Jerry Ross, V. Arcpe 1, Llc,a Ppellant

CourtCourt of Appeals of Washington
DecidedOctober 21, 2025
Docket59449-8
StatusPublished

This text of Jerry Ross, V. Arcpe 1, Llc,a Ppellant (Jerry Ross, V. Arcpe 1, Llc,a Ppellant) 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
Jerry Ross, V. Arcpe 1, Llc,a Ppellant, (Wash. Ct. App. 2025).

Opinion

Filed Washington State Court of Appeals Division Two

October 21, 2025

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON

DIVISION II JERRY R. ROSS and JUDITH ROSS, husband and wife, No. 59449-8-II

Respondents,

v. PUBLISHED OPINION ARCPE 1, LLC, a Florida limited liability company,

Appellants.

PRICE, J. — In 2007, Jerry and Judith Ross borrowed $350,000 under a line of credit. The

line of credit documents included a promissory note and a deed of trust that encumbered the

Rosses’ property. Unfortunately, the documents included different maturity dates for the

obligation—the maturity date included in the promissory note was January 31, 2017, and the date

included in the deed of trust was February 28, 2017, 28 days later.

The Rosses defaulted, failing to pay the balance of the line of credit by either maturity date.

Years later in February 2023, the lender, ARCPE 1 LLC, initiated nonjudicial foreclosure

proceedings against the Rosses.1 The initiation of the foreclosure was timely under the applicable

statute of limitations if the February 28 maturity date included in the deed of trust applied, but

untimely if the January 31 maturity date in the promissory note applied.

1 The promissory note and deed of trust were initially issued by Morgan Stanley Credit Corporation, but Morgan Stanley eventually assigned its interests to ARCPE. No. 59449-8-II

The Rosses responded with a lawsuit, alleging that the foreclosure was untimely. Both

parties moved for summary judgment. The superior court granted the Rosses’ motion for summary

judgment and awarded the Rosses attorney fees.

ARCPE appeals, contending that the statute of limitations had not expired because the

February 28 maturity date from the deed of trust controlled. ARCPE also argues that the superior

court erred in granting attorney fees to the Rosses. Both ARCPE and the Rosses request attorney

fees on appeal.

We affirm the superior court, deny ARCPE’s request for attorney fees, and grant the

Rosses’ request for attorney fees on appeal.

FACTS

I. BACKGROUND

In 2007, the Rosses obtained a $350,000 line of credit that was documented by a

promissory note and secured by a deed of trust. The Rosses executed the promissory note on

February 1 and the deed of trust on the following day, February 2.

A. THE DOCUMENTS

1. The Promissory Note

Although the promissory note did not explicitly use the words “maturity date,” that date is

found by reading two aspects of the note together—the provision tying the payoff date to 10 years

from the “date of this Agreement” and the provisions that set forth that date. Clerk’s Papers (CP)

at 193. The note provided that

[y]our account and credit privileges will terminate 10 years from the date of this Agreement (the “Termination Date”) . . . . On the Termination Date, you agree to and will pay . . . the entire outstanding balance on your Account . . . .

2 No. 59449-8-II

CP at 193 (emphasis added). The “date of this Agreement” is, in turn, found in two separate places

of the note, both at the beginning and at the end. CP at 193. The top of the note stated, “THIS

Agreement is made January 31, 2007.” CP at 193. Separately, on the final page (the “Allonge to

Note” where the lender signed), it said “Note Date: 01/31/2007.” CP at 198. Ten years from “the

date of this Agreement,” then, placed the promissory note’s maturity date at January 31, 2017. CP

at 193.

The promissory note also included several other provisions relevant to the parties’ dispute.

The note, for example, directed the borrower to refer to the deed of trust should they want more

information about the lender’s security interest for the loan.

3. Security Interest. To secure payment of your Account you will be signing a Deed of Trust which gives us a lien on the real property (the “Property”) indicated at the end of this Agreement. You should refer to the Deed of Trust for additional information concerning our security interest and our rights with respect to the Property upon default. . . .

CP at 193 (emphasis added).

In a paragraph labeled “Changes of Terms,” the promissory note also provided that the

lender “may change the terms of this Agreement . . . if [the borrower] agree[s] to the change in

writing at that time . . . .” CP at 194.

Finally, just above the Rosses’ signature lines, the note recited that the Rosses received a

copy of all of the documents, including the deed of trust and “agree to be bound by the terms of

all of the credit documents.” CP at 197 (capitalization omitted).

3 No. 59449-8-II

2. The Deed of Trust

Critically, the deed of trust provided a different maturity date than the promissory note for

the debt; the deed of trust stated that the payoff of the loan was due on February 28, 2017, rather

than January 31, 2017.

AMOUNT SECURED: Three Hundred, Fifty Thousand and 00/100 Dollars ($350,000.00) the outstanding balance of which, if not paid sooner, is due and payable on February 28, 2017.

CP at 201 (emphasis added).

Another provision of the deed of trust, arguably relevant to the parties’ dispute, referenced

the note for the terms of repayment. This same provision suggested that the note and the deed of

trust were expected to be executed simultaneously on the “same day.” CP at 202. The provision

stated that the deed of trust was intended

TO SECURE to Lender (a) the repayment of all indebtedness due and to become due under the terms and conditions of the [Note] executed by Borrower and dated the same day as this Deed of Trust . . . .

CP at 202 (emphasis added).

In addition, the deed of trust contained an attorney fees provision that required the borrower

to pay the lender’s fees for enforcing the loan obligations; it stated,

Borrower pays all reasonable expenses incurred by Lender and Trustee in enforcing the covenants and agreements of Borrower contained in this Deed of Trust, and in enforcing Lender’s and Trustee’s remedies . . . including, but not limited to, reasonable attorney’s fees.

CP at 205.

4 No. 59449-8-II

B. THE ROSSES FAIL TO PAY ON THE OBLIGATION; WARNINGS ARE SENT

Despite having promptly withdrawn the full $350,000 of the line of credit in 2007, the

Rosses failed to make any payments after 2009. ARCPE apparently took no immediate action.

But as early 2017 approached (when the loan would become due under either of the competing

maturity dates), the loan servicer for ARCPE began to send warning notices to the Rosses,

including 180-day, 60-day, 30-day, and a final notice.

The warning notices included dates that were inconsistent with the dates found in both the

promissory note and the deed of trust. The notices stated that the promissory note, “dated

02/06/2007,” was reaching its maturity date and the outstanding balance of the loan had to be paid

by “03/04/2017.”2 CP at 211-17. Moreover, in both January and February 2017, the loan servicer

sent monthly billing statements that represented that payments were due on the fourth of the

following month.

Notwithstanding these warning notices, the Rosses failed to make any further payment.

Again, ARCPE apparently took no action.

II. PROCEEDINGS BELOW

Finally, about six years later, ARCPE initiated a nonjudicial foreclosure by sending the

Rosses a notice of default on February 8, 2023.

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