Venwest Yachts, Inc. v. Schweickert

176 P.3d 577
CourtCourt of Appeals of Washington
DecidedFebruary 4, 2008
Docket58321-2-I
StatusPublished
Cited by5 cases

This text of 176 P.3d 577 (Venwest Yachts, Inc. v. Schweickert) 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
Venwest Yachts, Inc. v. Schweickert, 176 P.3d 577 (Wash. Ct. App. 2008).

Opinion

176 P.3d 577 (2008)

VENWEST YACHTS, INC., Appellant,
v.
Joyce SCHWEICKERT, Respondent.

No. 58321-2-I.

Court of Appeals of Washington, Division 1.

February 4, 2008.

*578 Daniel P. Harris, Charles P. Moure, Harris & Moure PLLC, Seattle, WA, for Appellant/Cross-Respondent.

Christopher Whitman Moore, Attorney at Law, Thomas Jeffrey Keane, Keane Law Offices, Seattle, WA, for Respondent/Cross-Appellant.

PUBLISHED OPINION IN PART

SCHINDLER, A.C.J.

¶ 1 "While visiting a boat show, Joyce Schweickert (Schweickert) issued a $150,000 check to Venwest Yachts, Inc. (Venwest) for a custom-built yacht. Schweickert later decided not to purchase the yacht and demanded that Venwest return the $150,000. RCW 88.02.220 states that vessel dealers must place funds they receive in excess of $1,000 in a separate trust account. We reject Venwest's argument that RCW 88.02.220 does not apply because Schweickert's check was for a production slot for a custom-built yacht. RCW 88.02.220 required Venwest to place Schweickert's check in a separate trust account without regard to whether the money was for a production slot to construct a yacht or an already manufactured yacht. Because Venwest violated RCW 88.02.220, we affirm the court's decision to grant Schweickert's motion for summary judgment and entry of the judgment against Venwest for $150,000 plus interest. We also conclude that the trial court did not abuse its discretion in excluding the testimony of Venwest's expert and we affirm the court's decision to deny Schweickert's request for attorney fees.

FACTS

¶ 2 In the beginning of February 2004, Schweickert met with a salesman for Venwest, Randy Hacker (Hacker), at a boat show in Florida. On February 12, Schweickert told Hacker she was interested in purchasing a new 70-foot Marlow Explorer Yacht similar to a used yacht Hacker had showed her. Hacker told Schweickert that she should make a deposit in order to secure the base price and the options for the new yacht. Later that day, Schweickert issued a check to Venwest for $150,000 and wrote "70E Deposit" on the check to indicate the check was for the 70-foot Marlow Explorer. Schweickert then asked her employee to deliver the check to Hacker. Schweickert testified that she believed "[t]he $150,000 check was to be applied toward the total purchase price of the yacht, only if and when [Venwest] and I entered into a signed written contract for purchase of the yacht." Hacker testified that he told Schweickert the tleposit was nonrefundable.

¶ 3 When Hacker met with Schweickert in Seattle on February 19, Hacker gave Schweickert Venwest's "Yacht Purchase Contract" for the 70-foot Marlow Explorer. The Yacht Purchase Contract identifies Venwest as the "Dealer" and states that Venwest is the exclusive west coast dealer for Marlow, Explorer Yachts. Schweickert is identified as the "Purchaser." In the contract, the purchaser "agrees to purchase from Dealer one 70' Marlow Explorer motor yacht, slot # ___, together with all of its machinery, equipment, gear, and . . . all applicable warranties. . . ." The contract states that total purchase price of the yacht was $2,271,155, which includes a nonrefundable payment of $150,000 and a series of progress payments tied to different "construction milestones." There is no dispute that under the contract, the $150,000 deposit applies to the purchase price of the yacht. The contract provides that upon execution, the "Dealer will cause Builder to commence construction" of the yacht with a planned delivery date on or before August 31, 2005. Schweickert did not *579 sign the contract. Instead, she asked Hacker to forward the contract to her attorney to review.

¶ 4 That same day, a bank employee called Schweickert to verify that she had written a $150,000 check to Venwest and wanted to fund it. Schweickert confirmed that she did.[1] Venwest deposited the check in its general account. Venwest used $100,000 to refund a deposit and the remaining $50,000 for business operations.

¶ 5 On February 23, Schweickert's attorney notified Venwest that Schweickert had decided not to sign the contract to purchase the yacht and demanded Venwest return the $150,000. Venwest refused, taking the position that the deposit was nonrefundable.

¶ 6 On March 16, Schweickert filed a complaint against Venwest for conversion, fraud, and violation of the Consumer Protection Act (CPA), chapter 19.86 RCW. Schweickert filed a motion for partial summary judgment on her conversion claim, arguing that the oral agreement to purchase a yacht violated the statute of frauds and was illusory. Venwest filed a cross motion for summary judgment, asking the court to dismiss the lawsuit. The trial court granted Venwest's motion for summary judgment and dismissed all of Schweickert's claims except the CPA claim based on the statutory requirement under RCW 88.02.220 to place the $150,000 in a separate trust account.

¶ 7 Thereafter, the trial court granted Schweickert's motion to amend her complaint to allege breach of fiduciary duty and unjust enrichment based on Venwest's violation of RCW 88.02.220. Schweickert then filed another motion for partial summary judgment, arguing that as a matter of law, Venwest breached its fiduciary duty by failing to comply with the requirements of RCW 88.02.220. Venwest filed a cross motion for summary judgment, asserting there were no material issues of fact that there was an oral agreement between the parties, and that the $150,000 deposit was nonrefundable.

¶ 8 The trial court granted Schweickert's motion for partial summary judgment for breach of fiduciary duty and conversion. The court ruled that regardless of whether the $150,000 was nonrefundable, Venwest was liable as a matter of law for violating RCW 88.02.220. The court imposed a constructive trust and ordered Venwest to return the $150,000 with interest to Schweickert. The trial court later dismissed Schweickert's CPA claim and denied her request for an award of attorney fees on equitable grounds.

ANALYSIS

Breach of Duty as a Vessel Dealer

¶ 9 The question in this case is whether the requirements of RCW 88.02.220 apply to a deposit to a vessel dealer for a production slot to build a yacht. Venwest does not dispute it received $150,000 from Schweickert and did not deposit any of the money into a separate trust account. But Venwest asserts the trial court erred in ruling it was liable under RCW 88.02.220 because the statute does not apply to Schweickert's check to purchase a production slot to build a yacht.

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Bluebook (online)
176 P.3d 577, Counsel Stack Legal Research, https://law.counselstack.com/opinion/venwest-yachts-inc-v-schweickert-washctapp-2008.