argument videos are now included.

Guillen v. Contreras, No. 82531-9. Jesus Jaime Torres was killed in a mysterious shootout in Sunyside, Washington, in 2005. From the bloody scene, police seized $57,990 "packaged to resemble a kilogram of cocaine" and Torres's car. They seized another $9,342 that was in Torres's possession when he was shot. Torres's infant son, through his mother, challenged the property seizures. The superior court overturned the seizures of the car and the $9,342. The family moved for attorney fees. The superior court, relying on "substantially prevailing party" analysis, declined to award fees. A divided Court of Appeals affirmed.

The Supreme Court today considers only "the meaning of the attorney fee provision of the forfeiture statute." The Court adopts the reasoning from the dissenting opinion by Chief Judge John Schultheis of the Court of Appeals and quotes from his opinion.

"[T]his forfeiture statute recognizes the success of only one party -- the claimant. What the seizing agency retains is not relevant. It will never be a substantially prevailing party or prevailing party under RCW 69.50.505(6)." Thus, he suggests, quantitative comparison is inappropriate as we are not balancing the comparative success of two parties with an equal statutory interest in attorney fees. We agree. This is an attorney fee provision designed to protect individuals against having their property wrongfully taken by the State. A bare mathematical approach is not appropriate. (citation removed; hyperlink inserted)

The case is remanded to the trial court to determine "the amount of attorney fees reasonably incurred by the respondents" for their successful claims. Justice Chambers wrote for the Court and was joined by seven other justices. Justice Sanders dissents because he believes the statute requires a recovery of all attorney fees rather than only those related to the successful claims. (briefs, argument)

Holden v. Farmers Ins. Co. of Wash., No. 81487-2.  A fire in Laura Holden's rented home damaged and destroyed some of her possessions. Her rental insurance carrier, Farmers Insurance, sent her a check for the "cost of repair and replacement," but did not include Washington state sales tax in its calculations. Holden eventually brought this suit, "seeking a declaration that sales tax should be accounted for in the [actual cash value] calculation...." The Court today holds for Holden, finding the term "fair market value" as used in the insurance policy to be ambiguous. The Court thus interprets the term in favor of the insured. Justice Stephens writes for the majority, joined by five other justices. Justice James Johnson dissents, contending that "fair market value" is not ambiguous and does not include "a (theoretical) sales tax...." His opinion is joined by Justices Alexander and Owens. (briefs, argument)

In re Det. of Hawkins, No. 82907-1. As part of proceedings to determine whether Jake Hawkins is a sexually violent predator according to RCW 71.09, the trial court ordered Hawkins to submit to a polygraph examination. Hawkins refused and appealed; the Court of Appeals affirmed the trial court. The Supreme Court accepted review to determine whether RCW 71.09.040(4) allows such an order.

The Supreme Court today reverses the lower courts, holding that the order requiring a polygraph examination was not permitted by the statute.

Because the legislature is undoubtedly aware of the inherent problems with polygraph examinations, it is fair to infer that the legislature intends to prohibit compulsory polygraph examinations unless it expressly allows for their use. ...

We are satisfied that professional evaluators will be able to reach conclusions without the use of such evidence.

Justice Owens writes for the six-member majority. Justice Stephens, joined by the Chief Justice and Justice Fairhurst, disagree with the majority's interpretation of legislative intent and dissent. (briefs, argument)

In re Disciplinary Proceeding Against Scannell, No. 200,744-9. The Washington State Bar Association (WSBA) initiated an investigation of attorney John Scannell for conflicts of interest and assisting a suspended attorney to practice law. Scannell repeatedly and frivolously delayed the investigation, drawing it out from 2005 until today. The WSBA hearing officer found that Scannell had "negligently violated the conflict of interest rules--meriting minor sanctions--but that he had knowingly violated the rules requiring cooperation with disciplinary proceedings--meriting suspension." The disciplinary rule modified those findings, determining that Scannell's actions during the investigation were intentional and thus increasing the presumptive sanction to disbarment. The Board voted to disbar Scannell.

The Supreme Court today, in an opinion by Justice Stephens, exhaustively reviews the facts of the investigation and upholds the decision of the board. Three justices dissent, arguing in an opinion by Justice Alexander that the hearing officer's recommendation of suspension was the appropriate sanction. (briefs, argument)

In re Disciplinary Proceeding Against Shepard, No. 200,720-1.  Tacoma attorney Richard Shepard was found to have violated several Rules of Professional Conduct when he assisted a "living trust mill" that targeted seniors with unnecessary or improper financial products. The hearing officer recomended a six-month suspension, but the disciplinary board increased the recommendation to a two-year suspension. The Court today agrees with the board and suspends Shepard for two years. Justice Chambers writes for an almost-unanimous court. Justice Sanders dissents and would suspend Shepard for six months. (briefs, argument)

