Clearwater v. Skyline Construction Co.

835 P.2d 257, 67 Wash. App. 305, 1992 Wash. App. LEXIS 403
CourtCourt of Appeals of Washington
DecidedAugust 31, 1992
Docket26150-9-I; 27554-2-I
StatusPublished
Cited by34 cases

This text of 835 P.2d 257 (Clearwater v. Skyline Construction Co.) 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
Clearwater v. Skyline Construction Co., 835 P.2d 257, 67 Wash. App. 305, 1992 Wash. App. LEXIS 403 (Wash. Ct. App. 1992).

Opinion

*308 Pekelis, J.

Appellant Lidia Panasiuk, president and sole shareholder of the Skyline Construction Company (Skyline), appeals from the issuance of a prejudgment writ of attachment against her property and from the dismissal of her claim for wrongful attachment. Appellant Skyline appeals from the dismissal of its petition to vacate an arbitration award and from an order certifying a portion of the award as a final judgment. Respondents Jeffrey and Constance Clearwater (Clearwaters) cross-appeal from the dismissal of their fraudulent transfer claim. We affirm in part and reverse in part.

I

In November 1987, the Clearwaters and Skyline entered into a written contract in which Skyline agreed to construct a new residence for the Clearwaters. As construction neared completion, several disputes arose over. Skyline's performance and the payment of various subcontractors. Eventually, by letter dated March 8, 1989, the Clearwaters terminated the contract and advised Skyline of their intention to commence legal action to recover damages resulting from Skyline's alleged breach of the contract.

On March 16, 1989, Panasiuk executed and recorded a quitclaim deed purporting to convey a certain unimproved parcel of real estate (hereinafter the property) from Skyline to herself as "a single woman". The deed recited consideration of "error by bank in misfiling deed on property to Skyline Construction Co. . . . instead of Lidia Panasiuk".

On March 22,1989, the Clearwaters commenced an action against Skyline, Panasiuk, and Matthew Speights, who was Skyline's construction manager and who lived with Panasiuk. The Clearwaters alleged, inter alia, breach of contract, negligent construction and supervision, and violations of the Consumer Protection Act. They claimed actual contract damages in excess of $83,000.

Prejudgment Writ of Attachment

On April 7, 1989, the Clearwaters applied for a prejudgment writ of attachment on the property pursuant to RCW *309 6.25. The Clearwaters' counsel submitted an affidavit which stated that he had been advised by Lawyers Title Company that the property was owned by Skyline. After an ex parte hearing under RCW 6.25.070(2), the trial court issued the writ of attachment and ordered the defendants to show cause why the writ should not remain on the property.

An evidentiary hearing was held on May 3 and 4, 1989, under RCW 6.25.070(3). The property was treated by the trial court as belonging to Skyline. Although Panasiuk appeared at the hearing represented by counsel, she did not advise the trial court of the March 16,1989, conveyance from Skyline to herself.

At the conclusion of the hearing, the trial court ordered that the writ of attachment remain on the property owned by Skyline on condition that the Clearwaters post an attachment bond and promptly prosecute the case. In addition, pursuant to the terms of the contract, the trial court stayed the action pending completion of arbitration. In its written findings, the trial court concluded that the Clear-waters had established the "probable validity" of the claims alleged in the action and "probable cause to believe that an alleged ground for attachment exists" because one of the objects of the action was "to recover on a contract, express or implied."

Arbitration Award

The Clearwaters and Skyline then entered into binding arbitration. On December 15, 1989, the arbitrator entered a net arbitration award of $17,031.29 in favor of the Clear-waters on their contract claim. The Clearwaters were also awarded $17,500 in costs and attorney fees. Further, the arbitrator determined that Skyline was responsible for approximately $17,200 in potential subcontractor claims and authorized the Clearwaters to recover from Skyline any sums paid in satisfaction of these claims or any reasonable sums paid for costs and attorney fees in defending against them.

The Clearwaters then filed a motion for an order confirming the arbitration award, lifting the stay, and directing *310 entry of judgment on the award. Skyline expressly stated that it did not oppose confirmation of the award or lifting the stay. However, Skyline did oppose entry of final judgment because the total amount of the award could not yet be determined since it included unresolved and unsatisfied subcontractor claims.

On January 25, 1990, the trial court entered an order confirming the arbitration award and lifting the stay. The order also granted partial summary judgment on the award, except for the portion relating to the subcontractor claims. The partial summary judgment was ordered without prejudice to further motions for judgment as to that portion of the award, and judgment was entered against Skyline on all but the subcontractor claims portion of the award. Pursuant to CR 54(b), the trial court certified in its written findings that there was "no just reason for delay in entering a final partial summary judgment" on the award. Skyline then filed a motion in this court to vacate the CR 54(b) determination. The court commissioner denied the motion, and a panel of this court denied Skyline's motion to modify that ruling.

Motion To Discharge the Writ of Attachment

On February 5,1990, Skyline and Panasiuk filed a motion to discharge the writ of attachment. An evidentiary hearing was held on February 23, 1990. At the hearing, Panasiuk, who also owned several apartment complexes, testified about the ownership of the property. She explained that Speights entered into a purchase and sale agreement with New Concept Homes, Inc., in February 1988 to purchase the property and then assigned his interest in the property to her. Panasiuk stated that she intended to purchase the property as a site on which to build her personal residence. She testified that her residence was designed by and constructed by Skyline. Panasiuk stated that she and Speights have been living at the residence since construction was completed.

*311 To finance the purchase of the property and the construction of the residence, Panasiuk testified that she applied for a construction loan for herself. However, Panasiuk acknowledged that at the June 28, 1988, closing, she signed the $234,500 promissory note in her personal capacity and as "President" of Skyline. 1 She also acknowledged that she signed the deed of trust and security agreement on behalf of Skyline as "President" of Skyline. Panasiuk acknowledged farther that she was aware that the statutory warranty deed conveyed the property to Skyline.

According to Panasiuk, the documents signed by her at closing had been prepared by her lender and the title company and the signature lines therein, which stated that she was signing for Skyline as president of Skyline, were incorrect. Panasiuk stated that she objected to the form of the documents, but signed them anyway because she "didn't want to slow things down" and because she believed the problem could be easily corrected later.

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Bluebook (online)
835 P.2d 257, 67 Wash. App. 305, 1992 Wash. App. LEXIS 403, Counsel Stack Legal Research, https://law.counselstack.com/opinion/clearwater-v-skyline-construction-co-washctapp-1992.