Kwiatkowski v. Drews

142 Wash. App. 463
CourtCourt of Appeals of Washington
DecidedJanuary 8, 2008
DocketNos. 31738-9-II; 31741-9-II
StatusPublished

This text of 142 Wash. App. 463 (Kwiatkowski v. Drews) 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
Kwiatkowski v. Drews, 142 Wash. App. 463 (Wash. Ct. App. 2008).

Opinion

¶1 — Joseph Kwiatkowski appeals: (1) the trial court’s order granting the three defendant banks’ motion to enforce a settlement agreement; (2) the trial court’s summary judgment dismissal of his damages claims against the three banks that served as successive guardians/limited guardians of his estate during his 15-year period of incapacity and against the two “special administrators” of his business interests, one who also acted as a limited guardian of his estate; (3) the trial court’s denial of his motions to set aside the guardianship court’s orders related to the discharge of the various guardians/limited guardians of the estate and for accountings; and (4) the trial court’s denial of his motion to amend his complaint and add parties brought after the trial court granted summary judgment to all defendants. He also challenges various attorney fees and cost awards on numerous grounds. We affirm.

Bridgewater, J.

FACTS

¶2 Kwiatkowski appeals several trial court orders and summary judgment dismissals in his damages action against several parties who, at various times, served as guardians or limited guardians of his estate and/or “special administrators” of his business during a term of incapacity [470]*470from 1986 to 2001. He also appeals the denial of his motions to set aside various orders entered in the underlying guardianship case. Because of our disposition, it is unnecessary to set out all the facts, other than the procedural facts that we address below.

¶3 In 1986, while vacationing in New Zealand, Kwiatkowski suffered a head injury in a car accident; later, he was determined to be incapacitated. His wife, Jana Kwiatkowski, died in the accident. That same year, the guardianship court appointed Bank of America (BOA), formerly Seattle First National Bank, as “guardian” of Kwiatkowski’s estate. At the same time, the guardianship court appointed a guardian ad litem (GAL) for Kwiatkowski.

¶4 In 1990, the guardianship court appointed Ralph Drews and James Frost as “special administrators” of Kwiatkowski’s company, the Great American Herb Company (GAHC), while ensuring that BOA did not have any ability to manage the company.1 Specifically, the guardianship court ordered that BOA was a limited guardian and that it was “exonerated from any and all liability in connection with the operations of the company.” Clerk’s Papers (CP) at 22. Kwiatkowski’s GAL approved this order.

¶5 In 1991, Kwiatkowski’s GAL petitioned for a change of guardianship in the estate. The guardianship court: granted this petition; discharged BOA; and later appointed Puget Sound National Bank, which later became Key Trust Company (Key Bank), as limited guardian. The guardianship court eventually discharged Key Bank and then appointed U.S. Bank as limited guardian.

¶6 In 1997, the guardianship court discharged U.S. Bank and appointed Drews as limited guardian of Kwiatkowski’s estate. After finding that Kwiatkowski was capable of managing his company, the guardianship court [471]*471discharged Drews and Frost as “special administrators” of GAHC and discharged Kwiatkowski’s GAL. Nevertheless, Drews remained as limited guardian of Kwiatkowski’s estate, to oversee Kwiatkowski in his business relationships. In 2001, the guardianship court terminated this limited guardianship because Kwiatkowski had regained full capacity. And in 2002, Drews filed his final report as limited guardian of the estate.

¶7 In 2004, Kwiatkowski filed a claim for damages against Drews, Frost, and the Banks,2 alleging three categories of claims: (1) breach of fiduciary duty, against all defendants; (2) negligence, against all defendants; and (3) conflict of interest, against only Drews and Frost. Each claim included several allegations regarding the defendants’ actions pertaining to Jana Kwiatkowski’s estate and Kwiatkowski’s guardianship, as well as regarding the defendants’ various capacities pertaining to GAHC. Among other things, Kwiatkowski alleged that he had suffered “financial and personal damages,” including the loss of his company, and he claimed that the defendants were jointly and severally liable. CP at 221.

¶8 In April 2004, the trial court granted summary judgment for Drews and Frost, dismissing the claims against them. The trial court then denied Kwiatkowski’s subsequent motion to set aside the 1997 order discharging the “special administrators,” noting that it had already granted summary judgment to Drews and Frost in this action. Kwiatkowski subsequently filed in this court a timely motion for discretionary review/notice of appeal of: (1) the order granting summary judgment for Drews and Frost and (2) the order denying the motion to set aside the prior order and for an accounting. We stayed the matter pending resolution of other issues in the case.

¶9 In June 2004, the trial court granted the Banks’ motions for summary judgment, dismissing all the claims [472]*472against the Banks with prejudice. In relation to the Banks, the trial court again denied Kwiatkowski’s motion to set aside the prior orders and for an accounting.3 Although the trial court initially denied the Banks’ requests for attorney fees and costs, on reconsideration it granted attorney fees and costs to the Banks.

¶10 In January 2005, Kwiatkowski entered into a settlement agreement with the Banks, wherein he agreed to waive his right to appeal the summary judgment dismissals in favor of the Banks and the Banks agreed to waive their rights to seek attorney fees and costs.4 After Kwiatkowski signed the settlement agreement, but before he filed the stipulated order of dismissal, one of his attorneys discovered what she believed was “new” information pertaining to the Banks’ performance of their duties; and she asked the Banks to “hold further work” on the settlement agreement. CP at 937, 964-65, 978-79, 3000. The Banks responded by filing a motion to enforce the settlement agreement.

¶11 Following several hearings in which Kwiatkowski challenged the validity and enforceability of the settlement agreement on a variety of grounds, and several additional rounds of discovery, the trial court granted the Banks’ motion to enforce the settlement agreement, filing its order in March 2006. Additionally, in May 2006, the trial court granted attorney fees and costs to BOA and Key Bank, in the amount of $65,823.98 and $32,198.08, respectively.

¶12 Meanwhile, in May 2006, Kwiatkowski filed a motion to amend his complaint and to add the following [473]*473parties: (1) Arthur Davies,5 (2) the attorney for the estate, (3) some of the guardians, (4) Drews and Frost as special administrators, and (5) Davies’s law firm. The trial court denied this motion in June 2006.

¶13 Kwiatkowski appealed. Thereafter, we lifted the stay on his prior notice of discretionary review/notice of appeal and consolidated the two appeals.

ANALYSIS

I. Issues Related to the Banks

A. Order Enforcing Settlement Agreement and Summary Judgment Orders

1. Related Facts

¶14 The negotiated settlement agreement with the Banks included paragraph five, which provides:

5.

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Bluebook (online)
142 Wash. App. 463, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kwiatkowski-v-drews-washctapp-2008.