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Broom v. Morgan Stanley, No. 82311-1 (briefs and argument). The Supreme Court held that an arbitration panel erred by applying state statutes of limitations to bar the a claim. Michael, Kevin, and Andrea Broom sued Morgan Stanley DW, Inc. for mismanaging an investment account. Their claims were rejected by an arbitration panel because they were barred by the statute of limitations. The Brooms appealed to King County Superior Court, and the court held that statute of limitations in Washington do not apply to claims in arbitration. The court vacated the arbitration panel’s decision as an error of law. The Court of Appeals (Div. 1) affirmed. Morgan Stanley argues both that statutes of limitations do apply to arbitration, and that courts cannot vacate arbitration decisions because of “errors of law.” The Supreme Court, with Justice Charles Johnson writing, affirmed the Court of Appeals. Chief Justice Barbara Madsen dissented.

Little Mtn. Estates Tenants Ass’n v. Little Mtn. Estates MHC LLC, No. 82574-2 (briefs and argument). The Supreme Court held that under the Manufactured/Mobile Home Landlord-Tenant Act (MHLTA), chapter 59.20 RCW, a landlord and tenant can lawfully agree to a 25-year lease that will convert to a one-year lease if the tenant assigns it. Mobile home tenants and association brought an action against the mobile home park, alleging that leases violated the Manufactured/Mobile Home Landlord-Tenant Act (MHLTA) and the Consumer Protection Act (CPA). The trial court ruled for the park. Writing for the majority, Justice Richard Sanders said that the MHLTA preserves the right of a landlord and tenant to negotiate and agree to the term of a rental agreement and thus the provision does not violate the MHLTA. Justice Gerry Alexander wrote a dissenting opinion.

Sound Infiniti v. Snyder, No. 81923-8 (briefs and argument). Richard Snyder, David Hannah, and Afshin Pisheyar were joint owners (as shareholders) of Sound Infiniti and Infiniti of Tacoma. They had a falling out, and Pisheyar sued the others individually and on behalf of the corporation (a derivative suit). Snyder and Hannah set up a reverse stock split to take away all of Pisheyar's stocks. The trial court allowed the split to proceed after an initial injunction, and dismissed Pisheyar's derivative suit because he was no longer a shareholder. The Court of Appeals confirmed the ruling, and found that the sole remedy for all Pisheyar's claims is the appraisal process, in which he can obtain fair market value for the shares that were taken away. The Supreme Court agreed, with Justice Susan Owens writing the majority opinion. The court held: (1) that the appraisal proceeding in RCW 23B.13.020 is a dissenting shareholder’s exclusive remedy unless a corporate action is procedurally defective or fraudulent and (2) that a divested shareholder does not have standing in a derivative suit. Justice Sanders wrote a dissenting opinion.

State v. Harvill, No. 82358-8 (briefs and argument). At trial, Joshua Harvill claimed that he sold the drugs because he was afraid of the informer. The trial court refused to instruct the jury on the defense of duress because there was no evidence that the informer had threatened Harvill. The trial court did instruct the jury on the defense of entrapment, and the jury rejected the defense. The Supreme Court unanimously ruled that the trial court abused its discretion by refusing to instruct the jury on the duress defense. The court reversed the conviction and remanded for a new trial. Justice Debra Stephens wrote the opinion.

State v. Nonog, No. 82094-5 (briefs and argument). Cipriano Bahit Nonog was convicted in King County Superior Court of felony violation of a domestic violence protection order, residential burglary-domestic violence, and interfering with domestic violence reporting. Defendant appealed. The Court of Appeals (Div. I) upheld the conviction, and ruled that the information charging the defendant sufficiently defined the charges. The Supreme Court affirmed the decision below, with Justice Debra Stephens writing the unanimous opinion.

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The Supreme Court will issue opinions in several cases tomorrow.

Broom v. Morgan Stanley, No. 82311-1 (briefs and argument). Michael, Kevin, and Andrea Broom sued Morgan Stanley DW, Inc. for mismanaging an investment account. Their claims were rejected by an arbitration panel because they were barred by the statute of limitations. The Brooms appealed to King County Superior Court, and the court held that statute of limitations in Washington do not apply to claims in arbitration. The court vacated the arbitration panel’s decision as an error of law. The Court of Appeals (Div. 1) affirmed. Morgan Stanley argues both that statutes of limitations do apply to arbitration, and that courts cannot vacate arbitration decisions because of “errors of law.”

Little Mtn. Estates Tenants Ass’n v. Little Mtn. Estates MHC LLC, No. 82574-2 (briefs and argument). Mobile home tenants and association brought an action against the mobile home park, alleging that leases violated the Manufactured/Mobile Home Landlord-Tenant Act (MHLTA) and the Consumer Protection Act (CPA). The trial court ruled for the park. The Court of Appeals (Div. I) affirmed the ruling in part, and reversed in part, and remanded the case for further proceedings.

