Stiles v. Kearney

277 P.3d 9, 168 Wash. App. 250
Court of Appeals of Washington·Decided February 29, 2012·No. No. 41289-6-II·Published·Cited by 145 cases

Opinion

Johanson, J.

¶1 — Dee Ann Stiles filed a defamation complaint against Gerald Kearney. After granting Kearney’s summary judgment motion, the trial court found Stiles’s complaint was frivolous, the defamation claim was not supported by the law or facts, and that Stiles’s attorney had failed to conduct a reasonable inquiry before filing the complaint. Stiles and her attorney, Arleta Young, appeal, raising numerous procedural and substantive challenges to the trial court’s imposition of CR 11 and RCW 4.84.185 sanctions. Discerning no error, we affirm the trial court’s sanction decisions. We also hold that this appeal is frivolous and award Kearney reasonable attorney fees and costs.

FACTS

¶2 Stiles and Kearney reside in the Shore Woods community in Hansville, Washington. In 2009, Stiles was secretary of the homeowners’ association (Association) and her husband was its president. Kearney is a Washington attorney and former member of the Association’s executive board (Board).

¶3 On December 22, 2009, in Kitsap County Superior Court, Stiles filed an amended complaint against Kearney, alleging defamation of character. Attorney Arleta Young signed the complaint. Stiles alleged that Kearney frequently sent hostile e-mails to the Board stating there were “inherent problems” with Stiles and her husband serving on the Board at the same time, questioning the propriety of their actions, and implying her incompetence as the Association’s secretary. Clerk’s Papers (CP) at 3.

¶4 In her complaint,1 Stiles made several allegations related to an October 4,2009 board meeting, which Kearney attended. Stiles alleged that she followed standard practices of preparing minutes based on a recording of the [255] meeting and then publishing the minutes in the Association’s newsletter and on its web site.

¶5 Stiles further alleged that on October 31, another association member, who had been a past board president, posted an e-mail on an association listserve concerning “the divisiveness of the Board.” CP at 4. Stiles alleged that Kearney responded to the e-mail that same day as “another former President of [the] community” and concluded his e-mail by stating, “Finally, the last set of minutes by our secretary are [sic] written from the point of view of someone with an axe to grind. Again, this is divisive (us against them) and not helpful. DeeAnne [sic]: Do your job evenhandedly or step down” CP at 4. Stiles alleged that Kearney sent his response from his work e-mail address to the association listserve; the Association’s property management company, which includes other business contacts; and other individuals. Stiles’s complaint sought damages and a retraction of the statements.

¶6 On February 11, 2010, Kearney answered the complaint. Kearney admitted he sent the alleged statements but denied Stiles’s complaint’s characterizations of his actions and words. Kearney raised several defenses, including CR 12(b)(6); the statements were true, privileged, opinion statements that constituted criticism but not defamation; estoppel; and, in the alternative, that any judgment should be reduced for comparative fault and Stiles’s failure to mitigate her damages. Kearney sought dismissal of the complaint and attorney fees under CR 11 and RCW 4.84.185.

¶7 After conducting discovery, on May 11, Kearney filed a summary judgment motion. Kearney analyzed several required elements of a defamation claim to show that Stiles could not establish a prima facie case for defamation. In June, Stiles filed a response memo disagreeing with Kearney’s analysis of relevant legal theories, and she presented several alternative arguments to show that her claim should survive summary judgment. Stiles’s response also [256] contained a cross summary judgment motion. Kearney’s rebuttal memo argued that Stiles had “failed to present evidence to support even one of the four elements of defamation as defined under Washington law.” CP at 139.

¶8 On June 25, the trial court granted Kearney’s summary judgment motion and awarded him $200 in statutory attorney fees. On July 16, Kearney filed a motion for CR 11 and RCW 4.84.185 sanctions. Young’s response argued that Kearney’s motion relied on his successful summary judgment motion and his subjective beliefs of the case, rather than an application of the objective test for determining if a complaint was baseless or frivolous.

¶9 At a September 3 hearing on the sanction motion, Stiles’s attorney objected to the trial court’s review of certain documents filed with the trial court the previous day. Kearney had filed a rebuttal response memo (rebuttal response) and two declarations (declaration 1, declaration 2) with cost bills attached. Declaration 2 cited documents that were not actually attached to the declaration. Kearney asked to proceed without consideration of the letters and the trial court stated, “Alright. Let’s go ahead, then. I’m not going to consider whatever it was that came in yesterday.” Report of Proceedings (RP) at 15. Later that day, after the hearing, Kearney filed a declaration with the missing documents attached.

¶10 On September 16, the trial court imposed $3,912 in sanctions against Young and Stiles, citing CR 11 and RCW 4.84.185. The judgment assigned joint and several liability to Young and Stiles. The trial court’s findings of fact and conclusions of law stated that Stiles failed to present any “credible or cognizable evidence” (1) for the falsity element of defamation, (2) to refute that the statements were not protected by a common interest privilege, or (3) to prove any damages. CP at 298. The trial court concluded that the complaint was not well grounded in fact or law and that Young failed to conduct a reasonable inquiry before filing the complaint. In a memorandum opinion, the trial court [257] applied several tests to explain its findings and conclusions. The trial court also reviewed Kearney’s costs statements and limited the sanctions to expenses for preparing and filing memos and motions in response to the complaint, but not preparing for argument on the motion. Stiles and Young appeal.

ANALYSIS

I. The Trial Court’s Review of Documents

¶11 First, Stiles argues that the trial court erroneously reviewed documents Kearney filed on September 2 and 3, documents she believes the trial court excluded from review during the sanction motion hearing. She argues that the trial court’s consideration of these documents violated her due process rights because she did not have an opportunity to respond to them. Kearney responds that nothing in the record indicates that the trial court erred by reviewing excluded documents and, in the alternative, any error is harmless. We discern no error.

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Stiles v. Kearney, 277 P.3d 9, 168 Wash. App. 250 (Wash. Ct. App. 2012).

277 P.3d 9 (Stiles v. Kearney) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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