Fred Palidor, App. v. David Hovde, Harvey And Judith Flax Living Trust, Res.

Court of Appeals of Washington·Decided March 18, 2013·No. 68112-5·Unpublished

Opinion

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON

FRED PALIDOR, No. 68112-5-1

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DAVID HOVDE; HARVEY and UNPUBLISHED -

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JUDITH FLAX LIVING TRUST;

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JUDITH FLAX and HARVEY FLAX, FILED: March 18. 2013 ^Lt =?f" and their marital community; VJP —so

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KEYWEST LOCK SERVICE, INC.; C3 CP

GREGORY PURCELL and JANE DOE PURCELL, and their marital community,

Respondents.

Cox, J. — "Every action shall be prosecuted in the name of the real party

in interest."1 There may be multiple real parties in interest in a particular case.2 In such a case, the failure to join all real parties in interest is subject to objection

by the defendant or defendants.3 Such a timely objection, without joinder of all real parties in interest, may subject the action to dismissal.4

1CR 17(a).

2 Nw. Indep. Forest Mfrs. v. Dep't of Labor &Indus., 78 Wn. App. 707, 716, 899P.2d6(1995).

3!cL 4 See id.

Here, Fred Palidor is the sole named plaintiff. Nancy Taylor, her corporation (Dream on Futon Co.), and the trustee for Taylor's bankruptcy estate are not named. The defendants timely objected, based on CR 17(a). We hold that Palidor failed to name as plaintiffs all real parties in interest, and the trial court did not abuse its discretion in dismissing this case. We affirm.

The material facts of this case are largely undisputed. Nancy Taylor is the sole owner and officer of Dream on Futon Co., a Washington corporation doing business in Bellingham. She entered into a written commercial lease on behalf of this corporation in 2004. The lease requires disputes between the parties to be addressed through arbitration, except for actions under the unlawful detainer statute.

In 2005, the Harvey and Judith Flax Living Trust (the "Trust") purchased the building housing the leased premises. The Trust is the assignee of the former owner's interest in the lease. David Hovde manages the commercial property on behalf of the Trust.

A dispute arose between the parties to the lease over payment of rent.

On May 13, 2010, Hovde called Taylor and told her that he was going to change the locks on the leased premises and would not let her re-enter unless she paid at least $20,000 of the claimed back rent. Taylor claims that she told Hovde that his actions were illegal and demanded access to the property.

Thereafter, Hovde had a locksmith from KeyWest Lock Services, Inc.

change the locks to the property. Taylor and her husband, Fred Palidor, went to the property and encountered Hovde.

Palidor claims that Taylor was distraught and he was concerned for her welfare, so he negotiated to pay Hovde $10,000 for Taylor's reentry onto the property. Palidor obtained a cashier's check made payable to "Dream on Futon Company." Taylor endorsed the check to "Harvey and Judith Flax." Hovde then let Taylor back on the property.

The parties continued to negotiate over the lease, but they did not come to any agreement. In June 2010, Taylor filed for individual bankruptcy protection.

In December 2010, Palidor, as the sole plaintiff, commenced this action against Hovde, the Trust, Judith Flax, Harvey Flax and their marital community (collectively "Hovde"). He also joined KeyWest Lock Service, Inc. and its owner Gregory Purcell, Jane Doe Purcell, and their marital community (collectively "KeyWest"), as defendants. Palidor's three claims all arise from the May 2010 lockout: (1) unjust enrichment, (2) Consumer Protection Act violation, and (3) civil conspiracy. He seeks damages and an award of attorney fees.

Eleven months later, Hovde moved to dismiss the action, claiming that Palidor was not the real party in interest for any of his three claims under CR 17(a). It appears that KeyWest joined in the motion. After hearing oral argument 28 days later, the trial court granted the motion, dismissing with prejudice all claims against Hovde and KeyWest.

Palidor appeals.

