Rell's Fire Protection Group, Inc. v. The Rock Top, LLC

CourtCourt of Appeals of Washington
DecidedJuly 11, 2023
Docket38626-1
StatusUnpublished

This text of Rell's Fire Protection Group, Inc. v. The Rock Top, LLC (Rell's Fire Protection Group, Inc. v. The Rock Top, LLC) 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
Rell's Fire Protection Group, Inc. v. The Rock Top, LLC, (Wash. Ct. App. 2023).

Opinion

FILED JULY 11, 2023 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

RELL’S FIRE PROTECTION GROUP, ) No. 38626-1-III INC., a Washington corporation, ) ) Appellant, ) ) v. ) ) THE ROCK TOP LLC, a Washington ) UNPUBLISHED OPINION limited liability company; M & J ) HAMILTON, LLC, a Washington limited ) liability company; and HAMILTON- ) PRICE, INC., a Washington corporation, ) d/b/a MICHAELS ON THE LAKE, ) ) Respondents. )

LAWRENCE-BERREY, J. — This case stems from two contract disputes between

Rell’s Fire Protection Group, Inc. (RFP), appellant, and The Rock Top LLC (Rock Top)

and Hamilton-Price, Inc., doing business as Michaels on the Lake (Michaels),

respondents. By motion practice, jury trial, and a later bench trial, both sides successfully

defended against the others’ claims for affirmative relief, and the trial court denied each

side’s request for attorney fees. No. 38626-1-III Rell’s Fire Protection v. The Rock Top

RFP appeals the result of the bench trial, including the denial of its reasonable

attorney fees. Michaels and Rock Top cross appeal the denial of their reasonable attorney

fees. We affirm the trial court’s determination that RFP failed to prove that any of the

eight disputed invoices for additional extras were proper, but reverse its denial of

Michaels’ and Rock Top’s fee requests.

FACTS

Parties

Travis Smith (Travis1) and his son, Dewayne Smith (Dewayne), own and operate

RFP. RFP sells, leases, installs, and services fire suppression equipment. Michael

Hamilton (Mike) and his son, Jordan Hamilton (Jordan), own and operate restaurants

located in Moses Lake, Washington, including Michaels and Rock Top.

Summary of facts relevant to the bench trial

This appeal arises from two contract disputes. The first is a lease agreement

between RFP and Michaels for fire suppression equipment. The second is for RFP to

install a gas line and an exhaust hood system for Rock Top, a new restaurant. The

contracts create a secured interest in favor of RFP for all goods sold or leased, and

1 Because the fathers and sons share last names, we refer to the individuals by their first names. We intend no disrespect.

2 No. 38626-1-III Rell’s Fire Protection v. The Rock Top

requires the debtor to pay RFP’s reasonable attorney fees in the event the debt is referred

to an attorney for collection.

The Michaels Lease. In 2006, RFP entered into a lease agreement with Michaels

for a fire suppression system. The agreement was that RFP would lease equipment to

Michaels for $450 per year. RFP listed the equipment’s replacement cost at $2,750 as of

February 20, 2006, and the lease was for a period of five years with an option to renew

for another five years. Every year, around February, RFP sent an invoice to Michaels for

the leased equipment and Michaels would send payment.

The Lease Equipment Agreement provided in relevant part:

[A]ll service work shall be [performed] by [RFP]. . . . [S]hould the lease agreement be violated in any way by the Leasee it will be the sole decision of [RFP] to accept or decline return of its leased equipment or demand payment at current market value at the time of violation . . . .

Clerk’s Papers (CP) at 328.

In February 2013, RFP serviced the leased equipment at Michaels and billed

Michaels for the service work in addition to the yearly lease fee. Michaels had not made

a payment on its account since January 10, 2013. Around May 2013, the business

relationship between the two father and son teams began to fracture due to disputes

involving the Rock Top project.