State v. Ervin, No. 83244-7.  James Ervin was convicted in 2006 of felony violation of a protective order. This appeal considers whether two earlier felony convictions should count toward Ervin's offender score at his sentencing. According to RCW 9.94A.525(2)(c), the two earlier felony convictions "washed out" if Ervin had subsequently been at least "five consecutive years in the community without committing any crime that subsequently results in a conviction." During a five year period, Ervin had not been convicted of any crimes but did spend 17 days in jail for violating probation. The State argued that the 17 days in jail restarted the five-year window. Ervin disagreed, arguing that only a conviction would reset the five years. While the Court finds the RCW somewhat ambiguous, it finds Ervin's reading more convincing. The lower courts are reversed and the case is remanded for resentencing with the lower offender score. The decision was unanimous, and Justice Owens wrote the opinion. (briefs, argument)

State v. Sanchez Valencia, No. 82731-1. Isidro Sanchez Valencia and Eduardo Chavez Sanchez were convicted of drug charges. Their sentences included community custody on the condition that they not use "items that could be used to ingest or process controlled substances, or to facilitate the sale or transfer of controlled substances." They appeal that provision as unconstitutionally vague, and the Court today unanimously agrees with the defendants. Justice Stephens wrote the Court's opinion. Justice James Johnson signed that opinion and added a concurrence pointing out that a simple change in language would allow a similar condition to stand. (briefs, argument)

Opinion: Legal Malpractice Damages

Shoemake v. Ferrer, No. 81812-6. Attorney Douglas Ferrer badly mishandled Andrea and Keith Shoemake's lawsuit related to Andrea Shoemake's serious injuries from a 1992 automobile accident. As a result of his legal malpractice, the case was dismissed in 1996. Ferrer mislead the Shoemake's about this until 2005. The Shoemake's retained another attorney and eventually recovered a $100,000 insurance settlement and then prevailed in a legal malpractice suit against Ferrer. The trial court awarded the Shoemake's ten years of interest on $60,000, which was the amount of the insurance settlement minus the 40% contingency fee that Ferrer would have received.

The Shoemake's appealed and the Court of Appeals found that the interest should have been based on the full $100,000. Today, in an opinion written by Justice Stephens, the Supreme Court unanimously upholds that decision.

We affirm the Court of Appeals and follow the approach favored by the majority of jurisdictions. In this case, calculating damages without deducting a negligent attorney's hypothetical contingency fee is an appropriate measure of damages. The Shoemakes had to expend fees on a second lawyer in order to finish the job the first lawyer neglected to do. The majority approach makes the plaintiffs whole without conferring a windfall.

(briefs and argument)

Opinions from Christmas Eve

Satomi Owners Ass'n v. Satomi, LLC, No. 80480-0 (consolidated with Blakely Commons Condominium Ass'n v. Blakely Commons, LLC, No. 80584-9 and The Pier at Leschi Condominium Owners Ass'n v. Leschi Corp., No. 81083-4). The issue common to these consolidated cases is "whether the Federal Arbitration Act (FAA), 9 U.S.C. §§ 1-16, preempts the judicial enforcement provision of the Washington Condominium Act (WCA), RCW 64.34.100(2)." The FAA is a federal law that requires federal and state courts to enforce arbitration agreements. The WCA is a state law that allows judicial review notwithstanding any "alternative methods of dispute resolution," including arbitration.

Each case began in 2005 or 2006 as a lawsuit by a condominium owners association alleging various construction defects and related claims. Most or all of the owners in each case had signed a warranty addendum containing an arbitration clause (either requiring arbitration for any construction defect claims or giving the seller the option of requiring arbitration).

In Satomi, the trial court quashed Satomi, LLC's motion to enforce the warranty addendum and compel arbitration, holding that (1) the FAA does not preempt the WCA, (2) all parties did not sign the warranty addendum, and (3) Satomi Association was not bound by the addendum. Satomi, LLC appealed, but then the parties settled. Nevertheless, the Court of Appeals denied Satomi Association's motion to terminate review and decided the case. The Court of Appeals upheld the trial court's preemption ruling, but reversed as to the non-WCA claims (thus requiring arbitration of those claims). Satomi, LLC appealed the preemption ruling to the State Supreme Court. The Blakely and Leschi cases were subsequently consolidated with Satomi.

While recognizing the mootness of Satomi, the Court here "choose[s] to review the preemption question" because "it is one of 'continuing and substantial public interest.'" The Court reviews de novo both a trial court's decision to compel or deny arbitration and its determination of whether a state statute is preempted by federal law.

