Anhold v. Daniels

614 P.2d 184, 94 Wash. 2d 40, 1980 Wash. LEXIS 1344
CourtWashington Supreme Court
DecidedJuly 24, 1980
Docket45783
StatusPublished
Cited by94 cases

This text of 614 P.2d 184 (Anhold v. Daniels) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Anhold v. Daniels, 614 P.2d 184, 94 Wash. 2d 40, 1980 Wash. LEXIS 1344 (Wash. 1980).

Opinions

Hicks, J.

Here, we decide if the facts presented support a private action under RCW 19.86, the Consumer Protection Act. At the close of plaintiff's case, the trial court dismissed her consumer protection action stating that "[n] either the evidence presented nor reasonable inference therefrom establishes a prima facie case of unfair or deceptive acts or practices within the meaning of RCW 19.86-.020." We remand for further consideration.

Plaintiff/appellant Patricia Anhold, an unemployed single woman inexperienced in business, was approached by respondent Daniels at a social gathering. Daniels presented her, as he did others at the function, with his business card. This card identified him as specializing in "Business Opportunities". At that time, he discussed restaurants as business opportunities with Anhold.

Within a week, Daniels called upon Anhold at her residence soliciting her investment in a restaurant venture. Ultimately, following representations by respondents Daniels and Munger, Anhold was persuaded to invest $3,000 in this venture. The money went into the bank account of the Hungry "U" corporation.

To obtain the money to invest, Anhold borrowed from Seattle-First National Bank, University Branch. Munger cosigned her note. The trial court found that Daniels and Munger, as an inducement for her to take out the loan and invest, offered Anhold an opportunity to become a partner in a joint venture that involved opening and operating a restaurant. There was testimony in the record from which it could be found that a number of other representations [42]*42were made by Daniels or Munger to persuade Anhold to invest money. It could also have been found that these further representations were false.

Daniels and the Hungry "U" corporation were the principals in the joint venture in which Anhold was persuaded to invest. Munger was president of Hungry "U", Inc., which operated the Hungry "U" restaurant. The tried court found Munger "had been in the restaurant business for more than a year and was variously experienced in corporate activity and purchase of business assets."

As the trial court phrased it, the agreement between Daniels and the Hungry "U" corporation "limited the ability to make [Anhold] a partner, but [Anhold] was not aware of this limitation." Both Daniels and Munger knew of the restrictions in the joint venture agreement at the time they represented to Anhold that she would be made a partner. That asseveration was never fulfilled nor did Anhold ever receive any return on her investment as the venture failed after about a year of operation.

Anhold sued Daniels, Munger, the Hungry "U" corporation, and Seattle-First National Bank, University Branch. Her action alleged a violation of RCW 19.86 and sought, inter alia, restitution, damages, injunctive relief and a reasonable attorney's fee.

As noted above, plaintiffs action under RCW 19.86 was dismissed at the end of her case in chief. At the trial's conclusion, the court gave judgment to Anhold against Munger and Hungry "U", Inc., jointly and severally, for money had and received in the amount of $809.90 plus interest from December 9, 1975, and taxable costs. The record before us does not disclose the trial court's disposition as to the other named defendants. We retained Anhold's direct appeal from the dismissal of her action under RCW 19.86.

In 1970, the legislature amended the Consumer Protection Act authorizing private parties to sue for unfair or deceptive business practices. At the times pertinent to this action, RCW 19.86.090 read in part:

[43]*43Any person who is injured in his business or property by a violation of RCW 19.86.020 . . . may bring a civil action in the superior court. . .

Construing this section in Lightfoot v. MacDonald, 86 Wn.2d 331, 334, 544 P.2d 88 (1976), we stated:

Since the purpose of the act is to protect the public interest, it is natural to assume that the legislature, in granting a private remedy in RCW 19.86.090, intended to further implement the protection of that interest. It follows that an act or practice of which a private individual may complain must be one which also would be vulnerable to a complaint by the Attorney General under the act.

(Italics ours.) Further, in Lightfoot, at page 333, we rejected the notion that the Consumer Protection Act provided an additional remedy for private wrongs which do not affect the public generally.

Since Lightfoot, we have held the Consumer Protection Act applies and a private party may bring an action under it where there is a specific legislative declaration that the public has an interest in the subject matter of the action. Salois v. Mutual of Omaha Ins. Co., 90 Wn.2d 355, 581 P.2d 1349 (1978) (insurance). The other side of that coin has also been determined; i.e., the act is not applicable and will not support a private action where there is a specific legislative declaration that the public does not have an interest in a particular subject matter. Brown v. Charlton, 90 Wn.2d 362, 583 P.2d 1188 (1978) (small scale water provider).

Between the extremes of Salois and Brown are the myriad sets of facts upon which there is no direct legislative declaration. This is such a case. Here, we must determine if the remedies of the Consumer Protection Act Eire available to plaintiff as a private citizen. The "Attorney GenerEd" test for sufficiency of public interest appears to have been little utilized or understood and appsirently has yielded conflicting results. See Testo v. Russ Dunmire Oldsmobile, Inc., 16 Wn. App. 39, 554 P.2d 349, 83 A.L.R.3d 680 (1976); [44]*44cf. Lookebill v. Mom's Mobile Homes, Inc., 16 Wn. App. 817, 559 P.2d 600 (1977).

RCW 19.86.020 provides:

Unfair methods of competition and unfair or deceptive acts or practices in the conduct of any trade or commerce are hereby declared unlawful.

RCW 19.86.090 provides in part:

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Cite This Page — Counsel Stack

Bluebook (online)
614 P.2d 184, 94 Wash. 2d 40, 1980 Wash. LEXIS 1344, Counsel Stack Legal Research, https://law.counselstack.com/opinion/anhold-v-daniels-wash-1980.