BOFI Federal Bank v. Advance Funding LLC

105 F. Supp. 3d 1215, 2015 U.S. Dist. LEXIS 55670, 2015 WL 1926382
CourtDistrict Court, W.D. Washington
DecidedApril 28, 2015
DocketCase No. 14-CV-00484-BJR
StatusPublished
Cited by2 cases

This text of 105 F. Supp. 3d 1215 (BOFI Federal Bank v. Advance Funding LLC) is published on Counsel Stack Legal Research, covering District Court, W.D. Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
BOFI Federal Bank v. Advance Funding LLC, 105 F. Supp. 3d 1215, 2015 U.S. Dist. LEXIS 55670, 2015 WL 1926382 (W.D. Wash. 2015).

Opinion

ORDER GRANTING DEFENDANTS’ MOTION FOR SUMMARY JUDGMENT

BARBARA J. ROTHSTEIN, District Judge.

Before the Court is Defendants’ Motion for Summary Judgment of Dismissal [29], filed on February 19, 2015. The Motion is [1217]*1217fully briefed and ripe for resolution. For the reasons ■ set forth below, Defendants’ Motion is granted.

I. Factual and Procedural Background

This case concerns the lottery winnings of Sheena Venzant,1 who on November 16, 2011, won the Washington State “Lucky for Life” lottery drawing, which entitled her to received $52,000 annually for the rest of her life or a lump sum payment of $750,000. Venzant elected to receive $52,000 annually. Decl. of Sheena Venzant [30] (“Venzant Decl.”) ¶ 2; Deck of Daniel Hefner [39] (“Hefner Deck”), Ex. A. After winning the lottery, Venzant was contacted by various companies with offers to provide her a lump sum payment in return for assignment of her future lottery payments. Venzant Deck ¶3. Venzant discussed an agreement with McLloyd Onwubere, then an employee of Plaintiff BOFI Federal Bank (“BOFI”). Id. On March 7, 2012, Venzant entered into an agreement (“the Agreement”) with BOFI to assign twenty-five annual payments of $47,000 each to BOFI in return for a lump sum payment of $318,40175. Id.; Hefner Deck, Ex. C., p. 18, Ex. D, p. 10, Ex. F. The first payment to BOFI was to be due on November 16, 2012. Hefner Deck, Ex. D, p. 10. BOFI was to provide a lump- sum payment to Venzant no later than three business days after the satisfaction of the conditions precedent listed in the Agreement. Hefner Deck, Ex. C, p. 13.

On the same date Venzant also entered into a “Life Contingent Payment Addendum” in which Venzant agreed to cooperate with BOFI to obtain a life insurance agreement that would pay benefits to BOFI should Venzant die prior to the payment of the twenty-five annual payments of $47,000 that Venzant had agreed to assign to BOFI. Hefner Deck, Ex. D. On June 14, 2012, Venzant received a letter acknowledging the purchase of such a life insurance policy. Hefner Deck, Ex. I. BOFI made the first policy payment of $3308 on September 14, 2012. Hefner Deck ¶ 11. The policy contained an incontestability-provision (which took effect after two years) and a suicide exclusion (which expired after two years). Hefner Deck, Ex. I at 9. According to BOFI, due to regulatory constraints with respect to speculative investments, it was constrained from paying Venzant the lump sum contemplated by the Agreement until the two years had run. Hefner Deck ¶ 12. According to Venzant, she never agreed to a delay in receiving the lump sum payment. Venzant Deck ¶ 5.

On March 9, 2012, and March 14, 2012, BOFI filed; a UCC Financing Statement and Financing Statement Amendment, respectively, providing public notice of the BOFI agreement. Hefner Deck, Exs. G and H.

Between March 7, 2012, and October 12, 2012, BOFI paid Venzant $15,750 as “advances.” Hefner Deck ¶ 16, Hefner Deck, Ex. B, Venzant Deck, Ex. C.

