Roger Bellerive And Lindsay Bellerive, Resps/cross-app v. Eor, Inc., Appellant/cross-respondent

CourtCourt of Appeals of Washington
DecidedApril 10, 2018
Docket49565-1
StatusUnpublished

This text of Roger Bellerive And Lindsay Bellerive, Resps/cross-app v. Eor, Inc., Appellant/cross-respondent (Roger Bellerive And Lindsay Bellerive, Resps/cross-app v. Eor, Inc., Appellant/cross-respondent) 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
Roger Bellerive And Lindsay Bellerive, Resps/cross-app v. Eor, Inc., Appellant/cross-respondent, (Wash. Ct. App. 2018).

Opinion

Filed Washington State Court of Appeals Division Two

April 10, 2018

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON

DIVISION II ROGER BELLERIVE and LINDSAY No. 49565-1-II BELLERIVE, husband and wife,

Respondents/Cross Appellants,

v.

EOR INC., a Washington Corporation, d/b/a UNPUBLISHED OPINION RUSDAL CONSTRUCTION; and CBIC, Bond No. SC8150, a Washington Corporation,

Appellants/Cross Respondents.

Lee, A.C.J. — EOR, Inc. appeals the trial court’s award of reasonable attorney fees to and

judgment in favor of Roger and Lindsay Bellerive. The Bellerives cross-appeal the amount of

attorney fees awarded to them by the trial court and the trial court’s conclusion that they failed to

prove breach of contract.

We hold that the trial court erred in determining the Bellerives were entitled to reasonable

attorney fees for their unjust enrichment claim. We further hold that the trial court did not err in

determining that the Bellerives failed to prove breach of contract. Accordingly, we reverse the

trial court’s award of reasonable attorney fees to the Bellerives for unjust enrichment, affirm the

trial court’s conclusion that the Bellerives failed to prove breach of contract, and remand for further

proceedings consistent with this opinion. No. 49565-1-II

FACTS

A. THE AGREEMENT AND DISPUTE

In November 2013, the Bellerives entered into a “Residential Real Estate Purchase and

Sale Agreement” (the Purchase Agreement) with EOR for the purchase of property and the

construction of a single family house on that property (the Home) by EOR. Clerk’s Papers (CP)

at 155. The Purchase Agreement stated that any changes must be mutually agreed upon and in

writing. And if the Bellerives disapproved of any part of the plans and specifications, or EOR

intended to modify the plans and specifications and increase the purchase price, the change had to

be mutually agreed upon in writing. The Purchase Agreement also provided for reasonable

attorney fees and expenses to the prevailing party if the Bellerives or EOR “institute[d] suit against

the other concerning [the Purchase] Agreement.” CP at 155.

After EOR began construction, the Bellerives purchased appliances and invested time and

labor into the Home. Later, a dispute arose over the purchase price of the Home. The Bellerives

and EOR settled the dispute by written agreement (the Settlement Agreement). The Settlement

Agreement established the purchase price and the closing date for the Home. The Settlement

Agreement stated that

[i]n addition to any and all other remedies available under this Settlement Agreement or by law, if any arbitration proceeding or litigation is commenced to enforce this Settlement Agreement because of an alleged dispute, breach, default or misrepresentation in connection with any of the provisions of this Settlement Agreement, the prevailing party shall be entitled to recover reasonable attorney’s fees and other costs incurred in that action or proceeding (including those incurred on appeal), in addition to any other relief to which it or they may be entitled.

CP at 153. Shortly thereafter, the Bellerives experienced financing issues, and the purchase and

sale of the Home did not close by the agreed upon date. EOR sold the Home to a different buyer.

2 No. 49565-1-II

B. THE COMPLAINT AND PRE-TRIAL PROCEDURE

On June 26, 2015, the Bellerives filed a complaint against EOR, alleging breach of the

Purchase Agreement. The Bellerives asserted claims for breach of contract/quantum meruit for

specific performance, unjust enrichment, promissory estoppel, and violation of the Consumer

Protection Act (CPA) for damages. The Bellerives also filed a lis pendens on the Home. EOR

responded and asserted a counterclaim for slander of title.

EOR subsequently filed a motion for partial summary judgment to dismiss the Bellerives’

claims. The trial court granted EOR’s motion in part, dismissing the Bellerives’ promissory

estoppel and CPA claims with prejudice. The trial court also ordered the release of the lis pendens

on the Home.

The Bellerives then filed an amended complaint, which included all of its previous claims1

in addition to claims for conversion of chattel, conversion of money, constructive trust, and for

return of appliances purchased under prejudgment writ/replevin.

C. TRIAL AND AWARD OF ATTORNEY FEES

The case proceeded to a bench trial. After trial, the court concluded that EOR was unjustly

enriched by the appliances the Bellerives purchased and the labor the Bellerives provided. The

trial court found that the appliances were worth $10,000 and their labor was worth $3,160. The

trial court also concluded that the Bellerives failed to prove their claims for specific performance,

1 In its answer to the Bellerives’ amended complaint, EOR challenged the inclusion of the CPA claims dismissed by the trial court, but did not challenge the inclusion of the previously dismissed promissory estoppel claim on that basis.

3 No. 49565-1-II

breach of contract, promissory estoppel, and violation of the CPA. And the trial court concluded

that EOR’s counterclaim for slander of title failed.

The Bellerives subsequently moved for an award of attorney fees and costs for successfully

prosecuting their claims and defending against EOR’s counterclaim. EOR responded and argued

that there was no basis for an award of attorney fees, the Bellerives were not the substantially

prevailing party, the Bellerives could only claim attorney fees related to the successful claim, and

the attorney fees claimed were excessive.

The trial court entered findings and conclusions, awarding reasonable attorney fees and

costs to the Bellerives. The trial court found:

11. The Purchase Agreement contained provisions governing the procedure for the parties to memorialize by written change order their agreement for an upgrade or other change in construction of the Home resulting in an increase in price.

....

22. [EOR] has been unjustly enriched by virtue of its continued possession of the appliances purchased by the Plaintiffs and sale of the same to a third party; and, the value of the labor provided for the benefit of the construction of improvements on the home, which has been sold to a third party.

24. Fair, just and equitable compensation for the appliances and labor provided by the Plaintiff is $10,000.00, which appliances they had an ownership interest in; and, $3,160.00 for labor provided for the construction of improvements for a total award of $13,160.00.

25. The Bellerives incurred and were awarded reasonable attorney’s fees of $75,000.00 in this matter. However, after applying a proportional offset in the amount of $25,000.00 attributable to attorney’s fees incurred in [sic] by [EOR] in defense of claims of which the Bellerives did not prevail, the Bellerives were awarded a net attorney’s fee award in the amount of $50,000.00 as the prevailing party in the matter.

4 No. 49565-1-II

CP at 214, 216. The trial court concluded:

2. The Bellerives failed to sustain their burden of proof on their claim for specific performance under the parties’ Purchase Agreement, and the same shall be dismissed with prejudice.

3. The Bellerives sustained, by a preponderance of the evidence, their burden of proof on their claims for damages unjust enrichment and compensation in equity.

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Roger Bellerive And Lindsay Bellerive, Resps/cross-app v. Eor, Inc., Appellant/cross-respondent, Counsel Stack Legal Research, https://law.counselstack.com/opinion/roger-bellerive-and-lindsay-bellerive-respscross-app-v-eor-inc-washctapp-2018.