Hugh Bangasser v. Thomas F. Bangasser

CourtCourt of Appeals of Washington
DecidedOctober 14, 2019
Docket78595-8
StatusUnpublished

This text of Hugh Bangasser v. Thomas F. Bangasser (Hugh Bangasser v. Thomas F. Bangasser) 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
Hugh Bangasser v. Thomas F. Bangasser, (Wash. Ct. App. 2019).

Opinion

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON

HUGH F. BANGASSER, an individual; ) No. 78595-8-I and ELIZABETH B. HALL, an individual,) (Consolidated with No. 78670-9-I)

Respondents, ) DIVISION ONE

v. ) THOMAS F. BANGASSER, an ) individual; BANGASSER & ) ASSOCIATES, INC., a Washington ) corporation, ) UNPUBLISHED OPINION

Appellants,

and

VISION VASHON, ostensibly a ) Washington non-profit corporation, ) Defendant. ) FILED: October 14, 2019

SCHINDLER, J. — The Uniform Limited Partnership Act, chapter 25.10 RCW, gives

the superior court the discretion to issue a lien against the transferable interest of the

judgment debtor in a limited partnership. Siblings Thomas Bangasser, Elizabeth Hall,

and Hugh Bangasser are limited partners of the MidTown Limited Partnership.1 In

these consolidated appeals, Thomas challenges the charging and disbursement orders

1 We refer to siblings Elizabeth Hall, Hugh Bangasser, and Thomas Bangasser by their first

names for clarity and mean no disrespect by doing so. No. 78595-8-I (Consol. with No. 78670-9-1)/2

entered against his interest in the limited partnership to pay judgment creditors

Elizabeth and Hugh the award for attorney fees incurred postjudgment. We affirm.

This is the third appeal in this case. The facts are set forth in Hall v. Bangasser,

No. 76077-7-I (Wash. Ct. App. Jan. 16, 2018), http://www.courts.wa.gov/opinions/pdf/

760777.pdf, and Banqasser v. Banqasser, No. 77398-4-I (Wash. Ct. App. Jan. 14,

2019), http://www.courts.wa.gov/opinions/pcif/773984.pdf, and will be repeated only as

necessary.

MidTown Limited Partnership

MidTown is a Washington limited partnership. The primary asset of the

partnership is several parcels of commercial real estate in Seattle. The limited partners

are siblings or entities owned by siblings. Thomas Bangasser was the general partner

of MidTown until 2015.

Loans to Thomas Bangasser

In October 2003, Elizabeth Hall loaned her brother Thomas $75,000. Thomas

signed a promissory note as the secretary/treasurer of Vision Vashon, a now-defunct

nonprofit corporation. Thomas guaranteed payment of the promissory note personally

and as the president of Bangasser & Associates Inc. The promissory note provides that

payment on the note with interest is due October 2004.

In October 2003, Hugh Bangasser loaned Thomas $70,000. Thomas signed a

promissory note on behalf of Vision Vashon. Thomas guaranteed payment of the

promissory note personally and as the president of his company Bangasser &

Associates. The promissory note provides that payment on the note with interest is due

October 2004.

2 No. 78595-8-I (Consol. with No. 78670-9-1)/3

Thomas never made any payments on the principal or interest due on the

promissory notes to either Elizabeth or Hugh. Both of the promissory notes include a

provision for the award of reasonable attorney fees and costs in a lawsuit to enforce the

notes to the prevailing party.

Breach of Partnership Agreement Lawsuit

On June 22, 2015, the limited-partner siblings voted to remove Thomas as the

general partner of MidTown.

In September 2015, Thomas filed a lawsuit against MidTown and the limited

partners (collectively, MidTown) for breach of the partnership agreement and claimed

he was entitled to compensation. Thomas also sought a security interest in property

owned by MidTown and appointment of a receiver to sell the property owned by

MidTown.

Thomas filed a is pendens against the property. The court granted MidTown’s

motion to strike the is pendens because the lawsuit Thomas filed did not involve a

dispute over the title to real property.

MidTown filed a motion for partial summary judgment on two issues: (1) Thomas

was validly removed as the general partner and (2) Thomas had no right of first refusal

regarding the property or the interests of the limited partners in the partnership. In

response to the motion, Thomas conceded both these issues. The court granted the

motion for partial summary judgment, entered a final judgment under CR 54(b), and

awarded attorney fees to MidTown.

On appeal, Thomas challenged the decision to strike the us pendens he filed on

the property and the order on summary judgment. We affirmed. Bangasser v. MidTown

3 No. 78595-8-I (Consol. with No. 78670-9-1)/4

Ltd. P’ship, No. 75226-0-I (Wash. Ct. App. Apr. 24, 2017), http://www.courts.wa.gov/

opinions/pdf/752260 pdf.~ .

Lawsuits To Enforce the Promissory Notes

In December 2015, Thomas sent an e-mail to Elizabeth and Hugh stating, “[W]e

were finally able to refinance/sell our Vashon Island real estate and would like to now

address the outstanding Promissory Notes payable to you.”

On July 14, 2016, Elizabeth filed a lawsuit against Thomas, Vision Vashon, and

Bangasser & Associates (collectively, Thomas) to enforce the October 2003 promissory

note for $75,000 plus prejudgment and postjudgment interest and attorney fees and

costs.

On September 13, 2016, Elizabeth filed a motion for summary judgment.

Elizabeth argued Thomas never made any payments and acknowledged his obligation

to pay the 2003 promissory note. The court granted the motion for summary judgment.

On October 14, 2016, the court entered a judgment in favor of Elizabeth for the principal

amount owed, prejudgment interest, and attorney fees and costs for a total of

$194,737.63. The court ordered postjudgment interest of $24.66 per day. Thomas filed

an appeal. We affirmed and awarded Elizabeth attorney fees and costs on appeal.

HaN, No. 76077-7-I, slip op. at 1.

On November 22, 2016, Hugh filed a lawsuit against Thomas, Vision Vashon,

and Bangasser & Associates (collectively, Thomas) to enforce the October 2003

promissory note and entry of a judgment for the principal amount owed plus

prejudgment and postjudgment interest and an award of attorney fees and costs.

2 Thomas later voluntarily dismissed the lawsuit.

4 No. 78595-8-I (Consol. with No. 78670-9-1)15

Hugh filed a motion for summary judgment. The court granted the motion for

summary judgment. On August 18, 2017, the court entered a judgment against Thomas

for the principal amount owed and prejudgment interest in the amount of $184,681.09.

The court ordered postjudgment interest of $72.86 per day. The court reserved ruling

on the request for an award of attorney fees. On September 8, 2017, the court awarded

Hugh reasonable attorney fees in the amount of $39,831 .00. Thomas filed an appeal.

We affirmed and awarded Hugh attorney fees and costs on appeal. Bangasser, No.

77398-4-I, slip op. at 1.

Sale of the MidTown Progerty and Entry of Charging Orders

In May 2017, MidTown sold the property it owned for $23,300,000. A letter dated

June 22, 2017 addressed partial distribution from the sale of the ‘23rd & Union

Property.” The letter states the sale proceeds of $14,041,347 “will be distributed next

week to the five limited partnership groupings in five equal shares of $2,808,269.” The

letter also states, “Our hope is that the funds will be transferred to your respective banks

by Friday, June 30th.”

On July 7, Elizabeth filed a motion for an order to show cause why the court

should not enter a charging order against the interest of Thomas in the limited

partnership for the amount Thomas owed on the October 14, 2016 judgment plus

postjudgment interest.

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