Seth L. Potts, as personal representative of the Estate of Harold R. Potts v. Jack Honkala, et ux

Court of Appeals of Washington·Decided June 10, 2025·No. 40553-2·Unpublished

Opinion

FILED

JUNE 10, 2025

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

SETH L. POTTS, the personal ) representative of THE ESTATE OF ) No. 40553-2-III HAROLD R. POTTS, )

)

Appellant, )

v. )

) UNPUBLISHED OPINION JACK HONKALA and SHIRLEY E. ) HONKALA, a married couple, )

)

Respondents. )

COONEY, J. — Harold Potts1 owned two parcels of real property, lot 3 and lot 4.

In 2013, Harold executed a quitclaim deed that conveyed his interest in real property to Jack and Shirley Honkala 2 (collectively, “Honkalas”). Harold passed away in 2021 and bequeathed lot 4 to his son, Steven Potts, through his will. The Honkalas claim Harold

1 Harold Potts and his sons, Steven Potts and Seth Potts, are referred to by their first names for clarity. No disrespect is intended.

2 Shirley Honkala is Harold’s daughter.

Potts v. Honkala

deeded both lots to them while the Estate of Harold R. Potts (Estate) asserts only lot 3 was conveyed to the Honkalas.

The Estate filed a complaint against the Honkalas to quiet title lot 4. The Honkalas answered the complaint and asserted counterclaims for declaratory judgment and that the title be quieted in their favor. The parties later filed competing motions for summary judgment. The trial court granted the Honkalas’ motion and dismissed the Estate’s complaint.

The Estate appeals, arguing the deed that conveyed property to the Honkalas fails to satisfy the statute of frauds and therefore did not transfer title lot 4 to the Honkalas. We agree with the Estate.

BACKGROUND

Harold purchased two parcels of real property in Goldendale, Washington, in 2008. The adjacent properties, referred to as lot 3 and lot 4, are part of a subdivision created in 1982. Harold lived in a residence on lot 4 while lot 3 remained vacant aside from a water well. Both lots had the same tax parcel number. A 2008 deed of trust between Harold and Columbia River Bank listed the legal description of the property as “LOTS 3, 4 SP 82-07 IN N2NESE 32-4-16.” Clerk’s Papers (CP) at 94.

In 2013, the Honkalas and Harold drafted and recorded a quitclaim deed (2013 Deed). The 2013 Deed listed the grantor as Harold and the grantees as the Honkalas. The legal description of the property was listed as “Pt of Lots 3, 4, SP 82-07 in N2NESE

Potts v. Honkala

4; 32-4-16.” CP at 92. The 2013 Deed listed the tax parcel number as “04-16-3251- 0003-00,” which identified both lot 3 and lot 4. CP at 92-93.

Thereafter, the Honkalas constructed a residence on lot 3, and separate tax parcel numbers were assigned for each lot. The Honkalas paid the property taxes for lot 3 and Harold paid the property taxes for lot 4. The Honkalas and Harold also entered into a water user’s agreement that allowed Harold to use the well on lot 3 for the benefit of lot 4.

In 2016, three additional quitclaim deeds were recorded for the purported purpose of “correct[ing] [the] legal [description].” CP at 167, 170, 172. Each of the three deeds listed Harold as the grantor and the Honkalas as the grantees. However, the legal description contained in each deed differed from the 2013 Deed.

The first 2016 deed listed the legal description of the property being conveyed as “Lot 3 SP 82-07 PTN Sec. 32, T 4 N, R 16 E WM” and contained an exhibit that referenced the legal description as “Lot 3 Short Plat No. SP 82-07, filed on June 5th, 1982, as Auditor’s No. 186360, Klickitat County Records. Being a portion of Section 32, Township 4, North, Range 16 East of the Willamette Meridian, in the County of Klickitat, State of Washington.” CP at 167-68. The second 2016 deed, dated 10 days after the first, was the same as the first deed except the abbreviation “PTN” was scribbled out. CP at 170. About a month later, the third 2016 deed was filed that listed the legal description of the property being conveyed as “Lot 3, Map SP-82-07 lying within Section

Potts v. Honkala

32 Township 4 North Range 16 East W.M. Filed on June 15 1982, auditor[’]s number 186360 Klickitat County Records” with a tax parcel number of “0416-3282-0703/00.” CP at 172.

Shortly after the third 2016 deed was filed, the Honkalas obtained a loan that was secured by lot 3. The legal description of the property on the deed of trust was “LOT 3 SP 82-07 IN NESE; 32-4-16,” and the tax parcel number was listed as “04-16-3282- 0703/00.” CP at 173.

Harold passed away in September 2021, and his last will and testament, dated April 1, 2021, was filed with the Clark County Clerk. According to the will, Harold’s real property located in Goldendale was devised to his son, Steven.

In 2022, Seth Potts, as personal representative of the Estate, filed a complaint against the Honkalas seeking to quiet title to lot 4.3 The Honkalas answered the complaint and asserted counterclaims seeking a declaratory judgment that lot 4 was conveyed to them by the 2013 Deed and that title be quieted in their favor.4 Thereafter, both parties moved for summary judgment. The Estate moved for summary judgment, seeking to quiet title in favor of the Estate, and for dismissal of the

3 Notably, neither party filed a petition to reform the 2013 Deed.

4 The parties do not dispute that Harold intended to convey lot 3 to the Honkalas.

Potts v. Honkala

Honkalas’ counterclaims. The Honkalas moved for summary judgment on their first counterclaim, seeking a declaratory judgment that lot 4 was deeded to them in 2013.

The trial court granted the Honkalas’ motion for summary judgment and denied the Estate’s motion. The court issued a “Ruling of the Court on Defendant’s Motion for Summary Judgment and Orders” on May 9, 2024. CP at 505-12. The Estate sought discretionary review of that order with this court. On June 6, 2024, the trial court issued its “Findings of Fact, Conclusions of Law and Declaratory Judgment” that concluded the 2013 Deed “effectively transferred title to lot 3 and lot 4 [to the Honkalas].” CP at 526- 27. The court also ordered the Estate’s complaint “denied in its entirety.” CP at 528.

The Estate timely appeals.

ANALYSIS

As a preliminary matter, the Estate argues we should consider this direct appeal along with its earlier notice for discretionary review. Prior to initiating this appeal, the Estate sought discretionary review of the trial court’s Ruling of the Court on Defendant’s Motion for Summary Judgment and Orders. Notice for Discretionary Review, Potts v. Honkala, et al., No. 40483-8-III (June 5, 2024). Shortly thereafter, the trial court issued its judgment that denied the Estate’s complaint in its entirety. The Estate appealed, as a matter of right, the trial court’s order denying its complaint. Consequently, the Estate’s earlier petition for discretionary review was denied as moot. Comm’r’s Ruling, Potts v. Honkala, et al., No. 40483-8-III (Oct. 15, 2024). Because the appeal as a matter of right

Potts v. Honkala

necessarily addresses the same issues brought in the notice for discretionary review, we need not decide the two appeals as one. Thus, our review is limited to the Estate’s appeal as a matter of right.

Turning to the merits, the Estate argues summary judgment in favor of the Honkalas was improper because the 2013 Deed failed to satisfy the statute of frauds. The Honkalas respond that the 2013 Deed satisfied the statute of frauds and conveyed both lot 3 and lot 4 to them. We agree with the Estate’s argument that the 2013 Deed fails to satisfy the statute of frauds.

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