DIVERSIFIED WOOD RECYCLING, INC. v. Johnson

251 P.3d 908
Court of Appeals of Washington·Decided May 16, 2011·No. 65264-8-I·Published·Cited by 5 cases

Opinion

251 P.3d 908 (2011)

DIVERSIFIED WOOD RECYCLING, INC., a Washington corporation, Respondent,
v.
Harold JOHNSON, also known as Hal Johnson and Jane Doe Johnson, husband and wife, Defendants, and
Kuleana, LLC, a Washington limited liability company and Harold E. Johnson, a single man, Appellants.

No. 65264-8-I.

Court of Appeals of Washington, Division 1.

May 16, 2011.

*910 George M. Ahrend, Ahrend Law Firm PLLC, Moses Lake, WA, for Appellants.

Maris Baltins, Law Offices of Maris Baltins, P.S., Spokane, WA, for Respondent.

John Henry Guin, Law Office of John H. Guin, PLLC, Spokane, WA, for Defendant/Other Party.

*911 BECKER, J.

¶ 1 This is the second of two linked opinions concerning a judgment of foreclosure on property subject to a construction lien. In the first case, we affirmed the judgment of foreclosure. The appellant was Harold Johnson. We concluded that the lien claimant, Diversified Wood Recycling Inc., satisfied the statutory prerequisites for maintaining a foreclosure action. Diversified Wood Recycling v. Johnson, ___ Wash.App. ___, 251 P.3d 293 (2011).

¶ 2 In this case, the appellants are Harold Johnson's father (also named Harold Johnson) and a limited liability company, Kuleana LLC. Appellants argue they should have been allowed to intervene in the foreclosure action in order to seek vacation of the judgment. They contend they are owners of the property and that they were not joined as parties to the action, hence the judgment is void.

¶ 3 Because appellants did not attempt to intervene until after judgment was entered, the denial of their motion to intervene was justified by its untimeliness. In addition, the relief they sought—vacation of the judgment as void—was not available. We do not decide whether they were owners. We hold that the nonjoinder of an owner does not make a foreclosure judgment void; it simply means that the owner's interest is unaffected. The order of the trial court is affirmed.

BACKGROUND

¶ 4 The foreclosure action is discussed at length in the linked opinion, No. 65263-0-I. Briefly, respondent Diversified was hired by a man named Harold Johnson to clean up tree stumps and slash on land in Spokane County. This man held himself out as the property owner with an address in Puyallup. Diversified performed the work and improved the property. Diversified sent invoices totaling $10,680 to Harold Johnson at the Puyallup address. Diversified received no payment for its work. Diversified obtained county records and a "property profile" from a title company, both of which indicated the owner of the parcel of property on which the work was done was Harold Johnson at the Puyallup address. Diversified recorded a valid lien, initiated a foreclosure action naming Harold Johnson as the defendant, and made service upon Harold Johnson at the Puyallup address.

¶ 5 There are two Harold Johnsons concerned in this matter, father and son. The younger Harold Johnson (Junior) answered the complaint. Junior testified that he was not an owner but merely a contractor hired to develop property which, he said, had been purchased in 2006 by the older Harold Johnson (Senior). Junior argued that the action had to be dismissed, in part because joinder of the owner was an essential statutory prerequisite for maintaining a foreclosure action. Senior testified as a witness in the defense case. After a two day bench trial, the court entered judgment for Diversified and ordered foreclosure of the lien.

¶ 6 After the judgment was entered on June 13, 2008, Senior and Kuleana filed a motion to intervene for the purpose of moving to vacate the judgment and decree of foreclosure.[1] With it, they filed a motion to vacate pursuant to CR 60(b)(5) and (11).[2] The trial court denied the motion to intervene.[3] Senior and Kuleana assign error to this ruling.

UNTIMELINESS

¶ 7 "Upon timely application anyone shall be permitted to intervene in an action: . . . (2) when the applicant claims an interest relating to the property or transaction which is the subject of the action and he is so situated that the disposition of the action may as a practical matter impair or impede his ability to protect that interest, unless the applicant's interest is adequately represented by existing parties." CR 24 (intervention of right). "Where a person seeks to intervene after judgment, the court should allow intervention only upon a strong showing after considering all circumstances, including prior notice, prejudice to the other *912 parties, and reasons for and length of the delay." Kreidler v. Eikenberry, 111 Wash.2d 828, 832-33, 766 P.2d 438 (1989). "Abuse of discretion is the proper standard of review for a trial court's determination of timeliness." Kreidler, 111 Wash.2d at 832, 766 P.2d 438 (trial court did not err in denying postjudgment intervention).

¶ 8 The interests asserted by appellants were adequately represented by Junior. Junior, Senior, and Kuleana all desired to have the lien foreclosure action dismissed with prejudice. Senior and Kuleana argue that the owner was not served as required by RCW 60.04.141 and was not joined as required by RCW 60.04.171, and as a result, the court lacked both subject matter jurisdiction and statutory authority to proceed with the action. Junior made the same argument, without success.

¶ 9 Appellants do not show how they, by relitigating these issues, could drive the foreclosure action to a different outcome. Appellants suggest that Diversified was at fault for failing to ascertain their alleged ownership interests in the liened property. They presented a declaration from attorney Richard Campbell who has expertise in representing construction companies, to the effect that before filing a lien foreclosure lawsuit one should purchase a "litigation guarantee" or comprehensive title report that will serve as an insurance policy to ensure that all persons and entities with an interest in the property are named in the lawsuit.[4] Campbell's declaration is not useful because he does not address the facts of this case. We are not told what information a litigation guarantee would have turned up different from what Diversified learned through the inquiries it did make.

¶ 10 Senior appears to contend that the result of the trial was erroneous in that the property subjected to the lien included, according to Senior, not only the property upon which Diversified performed its work but also adjacent property that Senior claims to own.

¶ 11 The trial court found that in 2006, Harold Johnson purchased the property that is the subject of the action from a Michael McGarvey and conveyed it in 2007 to Kuleana. The legal description in the conveyance from "Harold Johnson" to Kuleana differs from the legal description in the McGarvey deed. In the trial and appeal of the foreclosure action, no one focused on the legal descriptions. Junior took the position that the deed to Kuleana conveyed all of Harold Johnson's interest in the subject property such that Kuleana had become the record owner at the time Diversified filed suit.

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DIVERSIFIED WOOD RECYCLING, INC. v. Johnson, 251 P.3d 908 (Wash. Ct. App. 2011).

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