Jonathan Wesley Ebbeler, V. Wfg National Title Company Of Wa

CourtCourt of Appeals of Washington
DecidedFebruary 20, 2024
Docket84849-6
StatusUnpublished

This text of Jonathan Wesley Ebbeler, V. Wfg National Title Company Of Wa (Jonathan Wesley Ebbeler, V. Wfg National Title Company Of Wa) 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
Jonathan Wesley Ebbeler, V. Wfg National Title Company Of Wa, (Wash. Ct. App. 2024).

Opinion

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON

JONATHAN WESLEY EBBELER AND No. 84849-6-I ELIZABETH ASHLEY EBBELER, husband and wife, DIVISION ONE

Appellants, UNPUBLISHED OPINION

v.

WFG NATIONAL TITLE COMPANY OF WASHINGTON, LLC, a Washington limited liability company; DANI LEGGETT and JANE/JOHN DOE LEGGETT, believed to be married persons,

Respondents.

FELDMAN, J. — Jonathan and Elizabeth Ebbeler (the Ebbelers) appeal the

trial court’s summary judgment order dismissing their claims against WFG National

Title Company of Washington, LLC (WFG), and its Limited Practice Officer, Dani

Leggett (collectively, the Escrow Defendants), based on issue preclusion

principles. 1 We reverse.

1 Although Washington courts and litigants often refer to this doctrine as “collateral estoppel,” it is “modernly referred to as issue preclusion.” Scholz v. Wash. State Patrol, 3 Wn. App. 2d 584, 594, 416 P.3d 1261 (2018). The U.S. Supreme Court has noted that the modern terminology has “replaced” the prior terminology, which it described as “a more confusing lexicon.” Taylor v. Sturgell, 553 U.S. 880, 892 n.5, 128 S. Ct. 2161 (2008). No. 84849-6-I

I

This appeal arises out of the Ebbelers’ failed attempt to purchase a home

in Shoreline, Washington. The home was previously owned by Alison Andrews,

who died in February 2018. Andrews’ son, Sidney Andrews, acting as the personal

representative of her estate (the Estate), listed the home for sale. The Ebbelers

attempted to purchase the home from the Estate, but the transaction failed to

close. The Ebbelers sued the Estate and lost. That was the Ebbelers’ first lawsuit

relating to the property and is referred to herein as Ebbeler I.

On appeal in the first lawsuit, our court summarized the failed attempt to

purchase the property, starting with the negotiations on price, as follows:

On March 28, 2019, the Ebbelers offered to purchase the property for $2 million, using the Northwest Multiple Listing Service (NWMLS) real estate purchase and sale agreement form (REPSA). On March 30, Andrews extended a counteroffer for $2.625 million, offered a personal representative’s deed in lieu of a statutory warranty deed, and required that any and all contingencies, both financing and inspections, be waived within 30 days of mutual acceptance. . . .

On March 31, 2019, the parties settled on a purchase price of $2.3 million. The REPSA contained the Estate’s proposed 30-day contingency period clause:

Buyer shall have 30 days from mutual acceptance to conduct all inspections, document reviews, financing approval, etc. . . . After 30 days, Buyer and Seller agree that all contingencies are deemed to be waived and will proceed to closing as specified in the agreement. Buyer may elect, before the 30 days has expired, to terminate the agreement with written notice and Earnest Money will be refunded to the Buyer.

Upon removal of Buyer’s contingencies or after thirty (30) days from mutual acceptance and delivery of the Residential Real Estate Purchase and Sale Agreement, whichever is sooner, the Earnest Money shall become a non-refundable deposit applicable toward the Purchase Price and no longer Earnest Money. If this transaction fails to close for any reason -2- No. 84849-6-I

other than default by Seller, the non-refundable deposit shall remain the property of Seller.

The parties agreed on a closing date of “on or before” May 29, 2019. They also agreed to use WFG National Title (WFG) as the closing agent. Once they agreed to these final terms, the Ebbelers deposited $65,000 in earnest money with WFG.

....

The Ebbelers allowed the contingency period to lapse and all contingencies were, at that point, waived. . . .

The Ebbelers, residents of Maryland, worked with a mortgage broker to obtain a $1.6 million loan from Washington Federal (WaFed) to purchase the property. WaFed prepared loan documents and forwarded them to WFG for the Ebbelers to execute. WFG arranged for a traveling notary to meet the Ebbelers to execute the loan and closing papers on Saturday, May 25, 2019, four days before the scheduled closing date.

WFG mistakenly provided the Ebbelers with a draft statutory warranty deed, rather than a personal representative’s deed, to approve. The Ebbelers approved the deed form, signed what they believed to be all remaining documents, and returned them via overnight mail to WFG.

WFG received the Ebbelers’ signed closing documents on the morning of May 28 and forwarded them to WaFed to review. The same day, the Ebbelers wired a $690,000 down payment to WFG.

Just before 6 p.m. that evening, Dani Leggett, the closing agent, emailed Andrews and asked him to arrive at WFG’s Seattle offices at 11 a.m. the next day to sign closing documents so she could “send documents to the lender prior to their funding cutoff.” Leggett informed Andrews that “[t]he buyer’s lender requires reviewing a portion of the seller signed documents prior to funding their loan and releasing us to record.” The following morning, Andrews told Leggett that he would come in to execute the closing documents but that she did not have the authority to distribute any documents to the Ebbelers’ lender until he provided written authorization for her to close.

At approximately 11 a.m. on May 29, WaFed notified WFG that it had discovered at least 13 errors in the Ebbelers’ signed loan documents that needed to be corrected before it would wire funds for closing. -3- No. 84849-6-I

At 1 p.m., [the attorney for the Estate, Lisa] Peterson notified Leggett that the Estate would not authorize her to send copies of signed documents to anyone unless and until all funds had been deposited. Leggett responded that the only documents she wanted to send were the signed escrow instructions, the “closing disclosure,” and the statutory warranty deed. When Peterson received this email, she told Leggett that the proper deed form should be a personal representative’s deed, not a statutory warranty deed, and that she would not authorize WFG to distribute a signed deed before funds were on hand to close. She also informed Leggett that Andrews would be there by 2:30 p.m. to sign the closing documents.

Leggett then sent an email notifying everyone involved in the transaction that once Andrews arrived to sign the documents and she had the “green light” to move forward with the closing, she would let everyone know. She further stated that it was her belief that the lender’s cutoff to fund the loan was 2 p.m. and suggested that the parties would need to extend the REPSA. At 1:40 p.m., the Ebbelers’ mortgage broker, Phil Mazzaferro, sent an email to the parties indicating that WaFed wanted more changes to the loan documents. Barbara Otero, WaFed’s loan manager, testified that the bank could not and would not fund the loan until these items were corrected.

Nothing in the record indicates if or when the errors in the Ebbelers’ loan documents were corrected. Neither WaFed nor the Ebbelers ever deposited the balance of the purchase price with WFG.

Andrews arrived at WFG’s offices at 2:17 p.m. and learned that WFG had prepared, and the Ebbelers had approved, the incorrect deed form. He immediately notified his attorney of the error and she sent WFG a personal representative’s deed for WFG to finalize. WFG asked its lawyer to approve the revised deed. Andrews signed all the closing documents, except the deed, by 2:48 p.m. He signed the correct deed form at 3:51 p.m. Because the King County Recorder’s Office closes at 3:30 p.m., WFG would have been unable to record the deed that day.

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