Burgess Vineyards, LLC v. Paul Beveridge, et ux dba

CourtCourt of Appeals of Washington
DecidedJune 2, 2015
Docket32199-1
StatusUnpublished

This text of Burgess Vineyards, LLC v. Paul Beveridge, et ux dba (Burgess Vineyards, LLC v. Paul Beveridge, et ux dba) 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
Burgess Vineyards, LLC v. Paul Beveridge, et ux dba, (Wash. Ct. App. 2015).

Opinion

FILED JUNE 2, 2015 In the Office of the Clerk of Court W A State Court of Appeals, Division III

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON

DIVISION THREE

BURGESS VINEYARDS, LLC, a ) No. 32199-1-III Washington Limited Liability Company, ) ) Respondent, ) ) v. ) UNPUBLISHED OPINION ) PAUL BEVERIDGE and JANE DOE ) BEVERIDGE, husband and wife, dba ) WILDRIDGE WINERY & VINEYARD, ) ) Appellants. )

LAWRENCE-BERREY, J. - Robert Paul Beveridge appeals a monetary judgment

entered against him in favor ofPaul Burgess. He contends the trial court erred by

concluding that a late fee provision in the parties' contract was valid and enforceable.

Specifically, he argues that the provision was an unenforceable penalty, the contract

improperly modified the parties' original agreement, the contract is procedurally

unconscionable, and that he is not personally liable to Mr. Burgess. We disagree and

affIrm the trial court. No. 32199-1-111 Burgess Vineyards v. Beveridge

FACTS

Robert Paul Beveridge, the owner of Wildridge Winery Vineyard in Seattle,

Washington, and Paul Burgess, the owner of Burgess Vineyards, LLC, in Pasco,

Washington, are both experienced businessmen. Mr. Burgess had been growing grapes

since 1982. Mr. Beveridge, who has been a licensed attorney since 1985, formed

Tapenade, Inc., a winemaking business, in 1988.

On September 28, 2010, Mr. Beveridge contacted Mr. Burgess via e-mail about the

price of Mr. Burgess's Pinot Gris grapes. The next day, at 5:21 a.m., Mr. Burgess

responded via e-mail that the sale price was $900 per ton. At 9:02 a.m., Mr. Beveridge

responded: "Ok, let's plan to pick it on Friday or Saturday morning. 1 am working on

setting up transportation. . .. Please send me directions to the vineyard, thanks." Ex. 2.

Later that morning, Mr. Burgess wrote, "Thank you for purchasing my Pinot Gris

winegrapes.... If you have any questions or concerns, please make sure that you

communicate them with me personally .... Attached is the contract. Please review, sign

and fax the signed contract to me tonite or tomorrow. 1 will look forward to hearing from

you tomorrow so 1 can arrange my picking crew either Fri. or Sat. for a full day of

harvesting." Ex. 2.

No. 32I99-I-III Burgess Vineyards v. Beveridge

The e-mail included an attached contract stating that Mr. Burgess agreed to sell

and Mr. Beveridge agreed to buy seven tons of hand-picked Pinot Oris at $900 per ton for

a total order of $6,300. The contract also provided that Mr. Beveridge would pay a

$2,000 deposit on the day of the harvest and the balance before December 15,2010. In

addition to the sale price and quantity of grapes, the Burgess contract provided for late

fees and interest as follows:

I (we) agree to the credit condition that should this contract or any associated monthly statement not be paid in full by the due date, a late fee of $200 per month in addition to a monthly finance charge of 1.5% (18% annual percentage rate) of the balance due, will be assessed and the account will be considered delinquent on C.O.D. terms.

Ex. 1.

On September 30,2010, Mr. Beveridge acknowledged receipt of the Burgess

contract, but advised Mr. Burgess, "I think the contract you attached is more appropriate

for an annual contract rather than a spot deal. I have attached a draft that is more to the

point. Please let me know if this is acceptable." Ex. 2. The purchase agreement

submitted by Mr. Beveridge provided that "we agree ... [t]o purchase 7 ton of Burgess

Pasco Vineyard Pinot Oris and pay $900.00 per ton for it for a total price of $6,300." Ex.

2. It also stated that "[w]e will pay $2,000 of the purchase price on the date of harvest

and the remaining $4,300 before December 15, 2010." Ex. 2. It did not include a late fee

No. 32199-1-III Burgess Vineyards v. Beveridge

or finance charge provision.

On October 1,2010, Mr. Beveridge drove to Pasco, Washington, in a rented truck

to pick up the grapes. He told Mr. Burgess that he preferred his own contract, but signed

Mr. Burgess's contract and waited another day for Mr. Burgess's work crew to pick the

grapes before returning to Seattle.

Mr. Beveridge paid the $2,000 down payment, but did not pay the balance by

December 15. On December 22,2010, he sent an e-mail to Mr. Burgess, stating "we are

still waiting for our refund check from the IRS [Internal Revenue Service]. As soon as

we receive the refund, we will pay all of our grape bills." Ex. 2. On February 10,2011,

at 7:50 p.m., Mr. Burgess wrote, "Your statement is attached. Please remit payment at

your earliest convenience." Ex. 2. A little later that evening, Mr. Beveridge wrote, "The

check went out earlier this week. Please let me know if you do not have it by Monday."

Ex. 2. Mr. Burgess then sent an invoice dated March 1,2011, which alleged that Mr.

Beveridge owed $815.86 in interest and late fees. The letter stated:

I have attached the Contract for Grapes signed 10/1/10 that outlines the finance charges and late fees that would be assessed if payments were untimely. Per our telephone conversation, I understand that you were waiting for your IRS check in order to pay the Invoice under this contract in full. However, that was not our agreement. Even though waiting for my payment was not to my liking, I am now following our agreement of late payments and interest.

Attached is a Statement with updated late charges and interest per the signed Contract Agreement. Please know that this takes extra time and money on my part to keep track of the charges.

Please make your final payment before March 15 th in full, or you will incur additional interest and another $200 late fee.

Ex. 3. The statement also indicated that the $4,300 balance had been paid on

February 10, 2011.

The parties did not communicate again until January 23,2012, when Mr. Burgess

e-mailed an invoice to his attorney, which was forwarded to Mr. Beveridge, prompting

him to respond, "1 am sorry that you feel that you should continue pursuing this matter.

Your position is not commercially reasonable, particularly for a spot market purchase at

the end of harvest. I was very clear to you from the beginning that we could not pay for

the grapes until we received our IRS refund. We have never paid interest to any other

grower in our over 20 year history." Ex. 2.

Mr. Burgess filed a lawsuit on April 17, 2012, asking for $3,334.62 with additional

late fees and expenses after January 15, 2012. At trial, Mr. Burgess testified that he and

Mr. Beveridge agreed that Mr. Beveridge would put $2,000 down and pay the balance on

December 15,2010. He characterized Mr. Beveridge's claim that he told Mr. ., Burgess that payment of the balance would occur after receipt of a tax refund as "pure

fabrication." Report of Proceedings (RP) at 60. Mr. Burgess explained that he "rarely"

sells grapes on credit "[b]ecause you don't get paid." RP at 15. He also testified that

while they were waiting for the grapes to be picked, Mr. Beveridge pushed a different

contract at him, stating'" [t]his is more appropriate.'" RP at 17. Mr. Burgess denied

signing Mr. Beveridge's contract. According to Mr. Burgess, Mr. Beveridge stated that

he preferred his own contract, but Mr. Burgess responded that this was his standard

. contract, and that Mr. Beveridge signed it. Mr. Burgess was emphatic that he would not

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