Tae Yon Kim v. Dean

133 Wash. App. 338
CourtCourt of Appeals of Washington
DecidedJune 5, 2006
DocketNo. 55406-9-I
StatusPublished
Cited by10 cases

This text of 133 Wash. App. 338 (Tae Yon Kim v. Dean) 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
Tae Yon Kim v. Dean, 133 Wash. App. 338 (Wash. Ct. App. 2006).

Opinion

¶1 Tae Yon Kim (Kim) brought a lawsuit against his former employers, Jeffrey and Deborah Dean, over alleged promises that Kim would receive a portion of the proceeds when the Deans’ company was sold. He sought recovery under claims of unjust enrichment and promissory estoppel. The superior court denied the Deans’ motion to strike Kim’s jury demand. The jury awarded Kim $500,000. The Deans appeal.

Coleman, J.

¶2 We reverse the judgment and remand for a nonjury trial. The Washington Constitution’s guaranty of a right to a trial by jury does not encompass claims cognizable as equitable claims at the time of the adoption of the Constitution. Kim’s claims derive from a theory of promissory estoppel, which Washington courts would have treated as an equitable claim in 1889.

FACTS

f 3 In December 2001, Kim filed a lawsuit against Jeffrey Dean, Deborah Dean, and the Dean marital community. The complaint alleged that Kim had worked for the Deans’ business, Spectrum Print & Mail Services, Ltd., and that the Deans had promised Kim that he would receive a portion of the proceeds upon the sale of Spectrum to another company. The complaint also alleged that the Deans fired Kim soon after the sale of Spectrum and did not provide him with the promised compensation. He sought recovery under theories of unjust enrichment and promis[341]*341sory estoppel and prayed for relief in the form of a constructive trust.

¶4 Kim filed a jury demand. The Deans moved to strike. A judge other than the trial judge denied the Deans’ motion and allowed Kim to amend his complaint so that the prayer for relief requested “money. . . whether that award be characterized as damages, restitution, or otherwise.”

¶5 After the presentation of evidence, the Deans moved for judgment as a matter of law on the issue of unjust enrichment. Following a colloquy with the trial judge, Kim withdrew the unjust enrichment claim. The Deans moved for judgment as a matter of law on the promissory estoppel claim, but this motion was denied. The case was submitted to the jury solely on a claim of promissory estoppel.

¶6 The jury found for Kim and awarded $500,000 in damages. The Deans moved for judgment as a matter of law or, in the alternative, for a new trial. The court denied the motion. The Deans appeal.

ANALYSIS

f 7 We begin by analyzing the Deans’ argument that the superior court erred in denying their motion to strike Kim’s jury demand. In doing so, we analyze an issue of first impression in Washington courts — is there a right to jury trial under the Washington Constitution for a promissory estoppel claim? Our state constitution provides parties in a civil suit the right to trial by jury as the right existed at the time of the adoption of the constitution in 1889. Brown v. Safeway Stores, Inc., 94 Wn.2d 359, 365, 617 P.2d 704 (1980). Accordingly, there is a right to trial by jury for a civil action that is purely legal in nature but not one that is purely equitable in nature. Brown, 94 Wn.2d at 365.

¶8 Washington courts once held that if any one of the main issues of a case was equitable by nature, equity took jurisdiction of the entire case and there was no right to trial by jury. Coleman v. Highland Lumber, Inc., 46 Wn.2d 549, 283 P.2d 123 (1955); Ranta v. German, 1 Wn. App. 104, [342]*342459 P.2d 961 (1969) (citing Coleman). But in Scavenius v. Manchester Port Dist., 2 Wn. App. 126, 467 P.2d 372 (1970), Division Two of this court ruled that the adoption of CR 38 and CR 39 in 1967 gave superior courts more discretion than under Coleman “in allowing some legal issues to be tried to the jury even though one of the parties has raised an equitable issue.” Scavenius, 2 Wn. App. at 129.

¶9 In Brown, our Supreme Court explicitly adopted the reasoning set forth in Scavenius. Brown, 94 Wn.2d at 367. The Supreme Court in Anderson reaffirmed its adoption of Scavenius. State ex rel. Dep’t of Ecology v. Anderson, 94 Wn.2d 727, 729-30, 620 P.2d 76 (1980).

In Scavenius v. Manchester Port Dist., 2 Wn. App. 126, 467 P.2d 372 (1970), the Court of Appeals, Division Two, construed [CR 38 and 39] as giving the trial court a wide discretion in cases involving both legal and equitable issues to submit to a jury some, none, or all of the legal issues presented. It set forth a number of criteria for the exercise of that discretion. We approved those criteria in Brown v. Safeway Stores, Inc., 94 Wn.2d 359, 617 P.2d 704 (1980). In that case, we said that where an action is purely equitable in nature, there is no right to a trial by a jury, citing Dexter Horton Bldg. Co. v. King County, 10 Wn.2d 186, 116 P.2d 507 (1941). We held that, where the pleadings present a mixture of legal and equitable issues but the primary relief sought is equitable in nature, denial of a jury trial is proper.

Anderson, 94 Wn.2d at 729-30 (footnote omitted). “[I]n an equity case the court may empanel a jury only for advisory purposes, unless both parties consent to be bound by the verdict. . . .” Anderson, 94 Wn.2d at 731 (citing CR 39(c)).

¶10 Under the historical test, Washington courts determine the overall nature of an action by “lookfing] to see whether the claims in question were within the exclusive jurisdiction of the equity courts when the state constitution was adopted in 1889.” Auburn Mech., Inc. v. Lydig Constr., Inc., 89 Wn. App. 893, 897-98, 951 P.2d 311 (1998). In Auburn, the court ruled that the issues were legal, not equitable, and that a denial of a jury trial was erroneous [343]*343when a subcontractor sued Boeing for breach of an “implied-in-law” duty and asserted a right to recover under the theory of quantum meruit/unjust enrichment “ ‘for the amount that it deserves, a reasonable amount for work performed.’ ” Auburn, 89 Wn. App. at 895. The Auburn court noted that “[t]he modern term for this type of action is restitution. Restitution is not exclusive to equity.” Auburn, 89 Wn. App. at 900. The early forms of restitution included quasi contract, which “developed out of the common-law writ of assumpsit, and included subordinate counts such as a count for work and labor done, otherwise known as quantum meruit.” Auburn, 89 Wn. App. at 900-01. “In an action in a law court, a plaintiff prevailing in a suit in quasi contract was given a money judgment.” Auburn, 89 Wn. App. at 901 (footnote omitted). Equity courts developed parallel remedies of constructive trust and equitable liens for claims for the value of extra work. Auburn, 89 Wn. App. at 901.

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133 Wash. App. 338, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tae-yon-kim-v-dean-washctapp-2006.