STANDARD OF REVIEW

A CR 12(b)(6) motion to dismiss alleges that the opposing party has failed to state a claim upon which relief can be granted. An appellate court treats such a motion as a motion for summary judgment "when matters outside the pleading are presented to and not excluded by the court."5 When reviewing an order of summary judgment, an appellate court engages in the same inquiry as the trial

court.6 Thus, we consider the facts in the light most favorable to the nonmoving party.7 Summary judgment is appropriate only if there is no genuine issue of material fact, and the moving party is entitled to judgment as a matter of law.8 We review de novo a trial court's grant of summary judgment.9

CR 17(a) requires that the party who commences an action be a real party

in interest. There may be multiple real parties in interest in a particular case.10 Under CR 17(a), a defendant may move to dismiss the action on the basis that

the plaintiff is not a real party in interest.11 Likewise, a defendant may also move to dismiss on the basis that not all real parties in interest are plaintiffs.12

5 Sea-Pac Co., Inc. v. United Food and Commercial Workers Local Union 44, 103 Wn.2d 800, 802, 699 P.2d 217 (1985).

6 Right-Price Recreation, LLC v. Connells Prairie Cmtv. Council. 146 Wn.2d 370, 381, 46 P.3d 789 (2002).

7 Indoor Billboard/Wash., Inc. v. Integra Telecom of Wash., Inc.. 162 Wn.2d 59, 70, 170 P.3d 10 (2007).

8CR 56(c).

9 Indoor Billboard/Wash.. Inc., 162 Wn.2d at 69.

10 Nw. Indep. Forest Mfrs.. 78 Wn. App. at 716.

11 Dennis v. Heggen. 35 Wn. App. 432, 434, 667 P.2d 131 (1983).

12 See Nw. Indep. Forest Mfrs.. 78 Wn. App. at 716.

Accordingly, we review de novo a trial court's determination of who the real parties in interest are in a case. But whether the trial court properly dismisses a case or allows joinder, ratification, or substitution following such a determination is a different question. The trial court's application of these curative procedures of CR 17(a) is reviewed for abuse of discretion.13 We may affirm on any ground supported by the record whether or not the trial court considered that ground.14 REAL PARTIES IN INTEREST

Palidor argues that the trial court erred when it dismissed his three claims on the basis that he was not a real party in interest. Hovde argues that the real

party in interest is Taylor, Dream on Futon, or Taylor's bankruptcy trustee.15 Hovde maintains that Palidor is not a real party in interest.

At the outset, it appears that the trial court dismissed this action on the basis that Palidor was not a real party in interest. For purposes of our analysis,

13 Sprague v. Svsco Corp.. 97 Wn. App. 169, 171,982P.2d 1202(1999)

(holding that "[decisions regarding application of civil rules are reviewed for an abuse of discretion."); accord Plese-Graham, LLC v. Loshbaugh. 164 Wn. App. 530, 537-38, 269 P.3d 1038 (2011). In Stichting Ter Behartiging Van de Belangen Van Oudaandeelhouders In Het Kapitaal Van Savbolt Int'l B.V. v. Schreiber. the Second Circuit stated that an abuse of discretion standard applies to a "district court's application of the curative procedures set forth in that rule [FRCP 17(a)]" within the context of a motion to dismiss for lack of standing, which motion is reviewed de novo). 407 F.3d 34, 43 (2d Cir. 2005). The court noted that three other federal circuits have "uniformly held that abuse of discretion is the proper standard of review" to apply to whether dismissal is proper under the federal counterpart to our CR 17(a). Id.

14 LaMon v. Butler. 112Wn.2d 193, 200-01, 770 P.2d 1027(1989).

15 Brief of Respondents at 20-21; see also Respondents KeyWest Lock Service, Inc., Gregory Purcell and Jane Doe Purcell's Opening Brief at 6-7.

we need not decide that question. Rather, we assume, without deciding, that Palidor is a real party in interest for one or more of the three claims he asserts.16 Accordingly, the issue is whether his failure to join Taylor, Dream on Futon, and Taylor's bankruptcy trustee supported the trial court's dismissal of the action.

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Fred Palidor, App. v. David Hovde, Harvey And Judith Flax Living Trust, Res., (Wash. Ct. App. 2013).

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