3 No. 38626-1-III Rell’s Fire Protection v. The Rock Top

As of May 23, 2013, RFP claimed Michaels still owed $1,313.62. However, due

to nonpayment, Travis terminated the Michaels lease on May 25, 2013, and stated the

equipment would be removed by an authorized subcontractor. Travis learned that Jordan

had disposed of the leased equipment. When he learned of this, he invoiced Michaels

$5,800, which he claimed was the market value of the equipment at the time Michaels

breached the lease.

At trial, RFP contended that the equipment had increased from its 2006 assigned

value of $2,750 because Mike had the system serviced semi-annually and had upgrades

installed. On cross-examination, Travis testified about performing the maintenance and

doing the upgrades on the leased equipment at Michaels. He stated he would send the

invoices for that work to Michaels on the completion of the work. However, when

pressed by counsel, Travis testified those records were at his office. He never supplied

those invoices throughout the entire litigation.

In a declaration, Jordan stated that the equipment was seven years old at the time

he disposed of it, and it would have been worth considerably less than $2,750.

4 No. 38626-1-III Rell’s Fire Protection v. The Rock Top

Nevertheless, in early March 2014, Michaels tendered $2,750, in addition to other

amounts, to RFP.2

The Rock Top Contract. In late 2012, Mike and Jordan decided to renovate the old

Golden Corral restaurant, which would later become Rock Top. In anticipation of the

project, Rock Top hired RFP to install a gas line. In December of that year, Mike and

Jordan met with Dewayne to discuss hiring RFP to install a new exhaust hood system in

the restaurant. RFP agreed to do the work; the original bid price for the project was

$26,435.50, including tax. RFP began work that month. Dewayne installed the exhaust

hood as well as some extras for Rock Top. All work was completed by the end of

March 2013.

The parties agree that RFP performed extra work at the Rock Top project. The

original work and agreed-upon extras are memorialized in the record as follows:

2 The amount tendered in early March 2014 was $6,372.50, which represented $2,750.00 from Michaels for the equipment and $3,622.50 from Rock Top for nine months of interest on $23,000.00. RFP cashed the check on April 4, 2014.

5 No. 38626-1-III Rell’s Fire Protection v. The Rock Top

Work Order # Work Description Invoice # Charge Record Cites 16226 • 1 – 1 ½” Gas Line Install 36483 $2,561.07 Ex. 51; • 6 – Rolls of Pipe Wrap (Paid on CP 312, • 14 – hrs labor December 18, 1187; RP1 2012) 1782.

16845 (Rock • 1 – Exhaust Hood System Class 37003 $26,435.50 Ex 3; CP 687, Top Bid) • 2 – Canopy Hood S/S 10’ lights 901, 922, w/ makeup air 960, 993, • 2 – Exhaust fans Upblast 3200 1094, 1096; Cfm 16” RP1 1778, • 1 – Make Up Air fan 6000 Cfm 1895. 18” • 1 – Wall Pad S/S 20’ x 8’ • 2 Exhaust Duct System w/ Duct Wrap • 4 – Fire Damper • 3 – Fan Roof Curb • 1 – Ansul fire system UL 300 • 1 – Ansul Gas Valve 1 ½” • 1 – Extinguisher (wet chem) A260 • 3 – Extinguisher (dry chem) A500 16925 • 1 - Gas line “meter to under 37100 $3,346.52 Ex. 20; CP ground” (original 30, 61, 168, • 1 – double stack oven hook up charge) 295, 371, • 1 – Salamander re-fab gas line 677, 861, • 1 – 14 [ ] S.S. Salamander mount $3,013.11 928-29, 962, install (charge after 995; RP1 • 2 – outside fire place hook up fire 1780-81, • 1 – outside overhead heater hook extinguishers 1783-86, up removed) 1895. • 1 – outside overhead S.S. dormant 1/2” line • 1 – A260 wet chem kitchen ext recharge • 3 – New A200 Abc 5 lb Ext

6 No. 38626-1-III Rell’s Fire Protection v. The Rock Top

Missing • 1 – Serve Window S/S Liner 37101 $566.48 Ex. 21; CP Work Order • 1 – Wall End Cap S/S 31, 62, 169, 862, 923, 963, 996; RP1 1780-81, 1788-89, 1895.

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