Alan J. Veys v. Michael Long, Et Ux

CourtCourt of Appeals of Washington
DecidedAugust 12, 2014
Docket43674-4
StatusUnpublished

This text of Alan J. Veys v. Michael Long, Et Ux (Alan J. Veys v. Michael Long, Et Ux) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alan J. Veys v. Michael Long, Et Ux, (Wash. Ct. App. 2014).

Opinion

FILED CC) J OF A P P" LS D.f' V, SIQN It 28114 Aur 12 . Pfl 12: 45 IN THE COURT OF APPEALS OF THE STATE OF WASHIN_

DIVISION II

ALAN J. VEYS; LONE EAGLE RESORTS, No. 43674- 4- 11 INC.; and ALAN J. VEYS PROPERTIES, LLC,

Appellants,

v.

MICHAEL LONG and ANN LONG; OFFICE UNPUBLISHED OPINION OF P. MICHAEL LONG; and P. MICHAEL LONG, P. S., INC.,

Respondents.

HUNT, J. — Alan J. Veys, Lone Eagle Resorts, Inc., and Alan J. Veys Properties, LLC

appeal the superior court' s grant of summary judgment dismissal of their legal malpractice action

against Michael Long, Ann Long, Office of P. Michael Long, and P. Michael Long, P. S., Inc.

Veys argues that summary judgment was improper because ( 1) Long' s professional negligence

in representing Veys in the sale of his Alaska lodge was the proximate cause of Veys' damages

from that sale; ( 2) Veys' recovery should not be limited to $ 300, 000, the settlement offer that

Veys rejected in a separate, though related, Wyoming lawsuit; and ( 3) the statute of limitations

did not bar Veys' additional claims not related to the sale of his lodge. We reverse the superior

court' s summary judgment dismissal of Veys' legal malpractice action against Long and the

imposition of a $ 300, 000 damages cap; and we remand this claim to the superior court for trial.

We affirm the superior court' s summary judgment dismissal of Veys' other claims not related to

the sale of Veys' lodge. No. 43674 - -II 4

FACTS

Veys and attorney Long were longtime friends before Long ever provided legal services

to Veys. In 1994, Long purchased a piece of accretion land along the Cowlitz River under the

name Columbia Realty Services, a company Long owned with his ex -wife. That same year,

Veys paid Long $ 2500 for a one -half interest in this property. Columbia Realty Services later

dissolved.

I. LODGE SALE NEGOTIATIONS

Veys also owned and operated a fishing lodge, the Pybus Point Lodge on Admiralty

Island, Alaska. In spring 2004, Marvin Applequist, Bruce Reed, and Val Jones ( Purchasers)

attempted to purchase this lodge from Veys. Veys hired Long as legal counsel to negotiate the

sale; Veys also hired accountant, Jerome " Tonk" Fischer, to work with him and Long on this

transaction. Attorney Darin Scheer represented the Purchasers. During March and April 2004,

the parties negotiated the terms of sale and began drafting a purchase and sale agreement ( PSA).

On May 4, Veys faxed Long a handwritten note listing multiple substantive terms he wanted included in the PSA. On May 10, Long sent Scheer an email requesting that these terms be

included in the PSA.

A. Original PSA

On May 30, Veys, the Purchasers, and Scheer met with Long at Long' s Longview office

to negotiate the final details of the purchase. During this meeting, Applequist told Veys that he

Applequist) had to notify his company by June 3 if he was planning to leave his job to take over

the lodge. The parties agreed that ( 1) Scheer would draft a PSA memorializing the terms on

which they had reached agreement that day, and ( 2) by June 18 they would incorporate as

2 No. 43674 -4 -II

exhibits to the PSA any additional terms they might negotiate, subject to their later mutual

agreement. Addressing Applequist' s timing concerns, the parties discussed inserting into the

PSA a " cram down" clause, which would provide that once signed, the PSA would bind all

parties. Clerk' s Papers ( CP) at 10. In essence, this " cram down" clause would guarantee that the

original PSA terms agreed to on May 30 would bind the parties, even if they could not agree on

any later additional terms or exhibits. CP at 10. At the end of the May 30 meeting, the

Purchasers proposed a purchase price of $2. 8 million, $ 600, 000 of which Veys would finance.

On May 31, Scheer emailed the proposed final version of the PSA to Veys and Long.

This proposed PSA, in pertinent part, listed the lodge' s sale price, the property description, and

contingencies that Veys had to meet. These contingencies included Veys' obligations ( 1) to

provide title insurance to the Purchasers, ( 2) to inform the Purchasers about all operational and

managerial decisions that Veys had made relating to the lodge, and ( 3) to allow the Purchasers to

review all lodge expenses and financial records. The PSA further provided that Wyoming was

the choice of venue but Alaskan law would govern any legal disputes arising from the PSA.

Scheer' s proposed PSA also included the previously discussed " cram down" provision,

Section 2. 1. 1( a):

In consideration of the transfer by the Seller to the Purchaser of the Purchased Assets, the Purchaser shall pay to the Seller the aggregate purchase price of Seller' s choice of $2, 800, 000 ( with Seller to carry amounts excess of $2, 000, 000) or $ 2, 650, 000 ( cash at closing) ( with either amount being inclusive of the down payment) ( the " Purchase Price "), contingent upon the conditions precedent described in Sections 9. 5, 9. 6, and 9. 7 of this Agreement ( " Conditions Precedent "). Seller' s election options are set forth below. Seller must declare its

choice of Purchase Price in writing on or before 5: 00 pm MDT on June 4, 2004, or the Purchase Price will automatically be $ 2, 800, 000 under the terms set forth herein. Seller is bound by all terms of this Agreement immediately upon signing, regardless of whether Seller elects on or before the deadline set forth above. REGARDLESS OF WHICH PURCHASE PRICE SELLER ELECTS, IT IS

3 No. 43674 - -II 4

UNDERSTOOD AND AGREED THAT PURCHASER IS ACTING IN RELIANCE ON THE FACT THAT SELLER IS BOUND TO ALL TERMS OF THIS AGREEMENT IMMEDIATELY UPON SIGNING.

CP at 422. Significantly, the proposed PSA did not contain most of the requests that Veys had

communicated to Long on May 4.

That same day, May 31, Long emailed Veys Scheer' s proposed PSA and asked Veys to

confirm receipt, to review, and to comment on it. But Veys could not open the PSA document

attached to Long' s email. The next day, June 1, Long faxed Veys only the PSA signature page,

which Veys signed and faxed back to Long.' Once Veys signed the document he was bound to

the terms of the original PSA, as provided by the " cram down" provision. Long did not confirm

that Veys had received the proposed PSA, which included the new " cram down" provision; nor

did Long review the PSA terms with Veys. As a result, when Veys signed the signature page, he

did not know that his requested changes had not been incorporated into the PSA.

On June 3, Scheer emailed Veys, with a copy to Long, asking whether Veys wanted to

proceed with the lodge sale at a selling price of either $ 2. 8 million with a potential $ 600, 000

2 carry " or $ 2. 65 million, which amount the Purchasers would pay in full at closing. CP at 204.

Veys responded that, before choosing either option, he wanted to discuss the selling price further

with his accountant. Later that day, Scheer sent an email to both Long and Veys, to which he

attached a final draft PSA. In this email Scheer ( 1) again asked whether Veys wanted $2. 65

Veys' brief asserts it was " agreed between them that Long would not deliver the signature page to Buyers' attorney Scheer until so authorized by Veys." Br. of Appellant at 13. But Veys' record cite does not reflect this agreement.

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