Wake Up, Inc. v. Roasters Holdings, LLC

Court of Appeals of Washington·Decided September 23, 2025·No. 39740-8·Unpublished

Opinion

FILED

SEP 23, 2025

In the Office of the Clerk of Court WA State Court of Appeals, Division III

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

WAKE UP, INC., a Washington ) corporation; SVN CORNERSTONE, ) No. 39740-8-III LLC, a Washington limited liability ) company; and DILLANOS COFFEE ) ROASTERS, INC., a Washington ) corporation, )

)

Respondents, ) UNPUBLISHED OPINION )

v. )

)

ROASTERS HOLDINGS, LLC, a ) Washington limited liability company, ) a/k/a HEYDEN EMPIRE, LLC; WESLEY ) HEYDEN and SHANNON HEYDEN, a ) Washington marital community, also d/b/a ) RESILIENT COFFEE ROASTERS, LLC ) a/k/a HEYDEN VENTURES, LLC, ) HEYDEN PROPERTIES, LLC, ) ROASTERS FRANCHISING, LLC, ) and ROASTERS COFFEE, )

)

Appellants, )

)

BRSO PNW XX LLC; BLACK ROCK ) COFFEE HOLDINGS, LLC, a Delaware ) limited liability company; BLACK ROCK ) COFFEE INVESTMENTS, LLC, a ) Delaware limited liability company; and ) BLACK ROCK COFFEE BAR, LLC, ) an Oregon limited liability company, )

)

Respondents. )

Wake up, Inc. v. Roasters Holdings, LLC

FEARING, J. — Appellants Roasters Holdings LLC (Roasters) and Resilient Coffee Roasters LLC (Resilient) reneged on an agreement to sell a coffee shop chain and roastery to Wake Up, Inc. (Wake Up) and Dillanos Coffee Roasters, Inc. (Dillanos). Instead, because it was time to get greedy, Roasters and Resilient sold their business assets to interloper Black Rock Coffee Holdings, LLC (Black Rock) and related companies. Wake Up and Dillanos sued Roasters and Resilient for specific performance of the sale.

Wake Up and Dillanos also sued Black Rock for tortious interference with business expectancy. The three sides agreed to arbitrate. The arbitration panel granted Wake Up and Dillanos specific performance of the sale and delay damages against Roasters, Resilient, and Black Rock.

Because Black Rock, Resilient, and Roasters refused to cooperate in completing the sale, Wake Up and Dillanos brought this suit to confirm the arbitration award for specific performance. Even after the confirmation of the order of specific performance, Roasters and Resilient refused to sign documents to close the sale. Black Rock, Wake Up, and Dillanos filed a motion to compel Roasters and Resilient to sign closing documents. The superior court granted this relief and awarded Wake Up and Dillanos an award of reasonable attorney fees and costs. Roasters and Resilient appeal the order compelling it to close the sale because a revised escrow agreement purportedly changed

Wake up, Inc. v. Roasters Holdings, LLC

the terms of closing. Roasters and Resilient also challenged the attorney fees and costs awarded to Wake Up and Dillanos. Because the sale agreement requires arbitration of disputes of the amount of payment under the sale, we refuse to entertain the merits of Roasters and Resilient’s appeal. We affirm the superior court’s award of reasonable attorney fees and costs and award Wake Up and Dillanos fees and costs on appeal.

FACTS

We introduce appellants. Appellants Wesley and Shannon Heyden owned Roasters Holdings, LLC and Resilient Coffee Roasters, LLC. Roasters Holding owned thirteen coffee shops in the Tri-Cities and one in Walla Walla. Resilient Coffee operated a coffee roastery.

In 2020, Wes Heyden wished to sell Roasters Holding’s coffee shops. On August 31, 2020, Heyden, on behalf of Roasters Holding, executed a commission agreement engaging SVN Cornerstone (SVN) to broker the sale. The agreement listed the purchase price for Roasters Holding’s business assets at $6 million or an amount mutually agreed between the buyer and Roasters Holding. At that time, Heyden had already contacted respondents Wake Up, Inc., and Dillanos Coffee Roasters, Inc., about a potential purchase. If Wake Up and Dillanos purchased the business, Roasters agreed to pay

Wake up, Inc. v. Roasters Holdings, LLC

respondent SVN a commission equal to five percent of the purchase price. SVN is a commercial brokerage firm based in Spokane, Washington.

On September 1, 2020, Roasters executed a letter of intent (LOI) with Wake Up, which delineated the terms under which Wake Up would acquire substantially all of the assets of Roasters. The LOI established a purchase price of $6 million, inserted a confidentiality clause in section 7, and enclosed an exclusive dealing provision in section 8.

