Michelle Merceri, V. State Of Wa Dept. Of Transportation

CourtCourt of Appeals of Washington
DecidedApril 1, 2024
Docket85690-1
StatusUnpublished

This text of Michelle Merceri, V. State Of Wa Dept. Of Transportation (Michelle Merceri, V. State Of Wa Dept. Of Transportation) 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
Michelle Merceri, V. State Of Wa Dept. Of Transportation, (Wash. Ct. App. 2024).

Opinion

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON

MICHELLE MERCERI, No. 85865-3-I (linked with Appellant, DIVISION ONE v. UNPUBLISHED OPINION STATE OF WASHINGTON, DEPARTMENT OF TRANSPORTATION,

Respondent,

DEUTSCHE BANK AG a/k/a DEUTSCHE BANK, doing business in the United States as DEUTSCHE BANK USA, and as DEUTSCHE BANK NATIONAL TRUST COMPANY, a national banking association, as trustee for holders of the BCAP LLC Trust 2007-AA2; and SHAWN CASEY JONES,

Defendants.

MICHELLE MERCERI, No. 85690-1-I)

Appellant,

v.

STATE OF WASHINGTON, DEPARTMENT OF TRANSPORTATION, DEUTSCHE BANK AG a/k/a DEUTSCHE BANK, doing business in the United States as DEUTSCHE BANK USA, and as DEUTSCHE BANK NATIONAL TRUST COMPANY, a national banking No. 85865-3-I (linked with No. 85690-1-I)/2

association, as trustee for holders of the BCAP LLC Trust 2007-AA2,

Respondents,

SHAWN CASEY JONES,

Defendant.

BIRK, J. — In this inverse condemnation action, landowner Michelle Merceri

filed an action against the State of Washington, in which she joined as defendants

a fellow putative owner and a lender holding a deed of trust, seeking compensation

for a state highway expansion’s taking of restrictive covenant rights benefiting her

property. The superior court bifurcated trial, entered judgment determining the

amount of compensation and interest due because of the taking, and denied

Merceri an award of attorney fees, but has not yet determined the allocation of the

recovery among Merceri, the putative other owner, and the lender. Merceri filed a

notice of appeal from the judgment challenging the award of interest and denial of

attorney fees. While the first notice of appeal was pending, Merceri unsuccessfully

sought to enforce an attorney lien against the compensation recovery and

separately filed a notice of appeal from the denial of that motion. We affirm the

superior court’s rulings denying Merceri’s motions for attorney fees and compound

interest, we conclude the denial of Merceri’s motion to enforce an attorney lien is

not appealable and so we do not review it, and we remand.

I

In a complaint filed August 6, 2021, Merceri alleged ownership of a lot in the

Fairweather Basin subdivision in Hunts Point, Washington, which was subject to

2 No. 85865-3-I (linked with No. 85690-1-I)/3

protective restrictions and covenants. She alleged the State effected a taking by

condemning two neighboring lots for a highway project and putting them to use in

violation of the covenants. Merceri joined as parties Shawn Jones, who is on the

title to Merceri’s property but according to her has disclaimed any interest in the

claim for just compensation, and Deutsche Bank National Trust Company, which

purports to be the beneficiary of a 2006 deed of trust encumbering the property.

As memorialized in a partial summary judgment order dated April 15, 2022, the

State agreed its construction on the two lots violated one of the covenants, the

superior court granted Merceri summary judgment on that issue, and the court

reserved the amount of damages for trial. By summary judgment order dated

September 6, 2022, the court limited certain of Merceri’s damages claims, but

otherwise ruled there was evidence requiring a jury determination of the diminution

in value of Merceri’s property. On September 9, 2022, the court entered an order

directing that trial proceed in three phases: “(1) determination on the amount of

compensation on Plaintiff’s inverse condemnation claim as against [the State], (2)

determination of interest on any award to Plaintiff and attorneys’ fees, and (3)

Deutsche Bank’s entitlement to and recovery from any such award to Plaintiff.”

On October 4, 2022, Merceri filed a notice of settlement between herself

and the State, reflecting that Merceri had accepted the State’s pretrial offer under

RCW 8.25.070. The State presented a proposed judgment for the agreed amount

of just compensation plus statutory interest of 12 percent from the date of taking

on May 11, 2011. Merceri filed an objection to the proposed judgment. Merceri

sought compound interest, citing Sintra, Inc. v. City of Seattle, 131 Wn.2d 640, 935

3 No. 85865-3-I (linked with No. 85690-1-I)/4

P.2d 555 (1997), abrogated on other grounds by Yim v. City of Seattle, 194 Wn.2d

682, 451 P.2d 694 (2019). Following a presentation of judgment hearing, on

November 4, 2022, the court entered its judgment and decree of appropriation for

the agreed amount of just compensation and statutory interest of 12 percent.

Statutory 12 percent simple interest on $205,000.00 from 2011 to 2022 amounted

to $282,664.11. Merceri filed motions to amend the judgment and for an award of

litigation costs including attorney fees incurred to obtain just compensation. By

orders dated November 29, 2022, the court denied both motions. On December

1, 2022, Merceri filed a notice of appeal directed to the Supreme Court designating

the judgment and these orders.

Separately, on May 16, 2023, Merceri filed in the superior court a “Motion

to Enforce Attorney Lien Claim on Judgment.” In that motion, Merceri sought

disbursal of funds from the court registry to satisfy a claim of lien for attorney fees

asserted by her counsel. The superior court denied this motion, and on July 14,

2023, denied reconsideration. On July 31, 2023, Merceri filed a notice of appeal

directed to this court designating these orders.

This court’s clerk’s office docketed Merceri’s July 31, 2023 notice of appeal

under matter number 85690-1-I. By order dated October 3, 2023, the Supreme

Court transferred Merceri’s December 1, 2022 appeal to this court. The clerk’s

office docketed this appeal under matter number 85865-3-I. By letter, the court

advised the parties that the matters would be linked for purposes of argument and

disposition.

4 No. 85865-3-I (linked with No. 85690-1-I)/5

II

In advance of oral argument, the court advised the parties of its notation

ruling stating, “[T]he parties are directed to be prepared at oral argument to

address whether there is an appealable final judgment before the court within the

meaning of RAP 2.2.” The November 4, 2022 judgment states, “There is no just

reason to delay entry of this Judgment and Decree of Appropriation as to the just

compensation arising from the State’s condemnation of the Covenant, this is a final

judgment at the express direction of the Court.” However, the judgment does not

include findings supporting that statement, as required by RAP 2.2(d). In the

absence of such findings, such a judgment is generally not appealable. Pepper v.

King County, 61 Wn. App. 339, 349, 810 P.2d 527 (1991).

RAP 2.2(a) provides that “[u]nless otherwise prohibited or provided by

statute or court rule,” a party may appeal from only designated superior court

decisions. A judgment adjudicating less than all the claims or counts, or the rights

and liabilities of less than all the parties, is generally subject only to discretionary

review until the entry of a final judgment adjudicating all the claims, counts, rights,

and liabilities of all the parties. RAP 2.2(d). Generally, when a judgment is not

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