At this point the facts presented by the parties differ dramatically. According to Defendants, who provide Venzant’s declaration, Venzant became “increasingly unhappy and frustrated” because “month after month passed, and I still had not received the lump sum payment.” Ven-zant Deck ¶¶ 4-5. Venzant states that on February 5, 2013, she wrote a letter to BOFI purporting to cancel the Assignment and life insurance policy. Venzant Deck ¶ 5, Venzant Deck, Ex. C. In the letter Venzant stated that she would pay back the $15,000 advances and $3,308 life [1218]*1218insurance premium; however, according to Plaintiff, Venzant has not done so. Venzant . Decl., Ex. C; Hefner Decl. ¶23. Several months later, Venzant contacted an account representative at Defendant Advance Funding LLC, Barbara Guerra, and agreed to assign her lottery winnings to Advance Funding. Venzant Decl. ¶¶ 8, 10. Venzant entered into an agreement with Advance Funding on or about May 17, 2013. Decl. of Dan Cevallos [31] (“Cevallos Decl.”) ¶ 3. Venzant states that while she had spoken to Guerra when she was being solicited shortly after winning the lottery, she did not consult Guerra prior to cancelling her agreement with BOFI, and no one at Advance Funding attempted to persuade her to cancel her agreement with BOFI. Ven-zant Decl. ¶9. According to Defendant Advance Funding Venzant asstíred Advance Funding that she did’ not have “conflicting commitments” and provided a copy of the letter she had sent to BOFI. Cevallos Decl. ¶ 3.

According to Plaintiff, there is no evidence that Venzant’s letter purporting to cancel the Agreement was sent, and Plaintiff denies ever receiving the letter. Hefner Decl. ¶ 18, Hefner Decl., Ex. B. Plaintiff also denies any knowledge that Venzant intended to cancel her agreement with BOFI until February, 2014. Hefner Decl. ¶¶ 18, 22. Plaintiff provides further evidence in the form of an internal customer information sheet for Venzant, in which Plaintiffs employee, Chrus Husong, made notes indicating that he continued to speak to Venzant throughout April and May 2013, that Venzant requested further advances, and that Plaintiff sent her approximately $350 in gift cards during this period. Hefner Decl., Ex. B. Plaintiff states that it was not aware of Venzant’s agreement with Advance Funding until February 2014 when it contacted the Washington Lottery to verify processing information. Hefner Decl. ¶22. Plaintiff also argues that Defendant Advance Funding should have known of the Agreement with BOFI given the UCC financing statement filed by Plaintiff. PL’s Opp’n at 7.

Plaintiff filed their Complaint on April 2, 2014. Plaintiff brought claims of tortious interference with a contract and unjust enrichment. Plaintiff sought declaratory relief, money damages, attorney’s fees, and costs. Defendants filed their motion for summary judgment on February 19, 2015, prior to discovery.

II. Standard of Review

Defendant moves for summary judgment pursuant to Federal Rule of Civil Procedure 56. “The court shall grant summaiy judgment if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed. R.Civ.P. 56(a). The moving party bears the burden of demonstrating the absence of a genuine issue of material fact. Celotex Corp. v. Catrett, 477 U.S. 317, 322, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). The court “should review all of the evidence in the record ... [and] draw all -reasonable inferences in favor of the nonmoving party.” Reeves v. Sanderson Plumbing Prods., Inc., 530 U.S. 133, 150, 120 S.Ct. 2097, 147 L.Ed.2d 105 (2000). A genuine issue' for trial exists if “the evidence is such that a reasonable jury could return a verdict for the nonmoving party.” Anderson V. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). However, “[t]he mere existence of a scintilla of evidence” in support of a nonmoving party’s position is not sufficient to create a genuine issue of material- fact. Anderson, 477 U.S.

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105 F. Supp. 3d 1215, 2015 U.S. Dist. LEXIS 55670, 2015 WL 1926382, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bofi-federal-bank-v-advance-funding-llc-wawd-2015.