James Betournay v. 2nd Half, Llc

CourtCourt of Appeals of Washington
DecidedFebruary 25, 2020
Docket52313-2
StatusUnpublished

This text of James Betournay v. 2nd Half, Llc (James Betournay v. 2nd Half, Llc) 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
James Betournay v. 2nd Half, Llc, (Wash. Ct. App. 2020).

Opinion

Filed Washington State Court of Appeals Division Two

February 25, 2020

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON

DIVISION II JAMES and JUDITH BETOURNAY, Oregon No. 52313-2-II State residents,

Plaintiffs below

PRISCILLA STEVENS,

Plaintiff Intervenor below/Respondent.

v.

2ND HALF, LLC, a Washington limited UNPUBLISHED OPINION liability company; AMARRA MANNA, a Washington resident,

Appellants.1

MELNICK, J. — Priscilla Stevens and her grandmother, Sara Ristick, had an option

agreement to purchase real property in Tacoma from 2nd Half LLC. Ammar Manna’a2 then

purchased the property from 2nd Half, subject to the option agreement. After a bench trial, the

court determined that Manna’a and his agents breached the option agreement and intentionally

interfered with a contractual relationship.

Manna’a contends that the court’s findings of fact do not support its conclusion of law that

he intentionally interfered with a contractual relationship. He also contends that the court erred by

reforming the contract to allow Stevens to exercise the option alone after Ristick passed away, by

1 RAP 3.4 allows this court on its own motion to change a case title. It is ordered that the court clerk shall change the title of this case to reflect the case title in this opinion. 2 His name is alternatively spelled Manna. 52313-2-II

extending the time for the option to be exercised, and by awarding attorney fees as damages. He

further argues that Stevens is not entitled to equitable relief because she has unclean hands. We

disagree. Manna’a finally argues that the court erred by awarding attorney fees as damages. We

agree. We affirm in part and reverse in part.

FACTS3

On June 5, 2013, Jeff Graham, the manager of 2nd Half, entered into an option agreement

to sell real property in Tacoma to Stevens and her grandmother, Ristick. The option agreement

referenced a lease agreement for the same property, and the lease agreement referenced the option

agreement. The option agreement had a May 30, 2016 deadline for closing. The option price for

the property was $116,000. Ristick died in 2015.

The option agreement provided in relevant part:

e. Method of Exercising Option. The only method for exercising the option is to tender into escrow, on or before the expiration date, the entire option price; provided, however, that the parties may make subsequent agreements in writing that alter or amend the expiration date or method of exercising the option. Costs of any escrow and excise tax will be born entirely by the Grantee/Buyer. Costs of title insurance, if any is desired, will be paid entirely by Grantee/Buyer.

Clerk’s Papers (CP) at 129.

On March 17, 2016, prior to closing on the property, Stevens signed a listing agreement to

sell the property. Even though she was not the authorized owner or manager of 2nd Half, Stevens’s

grandfather, Ron Steve, represented to the listing agent that she was. She listed 2nd Half as the

3 The procedural history of this case is a bit unusual. In an unrelated lawsuit, parties named Betournay won a money judgment against 2nd Half. However, before the court entered judgment, 2nd Half executed a statutory warranty deed transferring title to Manna’a. The Betournays asked the court to place a lien on the property to satisfy the judgment, claiming that 2nd Half fraudulently transferred the property. The court then granted Priscilla Stevens motion to intervene. The Betournays then successfully moved to dismiss their claims. The case then proceeded to trial with Stevens against 2nd Half and Manna’a.

2 52313-2-II

sellers. At that time, because the option had not been exercised, Stevens did not own the residence

and she had no connection at all with 2nd Half, except for the option agreement.

On April 11, Stevens signed a purchase and sale agreement for the property. She signed

on behalf of 2nd Half. The agreement listed the buyer by name. The transaction was sent to

Rainier Title for closing; however, on May 13, Rainier Title refused to close on the transaction. It

cited various reasons including that Stevens had no managerial relationship to 2nd Half and that

2nd Half sold the property to Manna’a.

On April 19, 2nd Half transferred the title to the property to Manna’a, subject to Stevens’s

option agreement. 2nd Half was controlled by his friend and business partner, Jeff Graham.

While listing the property for sale, Stevens sought financing so she could exercise the

option agreement. She worked with Shawn Adkins, a commercial money broker. Pinnacle Equity

Group, through its employee, Chris Unger, “was ready, willing, and able to loan $150,000 to

Stevens, which would have been more than enough to close on the option agreement.” CP at 130-

31. After Adkins and Unger learned of Rainier Title’s resignation, they had a new purchase and

sale agreement drawn up between Manna’a as seller and Stevens as buyer.

On May 17, Adkins took the new agreement to John Stratford Mills, attorney for Manna’a.

Adkins requested that Mills call him. Instead, Mills showed up at Adkins’s office unannounced,

and for a period of twenty to twenty-five minutes discussed the bad history between the parties.

He made negative comments about Ron Steve, and discouraged Adkins from getting involved or

making a loan to Stevens. At the same time, Mills insisted that Manna’a would close if the

transaction closed in the name of the deceased Sara Ristick. A letter from Mills accompanied the

meeting. It claimed Manna’a would honor the option agreement, but it also said “Ammar isn’t

3 52313-2-II

interested in selling the property and is not going to sign your Purchase and Sale Agreement.” CP

at 131.

On May 31, Manna’a entered into a purchase and sale agreement with the same buyers that

Stevens had earlier procured. Though the agreement had a date of May 31, the buyers signed the

agreement on May 22, eight days before the option agreement with Stevens expired. Manna’a also

used the same real estate agent and sold the property at the price Stevens agreed to in the earlier

failed transaction.

Manna’a has a bad history with Steve.4 The following are the final findings of fact.

31. Mr. [Manna’a’s] interest in obtaining the property was motivated, in part, by revenge against Ron Steve for past business and legal problems. Mr. [Manna’a] was also motivated to not perform on the option agreement by greed. He and his friends/business partners worked both before and after the option deadline to impede the exercise of the option by trying to influence loan brokers and lenders, conveying the property away from 2nd Half LLC, entering into another contract to sell to the Garlingtons, and refusing to cooperate with Ms. Stevens and the people assisting her.

CP at 132.

32. Ms. Stevens was ready, willing and able to perform her obligations under the option agreement until stymied by Mr. [Manna’a’s] actions. While her actions, and those of Mr. Steve, in holding herself out as 2nd Half LLC in the Purchase and Sale Agreement with the Garlingtons in April 2016, are not condoned in any way by this Court, that act did not kill the ability to make the option agreement work. Those acts involved a transaction to sell the property, which couldn’t happen unless and until Ms. Stevens was able to exercise the option agreement. It also was not clear in the testimony that those acts were what caused Rainier Title to resign. The acts that killed the ability to make the option agreement work were done by Mr. [Manna’a], Mr. Graham, and Mr. Mills.

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