The FAA "simply requires courts to enforce privately negotiated agreements to arbitrate, like other contracts, in accordance with their terms" (Volt Info. Scis., Inc. v. Bd. of Trustees). It's scope extends to "the full reach of the Commerce Clause." Here, the questions are whether the sale and warranting of the condominiums were transactions reached by the Commerce Clause and, if so, whether the WCA conflicts with the FAA and is therefore preempted in these three cases.

The State Supreme Court holds, per Katzenbach v. McClung and Beneficial National Bank v. Anderson, "that the commerce clause necessarily reaches the warranting and sale of the condominiums in Satomi because 'such goods' [that came from out of state] amount to more than 70 percent of the component parts." Because the WCA would interfere with the arbitration agreements in these cases, it is preempted by the FAA. The Court upholds the Court of Appeals that the arbitration agreements signed by condominium purchasers applies to Blakeley Association because it only asserts claims on behalf of those purchasers. The Court finds that Blakeley Association has failed to prove that the arbitration clauses were either procedural or substantive unconscionable. The Court declines to decide a number of factual and other issues, and remands Blakeley and Leschi to the trial courts.

The Chief Justice wrote the majority opinion, joined by five other justices.The United States, as admitted to the union. Justice Chambers, joined by Justices Charles Johnson and Richard Sanders, dissents with a strong argument for federalism.

The majority incorrectly frames the issue, answers the wrong question, and ignores the nature of the homeowners' claims. The issue before us is whether a claim for breach of implied warranty, established by Washington statute after consultation with the stakeholders, imposed on Washington state builders, to protect condominium purchasers in Washington State, is preempted by federal laws because some of the materials used in building condominiums came from across the border. The answer is no....

(briefs, argument)

After the jump, search incident to arrest (State v. Buelna Valdez) and attorney discipline (In re Disciplinary Proceeding Against Sanai).

State v. Buelna Valdez, No. 80091-0. Justice Sanders writes, in his majority opinion in this search-incident-to-arrest case, that "a journey through modern Fourth Amendment jurisprudence on automobile searches sets off from the harbor of its text, sails through Chimel and Belton, and drops anchor in the waters of Gant. The Justice takes readers on just such a trip in this case of the search of an automobile following its driver's arrest on an outstanding warrant. Two pounds of methamphetamine were discovered and used as evidence to convict both the driver and the passenger. The Court holds that the searches violated the federal and state constitutions, suppress the evidence, and dismiss the convictions.

The Chief Justice concurs as to the result based only on the state Constitution. Justice James Johnson concurs as to the result based only on the federal Constitution, believing this case to be essentially identical to Gant. (briefs, argument)

In re Disciplinary Proceeding Against Sanai, No. 200,578-1. A Washington State Bar Association hearing officer recommended Fredric Sanai be disbarred (related to conduct in his parents' divorce case) after denying Sanai's request for a continuance and holding the hearing without Sanai being present. Justice Madsen, writing for the majority, holds that the hearing officer abused his discretion and remands for a new hearing. Justice Chambers, joined by three other justices, chronicles the behavior that led to the action against Sanai and dissents. (previous post, Overlawyered post about Fredric's brother, briefs, argument)

Today's Opinions: You can't quit, you're fired!

Briggs, et. al. v. Nova Services, et. al., No. 79615-7. A group of employees of Nova Services, including several managers, objected to their new executive director. They complained to the nonprofit's board of directors. The board investigated the objections, determined that the issues stemmed from "personal animosity," and three of the employees were fired. Six others refused to come to work and were considered as having quit their employment. Eight of the employees filed a complaint alleging several causes of action including violations of RCW 49.32.020, a Depression-era statute protecting workers in "concerted activities for the purpose of collective bargaining or other mutual aid or protections...." The trail court granted Nova Services' motion for summary judgment.

The Court of Appeals upheld the trial court, finding that RCW 49.32.020 did not apply "because the Employees' concerns did not relate to a term or condition of employment. It also held that the statute does not protect management-level employees. The Supreme Court today upholds the lower courts with a lead opinion by Justice Jim Johnson and concurrences by Justices Charles Johnson and Madsen. Justice Owens, joined by Justices Chambers, Fairhurst, and Stephens, dissent, arguing for a much broader exception to at-will employment, including protection for "employee protests over management personnel decisions ... when the decision relates to the employees' working conditions." Congratulations to the Pacific Legal Foundation, which filed an amicus brief explaining the importance of at-will employment. (Briefs, Argument)

In re Discipline of Hicks, No. 200,606-0. Attorney Richard S. Hicks appeals a recommendation of the Washington State Bar Association Disciplinary Board. The Board recommends that he be suspended from the practice of law for two years for failing to properly manage client funds. The Bar Association also challenges that the sanction here is too mild. The Court unanimously upholds the Board's recommendation. (Briefs, Argument)

Opinion: attorney suspended for client conflicts and disclosing private information

In re Larry Botimer, No. 200,625-6. Attorneys should review this case before entertaining the thought of retaliating against a client.

