Subcontractors & Suppliers Collection Services v. McConnachie

106 Wash. App. 738
CourtCourt of Appeals of Washington
DecidedJune 14, 2001
DocketNo. 19574-1-III
StatusPublished
Cited by33 cases

This text of 106 Wash. App. 738 (Subcontractors & Suppliers Collection Services v. McConnachie) 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
Subcontractors & Suppliers Collection Services v. McConnachie, 106 Wash. App. 738 (Wash. Ct. App. 2001).

Opinion

Sweeney, J.

The bonding statute in Washington (RCW 18.27.040) permits service of process on contractors with service on the Department of Labor and Industries. Subcontractors and Suppliers Collection Services served the Department to effect service on Todd McConnachie, a contractor, for suit on a materials bill. The statute of limitations had run against the bonding company. The question before us is whether service of process on the Department pursuant to the bonding statute confers personal jurisdiction over a contractor for a debt not covered by the bond. We conclude that it does not and affirm the trial court.

FACTS

No one disputes the underlying facts. Todd McConnachie does business as Royal Homes. Mr. McConnachie and Wilson’s Floor Coverings dispute an unpaid bill for materi[740]*740als. Wilson’s Floor Coverings assigned its interest in the account to Subcontractors and Suppliers Collection Services.

Subcontractors sued Mr. McConnachie and his bonding company, Developers Insurance Company. Subcontractors served the Department of Labor and Industries only— pursuant to the bonding statute. The Department forwarded notice of the suit along to Mr. McConnachie.

Mr. McConnachie answered and moved for summary judgment challenging the propriety of service on the Department. The court dismissed Developers Insurance Company because Subcontractors failed to sue within a one-year statute of limitation period prescribed by RCW 18.27-.040(3). The dispute between Subcontractors and Mr. Mc-Connachie then went to arbitration. Mr. McConnachie appealed an adverse arbitrator’s decision and requested trial de novo in superior court.

The superior court dismissed Subcontractors’ claim for lack of personal jurisdiction based on its failure to personally serve Mr. McConnachie.

DISCUSSION

The question presented is straightforward, even if the answer is not. Can Subcontractors effect personal service on a contractor to collect a bill for materials by serving the Department of Labor and Industries pursuant to the bonding statute?

Subcontractors notes the language in RCW 18.27.040(3) permitting service of process on the Department to effect service on a contractor and argues that the trial judge simply ignored this language.

Mr. McConnachie responds that the specific language Subcontractors relies on must be put in context. The statute, RCW 18.27.040, provides only a vehicle for realizing on a bond.

[741]*741Standard of Review

The facts here are not disputed. We review the court’s ruling on personal jurisdiction de novo. Lewis v. Bours, 119 Wn.2d 667, 669, 835 P.2d 221 (1992).

Statutory Construction

“The primary goal of statutory construction is to carry out legislative intent.” Cockle v. Dep’t of Labor & Indus., 142 Wn.2d 801, 807, 16 P.3d 583 (2001); Cherry v. Municipality of Metro. Seattle, 116 Wn.2d 794, 799, 808 P.2d 746 (1991). We derive that legislative intent primarily from the statute’s language. City of Bellevue v. E. Bellevue Cmty. Council, 138 Wn.2d 937, 944, 983 P.2d 602 (1999).

In doing so, we read the statute as a whole. Miller v. City of Tacoma, 138 Wn.2d 318, 338, 979 P.2d 429 (1999) (Madsen, J., concurring/dissenting); Clausing v. State, 90 Wn. App. 863, 873, 955 P.2d 394 (1998). We try to place the language in the context of the overall legislative scheme. And when we do so here, it becomes clear that this statute spells out the requirements for realizing on a construction bond, including effecting service.

Bonding Statute — Service

RCW 18.27.040 is titled: “Bond or other security required — Actions against — Suspension of registration upon impairment.” Subsection (3) provides in relevant part:

Any person, firm, or corporation having a claim against the contractor for any of the items referred to in this section may bring suit upon the bond or deposit.... Action upon the bond or deposit shall be commenced by filing the summons and complaint with the clerk of the appropriate superior court.... Service of process in an action against the contractor, the contractor’s bond, or the deposit shall be exclusively by service upon the department. . . . The service shall constitute service on the registrant and the surety for suit upon the bond or deposit....

(Emphasis added.)

Subcontractors argues that the court has personal jurisdiction over Mr. McConnachie because the clear language of the statute says so: “Service of process in an action against [742]*742the contractor, the contractor’s bond, or the deposit shall be exclusively by service upon the department.” RCW 18.27-.040(3). It argues that because the sentence lists the contractor, the bond, and the deposit, service under RCW 18.27.040(3) gives the court jurisdiction over not only the bond and deposit, but the contractor as well.

The scope of jurisdiction conferred by service under an earlier version of RCW 18.27.040(3) was addressed in Mid-City Materials, Inc. v. Heater Beaters Custom Fireplaces, 36 Wn. App. 480, 674 P.2d 1271 (1984). There, Mid-City brought an action on an overdue note against Heater Beaters, Heater Beaters’ surety, its operators (Richard and Ann Murchison), and Richard’s parents (Fred and Ethel Murchison). Id. at 482. Mid-City claimed that all four Murchisons were partners in Heater Beaters. Id. Mid-City then took a default judgment against Fred and Ethel Murchison. Id.

On appeal, the court held that the trial court lacked personal jurisdiction over Fred and Ethel Murchison because:

The service provisions of [RCW 18.27.040] are clearly and specifically limited by the language of the statute to suits brought on the bond.

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Bluebook (online)
106 Wash. App. 738, Counsel Stack Legal Research, https://law.counselstack.com/opinion/subcontractors-suppliers-collection-services-v-mcconnachie-washctapp-2001.