Tonga Air Services, Ltd. v. Fowler

826 P.2d 204, 118 Wash. 2d 718, 1992 Wash. LEXIS 78
CourtWashington Supreme Court
DecidedMarch 26, 1992
Docket58057-0
StatusPublished
Cited by15 cases

This text of 826 P.2d 204 (Tonga Air Services, Ltd. v. Fowler) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tonga Air Services, Ltd. v. Fowler, 826 P.2d 204, 118 Wash. 2d 718, 1992 Wash. LEXIS 78 (Wash. 1992).

Opinion

Guy, J.

Tbnga Air Services, Ltd., appeals a decision of the San Juan County Superior Court granting respondent Wayne Fowler's motion to deny execution of a foreign judgment against Mr. Fowler. The focus of this appeal is the proper application of RCW 6.40, the Uniform Foreign *721 Money-Judgments Recognition Act. This court has not previously had occasion to apply this statute.

Facts

Procedural History

This appeal arises from the decision of the San Juan County Superior Court granting Mr. Fowler's motion to deny enforcement of a foreign judgment entered by a Tbngan trial court. Tonga is an independent nation of islands in the South Pacific, formerly under British rule. The Tbngan judgment followed a 5-day trial of a contract dispute between the parties.

On October 22,1981, the Supreme Court of Tonga (a trial court) sitting at Nuku'alofa, Tonga, rendered a judgment in the case of Tbnga Air Services v. Wayne Fowler, Civ. No. 23/ '80. The 1981 judgment was in the amount of $82,170.26 in United States dollars. The appellant claims interest on this judgment of 12 percent per annum pursuant to RCW 4.56.110 and RCW 19.52.020. A petition and affidavit for recording this judgment, pursuant to RCW 6.36.025-.035 and 6.40.030, was filed in San Juan County Superior Court on June 10, 1988. A revised petition and affidavit was filed on June 13, 1988.

On February 27, 1989, the San Juan County Superior Court entered an order denying enforcement of the foreign judgment. The court held that the foreign judgment was not "conclusive", declaring:

[T]he defendant's motion to deny enforcement ... is hereby granted, for the sole reason that the judgment is not conclusive because the Order . . . granting plaintiff leave to execute upon the judgment, was obtained ex parte, without notice to the defendant . . ..

The transcript of the proceeding in San Juan County reveals that Tbnga Air Services was free to reapproach the Supreme Court of Tbnga for leave to execute upon the 1981 judgment after notice. Thereafter Tbnga Air Services obtained a new hearing before the Supreme Court of Tonga to obtain leave to execute upon the judgment. Notice was *722 provided to the respondent and respondent's counsel. The Supreme Court of Tonga heard arguments from both parties on June 7 and September 21, 1989, regarding the propriety of granting leave to execute the 1981 judgment against Mr. Fowler. On November 3, 1989, the Supreme Court of Tonga ruled in favor of Tonga Air Services and again granted leave for the appellant to execute upon the judgment. The Tongan court issued an order and 9-page memorandum decision.

On November 14,1989, Tonga Air Services filed its second amended petition and affidavit requesting recording of foreign judgment in San Juan County Superior Court. This was followed by a supplemental affidavit in support of recording of foreign judgment on November 17, 1989. On March 23, 1990, Mr. Fowler filed his supplemental memorandum in support of motion to deny enforcement of foreign judgment. On May 18, 1990, the Superior Court heard oral argument on Mr. Fowler's motion to deny enforcement of the foreign judgment.

On July 11, 1990, the San Juan County Superior Court issued a memorandum decision on defendant's motion to deny enforcement of foreign judgment. This decision granted Mr. Fowler's motion and for a second time denied enforcement of the Tongan judgment. Tonga Air Services filed a notice of appeal on August 7, 1990. We accepted direct review.

Background

Respondent Fowler first went to Tonga in 1977 while performing missionary service work with the Seventh-Day Adventist Church. While in Tonga, Mr. Fowler, who was a professional pilot, became interested in starting a commercial air service in Tonga. Mr. Fowler discussed with Mr. Uliti Uata, a citizen of the Kingdom of Tonga, the prospects of entering a joint venture to establish an air service. They decided to form Tonga Air Services, Ltd. (TAS) for this purpose. Mr. Uata and Mr. Fowler formed TAS pursuant to a written agreement in 1978.

*723 The agreement provided that Mr. Fowler would provide an airplane and parts, his expertise as a pilot and mechanic, and funds to capitalize the corporation. There is a great deal of dispute as to the facts of the management of the corporation. Generally it appears Mr. Fowler was in charge of operations and piloting and maintenance, while Mr. Uata, a businessman in Tonga, was in charge of bookkeeping and administration, and there the agreement stops. Disputes arose over finances, and both Mr. Fowler and Mr. Uata have accused each other , of improprieties and mismanagement of TAS business. Resolution of these disputes is not necessary to decision of the matter at hand.

The source of the case before this court is a contract for the credit sale of airplanes by Mr. Fowler to TAS. Mr. Fowler had repossessed an airplane based on a default in purchase payments due to him from TAS. In November 1978, TAS and Mr. Fowler agreed in writing that Mr. Fowler would sell to TAS two aircraft, being a used DeHavilland Heron and a used twin Beechcraft Bonanza, for a total of $170,000 United States dollars. TAS agreed to pay Mr. Fowler in monthly installments of $3,696.23 United States dollars. The contract provided the following default and repossession terms:

The "buyer" [TAS] hereby agrees that in the event of his failure to make timeous [sic] payment of any one or more of the monthly instalments, the "seller" [Fowler] shall be entitled to repossession of the "property". The buyer would be entitled to a refund of monies paid less interest and any amount of expenses incurred by the seller on repossession and reselling of the "property".

(Italics ours.) After the air service was in operation for some time, disputes arose between Mr. Uata and Mr. Fowler over many matters, including the suitability of the two airplanes for the purpose intended and the purchase of an airplane and parts. When TAS defaulted on an installment payment, Mr. Fowler (who had been terminated as pilot of TAS) filed suit against TAS to repossess the used DeHavilland airplane.

*724 Mr. Fowler's repossession action was tried in Tonga before Judge H.H. Hill. The court ruled in Mr. Fowler's favor and awarded him possession of the airplane. After this repossession award, Mr. Fowler wrote to Judge Hill stating he would comply with the obligation to return to Tonga for an accounting of moneys owed to TAS under the above-quoted terms of the sale contract. In this letter, Mr. Fowler praised the Tongan court system for its fairness.

Mr. Fowler took the airplane and left Tonga for the United States in late 1979 where he sold the airplane in the state of Washington. He returned to Tonga in 1980.

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Bluebook (online)
826 P.2d 204, 118 Wash. 2d 718, 1992 Wash. LEXIS 78, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tonga-air-services-ltd-v-fowler-wash-1992.