Silver v. Rudeen Mgmt. Co., Inc.

484 P.3d 1251, 197 Wash. 2d 535
Washington Supreme Court·Decided April 22, 2021·No. 98024-1·Published·Cited by 19 cases

Opinion

FILE THIS OPINION WAS FILED FOR RECORD AT 8 A.M. ON

IN CLERK’S OFFICE APRIL 22, 2021 SUPREME COURT, STATE OF WASHINGTON APRIL 22, 2021 SUSAN L. CARLSON

SUPREME COURT CLERK

IN THE SUPREME COURT OF THE STATE OF WASHINGTON

THOMAS SILVER, ) No. 98024-1 )

Petitioner, )

)

v. ) EN BANC )

RUDEEN MANAGEMENT )

COMPANY, INC., )

) Filed: April 22, 2021 Respondent. )

______________________________ )

MONTOYA-LEWIS, J.— During a period of transformation in landlord-

tenant law aimed at improving living conditions and balancing the bargaining positions between landlord and tenants, the Washington Legislature passed the Residential Landlord-Tenant Act of 1973 (RLTA), ch. 59.18 RCW. The RLTA regulates the landlord-tenant relationship in Washington, imposing interdependent obligations on the parties to a residential lease and providing remedies for breaches of those duties. However, it does not specify a statute of limitations applicable to actions brought under the act.

No. 98024-1 In this case, a residential landlord withheld a tenant’s security deposit after the termination of the tenancy, demanding a large sum of money for alleged excessive wear and tear to the premises. Two years and two months later, the tenant filed suit, alleging that the landlord failed to comply with the RLTA and seeking to recover his security deposit. The tenant claimed that he is entitled to recover his security deposit because the landlord failed to return it or to provide a full and specific statement of the basis for retaining it within the time period required by RCW 59.18.280(1). We are asked to determine the applicable statute of limitations for such an action.

We hold that a tenant’s action under RCW 59.18.280 is an action to recover the tenant’s personal property—the security deposit—and is subject to the three-year statute of limitations under RCW 4.16.080(2). Therefore, the tenant’s complaint was timely, and the trial court erred in dismissing it. We reverse.

I. FACTS AND PROCEDURAL HISTORY 1 In 2012, Thomas Silver entered into a residential lease agreement with Rudeen Management Company to rent an apartment in Spokane. Under the terms of the lease, Silver paid a monthly rent of $810 and a nonrefundable fee of $100 for carpet cleaning and drip pan replacement at the commencement of the tenancy. He

1 The facts are those alleged in the complaint. Becker v. Cmty. Health Sys., Inc., 184 Wn.2d 252, 257, 359 P.3d 746 (2015) (when reviewing a motion to dismiss, we accept facts alleged in the complaint as true).

No. 98024-1 also paid a refundable $300 “Damage/Cleaning/Security Deposit.” Clerk’s Papers (CP) at 5. Silver rented the apartment for the next three years. Silver provided proper notice of his intent to terminate his tenancy on June 30, 2015, and he moved out on or about that date.

After Silver moved out, Rudeen sent him two documents relating to his deposit and alleged excessive wear and tear to the apartment. The first document, dated June 30, 2015 (the same date as the termination of the tenancy), was labeled a “‘preliminary’” “‘Deposit Disposition’” and claimed that Silver owed $3,000.00 for excessive wear and tear to the premises. Id. The second document, dated August 18, 2015 (seven weeks later), was labeled a “‘final’” “‘Deposit Disposition’” and claimed that Silver owed a revised balance of $2,281.35 due after applying his $300.00 deposit. Id. at 5-6. This final deposit statement included invoices for flooring and cleaning services, dated August 4 and August 10, 2015, respectively. (None of the invoiced work had been completed when Rudeen sent the preliminary statement.) Silver disputed any responsibility for the alleged excessive wear and tear, and, when he questioned the basis and amount of damage Rudeen had claimed, Rudeen referred the claim to a third-party collection agency.

On August 10, 2017—more than two years but less than three years after the deadline for the deposit statement—Silver filed a complaint for damages against Rudeen to recover the deposit. Silver brought the complaint on behalf of himself and

No. 98024-1 similarly situated former tenants whose deposits Rudeen had withheld in violation of RCW 59.18.280.2 He alleged one cause of action under the RLTA. He alleged facts relating to the terms of the lease agreement, but he did not state a cause of action for breach of contract.

Silver claimed that Rudeen violated the RLTA because it did not provide a full and specific statement of the basis for retaining any of the deposit or return any portion of the deposit within 14 days after tenants vacated the premises as required under the RLTA. 3 He argued that the preliminary deposit statement reflected an estimate or anticipated charges and should not qualify as “a full and specific statement” required by RCW 59.18.280(1). Even if the final statement, which included invoices for specific services, qualified as “a full and specific statement,” Rudeen sent it well past 14 days after Silver vacated the premises. Therefore, Silver alleged, Rudeen failed to send a full and specific statement or any refund of the deposit within the time period specified by RCW 59.18.280(1).

2 The trial court dismissed the case before Silver moved to certify the class, and there are no issues regarding the putative class before this court.

3 RCW 59.18.280 was amended in 2016 to extend this time period from 14 to 21 days after the tenant vacates the premises. LAWS OF 2016, ch. 66, § 4. Silver’s individual action accrued in 2015, so his claim is governed by former RCW 59.18.280 (2010) (14 days). See infra note 4. However, the 2016 amendment did not substantively alter the statute aside from extending this time period, and the issue of the statute of limitations remains the same under either version of the statute. Therefore, we simply refer to RCW 59.18.280 without specifying the effective year of the statute.

No. 98024-1 Silver sought to recover tenants’ deposits, pursuant to RCW 59.18.280(2), based on Rudeen’s alleged willful and wrongful withholding of their deposits after the termination of their tenancies. He requested refunds of each class member’s deposit. RCW 59.18.280(2). He also requested declaratory relief—holding that Rudeen’s actions were willful—and two times the amount of the deposits Rudeen wrongfully retained and reasonable attorney fees and costs. Id.; RCW 59.18.270.

Rudeen filed a CR 12(c) motion to dismiss the complaint, arguing that the two-year catchall statute of limitations, RCW 4.16.130, should apply and that the limitations period had expired because Silver filed the complaint more than two years after the cause of action had accrued.4 The trial court granted Rudeen’s motion and dismissed the case with prejudice. It also awarded Rudeen costs and attorney fees in the amount of $15,225.50.

Silver appealed, and the Court of Appeals affirmed. Silver v. Rudeen Mgmt.

Co., 10 Wn. App. 2d 676, 449 P.3d 1067 (2019). The Court of Appeals rejected Silver’s argument that the three-year statute of limitations under RCW 4.16.080(2) should apply because he filed an action for return of personal property. It concluded that the two-year catchall statute of limitations applied because Silver had filed “an action to enforce the deposit return obligation of the RLTA,” and an action to enforce

4 We assume, without deciding, that the trial court correctly concluded that the cause of action accrued on July 15, 2015 (14 days after the date Silver vacated and Rudeen sent the preliminary deposit statement).

No. 98024-1 a statute should fall under RCW 4.16.130. Id. at 681. Therefore, the court reasoned, the trial court correctly dismissed the action because it was commenced more than two years after it had accrued. Id. Silver filed a petition for review in this court, which we granted. 195 Wn.2d 1018 (2020).

II. ANALYSIS

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Silver v. Rudeen Mgmt. Co., Inc., 484 P.3d 1251, 197 Wash. 2d 535 (Wash. 2021).

484 P.3d 1251 (Silver v. Rudeen Mgmt. Co., Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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