Virginia Chiu & Vincent Liew, Appellants\cross-resps. V. Brian Hoskins, Respondent\cross-apps.

534 P.3d 412
Court of Appeals of Washington·Decided August 21, 2023·No. 83734-6·Published·Cited by 4 cases

Opinion

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON DIVISION ONE

VIRGINIA CHIU, an individual, and No. 83734-6-I VINCENT LIEW, an individual, ORDER DENYING MOTION FOR

Appellants, RECONSIDERATION AND WITHDRAWING AND

v. SUBSTITUTING OPINION

BRIAN HOSKINS and the marital community thereof,

Respondent.

The appellants, Virginia Chiu and Vincent Liew, and the respondent, Brian Hoskins, have filed motions for reconsideration of the opinion filed on July 10, 2023. The court has determined that the motions should be denied, but the opinion should be withdrawn, and a substitute opinion filed; now, therefore, it is hereby ORDERED that the motions for reconsideration are denied; and it is further ORDERED that the opinion filed on July 10, 2023 is withdrawn; and it is further ORDERED that a substitute published opinion shall be filed.

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON

VIRGINIA CHIU, an individual, and No. 83734-6-I VINCENT LIEW, an individual, DIVISION ONE

Appellants,

PUBLISHED OPINION

v.

BRIAN HOSKINS and the marital community thereof,

Respondent.

FELDMAN, J. — Virginia Chiu and Vincent Liew (Tenants) appeal the trial court’s order on summary judgment, findings of facts and conclusions of law, and judgment in this landlord-tenant dispute. Tenants claim that their landlord, Brian Hoskins, failed to comply with various provisions in the Residential Landlord- Tenant Act of 1973 (RLTA), ch. 59.18 RCW, and chapter 7.24 (Rental Agreement Regulation) of the Seattle Municipal Code (SMC). The trial court concluded that Hoskins failed to comply with several such provisions but declined to award damages because it concluded that Tenants had not suffered actual damages. Tenants contend that the trial court erred in failing to award statutory damages and attorney fees, which they claim are required by the RLTA and the SMC upon finding a violation. We agree with Tenants and reverse in part on this point. We

also hold that the trial court applied the wrong legal standard in awarding damages to Hoskins for costs he incurred to restore the property to “move-in condition” after Tenants vacated the property, and we reverse on that point as well. In all other respects, we affirm.

I

Tenants first learned of the rental property at issue in this appeal (the Property) in June 2018. After seeing the Property, they filled out an application, which Hoskins approved. Hoskins then sent them a lease with a move-in checklist for them to fill out. The purpose of the required move-in checklist is to identify existing issues that are purportedly subject to repair by the landlord. Tenants signed both the lease and the checklist as required. Hoskins also signed the checklist but did not send it back to Tenants. Instead, Hoskins responded to a list of move-in issues that Tenants had provided by e-mail. Hoskins replied promptly to that list and repaired those issues that could be fixed.

The monthly rent was $2,395, and Hoskins also required a security deposit of $2,800, which included a $300 nonrefundable cleaning fee. Although Tenants paid the security deposit without complaint, they discovered a year later that a security deposit cannot lawfully exceed the monthly rent, nor can a nonrefundable move-in fee exceed 10 percent of the monthly rent, under SMC 7.24.035. Hoskins did not realize that this limit had changed in 2017 and had thus charged Tenants an excessive amount. When Tenants brought this issue to Hoskins’ attention, he promptly refunded the overage.

When they took occupancy of the Property, Tenants’ understanding was that they were to take care of the yard. Hoskins asked if they wanted to hire a

gardener, and they indicated they did not because they liked gardening. They subsequently struggled to maintain the yard, so Hoskins asked again if they wanted to hire a gardener. This time, Tenants agreed. Hoskins then found a gardener, and Tenants agreed to pay the gardener $50 per month. Thereafter, the gardener maintained the yard periodically but did not notify Hoskins or Tenants when he would be performing these services.

The lease expired on June 27, 2019, and Tenants thereafter agreed to go month to month (with no rent increase) until they moved out at the end of August. When Tenants moved out, they did not leave the Property in the same condition that it was in at the inception of the lease. Hoskins incurred various costs for cleaning and repairs to return the Property to its prior condition, and he subtracted those charges from Tenants’ remaining security deposit.

After Tenants informed Hoskins that they would be moving out at the end of August, Hoskins identified a prospective tenant, who signed a lease with Hoskins with a move-in date of August 24, 2019. The prospective tenant paid Hoskins $6,587 but then rescinded the lease for a number of reasons, including the condition of the apartment and yard. The prospective tenant and Hoskins reached an agreement whereby Hoskins retained $1,297 and refunded the rest.

Dissatisfied that they had not received their full security deposit back, Tenants sued Hoskins, alleging that he had violated both the SMC and RLTA. Hoskins denied Tenants’ allegations and asserted a counterclaim for breach of contract and waste. A bench trial was held in December 2021, and the trial court largely ruled in Hoskins’ favor. The court rejected Tenants’ arguments regarding various “technical violations” of the SMC and RLTA because Tenants had not

proved actual damages and/or Hoskins had not acted unlawfully. Regarding Hoskins’ counterclaim, the court found Tenants liable for $2,346 for repairs, cleaning, and yard maintenance and $800 ($100 per day) for eight days during which Hoskins could not rent the unit as a result of the way Tenants had left it.

The trial court then turned to the issue of prevailing party attorney fees. The court ruled that Hoskins was the prevailing party for purposes of awarding attorney fees under the parties’ lease, which states in relevant part, “[l]n the event of disagreement or litigation regarding the performance of the terms and provisions of this Agreement by either party hereto, the prevailing party shall be entitled to the payment of their costs and expenses, including reasonable attorney’s fees . . . . ” Based on this provision, the trial court awarded Hoskins $19,325 for fees incurred in defense against Tenants’ claims.

The trial court entered judgment in Hoskins’ favor. Tenants appealed, and Hoskins cross-appealed. Hoskins has since withdrawn his cross-appeal.

II

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Virginia Chiu & Vincent Liew, Appellants\cross-resps. V. Brian Hoskins, Respondent\cross-apps., 534 P.3d 412 (Wash. Ct. App. 2023).

534 P.3d 412 (Virginia Chiu & Vincent Liew, Appellants\cross-resps. V. Brian Hoskins, Respondent\cross-apps.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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