Ren Hoy Ye And Zhong Qiong Tan, V. Michael Labaz

CourtCourt of Appeals of Washington
DecidedDecember 13, 2021
Docket81807-4
StatusUnpublished

This text of Ren Hoy Ye And Zhong Qiong Tan, V. Michael Labaz (Ren Hoy Ye And Zhong Qiong Tan, V. Michael Labaz) 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
Ren Hoy Ye And Zhong Qiong Tan, V. Michael Labaz, (Wash. Ct. App. 2021).

Opinion

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON

REN HOU YE and ZHONG QIONG ) No. 81807-4-I TAN, a married couple, and the marital ) (consolidated with No. 81240-8-I) community composed thereof, ) ) DIVISION ONE Plaintiffs, ) ) v. ) ) MICHAEL LABAZ, individually; and ) ROWLING INVESTMENTS, LLC, a ) Washington limited liability company, ) ) Appellants, ) UNPUBLISHED OPINION ) BUILDERS CAPITAL OPPORTUNITY ) FUND, LLC, a Washington professional ) limited liability company, ) ) Defendant, ) ) YOU ZHOU LIAO and HAI YAN LIU, ) a married couple, and the marital ) community composed thereof, ) ) Respondents. )

BOWMAN, J. — Rowling Investments LLC (Rowling) appeals the trial

court’s summary judgment order dismissing its lawsuit against You Zhou Liao

and Hai Yan Liu (Sellers) for breach of a statutory warranty deed. Rowling also

argues the trial court erred by awarding the Sellers their attorney fees. We affirm

the order dismissing Rowling’s lawsuit but reverse the trial court’s award of

attorney fees.

Citations and pin cites are based on the Westlaw online version of the cited material. No. 81807-4-I (consoI. with No. 81240-8-1)/2

FACTS

Rowling bought a parcel of land from the Sellers in the Beacon Hill

neighborhood of King County, intending to develop it into a condominium

complex. The Sellers acquired the property in 1994, lived there for about eight

years, and then rented it to tenants. At one point, the Sellers considered

developing the property and commissioned a survey, which they filed with the

King County Recorder’s Office in November 2006. The survey documented the

property boundaries and showed a chain link fence on the northwest corner of

the parcel that did not match the boundary line.

In March 2017, the Sellers and Rowling executed a residential real estate

purchase and sale agreement (REPSA). During the escrow process, the Sellers

gave details about their knowledge of the property in their “Form 17” disclosures.

The Form 17 disclosures stated that title to the property was not subject to “any

encroachments, boundary agreements, or boundary disputes.” Before the sale

2 No. 81807-4-I (consoI. with No. 81240-8-1)/3

closed, the Sellers gave Rowling a copy of the 2006 survey showing the

placement of the chain link fence. Rowling’s title insurance report also noted,

“Fences do not conform to the boundary lines.”

In June 2017, the Sellers recorded a statutory warranty deed (Deed)

conveying the property to Rowling. The Deed conveyed title subject to any

conditions “which may appear in the public record,” including on any recorded

survey. Rowling then began building townhomes on the property.

During construction, Rowling and neighboring property owners Ren Hou

Ye and Zhong Qiong Tan (Ye/Tan) became involved in a confrontation over their

shared boundary line. Ye/Tan asserted a chain link fence marked the line. But

Rowling claimed the boundary was several feet beyond the chain link fence.

Rowling removed the chain link fence, about three feet of soil, and “other

improvements” owned by Ye/Tan in the disputed area.

Ye/Tan sued Rowling,1 claiming adverse possession and seeking to quiet

title to the disputed area in their favor. They also sought money damages for

trespass and waste. Rowling tried to tender its defense back to the Sellers under

the Deed but they refused to accept. Rowling then sued the Sellers by third party

complaint for breach of statutory warranty. Both parties moved for summary

judgment. Rowling asserted that the Sellers “breached the statutory warranties

contained in the [D]eed.” The Sellers argued the face of the Deed

unambiguously excluded liability for conditions affecting title shown in public

1 Ye/Tan also sued Michael Labaz, a principal of Rowling. Labaz filed a notice of appeal, which we consolidated with Rowling’s appeal. But Labaz did not file a brief, so we do not consider his appeal.

3 No. 81807-4-I (consoI. with No. 81240-8-1)/4

records, including those on the 2006 recorded survey.

The trial court granted summary judgment for the Sellers and dismissed

Rowling’s third party complaint. The trial court also awarded the Sellers attorney

fees under the attorney fee provisions in the REPSA. Rowling appeals both the

order granting the Sellers’ motion for summary judgment and the judgment for

ANALYSIS

Rowling argues the trial court erred in dismissing its claims on summary

judgment “because the trial court improperly interpreted an ambiguous [D]eed

and improperly relied upon conflicting extrinsic evidence,” resolving inferences

against Rowling to discern the parties’ intent. Rowling also argues the court

erred in refusing to apply the doctrine of equitable estoppel. We disagree.

Summary Judgment

We review a trial court’s order granting summary judgment de novo.

Frisino v. Seattle Sch. Dist. No. 1, 160 Wn. App. 765, 776, 249 P.3d 1044

(2011).2 We undertake the same inquiry as the trial court. Wilson v. Steinbach,

98 Wn.2d 434, 437, 656 P.2d 1030 (1982). That is, we examine the record,

including the pleadings, depositions, answers to interrogatories, admissions on

file, and affidavits, in the light most favorable to the nonmoving party, drawing all

reasonable inferences in the nonmoving party’s favor, to determine whether a

genuine material issue of fact exists. Landstar Inway, Inc. v. Samrow, 181 Wn.

2 The Sellers argue that Rowling did not preserve “the [i]ssue of [a]mbiguity” for appeal because it did not raise it sufficiently below. Because we review an order granting summary judgment de novo, we address Rowling’s argument.

4 No. 81807-4-I (consoI. with No. 81240-8-1)/5

App. 109, 120, 325 P.3d 327 (2014) (citing Kofmehl v. Baseline Lake, LLC, 177

Wn.2d 584, 594, 305 P.3d 230 (2013); CR 56(c)). Summary judgment is

appropriate when there is no genuine issue as to any material fact and the

moving party is entitled to judgment as a matter of law. CR 56(c); White v. State,

131 Wn.2d 1, 9, 929 P.2d 396 (1997). By cross moving for summary judgment,

the parties concede there are no material issues of fact. Pleasant v. Regence

BlueShield, 181 Wn. App. 252, 261, 325 P.3d 237 (2014) (citing Tiger Oil Corp.

v. Dep’t of Licensing, 88 Wn. App. 925, 930, 946 P.2d 1235 (1997)).

RCW 64.04.030 governs statutory warranty deeds and includes a

covenant to defend against another’s claim to title. Edmonson v. Popchoi, 172

Wn.2d 272, 278, 256 P.3d 1223 (2011), aff’g Edmonson v. Popchoi, 155 Wn.

App. 376, 228 P.3d 780 (2010). When executed in accordance with the statutory

language, such deeds warrant that the conveyance, among other things, is “free

from all encumbrances.” RCW 64.04.030(2). But a deed may include express

limitations, even if it is otherwise in statutory warranty form. See Wash. State

Grange v. Brandt, 136 Wn. App.

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Ren Hoy Ye And Zhong Qiong Tan, V. Michael Labaz, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ren-hoy-ye-and-zhong-qiong-tan-v-michael-labaz-washctapp-2021.