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

Court of Appeals of Washington·Decided June 2, 2015·No. 32199-1·Unpublished

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v. ) UNPUBLISHED OPINION )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.

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

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"

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

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 have allowed the grapes to be picked if Mr. Beveridge had not signed the contract.

During cross-examination, Mr. Burgess explained that part of the reason for the $200 late fees is to induce timely payment. He testified that he stopped dealing with the buyers who would not pay pursuant to the contract, stating, "They pay when they feel like it. And I have to pay my workers, not when I feel like it. . .. [W]hen I get a winemaker/lawyer that doesn't want to pay according to the agreement, that adds a lot of stress." RP at 31.

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

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

Burgess Vineyards, LLC v. Paul Beveridge, et ux dba (Burgess Vineyards, LLC v. Paul Beveridge, et ux dba) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Walter Implement, Inc. v. Focht
730 P.2d 1340 (Washington Supreme Court, 1987)
Northwest Collectors, Inc. v. Enders
446 P.2d 200 (Washington Supreme Court, 1968)
Dwelley v. Chesterfield
560 P.2d 353 (Washington Supreme Court, 1977)
Nelson v. McGoldrick
896 P.2d 1258 (Washington Supreme Court, 1995)
MA Mortenson Co. v. Timberline Software Corporation
998 P.2d 305 (Washington Supreme Court, 2000)
Brower Co. v. Garrison
468 P.2d 469 (Court of Appeals of Washington, 1970)
Watson v. Ingram
881 P.2d 247 (Washington Supreme Court, 1994)
Wallace Real Estate Investment Inc. v. Groves
881 P.2d 1010 (Washington Supreme Court, 1994)
Tacoma Fixture Co., Inc. v. Rudd Co., Inc.
174 P.3d 721 (Court of Appeals of Washington, 2008)
Reeves v. McClain
783 P.2d 606 (Court of Appeals of Washington, 1989)
Taufen v. Estate of Kirpes
230 P.3d 199 (Court of Appeals of Washington, 2010)
Green v. Normandy Park
151 P.3d 1038 (Court of Appeals of Washington, 2007)
M.A. Mortenson Co. v. Timberline Software Corp.
140 Wash. 2d 568 (Washington Supreme Court, 2000)
Torgerson v. One Lincoln Tower, LLC
166 Wash. 2d 510 (Washington Supreme Court, 2009)
Green v. Normandy Park Riviera Section Community Club, Inc.
137 Wash. App. 665 (Court of Appeals of Washington, 2007)
Tacoma Fixture Co. v. Rudd Co.
142 Wash. App. 547 (Court of Appeals of Washington, 2008)
Taufen v. Estate of Kirpes
155 Wash. App. 598 (Court of Appeals of Washington, 2010)