Bank of New York v. Hooper

263 P.3d 1263
Court of Appeals of Washington·Decided October 13, 2011·No. 29585-1-III·Published·Cited by 4 cases

Opinion

263 P.3d 1263 (2011)

The BANK OF NEW YORK, as trustee, Pursuant to the Terms of that Certain Pooling and Servicing Agreement dated as of November 1, 1996 related to Metropolitan Asset Funding, Inc., Mortgage Pass-Through Certificates Series 1996-A, Appellant,
v.
Brian R. HOOPER and Lisa M. Hooper, Husband and Wife, Sterling Savings Bank, Unifund CCR Partners, Bankers Trust Company of California, Persons in Possession or Claiming Right of Possession, Defendants,
Marco T. Barbanti, Royal Pottage Enterprises, Junco & Frost Lavinia, Inc., Respondents.

No. 29585-1-III.

Court of Appeals of Washington, Division 3.

October 13, 2011.

*1264 John Andrew Solseng, Robinson Tait PS, Phillip Eugene Brenneman, Attorney at Law, Seattle, WA, for Appellant.

Timothy W. Durkop, Attorney at Law, Spokane Valley, WA, for Defendants.

Timothy W. Durkop, Attorney at Law, Spokane Valley, WA, Richard William Perednia, Attorney at Law, Spokane, WA, for Respondents.

BROWN, J.

¶ 1 The Bank of New York (BNY) appeals certain trial court orders reconveying a deed of trust and awarding attorney fees. BNY contends the court erred by declaring an ownership interest in the property instead of limiting its order to quieting title against the deed of trust and that attorney fees were not *1265 authorized by statute because Respondents were not parties to the deed of trust contract. We agree with BNY, reverse and remand for correction of the offending language.

FACTS

¶ 2 Brian and Lisa Hooper owned a commercial property in Spokane, Washington. On April 23, 1993, the Hoopers executed a promissory note and granted a deed of trust on the property to Metropolitan Mortgage and Securities Co. On May 1, 1996, the Hoopers entered into a real estate contract selling the property to Marco Barbanti. The real estate contract provided for Mr. Barbanti to take the property subject to Metropolitan's deed of trust. The contract provided the underlying obligation would be paid by the Hoopers but funded by Mr. Barbanti through payments to the Hoopers' escrow agent in addition to the contract payment. Mr. Barbanti did not assume the note and deed of trust obligations. Later, Mr. Barbanti made arrangements to make the payments directly to Metropolitan's escrow agent. In April 1997, Metropolitan assigned its interest under the deed of trust to BNY. Later, Mr. Barbanti stopped paying on the deed of trust.

¶ 3 In July 2003, Mr. Barbanti quit claimed the property to Royal Pottage Enterprises, Inc.

¶ 4 In April 2009, BNY sued to foreclose the deed of trust on the property. In its complaint, BNY sought a money judgment and decree of foreclosure against the Hoopers. BNY sought to recover its costs and attorney fees incurred in the foreclosure action from the Hoopers. BNY's complaint named several other persons and entities alleged to have an interest in the property as defendants, including Mr. Barbanti, Royal Pottage and a judgment lienor, Junco Frost Lavinia, Inc. (collectively respondents). The complaint sought to foreclose any interest in the property held by respondents but did not seek attorney fees and costs against them.

¶ 5 On August 27, 2010, Mr. Barbanti moved to dismiss BNY's foreclosure action as time barred under the applicable statute of limitations. Royal Pottage and Junco Frost joined in the dismissal motion. Mr. Barbanti admitted he had failed to make the payments to escrow to pay the underlying deed of trust payments as required by his real estate contract with the Hoopers. Accordingly, the Hoopers moved to amend their answer and to add a cross claim against Mr. Barbanti alleging he breached the real estate contract by failing to pay the amounts to cover the underlying deed of trust payments even though he continued to pay on the contract. Shortly before the dismissal hearing, the Hoopers assigned their sellers' interest in the real estate contract to BNY.

¶ 6 At the dismissal hearing on September 24, 2010, BNY asked the court to deny dismissal and allow it to amend its complaint to assert claims enforcing the real estate contract based upon Mr. Barbanti's breach of his obligations under the contract. The court orally granted the dismissal motion, apparently denying the amendment request. On October 15, 2010, Mr. Barbanti, Royal Pottage and Junco Frost moved for attorney fees under RCW 4.84.330; the same day, Royal Pottage and Junco Frost moved to reconvey the deed of trust. On October 28, 2010, BNY filed a separate lawsuit to enforce the real estate contract against Mr. Barbanti.

¶ 7 On October 29, 2010, the court entered four orders: (1) Order Granting Motion to Dismiss (dismissing the bank's foreclosure action as barred by the statute of limitations), (2) Order Reconveying Deed of Trust, (3) Judgment For Defendant Marco T. Barbanti (awarding attorney fees), and (4) Judgment For Defendants Royal Pottage and Junco Frost (awarding attorney fees).

¶ 8 BNY moved to reconsider the Order Reconveying the Deed of Trust and asking the court to modify its order so as not to declare that Royal Pottage was the fee owner of the property. And, BNY moved to reconsider the judgments awarding attorney fees to the defendants. The trial court denied the reconsideration motions on November 30, 2010. BNY appealed.

ANALYSIS

A. Title Language Dispute

¶ 9 The issue is whether the trial court erred in ordering Royal Pottage the fee *1266 owner of the property. BNY contends the court prematurely decided property ownership instead of limiting its order to quieting title against the deed of trust.

¶ 10 Whether declaring Royal Pottage fee owner of the property was error is a question of law. We review questions of law de novo. Hanson v. City of Snohomish, 121 Wash.2d 552, 556, 852 P.2d 295 (1993).

¶ 11 Under RCW 7.28.300, the record owner of a property may request property title be quieted against a deed of trust on that real estate:

The record owner of real estate may maintain an action to quiet title against the lien of a mortgage or deed of trust on the real estate where an action to foreclose such mortgage or deed of trust would be barred by the statute of limitations, and, upon proof sufficient to satisfy the court, may have judgment quieting title against such a lien.

RCW 7.28.300.

¶ 12 BNY does not dispute Royal Pottage is the record owner of the property. BNY does not dispute its deed of trust was stale and its foreclosure action was time barred. Thus, considering RCW 7.28.300, BNY properly does not dispute Royal Pottage was entitled to a judgment quieting title against the lien; BNY does not appeal the court's authority and decision to quiet title and dismiss its foreclosure action. But BNY does dispute the trial court's authority under RCW 7.28.300 to declare Royal Pottage the fee owner of the property. Respondents jointly respond that the label fee owner does not change the effect of the order.

¶ 13 Royal Pottage stands in Mr.

Free access — add to your briefcase to read the full text and ask questions with AI

Bank of New York v. Hooper, 263 P.3d 1263 (Wash. Ct. App. 2011).

263 P.3d 1263 (Bank of New York v. Hooper) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Darla Keck v. Chad P. Collins, DMD
Court of Appeals of Washington, 2014
Keck v. Collins
325 P.3d 306 (Court of Appeals of Washington, 2014)
Bank of New York v. Marco T. Barbanti
Court of Appeals of Washington, 2013
Gander v. Yeager
274 P.3d 393 (Court of Appeals of Washington, 2012)