Attorney Larry Botimer served for several years as a tax preparer and tax advisor to Ruth Reinking, as well as Ruth’s son and daughter-in-law Jan and Janet Reinking, and he assisted Ruth with decisions related to her ownership stake in a nursing home facility. Botimer also assisted Ruth with business matters related to another care facility run by her other son, James Reinking. A dispute arose when James refused to recognize that Ruth or Jan had an ownership stake in this care facility. Botimer assisted Jan and Ruth in negotiations with James, but did not obtain conflict waivers in the course of his assistance of the various members of the Reinking family.

In 2002, Botimer terminated his representation of Ruth, citing her failure to cooperate with him, refusal to follow his advice and failure to pay for his legal services. Botimer also informed Ruth that he was sending a letter to the IRS informing the agency of Ruth’s failure to, contrary to his advice, correctly state her income and pay gift tax.

To resolve disputes stemming from the sale of Ruth’s nursing home facility, Jan and Janet sued Ruth and James. Botimer cooperated with Jan and Janet’s attorney in the lawsuit, providing him with three declarations to use in pretrial proceedings.

The Washington State Bar Association accused Larry Botimer of several ethical violations, and brought a complaint against Botimer for the following violations of the Rules of Professional Conduct:

  • Count 1: Former RPC 1.7(b) by representing Ruth, Jan, and Janet; thereby creating a conflict of interest without obtaining informed consent in the form of conflict waivers.
  • Count 2: Former RPC 1.6 and 1.9(b) by disclosing private information without consent to Jan’s lawyer when Jan and Ruth were counterparties to a lawsuit.
  • Count 3: Former RPC 1.6 and 1.9(b) by disclosing without consent private information regarding Ruth’s prior tax returns to the IRS.

Today the Supreme Court unanimously affirmed the suspension in an opinion written by Justice Susan Owens.

Today's Opinions, June 11, 2009

In Re Stephen Eugster, No. 200,568-3. Attorney Stephen Eugster got caught up in a dispute between his elderly client and her son. The Washington State Bar Association filed a complaint against Eugster alleging multiple ethical violations, including failure to abide by his client's objectives, disclosure of confidential information, and wrongfully filing a petition for guardianship. A hearing officer determined that "Eugster acted knowingly and intentionally" and that his actions caused financial and other harm. The findings were unanimously approved by the Disciplinary Board, which recommended disbarment. In an opinion by Justice Chambers and joined by four other justices, the Court declines to disbar Eugster and instead suspends him for 18 months. Justice Fairhurst, with three other justices, filed a strong dissent arguing for disbarment. (Briefs, argument).

State v. Riofta, No. 79407-3. Ten people were gunned down, five of them killed, in Tacoma's "Trang Dai massacre" on July 5, 1998. One of the suspects, Veasna Sok, had agreed to testify against the other defendants. On January 27, 2000, Veasna's brother Ratthana was confronted near his home by a man he recognized as "Alex," someone he had known in the neighborhood for several years and who was associated with some of the Trang Dai defendants. Alex pulled out a revolver and fired multiple shots at close range at Ratthana, who escaped uninjured. Ratthana identified Alex Riofta from a photograph at the police station, and Riofta was convicted of first degree assault with a firearm. Riofta subsequently sought DNA testing of a white hat found at the crime scene.

Here, the Court upholds the decisions below and declines to order a DNA hat test per RCW 10.73.170. The majority holds that Riofta failed to show that the results of a DNA test on the hat (which had been stolen the day before Ratthana was shot at) "would demonstrated innocence on a more probable than not basis." Justice Madsen penned the opinion and was joined by five other justices. Justice Charles Johnson authored a dissent joined by Justices Sanders and Chambers, and Justice Chambers wrote a separate dissent calling on the legislature to provide greater clarity. (2003 appeal, 2006 appeal, briefs, argument)

State v. Thomas, No. 80643-8. Covell Paul Thomas robbed and murdered Richard Geist, gunning the small business owner down at close range in order to steal about $5000 in cash. Thomas was originally sentenced to die; that sentence was overturned due to an improper jury instruction on the aggravating factors. On remand, the state sought only life imprisonment. A jury found that Thomas had committed four aggravating factors and the trial judge sentenced Thomas to life without the possibility of parole. Thomas again challenges the jury instructions and also brings due process, Double Jeopardy, Batson v. Kentucky, and other claims. The Court rejects them all, with Justice Madsen writing for a majority of seven. Justice Sanders, joined by Justice Stephens, dissents. (Earlier opinion, briefs, argument)