Emily Rains, Apps/cross-resps v. Keystone Windows & Doors, Resp/cross-app.

CourtCourt of Appeals of Washington
DecidedJuly 27, 2020
Docket79173-7
StatusUnpublished

This text of Emily Rains, Apps/cross-resps v. Keystone Windows & Doors, Resp/cross-app. (Emily Rains, Apps/cross-resps v. Keystone Windows & Doors, Resp/cross-app.) 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
Emily Rains, Apps/cross-resps v. Keystone Windows & Doors, Resp/cross-app., (Wash. Ct. App. 2020).

Opinion

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON

MICHAN RHODES, an individual; KEYSTONE WINDOWS AND No. 79173-7-I DOORS, a Washington corporation, DIVISION ONE Respondents/Cross-Appellants, UNPUBLISHED OPINION v.

EMILY SHARP RAINS and MICHAEL RAINS, individually and their marital community; RAINS LAW GROUP, a professional limited liability company,

Appellants/Cross-Respondents,

HEATHER CHRISTIANSON and JOHN DOE CHRISTIANSON, and their marital community,

Defendants.

SMITH, J. — Michan Rhodes and her now defunct company, Keystone

Windows and Doors (Keystone), sued Emily Rains,1 her husband, Michael Rains,

and Emily’s business, Rains Law Group, for alleged wrongs committed during the

course of a business relationship. This is the third appeal following two separate

trials. In the first trial, a jury found that Emily breached her fiduciary duty to

Keystone and Rhodes. In the second trial and at issue in this appeal, a jury

found the Rainses liable to Keystone under the Washington Consumer Protection

Act (CPA), chapter 19.86 RCW.

1 For clarity, we refer to Emily and Michael by their first names throughout.

Citations and pin cites are based on the Westlaw online version of the cited material. No. 79173-7-I/2

Following the jury’s verdict, the trial court offset the jury’s damages award

by the award in the first trial. The Rainses then moved for judgment as a matter

of law, or in the alternative, for new trial and/or remittitur. The trial court denied

the motions.

The Rainses appeal the orders denying their motions for judgment as a

matter of law and a new trial. And Keystone appeals the trial court’s entry of

judgment, which offset the damages. Because Keystone presented sufficient

evidence for a reasonable jury to find for it on each element of its CPA claim, we

conclude that the trial court did not err when it denied the Rainses’ motion for

judgment as a matter of law. Additionally, because there were no irregularities at

trial that prejudiced the Rainses, the trial court did not err when it denied the

motion for a new trial. However, we conclude that the trial court abused its

discretion when it offset the damages award. Therefore, we remand for

reinstatement of the full damages award.

FACTS2

In 2011, Rhodes was told that Keystone would soon go bankrupt. In need

of assistance and having received a referral for Emily’s company, Rhodes

approached Emily for help with Keystone’s accounting and planning. Emily

promised that she could help with Keystone’s financial situation and that she

would provide expert financial services. After Rhodes researched Emily’s

2 Keystone moves this court to strike various parts of the record and the Rainses’ briefs. We exercise our discretion to review the record and briefs in their entirety. See, e.g., RAP 10.7 (providing this court discretion to accept an improper brief).

2 No. 79173-7-I/3

credentials, Rhodes hired Emily as a consultant and later an employee of

Keystone.3 Emily also hired Heather Christianson, her sister, to assist with

accounting and Michael to assist with information technology. Various conflicts

occurred between Emily, Michael, and Rhodes, the details of which are disputed.

Following one such issue, Emily resigned on October 17, 2012. Keystone later

went bankrupt.

In December 2012, Rhodes and Keystone sued the Rainses and Rains

Law Group for legal malpractice, breach of fiduciary duty, and violation of the

CPA. Emily counterclaimed that Keystone willfully withheld her wages. On the

Rainses’ motion for summary judgment, the trial court dismissed the legal

malpractice and CPA claims. In 2014, Keystone’s breach of fiduciary duty claim

and Emily’s wage claim proceeded to trial (2014 trial). A jury found Emily, acting

through Rains Law Group, liable to Keystone or Rhodes. And it found Keystone

liable to Emily for withheld wages. It awarded Keystone $88,764.38 for Emily’s

conduct as an in-house officer of Keystone and $7,685.29 for her conduct as an

outside attorney. The jury also awarded Emily $18,780.08 for willfully withheld

wages. After adding interest and attorney fees, doubling the wage claim

damages, and calculating the offset, the trial court entered a net judgment of

$40,162.89 for Keystone.

In 2016, Rhodes and Keystone appealed the order granting summary

judgment in favor of the Rainses. We held that there were “genuine issues of

3Rhodes later testified that she did not hire Emily as an employee of Keystone but that Emily made herself an employee.

3 No. 79173-7-I/4

material fact with respect to all five elements of” the CPA claim. Rhodes v.

