Sitterson v. Evergreen School Dist. No. 114

196 P.3d 735
CourtCourt of Appeals of Washington
DecidedNovember 25, 2008
Docket36218-0-II
StatusPublished
Cited by5 cases

This text of 196 P.3d 735 (Sitterson v. Evergreen School Dist. No. 114) 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
Sitterson v. Evergreen School Dist. No. 114, 196 P.3d 735 (Wash. Ct. App. 2008).

Opinion

196 P.3d 735 (2008)

David B. SITTERSON d/b/a DBS Financial Services, Appellant/Cross-Respondent,
v.
EVERGREEN SCHOOL DISTRICT NO. 114, a municipal corporation, Respondent/Cross-Appellant.

No. 36218-0-II.

Court of Appeals of Washington, Division 2.

November 25, 2008.

*736 Steven Erik Turner, Miller Nash LLP, Vancouver, WA, for Appellant/Cross-Respondent.

Bruce M. White, Attorney at Law, Todd Scott Baran, Todd S. Baran, PC, Portland, OR, for Respondent/Cross-Appellant.

*737 PART PUBLISHED OPINION

ARMSTRONG, J.

¶ 1 The Evergreen School District No. 114 hired David B. Sitterson as a financial adviser to help it raise money by selling bonds. Six months before issuing $59 million of bonds, the District attempted to terminate Sitterson's contract to avoid paying his commission of $111,250. Sitterson sued the District for breach of contract and quantum meruit, and the jury awarded him $151,000. He now appeals the trial court's denial of prejudgment interest on $111,250 of the award, arguing that this amount represents his liquidated damages and is "included" in the jury's award. In a cross-appeal, the District challenges the trial court's admission of four attorney-client letters into evidence, arguing that it did not waive the attorney-client privilege by disclosing the documents to Sitterson in discovery. We find no error and, thus, affirm.

FACTS

A. Background Facts

¶ 2 Sitterson is a financial adviser who advises school districts in the approval and sale of bonds. In 1997, he responded to a request for proposal from the District seeking such a financial adviser. The proposal allowed for a three-year contract, which "may be extended for two additional years, if mutually agreed." Exh. 6 at 8. After the District awarded Sitterson the contract, he negotiated compensation with John Nissen, the District's director of budget and fiscal services. The District agreed to pay Sitterson a commission of $3 per $1,000 for the first $15 million of debt issued, $2 per $1,000 for the next $15 million issued, and $1.25 per $1,000 for any additional amounts.

¶ 3 In 1999, Sitterson assisted the District in obtaining voter approval for and selling $58.5 million in general obligation bonds. The District paid Sitterson $110,625 according to the negotiated formula. At the time, the District's assistant superintendent, Marcia Fromhold,[1] expressed concern to Nissen about the amount of Sitterson's fees.

¶ 4 Two years later, the District considered whether to renew Sitterson's contract or hire someone else "that might be cheaper." Exh. 37. It ultimately decided to renew Sitterson's contract. Accordingly, the District's purchasing agent, Connie Bosckis, wrote Sitterson, offering to extend the contract "for the contract period February 24, 2001 through February 1, 2003." Exh. 38. Sitterson accepted the extension and believed that the contract would run for another two years.

¶ 5 A few months after renewing the contract, Sitterson met with and advised the District about its options in issuing more bonds. He then worked with an underwriter to run financial projections for each option. In November 2001, Sitterson recommended to the District that it seek voter approval for the total capital-needs budget, around $160 million, all at once instead of in successive ballot measures. According to Sitterson, the Board approved the idea.

¶ 6 On January 28, 2002, Fromhold summoned Sitterson to her office. Sitterson testified that she told him the District was terminating his contract and "muttered under her breath, but loud enough for [him] to hear, `It's just so much money.'" 2 Report of Proceedings (RP) at 200. Fromhold testified that she told Sitterson the District was not going to renew his contract for the second extension year, partly because his services were too expensive.

¶ 7 In March 2002, the District placed a request for a $167,930,000 bond on the ballot. The voters approved the measure, and the District sold $59 million in bonds in July 2002. Under the parties' contract, the District would have owed Sitterson a $111,250 commission on the bond sale. Sitterson sued the District for breach of contract and quantum meruit (unjust enrichment).

B. Attorney-Client Privileged Exhibits

¶ 8 About one month after filing his complaint, Sitterson served a request for production *738 of documents on the District. The District provided approximately 439 pages of documents in response, including four confidential letters between the District and its attorney, Brian Wolfe, about the prospective or pending litigation with Sitterson.

¶ 9 Three years later and 10 days before the trial date, Sitterson sent copies of his proposed exhibits to the District, including the four letters as exhibits 55, 59, 62, and 64. The District objected to admission of those exhibits on the first day-of trial, arguing that they were protected by the attorney-client privilege. Wolfe, still representing the District, explained his disclosure:

I suspect that we—we provided them to Mr. Turner in the discovery because, you know, you have—you're supposed to provide everything that may lead to admissible evidence. But just because you provide it doesn't mean that it is admissible evidence.

1B RP at 1048. Sitterson responded that the District waived the privilege when it produced the documents during discovery. The court asked Wolfe, "[W]hat role did you have in the release of these documents? I mean, did they not go through you[?]" 1B RP at 1065. Wolfe responded, "They did. And I just didn't—I guess I wasn't thorough enough." 1B RP at 1065. The court denied the District's motion to exclude.

¶ 10 During Sitterson's opening statement, his counsel spoke extensively about exhibits 55 and 59, both letters from Wolfe to the District analyzing the merits of the case. Counsel read aloud portions of exhibit 55 in which Wolfe stated his initial analysis of the case after reviewing the relevant contracts and other documents. Counsel then summarized that analysis as follows:

So what Mr. Wolfe is saying to the district is, in fact, even though Connie Bosckis sent Mr. Sitterson a letter and said, We want to renew the contract through February 1st of 2003, pick up the two-year option; and even though Mr. Sitterson saw that, reviewed it, signed it and sent it back, Mr. Wolfe's analysis was that because Ms. Bosckis didn't have the authority to do two years, that, in fact, it was only a one-year contract.
But what's notable about this is this is July 13th of 2003, and this is the first document you will ever see in this entire case that suggests that Ms. Bosckis was not doing anything other than what her bosses told her to do when they said renew the contract with Mr. Sitterson.

1A RP at 75-76. Sitterson's attorney also read from and discussed Wolfe's follow-up letter. In this letter, Wolfe described Bosckis's renewal letter as "our weak link" because if Sitterson did work in reliance on the letter's renewal for two years, "the district's position would not pass the smell test." 1A RP at 77-78. After reading this language, Sitterson's counsel told the jury:

Well, that exactly—is exactly what happened in this case, Mr. Sitterson did rely on the letter from Ms. Bosckis. Why wouldn't he? He did put in some work effort. He did work for an entire year under that contract and didn't receive any money for the work that he did for that 2002 bond, all the recommendations that he made, the meetings he attended to, the ideas that he gave them.

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Cite This Page — Counsel Stack

Bluebook (online)
196 P.3d 735, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sitterson-v-evergreen-school-dist-no-114-washctapp-2008.