Bund v. Safeguard Properties LLC

CourtDistrict Court, W.D. Washington
DecidedApril 20, 2021
Docket2:16-cv-00920
StatusUnknown

This text of Bund v. Safeguard Properties LLC (Bund v. Safeguard Properties 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
Bund v. Safeguard Properties LLC, (W.D. Wash. 2021).

Opinion

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5 6 7 UNITED STATES DISTRICT COURT 8 WESTERN DISTRICT OF WASHINGTON AT SEATTLE 9 10 JOHN R. BUND II, et al., CASE NO. C16-920 MJP 11 Plaintiffs, ORDER GRANTING DEFENDANT’S MOTION FOR 12 v. SUMMARY JUDGMENT 13 SAFEGUARD PROPERTIES LLC, 14 Defendant. 15 16 This matter comes before the Court on Defendant’s Motion for Summary Judgment. 17 (Dkt. No. 372.) Having reviewed the Motion, the Opposition (Dkt. No. 377), the Reply (Dkt. No. 18 379), and all supporting materials, the Court GRANTS the Motion. 19 BACKGROUND 20 Plaintiffs Scott and Noel James claim that Defendant Safeguard Properties LLC 21 trespassed at their home in Wenatchee when it replaced the lock on an exterior door. It is 22 uncontested that Safeguard replaced the lock on one of three exterior doors at the behest of the 23 Jameses’ lender, Bank of America, after the Jameses defaulted on their loan and after the 24 1 Jameses vacated the house. The Parties agree that the deed of trust securing the Jameses’ house 2 stated that Bank of America (or its agent) could “inspect the Property if the Property is vacant or 3 abandoned or the loan is in default.” (Exhibit 5 to the Declaration of Jaime Allen (Dkt. No. 375-5 4 at 5 (Deed of Trust § 5).) And the Parties agree the deed of trust stated that Bank of America (or

5 its agent) could “take reasonable action to protect and preserve such vacant or abandoned 6 Property.” (Id.) 7 Notwithstanding these undisputed facts, the Parties tussle over whether the Jameses have 8 shown any competent evidence of damages. Although their initial disclosures identified a range 9 of damages, the Jameses concede in their opposition that the only damages they claim relates to 10 the lock change. (Compare Allen Decl. Ex. 43 (Dkt. No. 374-28 at 7-9) with Pls. Opp. (Dkt. No. 11 377 at 17-18).) To prove damages the Jameses rely exclusively on a bill from Safeguard to Bank 12 of America. (Dkt. No. 374-15 at 2.) The bill invoiced Bank of America for: (1) “Deadbolt . . . 1 13 @ $20.00”; (2) “Lock Changed . . . 1 @ $40”; (3) “Lockbox Installed . . . 1 @ $35.” (Allen Decl. 14 Ex. 35 (Dkt. No. 374-15 at 2).) The Jameses provide no testimony from Safeguard or anyone to

15 explain what the invoice line items reflect. The Jameses offer no other evidence of the damages, 16 though they make passing reference to expert testimony that may be used to prove classwide 17 damages. (Dkt. No. 377 at 18.) 18 ANALYSIS 19 A. Legal Standard 20 Summary judgment is proper “if the pleadings, the discovery and disclosure materials on 21 file, and any affidavits show that there is no genuine issue as to any material fact and that the 22 movant is entitled to judgment as a matter of law.” Fed. R. Civ. P. 56(c). In determining whether 23 an issue of fact exists, the Court must view all evidence in the light most favorable to the

24 1 nonmoving party and draw all reasonable inferences in that party’s favor. Anderson v. Liberty 2 Lobby, Inc., 477 U.S. 242, 248-50 (1986). A genuine issue of material fact exists where there is 3 sufficient evidence for a reasonable factfinder to find for the nonmoving party. Id. at 248. The 4 moving party bears the initial burden of showing that there is no evidence which supports an

5 element essential to the nonmovant’s claim. Celotex Corp. v. Catrett, 477 U.S. 317, 322 (1986). 6 Once the movant has met this burden, the nonmoving party then must show that there is a 7 genuine issue for trial. Anderson, 477 U.S. at 250. If the nonmoving party fails to establish the 8 existence of a genuine issue of material fact, “the moving party is entitled to judgment as a 9 matter of law.” Celotex, 477 U.S. at 323-24. 10 B. Abandonment Not a Defense 11 Safeguard argues that abandonment is a defense to intentional and negligent trespass 12 notwithstanding the decision in Jordan v. Nationstar Mortg., LLC, 185 Wn.2d 876 (2016). The 13 Court disagrees. 14 “[I]t is well settled that Washington law prohibits lenders from taking possession of

15 borrowers’ property before foreclosure.” Jordan, 185 Wn.2d at 884. The court’s longstanding 16 interpretation of “RCW 7.28.230(1) . . . mean[s] that a mortgagor’s default does not disrupt the 17 mortgagor’s right to possession of real property, and that the mortgagor retains the right to 18 possession until there has been foreclosure and sale of the property.” Id. at 885 (citing Howard v. 19 Edgren, 62 Wn.2d 884, 885 (1963)). So a deed of trust provision allowing the lender to take 20 possession of a borrower’s property prior to foreclosure “conflict[s] with a Washington law that 21 prohibits a lender from taking possession of property prior to foreclosure.” Id. at 879. 22 Considering the facts before it, the Court in Jordan found that the deed of trust’s entry 23 provisions ran afoul of RCW 7.28.230(1). There, the deed of trust allowed for Nationstar to

24 1 “secure” the property after default or abandonment. Jordan, 185 Wn.2d at 884. The Court 2 concluded that “because the [relevant deed of trust] provisions allow Nationstar to take 3 possession of the property after default, [it] conflicts with the statute.” Id. at 879. The Court’s 4 decision turned in part on the fact that Nationstar had installed a new lock on the sole point of

5 entry. This, the Court concluded, was an assertion of control and therefore possession over the 6 plaintiff’s home in violation of RCW 7.28.230(1). Id. at 887 (“Under any definition, the conduct 7 allowed under the entry provisions constitutes possession because Nationstar’s actions satisfy the 8 key element of possession: control.”) The Court noted that “rekeying the property also had the 9 effect of communicating to Jordan that Nationstar now controlled the property” and that it “left 10 Jordan with no method of entering her own property.” Id. at 888. 11 Considering the decision in Jordan, the Court finds that the entry provision in the 12 Jameses’ deed of trust invalid. While the deed allows for lock replacement only in the event of 13 abandonment, the Court finds that this still violates the principals set out in Jordan—that any act 14 of possession prior to foreclosure violates RCW 7.28.230(1). See Jordan, 185 Wn.2d at 884-85.

15 And the Court finds that Safeguard’s replacement of the lock of one of several doors was an 16 assertion of control sufficient to constitute possession. Id. at 887. Changing a lock interfered with 17 the James’s sole and exclusive ownership of the house because it gave Safeguard the right to 18 access the property as it wished. The fact that the Jameses still had two other points of access 19 does not undermine Safeguard’s assertion of control. It strains credulity to think that a reasonable 20 homeowner would feel in full possession of their home if a stranger installed its own lock, even 21 just on one of several doors. Nor is the Court convinced that the outcome in Jordan turned on the 22 fact that Nationstar replaced the lock on the only point of entry. The Court in Jordan considered 23 that fact but noted more the broader effect of the “rekeying [of] the property . . . [which] had the

24 1 effect of communicating to Jordan that Nationstar now controlled the property.” Id. at 888.

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Bund v. Safeguard Properties LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bund-v-safeguard-properties-llc-wawd-2021.