Marcus & Millichap Real Estate Investment Services of Seattle, Inc. v. Yates, Wood & MacDonald, Inc.

369 P.3d 503, 192 Wash. App. 465
CourtCourt of Appeals of Washington
DecidedFebruary 1, 2016
Docket73199-8-I
StatusPublished
Cited by14 cases

This text of 369 P.3d 503 (Marcus & Millichap Real Estate Investment Services of Seattle, Inc. v. Yates, Wood & MacDonald, Inc.) 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
Marcus & Millichap Real Estate Investment Services of Seattle, Inc. v. Yates, Wood & MacDonald, Inc., 369 P.3d 503, 192 Wash. App. 465 (Wash. Ct. App. 2016).

Opinion

Dwyer, J.

¶1 Forty-six years ago, this court set forth the principle that voluntary membership in a professional organization gives rise to a corresponding obligation to comply with that organization’s bylaws. 1 Where those bylaws contain an agreement to arbitrate, this principle applies with equal force. Under such circumstances, a binding agreement to arbitrate is adequately evidenced by proof of membership in the organization; a signed agreement is not required. Notwithstanding the subsequent enactment of the uniform arbitration act 2 (UAA), the rule enunciated by this court retains its viability. Thus, the trial court correctly applied this rule to the facts before it in determining that there exists a valid agreement to arbitrate the underlying dispute at issue herein. Accordingly, we affirm.

I

¶2 Marcus & Millichap Real Estate Investment Services of Seattle, Inc., is a real estate brokerage firm with its principal offices located in Seattle. On July 31, 2014, Marcus & Millichap, through its agents Scott Morasch and Kellan Moll, executed an exclusive representation agreement with the Goetzinger Family LLP to sell the Ticino Apartments (the Property), located in Seattle. At this time, *470 Yates, Wood & MacDonald, Inc., a real estate brokerage and property management firm, was the Property’s manager.

¶3 Following the execution of the exclusive representation agreement, Marcus & Millichap marketed the Property in-house to its list of potential buyers. It did not list the Property with any multiple listing service. In response to these marketing efforts, Marcus & Millichap received offers to buy the Property. As a result, the Goetzinger Family LLP accepted an offer to purchase the Property from the as-signee of BriarBox LLC. On November 24, 2014, the sale of the property closed and Marcus & Millichap both earned and received a commission.

¶4 Marcus & Millichap and Yates are both voluntary members of the Commercial Broker’s Association (CBA), 3 a member-owned trade association that provides commercial real estate multiple listing services to its members. Section X.A of the CBA bylaws contains an arbitration provision requiring arbitration of commission disputes arising among or between CBA members:

A. Duty to Arbitrate. It is the duty of the members of this Association (and each so agrees) to submit all controversies involving commissions, between or among them to binding arbitration by the Association, rather then [sic] to bring a suit to law. The foregoing includes controversies which arose prior to one of the parties becoming a member.
The term “commissions” as used above means commissions or fees arising from the real estate brokerage business as the same is now or in the future defined in RCW 18.85.010(1); together with interest and out-of-pocket costs or expenses related thereto. The terms shall include commissions or fees actually paid, as well as commissions or fees lost as a result of the acts of another member.
*471 Accordingly, no members may institute legal action involving such a controversy against any other member without the prior approval of the Board of Directors.

The applicability of this arbitration provision is the central issue on appeal.

¶5 On December 9, 2014, Yates, pursuant to the CBA bylaw arbitration provision, initiated arbitration proceedings against Marcus & Millichap, seeking one-half of the commission earned on the sale of the Property. Marcus & Millichap answered Yates’s arbitration complaint, denying the allegations. It did not, however, challenge the CBA’s arbitral jurisdiction in its answer.

¶6 Nevertheless, before arbitration commenced, Marcus & Millichap filed a complaint for declaratory judgment against Yates in the King County Superior Court, alleging that no arbitration agreement between the parties existed. Before substantial discovery had been conducted, Marcus & Millichap and Yates filed cross motions pursuant to RCW 7.04A.070, seeking to stay and compel the arbitration, respectively. The superior court, finding the existence of a valid agreement to arbitrate, granted Yates’s motion to compel arbitration and dismissed the suit. Marcus & Millichap appeals.

II

¶7 Marcus & Millichap first contends that because its signed CBA membership application form has not been produced by either party, it is under no duty to arbitrate the underlying dispute. This is so, it asserts, because absent a signed membership application form, there is no evidence that Marcus & Millichap manifested assent to the CBA bylaws or to the arbitration agreement contained therein. We disagree.

*472 ¶8 Where the parties dispute the validity of an agreement to arbitrate, RCW 7.04A.070 4 directs the court to “proceed summarily to decide the issue.” While no Washington court has squarely addressed the requirements of this “summary proceeding,” courts in other jurisdictions have considered the issue in greater depth. 5 See, e.g., J.A. Walker Co. v. Cambria Corp., 159 P.3d 126 (Colo. 2007); Moffett v. Life Care Ctrs. of Am., 219 P.3d 1068 (Colo. 2009); Jack B. Anglin Co. v. Tipps, 842 S.W.2d 266 (Tex. 1992). In J.A. Walker Co., the Colorado Supreme Court recognized that, pursuant to the Colorado Uniform Arbitration Act, the determination of “the existence of an arbitration agreement is an expedited process that starts with the trial court considering ‘affidavits, pleadings, discovery, and stipulations’ submitted by the parties.” 159 P.3d at 130 (quoting Jack B. Anglin Co., 842 S.W.2d at 269). “The court then must determine ‘whether material issues of fact are disputed and, if such factual disputes exist, [it must] conduct! ] an expedited evidentiary hearing to resolve the dispute.’ ” J.A. Walker Co., 159 P.3d at 130 (alterations in original) (quoting Haynes v. Kuder, 591 A.2d 1286, 1290 (D.C. 1991)). “Thus an eviden-tiary hearing only is necessary if‘the material facts necessary to determine the issue are controverted, by an opposing affidavit or otherwise admissible evidence ....’” J.A. Walker Co., 159 P.3d at 130 (quoting Jack B. Anglin Co., 842 S.W.2d at 269). “If the material facts are undisputed, then the trial court can resolve the challenge on the record before it.” J.A.

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Bluebook (online)
369 P.3d 503, 192 Wash. App. 465, Counsel Stack Legal Research, https://law.counselstack.com/opinion/marcus-millichap-real-estate-investment-services-of-seattle-inc-v-washctapp-2016.