Colorado Structures v. Blue Mountain Plaza

246 P.3d 835
CourtCourt of Appeals of Washington
DecidedJanuary 25, 2011
Docket28480-8-III, 28598-7-III
StatusPublished
Cited by3 cases

This text of 246 P.3d 835 (Colorado Structures v. Blue Mountain Plaza) 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
Colorado Structures v. Blue Mountain Plaza, 246 P.3d 835 (Wash. Ct. App. 2011).

Opinion

246 P.3d 835 (2011)

COLORADO STRUCTURES, INC., doing business as CSI Construction Company, a Colorado corporation, Appellant,
v.
BLUE MOUNTAIN PLAZA, LLC, a Washington limited liability company; Meyer Equities, LLC, a Delaware limited liability company; Powers Steel Group, LLC, a Washington limited liability company; Bruce Heating & Air Conditioning, Inc., an Oregon corporation; Paras General Contractors, Inc., a Washington corporation; Koncrete Industries, Inc., a Washington corporation; Kennewick Industrial & Electrical Supply, Inc., a Washington corporation; K2MG Interiors, Inc., an Oregon corporation; Bar-A Construction, Inc., a Washington corporation; The Ogilvie Company, Inc., a Washington corporation; 360 Architectural Foam, Inc., an Oregon corporation; Tri States Rebar, Inc., a Washington corporation; CLC Associates, Inc., the Oregon assumed name of Colorado Land Consultant, Inc., a Colorado corporation; Materials Testing & Inspection, Inc., an Idaho corporation; American Civil Constructors West Coast, Inc., dba ACC Hurlen Construction, a California corporation; RLC, Inc., a Washington corporation; Icon Corporation, a Washington corporation; and K & B Excavating, Inc., a Washington corporation, Defendants,
TMC, Inc., doing business as Timothy McGourty, an Idaho corporation, Appellant,
Equity Funding, LLC, a Washington limited liability company; Western Development Partners, LLC, a California limited liability company; Walla Walla Holdings I, LLC, a Washington limited liability company, Respondents.

Nos. 28480-8-III, 28598-7-III.

Court of Appeals of Washington, Division 3.

January 25, 2011.

*836 Joseph A. Yazbeck, Jr., Attorney at Law, Portland, OR, Kara Heikkila, Hall Farley Oberrecht & Blanton PA, Boise, ID, for Appellant.

*837 Michael E. Gossler, Montgomery Purdue Blankinship & Austin, Marshall L. Ferguson, Daniel W. Ferm, Robert Walton Sargeant, Williams, Kastner & Gibbs PLLC, Seattle, WA, for Respondents.

KORSMO, A.C.J.

¶ 1 Colorado Structures, Inc. (CSI) appeals the dismissal on summary judgment of its contractor's lien. We agree with the trial court that the core samples CSI had drilled on the property to check soil conditions before bidding on the project did not constitute an improvement under our lien statutes. The judgment is affirmed.

FACTS

¶ 2 CSI is a major contractor on projects throughout the western United States. It was approached in the spring of 2007 by Western Development Partners, LLC (WDP) about expanding a mall in Walla Walla. WDP had the right to purchase the mall from the owner, Meyer Equities, LLC (Meyer). WDP was looking into tearing down part of the existing mall and expanding the mall with new construction.

¶ 3 WDP was working with CLC Associates, Inc. (CLC), an architectural firm that had also worked with CSI on other projects. CSI sent employees to the site and prepared budget numbers for redevelopment at the request of WDP. An engineering report suggested that the property might have groundwater at shallow depths. The presence of water at those levels would seriously impact CSI's proposals.

¶ 4 In consultation with WDP and CLC, CSI decided to have test pits dug on the property to determine the depth of the groundwater. CSI had a subcontractor dig the test pits on August 7, 2007. They were filled in the following day. CSI did not submit a bill for this work, but did maintain that the work was included as preconstruction costs in its later contracts with WDP.

¶ 5 Later that month, WDP began talks to sell its development opportunity to a local development company, Blue Mountain Plaza, LLC (BMP), and requested CSI assist it. CSI was concerned that it would not be paid for its work to that point if another entity took over the project. WDP assured CSI that it would encourage a new owner to use CSI. CSI helped WDP market the project to BMP. It also worked with CLC to obtain permits for storm water management of the mall property.

¶ 6 BMP purchased WDP's right to purchase the mall from Meyer. BMP and CSI entered into four contracts for work on the mall. The first contract, for site construction, was entered on November 15, 2007. Contracts for specific stores were entered into in April and May 2008.

¶ 7 Equity Funding, LLC (Equity) lent BMP $10,500,000 to purchase the mall. The sale between Meyer and BMP closed February 7, 2008. Equity's deed of trust was filed the next day; WDP filed a second deed of trust February 11, 2008. Prior to the sale, Meyer had refused to allow CSI access to the mall site in order to begin construction.

¶ 8 CSI began work on the mall. BMP failed to make regular payments toward construction costs, but assured CSI that financing was imminent. The financing, however, never materialized. CSI filed liens and amended liens in June, July, and August 2008. All of these liens reflected a work starting date of February 28, 2008.

¶ 9 BMP failed to pay WDP under a promissory note secured by the deed of trust. WDP began a nonjudicial foreclosure and sent notice of the trustee's sale to all parties with an interest in the project, including CSI. CSI suspended work on the mall on December 3, 2008. One week later it amended its liens to reflect a work start date of August 7, 2007.

¶ 10 CSI filed a complaint to foreclose on its liens on January 22, 2009. It did not take any action to stay the trustee's sale. WDP sold and assigned its rights to Walla Walla Holdings I, LLC (WWH), which then purchased the mall as the high bidder at the trustee's sale. WDP, WWH, and Equity all then moved for summary judgment to quiet title to the mall. CSI moved for cross summary judgment seeking to establish its liens as having a higher priority than the deeds of trust.

*838 ¶ 11 Two days before the hearing, CSI filed an "Omnibus Final Pleading." Equity successfully moved at argument to strike the document as untimely. The trial court denied CSI's motion for summary judgment and granted the competing motions from WDP, WWH, and Equity. The order also authorized an immediate appeal. CSI then appealed to this court.[1]

ANALYSIS

¶ 12 The primary issue in this appeal concerns the summary judgment rulings. WDP also seeks attorney fees. Preliminarily, CSI also challenges the decision to strike its final omnibus pleading. We will address that argument first.

Omnibus Pleading

¶ 13 CSI argues that the trial court should not have stricken its belatedly filed "Omnibus Final Pleading," contending that excusable neglect justified the late filing. The trial court did not abuse its discretion in striking the document.

¶ 14 Trial courts have discretion whether to accept untimely filed documents. O'Neill v. Farmers Ins. Co., 124 Wash.App. 516, 521, 125 P.3d 134 (2004). Discretion is abused when it is exercised on untenable grounds or for untenable reasons. State ex rel. Carroll v. Junker, 79 Wash.2d 12, 26, 482 P.2d 775 (1971).

¶ 15 The documents supporting a motion for summary judgment must be filed 28 calendar days before the hearing on the motion. CR 56(c). Responsive documents are due 11 calendar days before the hearing, and reply documents must be filed no later than 5 days prior to the hearing. Id. Courts have authority to enlarge time deadlines when the request is made before the period has expired. CR 6(b)(1).

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Cite This Page — Counsel Stack

Bluebook (online)
246 P.3d 835, Counsel Stack Legal Research, https://law.counselstack.com/opinion/colorado-structures-v-blue-mountain-plaza-washctapp-2011.