Sound Infiniti v. Snyder, No. 81923-8 (briefs and argument). This case concerns what remedies are available to a minority shareholder whose shares are taken away, and whether that shareholder can bring a derivative suit against the corporation after he has lost his shareholder status. Richard Snyder, David Hannah, and Afshin Pisheyar were joint owners (as shareholders) of Sound Infiniti and Infiniti of Tacoma. They had a falling out, and Pisheyar sued the others individually and on behalf of the corporation (a derivative suit). Snyder and Hannah set up a reverse stock split to take away all of Pisheyar's stocks. The trial court allowed the split to proceed after an initial injunction, and dismissed Pisheyar's derivative suit because he was no longer a shareholder. The Court of Appeals confirmed the ruling, and found that the sole remedy for all Pisheyar's claims is the appraisal process, in which he can obtain fair market value for the shares that were taken away. The Association of Washington Businesses filed an amicus brief supporting Snyder.

State v. Harvill, No. 82358-8 (briefs and argument). At trial, Joshua Harvill claimed that he sold the drugs because he was afraid of the informer. The trial court refused to instruct the jury on the defense of duress because there was no evidence that the informer had threatened Harvill. The trial court did instruct the jury on the defense of entrapment, and the jury rejected the defense. On appeal, the Court of Appeals (Div. 2) noted that if the elements of duress had been proved, then the contested elements of entrapment would also have been proved. Since the jury rejected entrapment, it would also have rejected duress even had the instruction been given. Thus, even if the lack of a duress instruction was in error, it did not prejudice Harvill.

State v. Nonog, No. 82094-5 (briefs and argument). Cipriano Bahit Nonog was convicted in King County Superior Court of felony violation of a domestic violence protection order, residential burglary-domestic violence, and interfering with domestic violence reporting. Defendant appealed. The Court of Appeals (Div. I) upheld the conviction, and ruled that the information charging the defendant sufficiently defined the charges.

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The Supreme Court will hear arguments in four cases today.

In the morning session:

In Re the Honorable Judith Raub Eiler, No. 200,701-5 (briefs). Judge Judith Eiler is a district court judge in King County. Based on a number of complaints, disciplinary proceedings were brought against her for treating litigants in an “angry, abusive, and condescending manner.” Eiler argues that there was not enough evidence, that the penalty is too high, and that punishing her for her demeanor violates her freedom of speech. Eiler appeals a disciplinary recommendation that she be suspended for 90 days without pay.

South Tacoma Way v. State, No. 82212-3 (briefs).The State Department of Transportation (DOT) sold an alley to Sustainable Urban Development #1, LLC (Sustainable). DOT failed to notify other adjacent property owners as required by law. South Tacoma Way, LLC, which also owns property next to the alley, sued DOT and Sustainable to void the contract as an ultra vires act outside DOT's authority. The trial court held that DOT was authorized to sell the property and that the failure to give notice was merely a procedural error. The Court of Appeals (Div. 2) reversed, holding that DOT is only authorized to sell property after giving notice.

In the afternoon session:

State v. Shultz, No. 80653-5 (briefs). Whether the warrantless search was justified as an “emergency.” Officers Malone and Hill went to an apartment to investigate a possible domestic disturbance. Outside, they heard a man and a woman speaking loudly. When they knocked on the door, Patricia Schultz answered. She initially told the officers that there was no one else in the apartment, but when pressed she called Sam Robertson to the door. Officer Hill took Robertson outside to question him, and Officer Malone went inside to question Shultz. Shultz did not give Malone permission to enter, but did not object either.

Shultz was moving around inside the apartment, and Malone threatened to handcuff her if she did not “sit still.” Shortly afterward, Officer Hill entered the apartment. Shultz moved something, uncovering a gun and a marijuana pipe, and Hill saw them. The officers searched the apartment, found drugs, and arrested Shultz.

Shultz unsuccessfully moved to suppress the evidence as the fruit of an illegal search. In upholding the trial court, the Court of Appeals found that the “emergency exception” to the warrant requirement applied based on the argument, Shultz's appearance, and the fact that Shultz lied about Robertson's presence.

State v. Harvill, No. 82358-8 (briefs). Whether the trial court should have instructed the jury on duress. Joshua Harvill was caught selling drugs to an informer. At trial, he claimed that he sold the drugs because he was afraid of the informer. The trial court refused to instruct the jury on the defense of duress because there was no evidence that the informer had threatened Harvill. The trial court did instruct the jury on the defense of entrapment, and the jury rejected the defense.

On appeal, the Court of Appeals (Div. 2) noted that if the elements of duress had been proved, then the contested elements of entrapment would also have been proved. Since the jury rejected entrapment, it would also have rejected duress even had the instruction been given. Thus, even if the lack of a duress instruction was in error, it did not prejudice Harvill.

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