US Bank NA v. Glogowski Law Firm

CourtDistrict Court, W.D. Washington
DecidedAugust 3, 2021
Docket2:19-cv-00074
StatusUnknown

This text of US Bank NA v. Glogowski Law Firm (US Bank NA v. Glogowski Law Firm) is published on Counsel Stack Legal Research, covering District Court, W.D. Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
US Bank NA v. Glogowski Law Firm, (W.D. Wash. 2021).

Opinion

THE HONORABLE JOHN C. COUGHENOUR 1 2 3 4 5 6 UNITED STATES DISTRICT COURT 7 WESTERN DISTRICT OF WASHINGTON 8 AT SEATTLE 9 U.S. BANK, N.A., CASE NO. C19-0074-JCC 10 Plaintiff, ORDER 11 v. 12 THE GLOGOWSKI LAW FIRM, PLLC, d/b/a ALLEGIANT LAW GROUP, and KATRINA 13 GLOGOWSKI, 14 Defendants. 15

16 This matter comes before the Court on Plaintiff’s motion for summary judgment (Dkt. 17 No. 84), Defendants’ motion for summary judgment (Dkt. No. 88), and Defendants’ motion to 18 file an overlength brief (Dkt. No. 82). Having thoroughly considered the parties’ briefing and the 19 relevant record, the Court finds oral argument unnecessary and hereby GRANTS in part and 20 DENIES in part the motions for summary judgment (Dkt. Nos. 84, 88) and DENIES as moot the 21 motion to file an overlength brief (Dkt. No. 82) for the reasons explained herein. 22 I. BACKGROUND 23 This is a legal malpractice action. (See generally Dkt. No. 36.) U.S. Bank alleges that 24 Katrina Glogowski and the Glogowski Law Firm, PLLC, d/b/a Allegiant Law Group 25 (collectively “Defendants”), breached their professional duties and their agreement with U.S. 26 Bank when they inadequately represented U.S. Bank in foreclosure actions and related matters 1 regarding properties in Seattle, Washington (the “Erickson property”); Salem, Oregon (the 2 “Patten property”); and Lake Oswego, Oregon (the “Cohen property”). (Id.) 3 Defendants counter they were not paid for services they provided to a U.S. Bank 4 contractor, Asset Foreclosure Services, now known as Peak Foreclosure Services. (See Dkt. No. 5 40 at 12–14.) Defendants argue that because U.S. Bank benefitted from those earlier services, it 6 is liable for Peak Foreclosure’s nonpayment. (See Dkt. No. 40 at 12–14.) Defendants assert 7 counterclaims for breach of contract, quantum meruit, and unjust enrichment. (Id.) 8 U.S. Bank seeks summary judgment on all claims and Defendants seek summary 9 judgment solely on U.S. Bank’s claims. (See generally Dkt. Nos. 84, 88.) Defendants also move 10 for leave to file an overlength motion for summary judgment. (Dkt. No. 82). 11 II. DISCUSSION 12 A. Choice of Law 13 The statutes of limitations for legal malpractice claims in Minnesota, Washington, and 14 Oregon vary substantially, compare Minn. Stat. § 541.05 (six years), with Wash. Rev. Code 15 § 4.16.080 (three years) and Or. Rev. Stat. § 12.110 (two years). Defendants argue that, to the 16 extent Washington or Oregon’s shorter statute of limitations applies to U.S. Bank’s malpractice 17 claims, they would be time-barred. (Dkt. Nos. 88 at 10–11, 93 at 7–8.) 18 Defendants signed U.S. Bank’s engagement letter on October 22, 2014. (See Dkt. No. 87 19 at 10–41.) It “govern[s] all services provided to and conducted on behalf of U.S. Bank” and 20 contains a choice-of-law clause indicating that its terms should be “governed by and construed 21 and enforced in accordance with the laws of the State of Minnesota, without regard to its conflict 22 of law principles.” (Id. at 10, 20.) 