Fremont Housing Group, Llc, V. Mod Superfast Pizza, Llc

Court of Appeals of Washington·Decided January 20, 2026·No. 87868-9·Unpublished

Opinion

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON

FREMONT HOUSING GROUP, LLC, a Washington limited liability company, No. 87868-9-I

Respondent,

DIVISION ONE

v.

MOD SUPER FAST PIZZA, LLC, a UNPUBLISHED OPINION Delaware limited liability company,

Appellant.

CHUNG, J. — Fremont Housing Group LLC (“Fremont”) and MOD Super Fast Pizza LLC (“MOD”) entered into a commercial lease in September 2018. In June 2024, Fremont brought an action against MOD for breach of the lease, in which MOD failed to appear. Fremont subsequently obtained a default judgment that included accelerated rent damages. Once MOD learned of the proceedings, it moved to vacate the judgment under CR 60(b). The trial court commissioner denied the motion. MOD filed a motion to revise the commissioner’s ruling on the motion to vacate. The trial court denied the motion to revise and MOD now appeals. Because the trial court did not abuse its discretion, we affirm.

FACTS

Fremont and MOD entered into a commercial lease in September 2018.

Under the lease, MOD was to rent premises at The Epicenter from Fremont for ten years, ending in June 2029. Section 15 of the lease describes multiple events

that would constitute default and breach, including rent default and abandonment. Under Section 15.1, failure to make a payment of rent for five days after written notice from Fremont constitutes rent default. Under Section 15.2 of the lease, absence from the premises for 30 days or longer while in default of any provision of the lease constitutes abandonment.

Section 16 of the lease identifies remedies for default, including termination of the lease. However, Section 16.2 specifies that “Landlord shall not be entitled to accelerate Rent payable under the Lease unless Tenant is in default,” including under Section 15.1, “provided, however, for purposes of this Section 16.2, a default under Section 15.1 shall not include a default based on Tenant’s failure to pay an amount about which there exists a good faith dispute.” Further, Section 16.2 continues, upon such termination, Fremont may recover unpaid rent at the time of termination and, as relevant here, future rent. The lease defines future rent as “[t]he worth at the time of award of the amount by which the reasonable value of the unpaid Rent for the balance of the Term of this Lease exceeds the amount of such rental loss that Tenant proves could have been reasonably avoided.”

MOD stopped paying rent in April 2024. On April 11, 2024, MOD sent Fremont a letter informing Fremont that it was abandoning the premises and the lease. Fremont subsequently sent MOD notices of default on April 16, 2024, and May 10, 2024.

Fremont then initiated this action against MOD on June 18, 2024. The deadline to answer the complaint was July 10, 2024. MOD failed to appear or

respond to the complaint. Subsequently, on July 18, 2024, Fremont moved for a default judgment, asserting as damages “base rent for the months of May 2024 through June 2029 . . . totaling no less than $770,804.00.” A King County Superior Court commissioner granted the motion and entered the default judgment on July 19, 2024.

MOD asserts that it first learned of this action on October 3, 2024, from MOD’s national litigation counsel, which discovered the default judgment during a litigation search. Thereafter, on October 22, 2024, MOD moved to vacate the default judgment, asserting (1) that its failure to appear was due to excusable neglect and (2) MOD had a prima facie defense to Fremont’s damages claim because the lease did not allow for the award of unmitigated accelerated rent under these circumstances.

According to MOD, its registered agent did not receive service of process and did not transmit notice of the lawsuit to MOD. The parties do not dispute that MOD’s registered agent is Corporation Services Company (“CSC”). CSC has a business agreement with Accufacts, a company that allows CSC to use its business address and “handles the initial receipt, logging, and uploading of all documents directed to CSC’s registered agent customers in Washington.” Fremont’s declaration of service, signed by a process server at Halo Messenger Services, LLC, attests that the complaint was personally served on Ellen Jones, “Customer Service Associate at [CSC],” on Thursday, June 20, 2024, at 3:15 p.m. MOD, however, submitted a declaration by Ellen Jones, identifying herself as “an Executive Assistant for Accufacts” and stating she had “no recollection of

receiving any documents in [this] . . . matter on June 20, 2024, or at any other time.” MOD also presented evidence that when MOD asked CSC to look into the certificate of service for the complaint, CSC responded that it “ran a search” on all documents served that day in Washington and “did not locate any documents related to this case.”

The same commissioner who granted the default heard MOD’s motion to vacate on December 10, 2024. The commissioner found it likely that Jones had been served, noting that there was a dispute regarding service of the summons and complaint:

We have a process server -- professional process server, it appears, who indicates that in a declaration signed, I believe the day after service was -- he indicates service was attained, that on day and time at location, a specific individual was served with the summons and complaint. . . . [T]his was in June. In October of the same year, we have a declaration from the individual, who was allegedly served, indicating that she doesn’t have any recollection of being served with anything from plaintiff here, Fremont Housing Group, or at anytime. And she has no record of having entered that service in any records that they have, and apparently the records don’t demonstrate that.

...

But under these circumstances, I do not find that Ms. Jones’[s]

declaration really goes to answering the declaration of service, which is standard form declaration of service, very clear, date, time, location, and individual. So I’m persuaded that that’s the case.

Likewise, the commissioner found that MOD’s failure to appear was not excusable error based on case law “that basically says if there’s a breakdown in the way something is done if things are—if there is a problem like that, that does not amount to excusable neglect.”

Finally, the commissioner found the lease contained a valid acceleration clause, reasoning, “I don’t see how going to trial is going to somehow allow

another judicial officer to come up with a – some sort of figure or algorithm or something like that, that’s got to allow for a different judgment amount.” Accordingly, the commissioner denied MOD’s motion to vacate the default judgment.

MOD then sought revision. After a hearing, the court made a credibility determination that MOD had been served and found that the damages awarded were “supported by the lease provisions which does have an acceleration clause.” Accordingly, the court affirmed the commissioner’s ruling. MOD timely appeals.

DISCUSSION

“Where the superior court has made a decision on a motion for revision, the appeal is from the superior court’s decision, not from the commissioner’s decision.” Boeing Emps. Credit Union v. Burns, 167 Wn. App. 265, 270, 272 P.3d 908 (2012). “But when the superior court denies a motion for revision, it adopts the commissioner’s findings, conclusions, and rulings as its own.” State ex rel. J.V.G. v. Van Guilder, 137 Wn. App. 417, 423, 154 P.3d 243 (2007) (citing RCW 2.24.050).

We review a court’s decision regarding a motion to vacate a default judgment for abuse of discretion. TMT Bear Creek Shopping Ctr., Inc. v. Petco Animal Supplies, Inc., 140 Wn. App. 191, 199, 165 P.3d 1271 (2007). “A trial court abuses its discretion only when its decision is manifestly unreasonable or based on untenable grounds, or for untenable reasons.” Id.

CR 60(b)(1) allows a court “[o]n motion and upon such terms as are just”

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Fremont Housing Group, Llc, V. Mod Superfast Pizza, Llc, (Wash. Ct. App. 2026).

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