Chad Stevens v. Bellevue Farm Owners, Association, Respondent's

198 Wash. App. 464
CourtCourt of Appeals of Washington
DecidedApril 3, 2017
Docket73794-5-I
StatusPublished
Cited by10 cases

This text of 198 Wash. App. 464 (Chad Stevens v. Bellevue Farm Owners, Association, Respondent's) 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
Chad Stevens v. Bellevue Farm Owners, Association, Respondent's, 198 Wash. App. 464 (Wash. Ct. App. 2017).

Opinion

Schindler, J.

¶1 To establish abuse of process, the claimant must prove (1) an ulterior purpose to accomplish an object not within the proper scope of the process, (2) an act not proper in the regular prosecution of proceedings, and (3) harm caused by the abuse of process. Chad Stevens filed a counterclaim against Mark Baute for abuse of *467 process. Stevens alleged as damages that he incurred attorney fees and costs as a result of abuse of process. We affirm the August 5, 2015 order to produce the “Attorney’s Fees for Abuse of Process” spreadsheet. We also affirm denial of the motion to bifurcate liability and damages, lift the temporary stay of the August 5, 2015 discovery order, and remand.

FACTS

¶2 The original owners of the Friday Harbor Bellevue Farm property owned the waterfront portion of the property as tenants in common. In 1991, the owners recorded a “Grant Deed of Conservation Easement.” In 1994, the owners recorded a short plat to create four lots and a common waterfront. In May 1997, the Bellevue Farm Owners Association (BFOA) recorded a declaration of protective covenants, conditions, and restrictions.

¶3 In 2005, Chad Stevens purchased 10 acres of waterfront property in the Bellevue Farm plat. Mark Baute and his spouse, Gigi Birchfield, own waterfront property located adjacent and to the south of Stevens’ property. Baute and Birchfield also co-own waterfront property with Jantana and Baruch Kuppermann adjacent and to the north of Stevens’ property.

¶4 Baute was a BFOA board member and an attorney licensed to practice in California. Baute began representing BFOA in May 2012. In August 2012, BFOA board members clarified and amended the covenants, conditions, and restrictions and adopted a revocable license agreement.

¶5 In September 2012, BFOA filed a lawsuit against Stevens, alleging violation of the covenants, conditions, and restrictions. In November, the court granted the motion to admit Baute pro hac vice. Baute acted as lead attorney in the lawsuit.

¶6 Stevens asserted a number of counterclaims against BFOA, BFOA board members, and other property owners *468 (collectively BFOA). Stevens alleged the 2012 clarification and amendments to the covenants, conditions, and restrictions and adoption of the revocable license agreement were unlawful. In counterclaim 12, Stevens asserts BFOA did not comply with the statutory requirements that govern a homeowners’ association, chapter 64.38 RCW. Stevens sought declaratory and injunctive relief.

¶7 In April 2013, the court revoked pro hac vice admission of Baute. The court found, in pertinent part:

Mr. Baute’s personal interest as a party plaintiff appeared to be causing a relatively straightforward lawsuit to be increasingly characterized by unprofessional personal invective, excessive and unnecessary pleadings, and a lack of civility between himself and counsel for the defendants.
.Mr. Baute has ignored the court’s warning and again engaged in unnecessary and intentionally provocative behavior that has only increased the level of personal antagonism and rancor that infects this litigation.
Provocation is exactly the type of behavior the court had warned Mr. Baute to refrain from and that should no longer be tolerated.
.the Court is convinced that Mr. Baute’s conduct continues to manifest an intentional disregard for this Court’s directions and a flippant disregard for the clearly adverse effect his personal feelings of animosity and disrespect for the Defendants and their attorneys have had on the manner in which this lawsuit has been conducted.[ 1 ]

¶8 Stevens filed a motion for leave to file amended counterclaims to add a counterclaim against Baute and the marital community (collectively Baute) for abuse of process, counterclaim 13. Stevens also alleged breach of fiduciary duty and sought damages against BFOA under chapter 64.38 RCW.

*469 ¶9 The abuse of process counterclaim alleged that during the course of the litigation, Baute engaged in conduct that was “based upon the existence of his ulterior motives and was coercion for the purpose of obtaining collateral advantage.”

The conduct of Baute has been based upon the existence of his ulterior motives and was coercion for the purpose of obtaining collateral advantage not properly involved in the litigation process itself, and constitutes the misuse of the litigation process for purposes other than those which constitute legitimate litigation proceedings.
... As a result of the conduct of Baute, Defendant/ Counterplaintiff Chad Stevens has been damaged.

¶10 Stevens alleged the litigation strategy was designed to harass Stevens and “needlessly increase” litigation costs. The counterclaim alleged that despite the April 2013 court order revoking pro hac vice admission, Baute “continued and continues to provide to the plaintiffs legal advice and engaged in the unlawful practice of law for the continued purpose of harming Stevens through use of the litigation process.” Over the objection of BFOA and Baute, the court granted the motion to file the amended counterclaims on May 6, 2014. BFOA filed a demand for a jury trial.

¶11 On June 13,2014, Baute propounded interrogatories and requests for production of documents to Stevens, including a request to produce invoices for the legal fees and costs allegedly incurred for abuse of process. 2 In a June 19 letter, the special master directed the parties to “confer about how to approach this issue” and urged the parties to *470 take steps to preserve attorney-client privilege and attorney work product. 3

¶12 In July 2014, Stevens filed a motion to stay discovery and a motion to file amended counterclaims. Stevens alleged Baute made assertions in pleadings that Baute knew were false, continued to harm Stevens through “the litigation process,” and engaged in conduct designed to “harass” and “needlessly increase Stevens’ litigation costs.” Stevens alleged Baute was “liable for the attorney’s fees and costs that defendant Stevens has incurred as a result of Mr. Baute’s abuse of process.” Stevens alleged BFOA was “liable for the attorney’s fees and costs that defendant Stevens has incurred because of their breach of fiduciary duty to him.” Stevens argued the court should stay discovery on the counterclaims for breach of fiduciary duty and abuse of process, counterclaim 12 and counterclaim 13.

¶13 BFOA did not object to filing the amended counterclaims. BFOA objected to the motion to stay discovery on counterclaim 12 and counterclaim 13. The court denied the motion to stay discovery on the counterclaims.

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Bluebook (online)
198 Wash. App. 464, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chad-stevens-v-bellevue-farm-owners-association-respondents-washctapp-2017.