Estate Of Robert C. Cannon, V. P. Koichi Yagi Aka Peter Yagi

Court of Appeals of Washington·Decided April 24, 2023·No. 84093-2·Unpublished

Opinion

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON ESTATE OF ROBERT C. CANNON, No. 84093-2-I Respondent, DIVISION ONE v. UNPUBLISHED OPINION P. KOICHI YAGI, AKA PETER YAGI, Appellant.

MANN, J. — P. Koichi Yagi appeals an order determining that his creditor’s claim against the estate of Robert Cannon (Estate) is time-barred and unenforceable. Yagi contends that the trial court erred by (1) asserting jurisdiction, (2) finding that no payments were made on a promissory note, (3) not allowing more time for discovery, (4) awarding attorney fees to the Estate, and (5) removing a lis pendens on the Estate’s property. Finding no error, we affirm.

I.

Henry Cannon is the sole surviving heir of his deceased brother, Robert Cannon.

On November 10, 2021, Henry1 was appointed as the administrator of the Estate and granted nonintervention powers in King County Superior Court.

On that same day, Yagi petitioned for letters of administration in Thurston County Superior Court. Yagi asserted that he was a secured creditor to the Estate based on his

1 We use first names of Cannon family members when referring to them individually to avoid confusion and intend no disrespect.

ownership of a deed of trust related to a loan to Robert which was on file with the King County Recorder’s Office. He also claimed that the Estate owed him $386,971.18 as of September 2021, “with monthly interest accruing at $5,804.57 or $190.84 per day, in addition to collection costs and attorney’s fees.” Days later, Yagi filed a motion for order nunc pro tunc to correct the filing date of his petition for letters of administration to November 8, 2021. Yagi did not provide the Estate with notice of these filings and the Thurston County Superior Court did not enter any orders on Yagi’s petition or motion.

On November 17, 2021, Yagi filed a pro se motion in the King County probate action to vacate Henry’s appointment as the Estate’s administrator. There, Yagi claimed that there was a conflict of interest or appearance of bias because Henry had worked for “the Courts of King County” for 30 years until his retirement. Yagi said that he was “a major creditor in the referenced estate.” But he failed to properly note the motion for a hearing, and the trial court never heard or ruled on the motion.

One of the Estate’s primary assets is a house in Renton, Washington. When Henry tried to sell the house in February 2022, he discovered that Yagi had recorded a deed of trust (deed) against the house securing a $45,000.00 promissory note. The deed, made in March 2008 between Robert as grantor and Yagi as beneficiary, stated: “The entire balance of the promissory note secured by this Deed of Trust, together with any and all interest accrued thereon, shall be due and payable in full on September 10, 2008.” A promissory note, also made in March 2008, required Robert to pay interest at a rate of 18 percent on any unpaid principal after the September 2008 due date.

On March 3, 2022, the Estate commenced the present action in King County Superior Court, seeking a petition under the Trust and Estate Dispute Resolution Act

(TEDRA)2 to declare Yagi’s claim to a promissory note secured by the deed time-barred under the six-year statute of limitations for written contracts and thus, unenforceable.

Around the same time, Yagi completed a “request for information” summarizing his claims of what the Estate owed as to the deed and promissory note as follows: (1) $45,000.00 in principal; (2) $376,804.59 in interest, accrued between September 11, 2008 and March 10, 2022; and (3) $7,150.00 in attorney and collection costs. In total, Yagi claimed he was owed $428,954.59. On March 16, 2022, Yagi filed a lis pendens notifying the public that he was a creditor of the Estate with interest in the Renton “property which may be subject to judgment and execution by reason” of the deed. 3 On March 28, 2022, Yagi answered the Estate’s petition and moved to dismiss.4 He claimed that King County Superior Court lacked subject matter jurisdiction and was not the proper venue because he had commenced competing probate proceedings in Thurston County Superior County first. He continued asserting that King County Superior Court would be biased in favor of the Estate. He also alleged that he “never claimed” the principal amount remained $45,000.00 and said Robert had made payments to him. Yagi attached a declaration to this answer, which shows a smattering of dates, interest rates, dollar amounts, and purported payments.

In the Estate’s reply, Henry declared that he formerly worked for the King County Department of Adult and Juvenile Detention, retired in 2010, and had no relationship with any judicial officers of the King County Superior Court.

2 Chapter 11.96A RCW.

3 A lis pendens may be filed “any time after an action affecting title to real property has been

commenced.” RCW 4.28.320.

4 He also filed a copy of this pleading on March 29, 2022. There is no discernable difference

between the two pleadings.

On April 1, 2022, a trial court commissioner heard argument on the Estate’s TEDRA petition.5 Initially, the commissioner rejected any notion of bias given that Henry had formerly worked for King County. The commissioner determined that Robert never paid Yagi any money and, thus Robert would have been in default of the promissory note as of September 10, 2008. And because Yagi did not file suit on or before September 10, 2014, the commissioner concluded that the promissory note and deed were time-barred and not enforceable. Finally, the commissioner awarded the Estate its attorney fees and costs “pursuant to RCW 11.96A.250” in an amount to be determined later and directed Yagi to dismiss the action he filed in Thurston County Superior Court.6 Yagi moved to revise the commissioner’s ruling, but a trial court judge denied his motion in a May 2022 order. Yagi timely appealed the commissioner’s ruling and the judge’s order denying revision.

Meanwhile, in June 2022, Yagi moved to stay the trial court’s order pending resolution of appeal and, separately, the Estate sought an order to release the lis pendens. In a July 2022 order, the trial court granted Yagi’s request for a stay “conditioned” upon his “posting a supersedeas bond or cash with the King County Superior Court in the amount of $237,000.00 on or before July 20, 2022, as required by RAP 8.1.” It also ruled that, in the event the supersedeas bond or cash was not timely deposited, Yagi’s motion for stay would be denied and the Estate would be able to sell

5 Yagi also filed a surreply that same morning but the commissioner did not consider it because

such pleadings are “not allowed under the rules.” See King County Local Civil Rule 7(b)(4)(E).

6 In compliance, Yagi subsequently dismissed the Thurston County action.

the property “free and clear” of the deed and lis pendens. Yagi did not appeal the lis pendens order and he failed to post a bond or other security.7 II.

Yagi raises several issues on appeal, which we address in turn.

A.

First, Yagi contends that the trial court’s TEDRA orders are void for lack of subject matter jurisdiction and improper venue. We disagree.

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