Oleg A. Kiforenko V. Ross H. Moore, Et Ano

Court of Appeals of Washington·Decided December 29, 2025·No. 86701-6·Unpublished

Opinion

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON

OLEG A. KIFORENKO as trustee for the EARL G. STOKES LIVING TRUST No. 86701-6-I DATED DECEMBER 12, 2003; STEAMWORKS SEATTLE LLC, a Washington Limited Liability Company; DIVISION ONE and STEAMWORKS SEATTLE REAL LLC, a Washington Limited Liability Company, UNPUBLISHED OPINION

Appellants,

v.

ROSS H. MOORE, an individual and as trustee for the ROSS H. MOORE 2003 REVOCABLE TRUST,

Respondent.

CHUNG, J. — Earl G. Stokes and Ross H. Moore formed Steamworks Seattle, LLC (Steamworks) and Steamworks Seattle Real, LLC (Steamworks Real). Stokes and Moore later each entered agreements assigning their rights in Steamworks and Steamworks Real to their respective trusts. Stokes passed away in 2022. Subsequently, Stokes’s surviving spouse, Oleg A. “Alex” Kiforenko, as trustee of the Stokes Trust, filed a complaint against Moore on behalf of the Stokes Trust, Steamworks, and Steamworks Real. The complaint alleged that Moore breached his fiduciary duties and sought remedies including removal of Moore as manager. The trial court concluded that the Stokes Trust did not have standing to bring the complaint and granted summary judgment in favor of Moore. Kiforenko challenges the trial court’s grant of summary

judgment and its denial of a continuance to conduct discovery based on CR 56(f). We affirm.

FACTS

In 2007, Earl Stokes and Ross Moore together formed Steamworks and Steamworks Real (collectively “the Companies”). The primary purpose of Steamworks was “to own and manage a men’s spa known as ‘Steamworks Seattle,’ ” and the primary purpose of Steamworks Real was “to own and manage certain real property” where the spa was located. The Companies’ operating agreements (collectively “Operating Agreements”) identified Stokes and Moore as the members of the Companies, and each held 50 percent shares in both companies.

In 2008, Stokes and Moore each executed assignment agreements for Steamworks and Steamworks Real naming their respective trusts—Earl G. Stokes 2003 Revocable Trust and Ross H. Moore 2003 Revocable Trust—as assignees of their respective rights and interests in the two Companies. For example, Stokes’s assignment agreement for Steamworks provides:

Earl G. Stokes (“Assignor”), under Section 8.2 of that certain Operating Agreement for Steamworks Seattle, LLC, a Washington limited liability company [ ], herewith assigns, transfers and sets over unto the Earl G.

Stokes 2003 Revocable Trust (“Assignee”), all of Assignor’s right, title, and interest under the aforementioned Agreement, and in all securities in Steamworks Seattle, LLC . . . .

Assignee, as the assignee of Assignor’s Fifty percent (50%) membership interest, herewith unconditionally assumes and accepts the above assignment and transfer . . . .

Similar language appears in the assignment agreement Stokes executed regarding his membership interests in Steamworks Real and those that Moore executed regarding his membership interests in both Companies. 1 In 2022, Stokes passed away. Prior to his death, Stokes named his spouse, Alex Kiforenko, as successor trustee for the Stokes Trust. In November 2023, Kiforenko, as successor trustee of the Stokes Trust, filed a complaint against Moore for breach of fiduciary duty, removal of Moore as the manager of the Companies, dissolution of the Companies, a full accounting of the Companies, and appointment of a receiver.

Moore did not file an answer to Kiforenko’s claims and instead filed a motion to dismiss in February 2024 challenging the Stokes Trust’s status as a member of the Companies and its standing to bring direct and derivative claims. Kiforenko responded, asserting that Moore’s motion should be treated as a CR 56 motion for summary judgment because both parties presented evidence outside of the complaint.

Kiforenko also requested a CR 56(f) continuance to conduct discovery. In March 2024, Moore filed a motion for a protective order seeking to delay discovery responses to Kiforenko, which the court granted, reasoning that the pending motion to dismiss was based on lack of standing, a legal question that could be resolved without discovery.

At an April 2024 hearing on Moore’s motion to dismiss, the trial court agreed with Kiforenko that the appropriate standard was summary judgment. The trial court then granted summary judgment in favor of Moore and dismissed all of Kiforenko’s claims based on the Stokes Trust’s lack of standing. Moore filed a motion for an award of attorney fees and costs, which the trial court denied.

1 As the language in Stokes’s assignment agreements is identical, the analysis is the same as to the issue on appeal, Stokes Trust’s membership rights in both of the Companies.

Kiforenko timely appeals. Moore cross-appeals the trial court’s denial of his motion for attorney fees and costs.

DISCUSSION

Kiforenko challenges the trial court’s grant of summary judgment in favor of Moore, arguing that there are genuine issues of fact about whether the Stokes Trust is a member of the Companies and, thus, whether the Stokes Trust has standing to bring direct and derivative claims on the Companies’ behalf. Kiforenko also challenges the trial court’s decision denying his request to continue the summary judgment hearing to allow discovery. In addition to appealing the trial court’s denial of attorney fees and costs, Moore seeks appellate attorney fees and costs.

I. Summary Judgment On appeal, courts review orders granting summary judgment de novo. Keck v.

Collins, 184 Wn.2d 358, 370, 357 P.3d 1080 (2015). A reviewing court considers “the evidence and all reasonable inferences from the evidence in the light most favorable to the nonmoving party.” Id.

Summary judgment is proper when “there is no genuine issue as to any material fact,” meaning the moving party is entitled to judgment as a matter of law. CR 56(c). A “material fact” exists when such fact impacts the outcome of the litigation. Owen v. Burlington N. & Santa Fe R.R. Co., 153 Wn.2d 780, 789, 108 P.3d 1220 (2005). The moving party can submit affidavits demonstrating an absence of a material issue or can demonstrate that the nonmoving party lacks competent evidence to support an essential element of their claim. Young v. Key Pharm., Inc., 112 Wn.2d 216, 225-26, 770 P.2d 182 (1989). When the moving party satisfies the initial burden, the burden then shifts to

the nonmoving party to demonstrate the existence of an element essential to their case of which they will bear the burden of proof at trial. Id. at 225. There is a genuine issue of material fact when “the evidence is sufficient for a reasonable jury to return a verdict for the nonmoving party.” Keck, 184 Wn.2d at 370. The failure to make such showing will result in the trial court granting summary judgment. Young, 112 Wn.2d at 225.

Kiforenko’s claims all require the plaintiff, the Stokes Trust, to be a member of the Companies. To bring a derivative action to enforce a right of an LLC, the plaintiff must be a member at the time of bringing the action and either (1) the plaintiff must have been a member at the time of the complained-of transaction, or (2) “the plaintiff’s status as a member had devolved upon the person by operation of law or pursuant to the terms of a [LLC] agreement from a person who was a member at the time of the transaction.” RCW 25.15.386, .391. Similarly, “fiduciary duties arise from the [members’] relationship to each other.” Bishop of Victoria Corp. Sole v. Corp. Bus. Park, LLC, 138 Wn. App. 443, 456, 158 P.3d 1183 (2007). “The only fiduciary duties that a member . . . or a manager has to the [LLC] and its members are the duties of loyalty and care . . . .” RCW 25.15.038(1)(a). A trustee “has the sole right and responsibility to enforce a cause of action in favor of the trust” and “has all powers of management and control of the trust property.” Mine Holding Tr. v. Pavlish, 32 Wn. App. 2d 727, 744, 559 P.3d 517 (2024).

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