Ford Services, Llc v. The City Of Sedro-wooley

CourtCourt of Appeals of Washington
DecidedJune 29, 2015
Docket72131-3
StatusUnpublished

This text of Ford Services, Llc v. The City Of Sedro-wooley (Ford Services, Llc v. The City Of Sedro-wooley) 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.

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Ford Services, Llc v. The City Of Sedro-wooley, (Wash. Ct. App. 2015).

Opinion

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON DIVISION ONE

FORD SERVICES, LLC, a Washington No. 72131-3-1 limited liability company,

Appellant,

CITY OF SEDRO-WOOLLEY, a Washington municipal corporation,

Respondent, — ^c t —'—I v.

DEUTSCHE BANK NATIONAL TRUST COMPANY, as Trustee on behalf of 5- r*'": Certificateholders of the Morgan o

Stanley ABS Capital 1 Inc. Trust 2006- CD O HE6, Mortgage Pass-Through Certificates, Series 2005-HE6, UNPUBLISHED OPINION

Respondent. FILED: June 29, 2015

JOSE JUAN AMARO & MARY AMARO, husband and wife,

Defendants.

Verellen, A.C.J. — We must decide the narrow issue whether the long-arm

statute's affidavit requirement applies to out-of-state personal service upon a foreign

corporation in a utility lien foreclosure action. Under these facts, and upon this briefing,

we conclude that it does. When a plaintiff makes out-of-state personal service upon a

defendant who has submitted to the jurisdiction of Washington courts, the long-arm

statute's affidavit requirement applies. The trial court did not err in concluding that No. 72131-3-1/2

absent such an affidavit, the default judgment against Deutsche Bank must be vacated.

We affirm.

FACTS

The material facts are undisputed. The City of Sedro-Woolley (City) filed suit to

foreclose utility liens on property owned by the Amaros. Deutsche Bank had a recorded

deed of trust on the property of the Amaros. The City personally served Deutsche Bank

in California, but Deutsche Bank did not answer the complaint. The City was granted a

default judgment.

Heritage Forest purchased the property at a sheriff's sale. That same day, the

Amaros executed a quitclaim deed to Zion Services. Zion Services assigned its interest

in the property to Ford Services, LLC (Ford). Ford later redeemed the property from

Heritage Forest.

Washington's long-arm statute, RCW 4.28.185, permits personal service outside

the state. But personal service outside the state is "valid only when an affidavit is made

and filed to the effect that service cannot be made within the state." RCW 4.28.185(4).

The City did not make or file such an affidavit.

Deutsche Bank sought to vacate the default judgment one year after it was

entered. Deutsche Bank argued below that since no affidavit was ever filed, the default

judgment was void.

The trial court determined that "no affidavit, as required by RCW 4.28.185(4),

was filed before the default judgment against Deutsche Bank was entered."1 The trial

court therefore vacated the default judgment.

1 Clerk's Papers at 104. No. 72131-3-1/3

Ford appeals.

ANALYSIS

When the facts are undisputed, the determination of a superior court's personal

jurisdiction over a party is a question of law. Lewis v. Bours, 119 Wn.2d 667, 669, 835

P.2d 221 (1992). We review questions of law de novo. City of Bonnev Lake v. Kananv,

185 Wn. App. 309, 314, 340 P.3d 965 (2014).

Out-of-state personal service is governed by statute. RCW 4.28.180-. 185; see

Ralph's Concrete Pumping, Inc. v. Concord Concrete Pumps, 154 Wn. App. 581, 585-

86, 225 P.3d 1035 (2010). Statutes allowing service outside the state are in "derogation

of common law" and must be "strictly construed." Ralph's Concrete, 154 Wn. App. at

585. "At common law it was fundamental that personal service of summons upon a

defendant must be had upon him within the limits of the state, in order to confer

jurisdiction upon a court of that state." Gerrick & Gerrick Co. v. Llewellyn Iron Works,

105 Wash. 98, 102, 177 P. 692 (1919); see also State ex rel. Hopman v. Superior Court

of Snohomish County, 88 Wash. 612, 617, 153 P. 315 (1915).

Ford contends the issue here is a matter of statutory construction. We agree.

There is no constitutional controversy here. The constitutional due process notice and

minimum contacts standards for personal jurisdiction apply equally to actions in rem,

quasi in rem, or in personam. Shaffer v. Heitner, 433 U.S. 186, 212, 97 S. Ct. 2569, 53

L Ed. 2d 683 (1977); Mullane v. Cent. Hanover Bank & Trust Co., 339 U.S. 306, 314,

70 S. Ct. 652, 94 L. Ed. 865 (1950). No. 72131-3-1/4

Specifically, Ford contends RCW 4.28.180 should be interpreted to permit out-of-

state service separate and apart from RCW 4.28.185 and its requirements. But Ford's

arguments are unpersuasive.

Ford argues that before the legislature enacted RCW 4.28.185 in 1959, the prior

version of RCW 4.28.180 allowed out-of-state personal service with no affidavit

requirement. Therefore, Ford contends the savings clause of RCW 4.28.185(6)—

"[njothing herein contained limits or affects the right to serve any process in any other

manner now or hereafter provided by law"—allows out-of-state personal service under

RCW 4.28.180 in current foreclosure actions. But Ford does not establish the

standards that applied to out-of-state personal service before 1959. Ford relies on

Harder v. McKinnev, 187 Wash. 457, 60 P.2d 84 (1936). But that case resolved only

the narrow issue whether a complaint had to be filed before a party effectuated out-of-

state service on a nonresident defendant in a foreclosure action. Harder did not

analyze or discuss any other requirements for out-of-state personal service.

Ford also cites Hatch v. Princess Louise Corp., 13 Wn. App. 378, 534 P.2d 1036

(1975). Hatch obtained both a money judgment and a decree foreclosing a chattel

mortgage. This court concluded the money judgment was invalid because Hatch failed

to file an affidavit as required by RCW 4.28.185(4). In dicta, this court affirmed the

foreclosure decree, but the Princess Louise Corporation did "not contest the foreclosure

portion of the judgment." Hatch, 13 Wn. App. at 379. Hatch's dicta regarding the

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Related

Mullane v. Central Hanover Bank & Trust Co.
339 U.S. 306 (Supreme Court, 1950)
Shaffer v. Heitner
433 U.S. 186 (Supreme Court, 1977)
Mennonite Board of Missions v. Adams
462 U.S. 791 (Supreme Court, 1983)
Lewis v. Bours
835 P.2d 221 (Washington Supreme Court, 1992)
Hatch v. Princess Louise Corp.
534 P.2d 1036 (Court of Appeals of Washington, 1975)
Ralph's Concrete v. Concord Concrete Pumps
225 P.3d 1035 (Court of Appeals of Washington, 2010)
Harder v. McKinney
60 P.2d 84 (Washington Supreme Court, 1936)
Gerrick & Gerrick Co. v. Llewellyn Iron Works
177 P. 692 (Washington Supreme Court, 1919)
Northwestern & Pacific Hypotheek Bank v. Ridpath
70 P. 139 (Washington Supreme Court, 1902)
State ex rel. Hopman v. Superior Court
88 Wash. 612 (Washington Supreme Court, 1915)
Ralph's Concrete Pumping, Inc. v. Concord Concrete Pumps, Inc.
154 Wash. App. 581 (Court of Appeals of Washington, 2010)
City of Bonney Lake v. Kanany
340 P.3d 965 (Court of Appeals of Washington, 2014)

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