Between August 31 and December 2020, SVN invested substantial time assisting with the identification, collection, and exchange of due diligence materials to facilitate the closing of the sale of Roasters’ business. During this period, Dillanos agreed to purchase the assets of Resilient. On December 18, 2020, Roasters and Resilient, as sellers, and Wake Up and Dillanos, as buyers finalized all terms for an asset purchase agreement (December 2020 APA).

Under the December 2020 APA, Wake Up agreed to pay $6,200,000 for the Roasters assets, and Dillanos agreed to pay $1,800,000 for the Resilient assets. Section 2.3 of the APA addressed the purchase price. Subsection 2.3 declared:

(a) Assets Purchase Price. The total Purchase Price for the Assets is $8,000,000 . . .with . . . the Purchase Price subject to adjustment as provided for herein, including as related to the Working Capital Target.

The Working Capital will be calculated in accordance with the methodology set forth in the Valuation Report, and if the Final Working

Wake up, Inc. v. Roasters Holdings, LLC

Capital Amount is less than the Working Capital Target, then the Final Purchase Price shall be reduced by that differing amount; if the Final Working Capital Amount is more than the Working Capital Target, then the Final Purchase Price shall be increased by that differing amount.

Clerk’s Papers (CP) at 3526. Later subsections of section 2.3 outlined the method by which the parties would calculate the final working capital amount for purposes of adjusting the purchase price at closing. The language included accounts receivable and inventory in the final working capital amount. Under the language, the liabilities assumed by the buyer would be deducted from the purchase price. Those liabilities included honoring gift cards and loyalty cards previously issued by Roasters to its customers and personal time off owed to employees.

Section 2.9 of the APA demanded arbitration of any dispute concerning the final amounts transferred at closing.

(a) Sellers shall have fifteen (15) days (the “Dispute Period”)

following receipt of the final determination of the Final Closing Balance Sheet, the Accounts Receivable Report or the Inventory Settlement Report, as the case may be, from buyers to dispute that any of the elements of or amounts reflected on such a statement (a “Dispute”) were not calculated in accordance with this agreement.

(b) If Buyers and Sellers are unable to resolve any Dispute within the 30-day period following Buyers’ receipt of a Dispute Notice, the parties hereto shall select by mutual agreement another regionally recognized certified public accounting firm . . . to arbitrate the dispute.

CP at 3535. Wake Up and Dillanos signed the December 2020 APA. Roasters and Resilient expressed their intent to sign, but continually delayed signing.

Wake up, Inc. v. Roasters Holdings, LLC

Contemporaneously with the finalization of the December 2020 APA, Wesley Heyden, owner of Roasters and Resilient, solicited offers from entities that we collectively label “Black Rock.” Those entities include Black Rock Coffee Holdings, LLC; Black Rock Coffee Investments, LLC; Black Rock Coffee Bar, LLC; and BRSO PNW XX, LLC. An arbitration panel later ruled that Roasters and Resilient’s communications with Black Rock violated the LOI’s terms, particularly its confidentiality provision. Roasters and Resilient also explored avoiding payment of SVN’s commission by pursuing a sale to Black Rock without the assistance of SVN.

Derek Tonn, Roasters Holding’s Chief Executive Officer, wrote to Heyden in a text message:

Free access — add to your briefcase to read the full text and ask questions with AI

Wake Up, Inc. v. Roasters Holdings, LLC, (Wash. Ct. App. 2025).

Wake Up, Inc. v. Roasters Holdings, LLC (Wake Up, Inc. v. Roasters Holdings, LLC) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Mahler v. Szucs
957 P.2d 632 (Washington Supreme Court, 1998)
State v. Olson
893 P.2d 629 (Washington Supreme Court, 1995)
Leingang v. PIERCE CO. MED. BUREAU, INC.
930 P.2d 288 (Washington Supreme Court, 1997)
Morgan v. Kingen
210 P.3d 995 (Washington Supreme Court, 2009)
In Re Estate of Black
102 P.3d 796 (Washington Supreme Court, 2004)
Ronald A. Baker And Joyce Baker, Apps. v. Fireman's Fund Ins. Co., Res.
428 P.3d 155 (Court of Appeals of Washington, 2018)
Leingang v. Pierce County Medical Bureau, Inc.
131 Wash. 2d 133 (Washington Supreme Court, 1997)
Mahler v. Szucs
135 Wash. 2d 398 (Washington Supreme Court, 1998)
Carlton v. Black
153 Wash. 2d 152 (Washington Supreme Court, 2004)
Morgan v. Kingen
166 Wash. 2d 526 (Washington Supreme Court, 2009)
The-Anh Nguyen v. City of Seattle
317 P.3d 518 (Court of Appeals of Washington, 2014)