Rains, 195 Wn. App. 235, 238, 381 P.3d 58 (2016) (Rhodes I). We therefore

reversed and remanded for trial on Keystone and Rhodes’ claims that Emily,

Michael, and Rains Law Group violated the CPA. Rhodes I, 195 Wn. App. at

251.

In August 2018, the CPA claim proceeded to trial (2018 trial). A jury found

that Emily and Michael violated the CPA and owed damages to Keystone totaling

$80,000. Accordingly, Keystone submitted its proposed entry of judgment. In

their reply, the Rainses argued that the trial court should offset the damages in

the 2018 trial by those in the 2014 trial because the damages were duplicative.

On entering judgment, the court held, “With regards to the $80,000, the Court

finds that that is indeed duplicative, and . . . [it] should be offset by the damages

that were awarded in the first trial.” The trial therefore awarded Keystone $0.00,

except that the court awarded Keystone $25,000 in enhanced damages.

In October 2018, the Rainses moved for judgment as a matter of law,

and/or a new trial and/or remittitur. The trial court denied the Rainses’ posttrial

motions. And in November 2018, the Rainses and Keystone appealed the trial

court’s rulings and entry of judgment regarding the CPA claim (current appeal).

In June 2019, the Rainses moved the 2014 trial court for relief from the

jury verdict and final judgment pursuant to CR 60. The trial court denied the

motion, finding that the motion was untimely. The Rainses appealed, presenting

three claims of error: (1) the trial court abused its discretion when it rejected her

CR 60(b) motion as untimely and meritless, (2) the trial court erred when it

4 No. 79173-7-I/5

denied her motion to vacate the 2018 trial, and (3) we should recall our mandate

from the appeal of the 2016 appeal. Rhodes v. Rains, No. 80571-1-I, slip op. at

6 (Wash. Ct. App. June 22, 2020) (unpublished),

http://www.courts.wa.gov/opinions/pdf/805711.pdf (Rhodes II). We held that the

Rainses’ CR 60(b) motion was untimely and that the trial court therefore did not

err. Rhodes II, slip op. at 9. Similarly, we concluded that the Rainses’ motion to

recall our mandate from the 2016 appeal was untimely.4 Rhodes II, slip op. at 9.

Therefore, we affirmed the trial court’s order denying the CR 60 motion and

denied the motion to recall our mandate.

Before us in this appeal, the Rainses contend that the trial court erred

when it denied her posttrial motions, and Keystone contends that the trial court

improperly offset damages.

ANALYSIS

Judgment as a Matter of Law5

The Rainses contend that the trial court erred when it denied their motion

4 In this appeal, the Rainses seek to recall the mandate for other reasons.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Helman v. Sacred Heart Hospital
381 P.2d 605 (Washington Supreme Court, 1963)
Goodman v. Goodman
907 P.2d 290 (Washington Supreme Court, 1995)
DeHeer v. Seattle Post-Intelligencer
372 P.2d 193 (Washington Supreme Court, 1962)
Kimball v. Otis Elevator Co.
947 P.2d 1275 (Court of Appeals of Washington, 1997)
Matter of Dann
960 P.2d 416 (Washington Supreme Court, 1998)
Reeploeg v. Jensen
503 P.2d 99 (Washington Supreme Court, 1972)
Holland v. City of Tacoma
954 P.2d 290 (Court of Appeals of Washington, 1998)
State v. Johnson
829 P.2d 1082 (Washington Supreme Court, 1992)
Industrial Indem. Co. of Northwest, Inc. v. Kallevig
792 P.2d 520 (Washington Supreme Court, 1990)
Mason v. Mortgage America, Inc.
792 P.2d 142 (Washington Supreme Court, 1990)
Bunch v. KING COUNTY DEPT. OF YOUTH SERV.
116 P.3d 381 (Washington Supreme Court, 2005)
In Re Estate of Cordero
113 P.3d 16 (Court of Appeals of Washington, 2005)
Faust v. Albertson
222 P.3d 1208 (Washington Supreme Court, 2009)
Lian v. Stalick
62 P.3d 933 (Court of Appeals of Washington, 2003)
Panag v. Farmers Ins. Co. of Washington
204 P.3d 885 (Washington Supreme Court, 2009)
Davis v. Microsoft Corp.
70 P.3d 126 (Washington Supreme Court, 2003)
Holiday Resort Community Assoc. v. Echo Lake Assoc. LLC.
135 P.3d 499 (Court of Appeals of Washington, 2006)
Michan Rhodes, Et Ano. v. Emily Sharp, Et Ano.
195 Wash. App. 235 (Court of Appeals of Washington, 2016)

Cite This Page — Counsel Stack

Bluebook (online)
Emily Rains, Apps/cross-resps v. Keystone Windows & Doors, Resp/cross-app., Counsel Stack Legal Research, https://law.counselstack.com/opinion/emily-rains-appscross-resps-v-keystone-windows-doors-respcross-app-washctapp-2020.