Stazenski v. Coughlin

CourtCourt of Appeals of Arizona
DecidedJune 25, 2015
Docket1 CA-CV 14-0401
StatusUnpublished

This text of Stazenski v. Coughlin (Stazenski v. Coughlin) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stazenski v. Coughlin, (Ark. Ct. App. 2015).

Opinion

NOTICE: NOT FOR PUBLICATION. UNDER ARIZONA RULE OF THE SUPREME COURT 111(c), THIS DECISION DOES NOT CREATE LEGAL PRECEDENT AND MAY NOT BE CITED EXCEPT AS AUTHORIZED.

IN THE ARIZONA COURT OF APPEALS DIVISION ONE

STANLEY F. STAZENSKI and PATRICIA STAZENSKI, husband and wife, Plaintiffs/Appellants,

v.

J. JEFFREY COUGHLIN and HEIDI COUGHLIN, husband and wife; J. JEFFREY COUGHLIN, PLLC, an Arizona professional limited liability company; BOYLE, PECHARICH, CLINE, WHITTINGTON & STALLINGS, P.L.L.C., an Arizona professional limited liability company, Defendants/Appellees.

No. 1 CA-CV 14-0401 FILED 6-25-2015

Appeal from the Superior Court in Yavapai County No. P1300CV201200199 P1300CV201200200 P1300CV201200201 P1300CV201200202 (Consolidated) The Honorable Patricia A. Trebesch, Judge

AFFIRMED

COUNSEL

Christopher Jacobson LLC, Phoenix By Jay C. Jacobson Counsel for Plaintiffs/Appellants Broening Oberg Woods & Wilson PC, Phoenix By James R. Broening, Kerry L. Beringhaus, Richard E. Chambliss, and Kevin R. Myer Counsel for Defendants/Appellees Coughlins & J. Jeffrey Coughlin PLLC

Renaud Cook Drury Mesaros PA, Phoenix By Denise J. Wachholz Counsel for Defendant/Appellee Boyle et al.

MEMORANDUM DECISION

Judge Donn Kessler delivered the decision of the Court, in which Presiding Judge Lawrence F. Winthrop and Judge Samuel A. Thumma joined.

K E S S L E R, Judge:

¶1 Plaintiffs/Appellants Stanley and Patricia Stazenski (“Stazenskis”) appeal the superior court’s grant of summary judgment in favor of Defendants/Appellees J. Jeffrey and Heidi Coughlin (“Coughlin”), J. Jeffrey Coughlin, PLLC (“Coughlin Firm”) (collectively “Coughlin Defendants”), and Boyle, Pecharich, Cline, Whittington & Stallings, PLLC (“Boyle Firm”). For the following reasons, we affirm.

FACTUAL AND PROCEDURAL HISTORY1

¶2 In 2005, before becoming Coughlin’s clients, the Stazenskis bought a 431-acre parcel and a 10-acre parcel, with street addresses located on Mule Shoe Ranch Road and Iron Horse Road respectively, from the Lindahls for $1.2 million. These contiguous parcels are accessed using Mule Shoe Ranch Road which crosses a neighbor’s property. Stazenski v. Lindahl, 1 CA-CV 14-0001, 2015 WL 1456658, at *1, ¶¶ 2-4, n.2 (Ariz. App. Mar. 31, 2015) (mem. decision).

¶3 Several years before the Stazenskis’ 2005 purchase, Coughlin represented the Lindahls in obtaining a quit claim deed for a grant of an easement from the neighbor (“Quit Claim Easement”) for use of Mule Shoe Ranch Road. The neighbor had already acknowledged the existence of a

1 We view the facts, including legitimate inferences, in the light most favorable to the Stazenskis. See Walk v. Ring, 202 Ariz. 310, 312, ¶ 3, 44 P.3d 990, 992 (2002).

2 STAZENSKI v. COUGHLIN Decision of the Court

prescriptive easement, but the Quit Claim Easement clarified the width of the easement. Id. at *1, ¶ 3. The Quit Claim Easement was properly recorded and before the Stazenskis purchased the properties in 2005 the Lindahls gave them a copy of the recorded Quit Claim Easement. Id. at *5, ¶ 19.

