Cory Newingham v. John Newingham

CourtCourt of Appeals of Washington
DecidedMay 23, 2017
Docket48818-3
StatusUnpublished

This text of Cory Newingham v. John Newingham (Cory Newingham v. John Newingham) 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
Cory Newingham v. John Newingham, (Wash. Ct. App. 2017).

Opinion

Filed Washington State Court of Appeals Division Two

May 23, 2017

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON

DIVISION II CORY NEWINGHAM, No. 48818-3-II

Respondent,

v.

JOHN NEWINGHAM, KRISTIE UNPUBLISHED OPINION NEWINGHAM, and VELOCITY CNC MACHINING, INC.,

Appellants.

LEE, J. — John and Kristie Newingham, as husband and wife, and Velocity CNC

Machining, Inc., a Washington corporation, appeal the trial court’s findings of fact and conclusions

of law. They argue that the trial court erred when it (1) found that all parties were properly served;

(2) concluded that the tort of defamation was not established; (3) concluded that the tort of

intentional infliction of emotional distress was not established; and (4) concluded that no new

contract to pay commissions was entered into. We affirm. No, 48818-3-II

FACTS

A. FACTS RELEVANT TO CORY’S CLAIMS

1. Cory and Velocity

John Newingham and Cory Newingham are brothers. In August 2012, John1 incorporated

his own business, Velocity CNC Machining, Inc. (hereinafter “Velocity”). John is Velocity’s

president and registered agent, and Kristie is its vice president.

John hired Cory as general manager of Velocity. John, on behalf of Velocity, also offered

to pay Cory a 10 percent commission for every customer that Cory brought in for as long as the

customer did business with Velocity. Cory accepted the offer by sending out e-mails and began

looking for new customers.

Cory testified that there was no termination date to the commission agreement and that his

position as general manager of Velocity was separate from the commission agreement. John

testified that he made the commission offer to Cory, but the commission payments would stop if

Cory’s employment at Velocity was terminated.

The commission agreement was not put in writing. Ronnie Newingham, John and Cory’s

father, testified that he was not sure if a contract ever existed, but John “offered that 10 percent

commission to a couple people and Cory was the only one that took him up on it.” 1 Verbatim

Report of Proceedings (VRP) at 104.

1 Because the appellant, respondent, and many of the witnesses have the same last name, we use their first names for clarity with no disrespect intended.

2 No, 48818-3-II

Cory continued to find customers for Velocity in addition to his role as general manager.

On September 19, 2014, after the brothers had an argument, John terminated Cory’s employment

with Velocity.

2. Family Meeting

On September 21, Ronnie called a family meeting at Cory’s house to see if Cory could

remain at Velocity because Cory was distraught. Ronnie testified that he received a call from

Amanda Newingham, Cory’s wife, saying Cory was threatening suicide and asked John to talk to

Cory. He set up a meeting after that. Ronnie, John, Cory, Amanda, and their brother-in-law,

Russell Ferguson, attended the meeting.

John stated that he went over to Cory’s house because he was told that Cory was threatening

suicide. Cory denied ever threatening to commit suicide. Ferguson also testified that he did not

hear Cory make any mention of suicide.

Shortly after John got to the house, he said Amanda started screaming at him. John tried

to leave, but Ronnie grabbed his arm and asked him to stay. John said there was no way he was

going to let Cory go back to work. However, he did agree to continue paying Cory’s commission

in order to get him on his feet, but he did not say for how long. John agreed to continue to pay

commissions because Cory was threatening suicide, Ronnie was upset, Ferguson was upset, and

“the only way to make the situation better was to offer some help.” 1 VRP at 140. Ronnie testified

that John wanted to work out a peaceful separation at the meeting and offered to continue to pay

Cory’s commission. Ronnie said no one forced John to pay Cory the commissions. Ferguson also

testified that no one forced John to pay Cory the commissions. John subsequently paid Cory two

commission checks and then stopped.

3 No, 48818-3-II

3. Service of Process

On January 9, 2015, Cory filed a lawsuit against John, Kristie, and Velocity alleging a

breach of oral contract and other claims. The summons and complaint was served on John and

Kristie’s 15-year-old daughter at their residence in Orting, Washington.

On January 16, defense counsel filed a notice of appearance on behalf of John, Kristie, and

Velocity. The notice of appearance specified “to serve all future pleadings or papers, except

process, upon said attorney at his address below stated.” Clerk’s Papers (CP) at 14.

On February 24, Cory filed an amended complaint. The amended complaint was an exact

copy of the original complaint except for the inclusion of the cause number assigned by the trial

court. The amended complaint was mailed to John, Kristie, Velocity, and their attorney via first

class mail. John signed the certified return receipt.

On April 9, John, Kristie, and Velocity responded by filing an answer and counterclaims

alleging defamation, intentional infliction of emotional distress, and tortious interference with a

business expectancy. As an affirmative defense, they claimed that Cory failed to “serve process”

on them “in the manner and form required by law.” CP at 57.

B. FACTS RELEVANT TO COUNTERCLAIMS

1. John’s Relationship with Kaycee Stackle

In 2003, John lived with Scott and Kaycee Stackle for a few months. Scott and Kaycee

were married at the time. While living with Scott and Kaycee, John and Kaycee had sexual

relations. And John admitted to having sexual relations with Kaycee while she was married to

Scott.

4 No, 48818-3-II

John and Kaycee stopped having sexual relations when John moved out and he began

dating Kristie. John never told Kristie, nor anyone else, about his sexual relations with Kaycee.

2. Disclosure of Affair

Cory suspected something was going on between John and Kaycee around the time of the

affair, but did not know exactly what was going on. He had seen a text message between John and

Kaycee about something they had done the night before, but John told him to not say anything

about it. Cory definitively found out about John and Kaycee’s sexual relations through Amanda,

whom Kaycee spoke to when the affair occurred.

From October to December of 2014, Cory sent John text messages that he was going to

expose the affair. Cory also sent threatening text messages to John. Cory eventually posted online

about John and Kaycee’s affair and he told Scott as well. John testified that Cory posted

information online about his affair with Kaycee in retaliation for being fired.

3. Effects of Disclosure

Scott had suspicions about Kaycee having an affair during the time it occurred, but he did

not make any accusations because he did not know for sure. Scott found out about the affair around

October 2014 from Cory and the online post.

Scott owned Sakco Precision, a manufacturing company. Scott and John did business

together. But Scott stopped doing business with John about six months before Scott found out

about the affair between John and Kaycee.

However, John testified that when Scott found out about his and Kaycee’s affair, Scott

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