Millies v. LandAmerica Transnation

372 P.3d 111, 185 Wash. 2d 302
Washington Supreme Court·Decided March 31, 2016·No. No. 91301-3·Published·Cited by 30 cases

Opinions

González, J.

¶1 Richard and Susan Millies (collectively Millies) purchased a secluded piece of property in Stevens County overlooking Deer Lake. Unfortunately, their title company overlooked an easement that could render the property far less secluded. The title insurer, Land-America Transnation Title Insurance Company (Trans-nation), conceded that the easement had been overlooked in the title search and conceded coverage for the omission. After the two sides could not agree on the proper amount of compensation, the Millies sued on a variety of grounds. The jury returned a defense verdict. We must decide whether to disturb that jury verdict. We find that the claimed jury instructional errors were not properly preserved, that the instructions given are the law of the case before us, and that the plaintiffs are not entitled to either judgment as a matter of law or a new trial. We affirm.

Background

¶2 In 2006, after looking at several properties, the Millies bought 75 acres of rural land, intending to build a [306]*306new home for their retirement. The Millies hired Columbia Title Company to research the title and obtained an owner’s title policy from Transnation. The title policy covered loss or damage up to $250,000, the purchase price.

¶3 After the Millies bought the land, they learned that the property was burdened by a substantial recorded easement that authorized public use of a road bisecting their property. They also learned that a neighbor planned to develop 50 condominium units on his property and to use the easement for public access. The Millies contacted Columbia Title, who confirmed the easement and gave the Millies information about filing a claim with Transnation.

¶4 The Millies submitted a claim seeking $125,000. A Transnation claims representative contacted the Millies’ attorney and conceded that the Millies’ claim was covered, but disagreed that the easement deprived the property of half its value. Transnation contended that under the policy, the appropriate measure of damages was the reduction in the property’s value due to the easement to be determined by a fair market appraisal.

¶5 Transnation hired an appraiser to conduct a diminution-in-value (DIV) appraisal of the Millies’ property. The appraiser determined the DIV was $25,000. In November 2007, Transnation offered to pay that amount to the Millies in full settlement of their claim. The Millies rejected that offer, submitted a proof of loss, and requested $100,000 to settle. After more investigation, Transnation stood by the initial determination of the loss. Transnation sent the Millies a check for $25,000 on July 31, 2009. The Millies rejected the offer and returned the check.

¶6 In August 2009, the Millies filed suit against Transnation for breach of contract, breach of duties under the Consumer Protection Act and the Insurance Fair Conduct Act, breach of duty of good faith, negligence, and breach of warranty deed covenants. In its answer, Transnation denied liability and asserted an affirmative defense that it fulfilled the terms of its contract by investigating the Millies’ [307]*307claim and timely tendering payment based on a reasonable fair market appraisal. Transnation also hired a second appraiser to reevaluate the Millies’ claim. This appraiser valued the DIV at $37,500.

¶7 At trial, the Millies called two appraisers who testified the easement diminished the property’s value by 50 percent, or $125,000. Transnation called its appraisers, one of whom testified that the property’s value was diminished by $25,000, the other by $37,500. Transnation also called its claims representatives who conceded on the stand that the company is liable for the DIV loss under the Millies’ policy and testified that $25,000 was its reasonable, good faith attempt to settle the claim.

¶8 Near the end of trial, the parties submitted proposed jury instructions. Both parties offered their own breach of contract instruction containing similar language as to the elements of the claim. However, Transnation’s proposed breach of contract instruction included the affirmative defense asserted in its answer.

¶9 The next day, both parties offered formal exceptions to the jury instructions. The Millies made no specific objection to Transnation’s proposed breach of contract instruction, but did make a general objection to the court not giving all of their proposed instructions. This broad objection did not specify any particular jury instruction or identify any particular error. The Millies simply suggested the language in their proposed instructions would be more helpful to the jury. The court adopted Transnation’s breach of contract instruction.

¶10 During jury deliberations, the jury asked whether it could make a “recommendation about the settlement amount separate from the verdict form?” Clerk’s Papers (CP) at 497. The court referred the jury to its previous instructions. Shortly afterward, the jury returned a defense verdict. The jury specifically found that Transnation did not breach its contract with the Millies. Given that Transnation conceded the title company had failed to find [308]*308the recorded easement, the jury must have concluded Transnation had satisfied its contractual obligations by investigating and tendering reasonable payment.

¶ 11 The Millies moved for a new trial. In support of their motion, the Millies presented declarations from three jurors, each stating they believed Transnation violated at least one provision of law in attempting to settle the claim. The declarants stated that all the jurors agreed the Millies were entitled to some award of damages, that the jurors were confused by the verdict form and the instructions, and that they believed the judge would “pencil in” a fair settlement amount. Id. at 531.

¶12 The Millies also moved, for the first time, for judgment as a matter of law. The trial court denied the motion. Although the trial court denied the motion, it was not clear whether the DIV claim under the insurance policy remained. The court asked the parties to brief this issue and held a hearing. The court concluded:

[T]he jury followed the instructions that were given to it by the court. And that’s what they did. And they found that [Trans-nation] had fulfilled its contract, and that’s as far as they went. They weren’t saying that there shouldn’t be a recovery on the outstanding amount, but that wasn’t given to them. They did not have that decision to be made.

3 Verbatim Tr. of Proceedings (VTP) (Apr. 30, 2013) at 366. The court subsequently entered a final order ruling that no issues remained for the court or the trier of fact to consider in the case. The Millies appealed, arguing that the trial court erred in giving Transnation’s breach of contract instruction and in denying the posttrial motion for a new trial. The Court of Appeals affirmed. Millies v. LandAmerica Transnation, No. 31521-5-III, slip op. at 34 (Wash. Ct. App. Jan. 15, 2015) (unpublished), http://www.courts.wa.gov/opinions/pdf/315215.unp.pdf. The court decided that the Mil-lies had not properly presented whether they were entitled to recover the $25,000 originally offered by Transnation to [309]*309settle the claim and did not reach the merits. Id. We granted review. 183 Wn.2d 1002, 349 P.3d 856 (2015).

Analysis

1. Objection to Breach of Contract Instruction

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Millies v. LandAmerica Transnation, 372 P.3d 111, 185 Wash. 2d 302 (Wash. 2016).

372 P.3d 111 (Millies v. LandAmerica Transnation) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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