Hugh Bangasser v. Thomas F. Bangasser

Court of Appeals of Washington·Decided October 14, 2019·No. 78595-8·Unpublished

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THOMAS F. BANGASSER, an ) individual; BANGASSER & ) ASSOCIATES, INC., a Washington ) corporation, ) UNPUBLISHED OPINION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

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

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.

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. On July 10, the court entered a charging order. The charging order directed MidTown to “set aside $201 099.91 plus interest from its declared distributions to Thomas F. Bangasser and hold that amount for the benefit of Judgment Creditor Elizabeth B. Hall pursuant to RCW 25.10.556.” On August 22, Elizabeth obtained an order to disburse proceeds and release the July 10, 2017 charging order.

No. 78595-8-I (Consol. with No. 78670-9-1)16 On August 30, the court granted Hugh’s motion for a charging order against Thomas’ partnership interest for the August 18, 2017 judgment of $185,950.36 plus postjudgment interest.

On August 31, 2017, MidTown deposited approximately $1.4 million of Thomas’

Free access — add to your briefcase to read the full text and ask questions with AI

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

Hugh Bangasser v. Thomas F. Bangasser (Hugh Bangasser v. Thomas F. Bangasser) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Davis v. Michigan Department of the Treasury
489 U.S. 803 (Supreme Court, 1989)
State v. O'NEILL
700 P.2d 711 (Washington Supreme Court, 1985)
Employco Personnel Services, Inc. v. City of Seattle
817 P.2d 1373 (Washington Supreme Court, 1991)
Adkins v. ALUMINUM COMPANY OF AM.
756 P.2d 142 (Washington Supreme Court, 1988)
Strenge v. Clarke
569 P.2d 60 (Washington Supreme Court, 1977)
Mairs v. Department of Licensing
854 P.2d 665 (Court of Appeals of Washington, 1993)
Jongeward v. BNSF Railway Co.
278 P.3d 157 (Washington Supreme Court, 2012)
Foster v. Gilliam
268 P.3d 945 (Court of Appeals of Washington, 2011)
Griffin v. Thurston County
196 P.3d 141 (Washington Supreme Court, 2008)
City of Spokane v. County of Spokane
146 P.3d 893 (Washington Supreme Court, 2006)
State, Dept. of Ecology v. Campbell & Gwinn
43 P.3d 4 (Washington Supreme Court, 2002)
Bostain v. Food Exp., Inc.
153 P.3d 846 (Washington Supreme Court, 2007)
Right-Price Recreation v. Connells Prairie
46 P.3d 789 (Washington Supreme Court, 2002)
State Of Washington v. Living Essentials, Llc, Et Ano.
436 P.3d 857 (Court of Appeals of Washington, 2019)
State v. Bash
925 P.2d 978 (Washington Supreme Court, 1996)
Department of Ecology v. Campbell & Gwinn, L.L.C.
146 Wash. 2d 1 (Washington Supreme Court, 2002)
Right-Price Recreation, L.L.C. v. Connells Prairie Community Council
146 Wash. 2d 370 (Washington Supreme Court, 2002)
City of Spokane v. Spokane County
158 Wash. 2d 661 (Washington Supreme Court, 2006)
Bostain v. Food Express, Inc.
159 Wash. 2d 700 (Washington Supreme Court, 2007)
Griffin v. Thurston County Board of Health
165 Wash. 2d 50 (Washington Supreme Court, 2008)