23 This Court, sitting in diversity, applies Washington’s choice-of-law rules. See Downing v. 24 Abercrombie & Fitch, 265 F.3d 994, 1005 (9th Cir. 2001). Those rules provide that the Court 25 must engage in a conflict-of-laws analysis if an actual conflict exists between the laws or 26 interests of Washington and the laws or interests of another state. Erwin v. Cotter Health 1 Centers, 167 P.3d 1112, 1120 (Wash. 2007). Except in limited circumstances, if a conflict of law 2 exists and the parties selected the governing law, the Court enforces that agreement. See McKee 3 v. AT&T Corp., 191 P.3d 845, 851 (Wash. 2008). However, this is not the case for “tort claims 4 arising out of the contract.” Haberman v. Wash. Pub. Power Supply Sys., 744 P.2d 1032, 1066 5 (Wash. 1987). Instead, the parties’ agreement is a consideration “in the most significant 6 relationship test.” Id. 7 Under the most significant relationship test, the Court looks to relevant contacts, such as 8 the place of contracting, the place of performance, and the domicile of the parties. Mulcahy v. 9 Farmers Ins. Co. of Wash., 95 P.3d 313, 317 (Wash. 2004). “These contacts are to be evaluated 10 according to their relative importance with respect to the particular issue.” Id. Here, the relevant 11 contacts favor the application of Minnesota’s statute of limitations. First and most importantly, 12 this is consistent with the engagement letter. (See Dkt. No. 87 at 10, 20.) When interpreting an 13 agreement, the Court focuses on “the actual words used.” Hearst Commc’ns, Inc. v. Seattle 14 Times Co., 115 P.3d 262, 267 (Wash. 2005). The words used in this instance, agreed to by 15 sophisticated parties, provide that Minnesota law would apply. Second, no single jurisdiction has 16 the majority of contacts regarding Defendants’ services to U.S. Bank because Defendants 17 provided legal services to U.S. Bank in various states, including Alaska, Oregon, and 18 Washington. (Dkt. No. 85-1 at 9–10.) Third, U.S. Bank is a Minnesota-based corporation—it 19 negotiated its agreement with Defendants for services rendered in Minnesota and incurred its 20 alleged injuries in Minnesota. (See Dkt. Nos. 36 at 3, 95 at 4.) 21 The Court does not find Defendants’ argument, that Washington’s statute of limitations 22 cannot be overridden by a generic choice-of-law provision requiring the application of 23 Minnesota law, persuasive. (See Dkt. No. 97 at 4.) As the Ninth Circuit stated in the case 24 Defendants rely on, the statute of limitations of the desired forum can apply in circumstances 25 where that forum would otherwise be unavailable to a plaintiff. See In re Sterba, 852 F.3d 1175, 26 1178, 1180–81 (9th Cir. 2017). Here, the Minnesota forum would be unavailable to U.S. Bank 1 because Defendants are citizens of Washington and provide the Court no assurance that they 2 would be subject to a court’s personal jurisdiction in Minnesota. (See Dkt. No. 36 at 3.) Without 3 this assurance, it would be inequitable for this Court to ignore the parties’ clear choice-of-law 4 provision. 5 Accordingly, the Court finds that Minnesota law applies. 6 B. Defendants’ Motion to File an Overlength Brief 7 Defendants moved for leave to file an overlength motion for summary judgment (Dkt. 8 No. 82) and U.S. Bank asked the Court to strike the overlength portion of Defendants’ motion. 9 (See Dkt. No. 95 at 13–14.) At issue are six pages within Defendants’ motion containing 10 arguments based on Washington law supporting summary judgment on U.S. Bank’s breach of 11 contract claims. (See Dkt. No. 88 at 24–30.) But, as discussed above, the parties’ agreement for 12 legal services contains a clear choice-of-law clause that requires the application of Minnesota 13 law to this dispute. (See Dkt. No. 87 at 20.) Therefore, the Court need not address the parties’ 14 requests because the pages at issue in Defendants’ motion are not relevant in considering the 15 merit of U.S. Bank’s breach of contract claims under Minnesota law. Accordingly, Defendants’ 16 motion to file an overlength brief (Dkt. No. 82) is DENIED as moot. 17 C.

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US Bank NA v. Glogowski Law Firm, Counsel Stack Legal Research, https://law.counselstack.com/opinion/us-bank-na-v-glogowski-law-firm-wawd-2021.