Verbeek Properties v. Greenco Environ

246 P.3d 205
CourtCourt of Appeals of Washington
DecidedDecember 20, 2010
Docket63772-0-I
StatusPublished
Cited by10 cases

This text of 246 P.3d 205 (Verbeek Properties v. Greenco Environ) 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
Verbeek Properties v. Greenco Environ, 246 P.3d 205 (Wash. Ct. App. 2010).

Opinion

246 P.3d 205 (2010)

VERBEEK PROPERTIES, LLC, a Washington limited liability corporation; and Dewey T. Verbeek and Marilyn J. Verbeek, husband and wife, doing business as Verbeek Wrecking, Appellants,
v.
GREENCO ENVIRONMENTAL, INC., a Washington corporation; Randy Perkins and Jane Doe Perkins; and the marital community composed thereof; Respondents, and
Developers Surety and Indemnity Co. Bond No. 792634C, Defendants.

No. 63772-0-I.

Court of Appeals of Washington, Division 1.

December 20, 2010.

*206 Marisa M. Bavand, Groff Murphy PLLC, Seattle, WA, for Appellants.

Martin Lowell Ziontz, Attorney at Law, Alexander A. Friedrich, Yusen & Friedrich, Donna M. Young, Jeffrey Paul Downer, Lee Smart PS Inc., Seattle, WA, for Respondents.

BECKER, J.

¶ 1 At issue is a decision denying a motion to compel arbitration. We reverse. The issue of compliance with procedural requirements for initiating arbitration is for the arbitrator to decide, not a trial court. And a plaintiff does not waive a contractual right to arbitrate by failing to mention it in a complaint filed with the court, so long as the plaintiff's behavior is otherwise consistent with an intent to submit to arbitration.

¶ 2 Dewey Verbeek and his wife Marilyn operated a wrecking yard on their property in Bothell, Washington, for over 30 years. When Verbeek decided to sell the property, he learned the site was contaminated and would have to be cleaned up. He hired respondent GreenCo Environmental, Inc., to remediate the soil to meet Department of Ecology standards. The contract between Verbeek and GreenCo included an arbitration clause:

The parties agree that any claim or dispute arising out of this Agreement shall be *207 submitted to, and be subject to, binding arbitration for resolution.
Prior to seeking claim resolution via arbitration the parties shall cooperate to meet and discuss their positions with a neutral mediator in attempt to resolve any difference.

¶ 3 Verbeek paid GreenCo over $900,000 as GreenCo's work progressed, but then became dissatisfied with GreenCo's work and stopped paying. In response, GreenCo recorded a claim of lien on Verbeek's property for the amount withheld.

¶ 4 On February 20, 2009, GreenCo advised Verbeek of the recording of the lien. The letter stated that if Verbeek did not pay the additional amount GreenCo claimed was due, GreenCo would sue to foreclose the lien and obtain a judgment.

¶ 5 On February 24, Verbeek responded to GreenCo, threatening to sue for dismissal of the lien as frivolous and alleging that Green-Co had breached the contract by performing substandard work. Verbeek invoked the arbitration clause:

You are further notified that Verbeek intends to pursue its claim against GreenCo. Under the parties' contract, mediation is a prerequisite to arbitration. Verbeek is willing to waive that requirement and proceed to arbitration if GreenCo is, as we believe mediation would be futile at this point in time.

¶ 6 On March 3, GreenCo wrote a letter asserting that the lien was valid and defending the quality of its work. GreenCo did not address Verbeek's request to proceed to arbitration.

¶ 7 On March 13, Verbeek filed a motion to dismiss GreenCo's lien as frivolous under RCW 60.04.081.

¶ 8 On April 6, while the motion to dismiss the lien was still pending, Verbeek filed a summons and complaint against GreenCo under a new cause number. The complaint alleged breach of contract, fraud, negligent misrepresentation, Consumer Protection Act violations, a cause of action for declaratory relief under the Model Toxics Control Act, chapter 70.105D RCW, and a right to recover against GreenCo's surety bond.

¶ 9 On April 9, the court denied Verbeek's motion to dismiss the lien. The court later entered findings of fact and conclusions of law on this motion and awarded GreenCo attorney fees as authorized by RCW 60.04.081(4).

¶ 10 On April 13, Verbeek wrote to Green-Co, offering to stay the breach of contract action pending arbitration. Verbeek suggested that the parties try to reach an agreement regarding an arbitrator.

¶ 11 On May 12, GreenCo answered the complaint and counterclaimed to foreclose the lien.

¶ 12 On May 19, in response to further inquiries from Verbeek, GreenCo informed Verbeek that the company was refusing to arbitrate because counsel believed that Verbeek had waived arbitration.

¶ 13 On May 26, Verbeek moved to stay litigation and enforce arbitration. The trial court denied the motion, concluding Verbeek had waived the right to arbitrate. Verbeek appeals.

¶ 14 Appeal of an order denying a motion to compel arbitration may be filed as a matter of right under RAP 2.2(a)(3). Weiss v. Lonnquist, 153 Wash.App. 502, 224 P.3d 787 (2009). Our review of such an order is de novo. Otis Housing Ass'n v. Ha, 165 Wash.2d 582, 586-87, 201 P.3d 309 (2009). The party opposing arbitration bears the burden of showing the arbitration clause is inapplicable or unenforceable. Otis Housing Ass'n, 165 Wash.2d at 587, 201 P.3d 309.

¶ 15 "Washington courts apply a strong presumption in favor of arbitration." Heights at Issaquah Ridge Owners Ass'n v. Burton Landscape Group, Inc., 148 Wash.App. 400, 405, 200 P.3d 254 (2009). Courts must indulge every presumption in favor of arbitration, whether the problem at hand is the construction of the contract language itself or an allegation of waiver, delay, or a like defense to arbitrability. Heights, 148 Wash.App. at 407, 200 P.3d 254.

¶ 16 Waiver is the voluntary and intentional relinquishment of a known right. Ives v. Ramsden, 142 Wash.App. 369, 174 *208 P.3d 1231 (2008). Waiver of an arbitration clause may be accomplished expressly or by implication. Lake Wash. Sch. Dist. No. 414 v. Mobile Modules Nw., Inc., 28 Wash.App. 59, 621 P.2d 791 (1980). The right to arbitrate is waived by "conduct inconsistent with any other intention but to forego a known right." Lake Wash., 28 Wash.App. at 62, 621 P.2d 791; see also Otis Housing Ass'n, 165 Wash.2d at 588, 201 P.3d 309.

¶ 17 GreenCo argues that Verbeek waived the right to arbitrate in four ways. The trial court agreed with GreenCo on two grounds. We conclude that none of the four grounds advanced by GreenCo establish waiver by Verbeek.

¶ 18 First, GreenCo contends Verbeek waived the right to arbitration by failing to initiate an arbitration in compliance with the procedures provided by the Uniform Arbitration Act, chapter 7.04A RCW.

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Bluebook (online)
246 P.3d 205, Counsel Stack Legal Research, https://law.counselstack.com/opinion/verbeek-properties-v-greenco-environ-washctapp-2010.