Narinder Samra Et Ano v. Pritpal Singh

Court of Appeals of Washington·Decided November 2, 2020·No. 80582-7·Unpublished

Opinion

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

NARINDER SAMRA and HARMINDER SAMRA, a married No. 80582-7-I couple,

Appellants,

v.

UNPUBLISHED OPINION

PRITPAL SINGH and GURBAKSH KAUR, a married couple; BHUPINDER CHOKAR and “JANE DOE” CHOKAR, a married couple; and KULWANT SINGH and “JANE DOE” SINGH, a married couple,

Respondents.

VERELLEN, J. — Narinder and Harminder Samra formed a partnership with several others to purchase, develop, and sell some vacant tracts of land. Years after the partnership made this purchase, the property was foreclosed upon and sold at a trustee’s sale, and the Samras lost their investment. Based on these and other events, the Samras filed suit for a declaration of partnership, breach of fiduciary duties to the partnership, unjust enrichment, equitable mortgage, civil conspiracy, and joint venture liability. They also filed a post-foreclosure lis pendens on the property at issue.

In a series of summary judgment orders, the trial court dismissed all of the Samras’ claims and cancelled the lis pendens as wrongly filed. We affirm.

FACTS

Narinder and Harminder Samra formed a partnership with Pritpal Singh, Gurbaksh Kaur, and Bhupinder Chokar to purchase two parcels of property in King County that they referred to as “the Roseberg Project,” develop it, and sell it for profit.1 They did not file a statement of partnership authority with the secretary of state.

In 2007, the partnership paid approximately $716,000 for the Roseberg Project property.2 Of that amount, Pritpal contributed $25,000, Bhupinder paid $250,000 (with a check from the account of Kulwant Singh),3 and the Samras contributed $210,000 in cash and borrowed the remaining $231,000, in their name only, from Washington Mutual Bank.4 The Samras secured this loan with a deed

While the entire “Roseberg Project” consisted of three parcels of property, 1

the third parcel (the Walker-Military lot) had been purchased and owned by nonparties and is not at issue on appeal. Thus, our reference to the “Roseberg Project property” means the two lots that the partnership acquired.

2 The statutory warranty deed conveyed title to the Samras, Pritpal, Gurbaksh, and Bhupinder. For clarity, we refer to the respondents by their first names.

3 Bhupinder and Kulwant are brothers. Although the $250,000 check came from Kulwant’s account, there is no dispute that the funds were Bhupinder’s.

4In obtaining the loan, the Samras submitted a “Gift Letter Affidavit” signed by Kulwant in which he identified himself as the Samras’ “uncle” and that he was gifting them $250,000. Clerk’s Papers (CP) at 2361. This “gift” appears to be the check that Kulwant contributed on behalf of Bhupinder.

of trust against the Roseberg Project property, which they executed along with Pritpal, Gurbaksh, and Bhupinder.

In 2008, the partners and others met to clarify various aspects of the Roseberg Project. In a document entitled “Meeting concerning Roseberg Project Dated 12/10/2008,” the attendees listed their respective shares and ownership interests in the Roseberg Project as follows: Bhupinder, 33 percent; Pritpal, 13 percent; Narinder, 35 percent; Gurmail Singh, 13 percent; Gurpal Singh, 5 percent; Karnail Johal, 0 percent; and Kulwant,“N/A”.5 In 2009, Narinder and Kulwant opened a joint bank account for the purpose of the Samras being able to see that the other partners were making monthly payments on the promissory note. Kulwant deposited the partners’ payments, not his own funds, into the joint account for nine months. However, those payments stopped, and the Samras’ loan went into default.

In 2010, the Samras sought to get out of the partnership and asked that the other partners buy them out. After a meeting some, but not all, of the partners executed a document entitled, “Roseberg Project Partner Share Redemption Agreement Dated [November 27, 2010]” (the Redemption Agreement).6 In pertinent part, the Redemption Agreement stated:

This agreement dated [November 27, 2010] is between Narinder Singh Samra and Harminder Kaur Samra (hereinafter referred to as “Samras”) and Bhuppinder Singh Chokkar, Pritpal Singh and Gurbaksh Kaur, Gurmail Singh and Gurpal Singh

5 Kulwant signed this document as a “(witness) via invite.” CP at 248.

6 CP at 114-16.

(hereinafter referred to as the “Remaining Roseberg Partners”).

“Parties” means Samras and Remaining Roseberg Partners.

....

(1) The Parties agree that the Samras are voluntarily withdrawing from the Roseberg project partnership and shall have no further interest in the project or the project properties, shall no longer have the authority to make any decisions regarding the property or project and shall not be responsible for any outstanding or future expenses of the project or the property.

(2) The Remaining Roseberg Partners agree to pay off the Samras as follows: A final and total pay off amount of $120,000.00 shall be paid in three separate installments[.]

....

(5) The Parties agree that the Samras shall keep the Chase bank mortgage loan in place in the Samras’ names until the completion of the project or until date [November 1, 2012], whichever occurs earlier.

....

(7) The Parties agree that the Remaining Roseberg Partners shall make the outstanding mortgage loan payments current. Future mortgage loan payments shall be made on time by the Remaining Roseberg Partners. . . .

....

(11) The Parties agree that all communication between the Samras and the Remaining Roseberg Partners shall be in writing.

(12) The Parties agree that this is a final and binding agreement.

(13) The Parties agree that any disputes shall be resolved by mediation and arbitration under the State of Washington laws.[7]

In December 2010, the Samras signed a second Redemption Agreement, but no other partners signed that agreement.

In June 2016, the Samras received a notice of foreclosure and notice of trustee’s sale of the Roseberg Project property set for a date in October 2016. The Samras were able to continue the trustee’s sale to December 2016.

On July 15, 2016, the Samras received an offer to purchase the Roseberg Project property for $550,000 if 12 or more homes could be built on it, or for $500,000 if 10 or 11 homes could be built on it. The offer expired five days later, on July 20, and was subject to a feasibility contingency. In a July 27 letter, the Samras notified Pritpal, Gurbaksh, Gurmail, Gurpal, and Karnail of the offer and asked them to consider a counteroffer that they intended to propose. This letter was not sent to Bhupinder or Kulwant. On August 30, without having received a response from any of the other partners, the Samras made a counteroffer to sell the Roseberg Project property for $525,000. A few weeks later, the potential buyer rescinded its offer based upon the feasibility contingency.

On October 20, 2016, the Samras filed a complaint asking for declaratory relief that a partnership existed between themselves, Pritpal, Gurbaksh, and

7CP at 114. The record includes various spellings of Bhupinder’s first and last names. We adopt the spelling used in the parties’ appellate briefing.

Bhupinder. Later that same day, the Samras filed an amended complaint to add a cause of action for unjust enrichment against Pritpal, Gurbaksh, and Bhupinder.

In December 2016, Kulwant purchased the Roseberg Project property at the trustee’s sale for $282,000. Days later, the trustee informed the Samras, Pritpal, Gurbaksh, and Bhupinder of this sale through a notice of completion of trustee’s sale.

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