William & Maria Lawson v. Bankers Insurance Co

CourtCourt of Appeals of Washington
DecidedJanuary 21, 2025
Docket40213-4
StatusPublished

This text of William & Maria Lawson v. Bankers Insurance Co (William & Maria Lawson v. Bankers Insurance Co) 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
William & Maria Lawson v. Bankers Insurance Co, (Wash. Ct. App. 2025).

Opinion

FILED January 21, 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

WILLIAM AND MARIA LAWSON, ) No. 40213-4-III husband and wife, ) ) Respondents, ) ) v. ) ) BANKERS INSURANCE COMPANY, a ) PUBLISHED OPINION Florida Profit Corporation, SANCTUARY ) BAIL BONDS LLC, an Arizona limited ) liability company; and CHRIS ) MONTGOMERY, an individual, in his ) capacity as Trustee, ) ) Appellants. )

LAWRENCE-BERREY, C.J. — Sanctuary Bail Bonds LLC (Sanctuary), together

with the original “Deed of Trust” (DOT) trustee and the current DOT trustee, appeal the

trial court’s order declaring Sanctuary’s three DOTs junior to the lien of William and

Maria Lawson. In affirming, we conclude (1) Sanctuary’s three DOTs contain an

inadequate legal description, (2) a court may not disregard the legal description in a deed

under the theory of construing it, and (3) a recording cover sheet may not amend the legal

description in the DOT. We also decline to consider an argument Sanctuary raises on No. 40213-4-III Lawson v. Bankers Ins. Co.

appeal that it failed to raise below.

FACTS

Sanctuary does not assign error to any of the trial court’s findings of fact, and

describes those findings as “undisputed.” Br. of Appellants at 16. For this reason, our

statement of facts comes from the trial court’s findings.

William Lawson and Maria Lawson commenced this action two weeks before a

nonjudicial sale was set to foreclose Sanctuary’s DOT against property owned by David

McConnell and Susan McConnell. The Lawsons sought to restrain the sale and have

their lien against the McConnells’ property declared superior to that of Sanctuary’s.

The notice of trustee’s sale described the property Sanctuary claims its DOT

encumbers:

Lot one (1) of Chippewa-West Division, per plat thereof recorded September 2, 1980, in Volume 2 of Short Plats, page 35, under Auditor’s File No. 169282, records of Pend Oreille County, Washington.

Situate in the County of Pend Oreille, State of Washington.

Tax Parcel Nos. 433705549001 and 433706619048

Ex. D-117.

After a hearing, the trial court entered an order temporarily restraining the

trustee’s sale, conditioned on the posting of a $5,000 bond.

2 No. 40213-4-III Lawson v. Bankers Ins. Co.

The seeds of the dispute began in 1980, with the recording of the subdivision map.

The legal description accompanying the map described the subdivision, comprised only

of one lot, as spanning two sections—all of “Section 5” and a portion of “Section 6.”

Section 5 is 1.12 acres, contains a stick-built house, on which the Lawsons performed

substantial labor and incurred substantial costs on behalf of the McConnells. The balance

of the lot created by the subdivision is in Section 6, is .67 acres, and has a single-wide

mobile home and shop. It is this subdivision lot in which the parties on appeal claim a

senior security interest.

In 2005, the McConnells were deeded the subdivision lot, legally described as:

Lot 1 of CHIPPEWA WEST DIVISION, Short Plat Book 2, page 35, records of the Auditor of Pend Oreille County, Washington.

....

Assessor’s Parcel No.: 433705 54 9001 AND 433706 61 9048

Ex. P-1 (boldface omitted). The address of this lot is 305 McInnis Street, Ione,

Washington.

In 2006, the Lawsons and their children became friends with the McConnells and

their children. In 2011, the McConnells were deeded another property:

3 No. 40213-4-III Lawson v. Bankers Ins. Co.

Lot 36 of CHIPPEWA ADDITION, Plat Book 1, page 24, records of the Auditor of Pend Oreille County, Washington.

Assessor’s Parcel No.: 433706 51 9038

Ex. P-4 (boldface omitted). The address of this lot is 301 McInnis Street, Ione,

Around 2016, the McConnells moved from Ione to Bonners Ferry, Idaho, leaving

their home at 305 McInnis Street in a state of serious disrepair. Also, substantial personal

items had accumulated around the property.

The McConnells asked the Lawsons if they would clean up the property, and

agreed to reimburse them for their time and expense. The Lawsons performed substantial

work on and around the property, including on the house, mobile home, and shop. The

McConnells did not reimburse the Lawsons.

In May 2019, Mr. McConnell asked Mr. Lawson to assist him in removing

squatters from the property, and he also sought financial assistance from the Lawsons for

delinquent property taxes. The Lawsons agreed to these requests, continued to clean up

the property, and kept a running tab of the amounts owed.

By October 2019, the McConnells offered the Lawsons to give them a security

interest in both 301 and 305 McInnis Street. In late November of that year, a quitclaim

4 No. 40213-4-III Lawson v. Bankers Ins. Co.

deed (QCD) was executed in favor of the Lawsons, which contained accurate legal

descriptions of both properties, along with their parcel numbers. Although the instrument

executed was a deed, the Lawsons claim only a secured interest, and before trial,

disclaimed any interest in 301 McInnis Street. The Lawsons failed to promptly record

their QCD.

Around October 2020, Mr. McConnell was arrested in Arizona and detained on

felony charges. The court ordered him held in jail, subject to posting a $75,000 bond.

The McConnells contacted Sanctuary to obtain a bond. In exchange for the bond, the

McConnells executed notes payable to Sanctuary, a collateral agreement, and—pertinent

to this litigation—a DOT.

On October 30, 2020, Sanctuary’s DOT was recorded with the Pend Oreille

County Auditor. The DOT misspelled McInnis Street, misstated the zip code,

misdesignated Sanctuary as the trustee, misdesignated Bankers Insurance Company as

the beneficiary, and misstated the legal description as: “3-70 F2 PTRN OF LOT 1

CHPPEWA WEST LYING WITHIN SECTION 06-37-43. Tax Parcel Number(s):

433706519038.” Ex. D-107 (italics omitted).

With respect to the legal description errors: At trial, no one could explain what

“3-70 F2” meant, but Sanctuary’s counsel suggested that “PTRN” meant “‘portion.’”

Clerk’s Papers (CP) at 278. The subdivision name was misstated. There was no plat

5 No. 40213-4-III Lawson v. Bankers Ins. Co.

book or page number for the subdivision. There was no mention of Section 5 in the legal

description. And the tax parcel number refers to “Lot 36,” rather than “Lot 1,” the lot in

which Sanctuary claims an interest.

A few days later, on November 2, 2020, Susan McConnell rerecorded the same

DOT, but attached to it a “recording cover sheet.” Ex. D-108. The recording cover sheet

stated its purpose was to correct the parcel numbers, and listed the parcel numbers

encumbered by the DOT as Nos. 433705549001 and 433706619048. These parcel

numbers correspond to Lot 1, which is 305 McInnis Street. The recording cover sheet

also included the following legal description: “Lot 1 Chippewa West lying within Section

06-37-43.” Ex. D-108.

Around September 2021, Mr. McConnell absconded. Sanctuary hired a bounty

hunter, but the bounty hunter could not find Mr. McConnell. The Arizona court forfeited

Sanctuary’s bond.

Around April 2022, the Lawsons heard from the city water department that

someone had contacted it about conducting a foreclosure sale against the property in

6 No. 40213-4-III Lawson v. Bankers Ins. Co.

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