Mark Whitmore v. Zane Larsen

CourtCourt of Appeals of Washington
DecidedOctober 20, 2020
Docket36863-7
StatusUnpublished

This text of Mark Whitmore v. Zane Larsen (Mark Whitmore v. Zane Larsen) 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
Mark Whitmore v. Zane Larsen, (Wash. Ct. App. 2020).

Opinion

FILED OCTOBER 20, 2020 In the Office of the Clerk of Court WA State Court of Appeals, Division III

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON DIVISION THREE

MARK WHITMORE, ) ) No. 36863-7-III Respondent, ) ) v. ) ) ZANE LARSEN, individually, ) UNPUBLISHED OPINION AFFORDABLE ADVANCE ) AUTOCARE, a Washington Limited ) Liability Company, d/b/a EVERGREEN ) TIRE, and OCCUPANTS, ) ) Appellants. )

SIDDOWAY, J. — Zane Larsen appeals the findings, conclusions, and judgment

entered following a bench trial, finding him liable for unlawful detainer and imposing

damages, attorney fees and costs totaling $165,680.40. We reverse and remand with

directions to dismiss the unlawful detainer claim. No. 36863-7-III Whitmore v. Larsen

FACTS AND PROCEDURAL BACKGROUND

For over 25 years, Charles Chambers owned and operated an automotive and tire

business in Pullman. The business operated out of a large commercial building that was

owned by Dorothy Martin at the time Mr. Chambers bought the business. Ms. Martin

leased the ground on which the building was located. When Ms. Martin died in 1997 or

1998, Mr. Chambers and his wife bought the building and entered into ground leases of

their own. Most of the building and other business premises were located on a former

railroad right-of-way that the Chamberses leased from the Washington State Department

of Transportation (DOT).

The Chamberses had a second ground lease that addressed an historical

encroachment. After the commercial building was constructed in 1950 by Widmer &

Widmer Roofing Specialists, Inc., Maybelle Keiser, who owned adjoining land to the

east,1 brought a quiet title action and, in October 1962, established title to land that

extended a little over 10 feet under Widmer’s building. Widmer dealt with the problem

of its encroachment by signing a lease effective November 1, 1962, under which it agreed

to pay $100 per year to lease a roughly 10 x 250 foot strip of Ms. Keiser’s land. Ms.

1 The boundaries of the Widmer and Chambers business premises appear to run SSW to NNE and WNW to ESE rather than north to south and east to west. In discussing spatial relationships at trial the parties referred more simply (albeit less exactly) to locations being to the east, west, north, or south. So do we.

2 No. 36863-7-III Whitmore v. Larsen

Keiser continued to charge only $100 per year rental to Widmer and its assignee for the

next 24 years.

By the time Ms. Martin acquired the building in 1987, Mr. Whitmore’s parents

had acquired Ms. Keiser’s property interests. Beginning with Ms. Martin’s acquisition of

the building in 1987, Mr. Whitmore’s parents, succeeded to by a Whitmore Family Trust

and thereafter by Mr. Whitmore (collectively “the Whitmores”), substantially raised the

rent payable for the strip of land being used by the automotive/tire business. The lease

with Ms. Martin extended the leased strip of land by another 194 by 10 feet, yet it

increased the rent from only $100 per year to $700 per month—amounting to $8,400 per

year.

During Mr. Chamber’s ownership and operation of the automotive/tire business, a

gravel road or driveway that the Whitmores claimed to own ran along the eastern

boundary of his leased property and continued to the north, where it ended in a

turnaround at a grain elevator owned by the Whitmores. Ms. Martin’s and the

Chamberses’ leases with the Whitmores allowed them to make nonexclusive use of the

road/driveway. (The Martin lease described it as a “private road” while the Chambers

lease described it as a “common driveway.” Ex. P12, at 2; Ex. P14, at 4.) Among other

users of the road/driveway were the Whitmores, their grain elevator lessees, and

recreational vehicle owners to whom the Whitmores would rent space on football

3 No. 36863-7-III Whitmore v. Larsen

weekends. The Chambers lease in effect in 2014 required the Chamberses to repair,

maintain, grade and gravel the road/driveway annually.

In August 2014, Mr. Chambers announced his intention to sell the automotive/tire

business and retire, and Zane Larsen expressed interest in acquiring it. Mr. Larsen

entered into an agreement to purchase the business and building in October 2014 that was

subject to contingencies.2 The purchase did not close until April 2016, but Mr. Larsen

began operating the business in November 2014, “to get [his] feet under [him],” and in

light of Mr. Chamber’s intention to retire. Report of Proceedings (RP) at 201-02.

In the late summer or fall of 2014, Mr. Chambers informed Mr. Whitmore that he

would not renew the ground lease for Mr. Whitmore’s encroached-upon land, whose

three-year term would end on January 31, 2015. He informed Mr. Whitmore that Mr.

Larsen would be buying the business and Mr. Larsen and Mr. Whitmore would need to

negotiate their own lease. On February 10, 2015, Mr. Chambers wrote Mr. Whitmore a

confirming letter, which reads:

I am writing you to confirm that our rental contract has ended as of January 31st, and as you know, because of health reasons, I have sold the business to Zane Larsen. I recommend that you contact Mr. Larsen and work out the rental agreement with him as soon as possible.

Ex. P15.

2 The purchase was made by Mr. Larsen and his limited liability company, Affordable Advance Autocare, which is also an appellant. For simplicity, we refer only to Mr. Larsen.

4 No. 36863-7-III Whitmore v. Larsen

It is undisputed that Mr. Larsen and Mr. Whitmore thereafter unsuccessfully

engaged in negotiations toward a lease. Mr. Whitmore would later testify that he tried to

negotiate a lease with Mr. Larsen “[m]ultiple times” but Mr. Larsen “refused every term

that we’ve tried to put together.” RP at 52, 55. When Mr. Larsen finally presented a

proposed written lease, Mr. Whitmore refused to sign it.

For his part, Mr. Larsen claims the negotiations stalled when he discovered “red

flags.” RP at 204. One was that Mr. Whitmore could not provide a satisfactory survey of

the proposed leasehold. Mr. Larsen also learned that the gravel road that Mr. Whitmore

claimed to own had formerly been Kaylor Road, a public road, and Ms. Keiser had not

named the city of Pullman or any other governmental agency as a party in her quiet title

action. He ultimately came to doubt that Mr. Whitmore owned the land underneath and

adjacent to his building and refused to negotiate further until he could resolve his

concerns.

In June 2015, Mr. Whitmore served a three-day notice to pay rent or vacate on Mr.

Larsen. The notice asserted that past due rent of $7,500 was owed and if not paid, Mr.

Whitmore would file an unlawful detainer action under RCW 59.12.030(3). The rent was

not paid, and the following week Mr. Whitmore filed the action below.

Mr. Whitmore’s complaint for unlawful detainer alleged that Mr. Larsen was Mr.

Whitmore’s tenant under “a month to month lease” under which Mr. Larsen owed $1,500

5 No. 36863-7-III Whitmore v. Larsen

per month, for a total of $7,500. Clerk’s Papers (CP) at 3. Implicit was that the last rent

paid was for the month of January 2015, the last month of the Chambers lease (or so the

parties believed). In answering the complaint, Mr. Larsen denied that he and Mr.

Whitmore had a lease agreement and alleged that Mr. Whitmore did not own the property

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