¶4 In February 2006, the Stazenskis hired Coughlin, who was working at the Boyle Firm, for advice about the easement and access to the parcels. According to the Stazenskis, Coughlin did not disclose to them that the recorded Quit Claim Easement was defective because it allegedly was nontransferable and fell 212 feet short of the parcels.

¶5 In 2007, without consulting Coughlin, the Stazenskis borrowed $920,000 from Country Bank using one or both of the two parcels as collateral and granted a deed of trust to Country Bank to secure the loan (“Trust Deed”).2 The Stazenskis used part of the loan to buy an adjacent 13- acre parcel from the Havens for $300,000. Like the 431-acre and 10-acre parcels, the 13-acre parcel was also accessed using Mule Shoe Ranch Road via the prescriptive easement. Id. at *1-2, ¶¶ 2, 4, 8. However, the Quit Claim Easement did not apply to the 13-acre parcel. Id. at *6, ¶ 20.

¶6 The Stazenskis’ loan matured in 2009, they failed to pay the loan off, and the bank noticed a trustee sale for the property described in

2 The first page of the Trust Deed states that the property is described in Exhibit A to the trust. Underneath that statement, the Trust Deed states the property is commonly known as 3050 Mule Shoe Ranch Road and gives the tax identification number for that property, which is the identifying information for the 431-acre parcel. Exhibit A, however, lists two parcels (Parcel I and II) by their legal descriptions without providing street addresses or tax identification numbers. Exhibit A describes both the 431- acre parcel and the 10-acre parcel. Exhibit A to the Trust Deed is identical to Exhibit A to the deed the Stazenskis received from the Lindahls when buying the 431-acre and 10-acre parcels in 2005.

3 STAZENSKI v. COUGHLIN Decision of the Court

the Trust Deed (“Sale Notice”).3 Because the Sale Notice included both the 431-acre and 10-acre parcels, but according to the Stazenskis was not supposed to include the 10-acre parcel, the Stazenskis hired Coughlin, who by then had opened his own law firm, to object to Country Bank’s efforts to sell the 10-acre parcel.

¶7 Without Coughlin’s involvement, the day before the scheduled trustee sale, the Stazenskis entered a March 24, 2010 agreement with Country Bank. The Bank agreed to not pursue the Stazenskis for any deficiency on the loan if the trustee sale netted less than the balance owed (“Deficiency Agreement”).4 The Deficiency Agreement was conditioned upon the Stazenskis’ payment of $25,000 to Country Bank and the trustee sale netting at least $930,000.5 The Stazenskis signed the agreement, paid Country Bank $25,000, and the next day a third party (the “Sachs”) bought both the 431-acre and 10-acre parcels for $930,001 at the trustee sale.

¶8 In July 2010, the Stazenskis learned that the recorded Quit Claim Easement for the 431-acre and 10-acre parcels was not valid because

3 Like the Trust Deed, the Sale Notice stated the property for sale was 3050 Mule Shoe Ranch Road, listed the tax identification number for the 431-acre parcel, and also incorporated an attached Exhibit A providing the legal description. Exhibit A to the Sale Notice had the same description of Parcel I and II as Exhibit A attached to the Trust Deed that listed the legal descriptions for both the 431-acre and the 10-acre parcels.

4The subject line of the Deficiency Agreement referenced both the 431-acre parcel and 10-acre parcel by their street addresses on Mule Shoe Ranch Road and Iron Horse Road respectively. It also referenced the Sale Notice described supra at Footnote 3.

5 By the time of the Deficiency Agreement, the Stazenskis owed approximately $1,003,000.

4 STAZENSKI v. COUGHLIN Decision of the Court

it allegedly did not provide complete access to the two parcels and might not have been transferable with the land to them as the new owners.6

¶9 In February 2012, the Stazenskis filed complaints against the Lindahls, Havens, a real estate agent and her brokerage firm, as well as the Coughlin Defendants and the Boyle Firm.7 As it relates to the Boyle Firm and Coughlin Defendants, the Stazenskis asserted three claims: (1) malpractice, (2) negligent misrepresentation, and (3) breach of fiduciary duty. Each claim is premised on various alleged breaches of the standard of care by Coughlin.

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Bluebook (online)
Stazenski v. Coughlin, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stazenski-v-coughlin-arizctapp-2015.