Woo v. Fireman's Fund Ins. Co.

208 P.3d 557
CourtCourt of Appeals of Washington
DecidedMay 18, 2009
Docket61571-8-1
StatusPublished
Cited by18 cases

This text of 208 P.3d 557 (Woo v. Fireman's Fund Ins. 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
Woo v. Fireman's Fund Ins. Co., 208 P.3d 557 (Wash. Ct. App. 2009).

Opinion

208 P.3d 557 (2009)

Robert C. WOO, D.D.S. and Anne M. Woo, husband and wife, and the marital community comprised thereof, Appellants,
v.
FIREMAN'S FUND INSURANCE COMPANY, a California corporation; National Surety Corporation, an Illinois corporation; Depositors Insurance Company, an Iowa corporation; and The Pacific Underwriters Corporation, a Washington corporation, Respondents.

No. 61571-8-1.

Court of Appeals of Washington, Division 1.

May 18, 2009.

*559 Charles K. Wiggins, Wiggins & Masters PLLC, Bainbridge Island, WA, Richard B. Kilpatrick, Attorney at Law, Bellevue, WA, Richard A. Bergh, Law Office of Andrew Bergh PS, Seattle, WA, for Appellants.

Michael B. King, Emilia L. Sweeney, Carney Badley Spellman PS, Seattle, WA, for Respondents.

COX, J.

¶ 1 What is the governing interest rate on a judgment based on claims of tortious conduct, breach of contract, and violation of the Consumer Protection Act? Because the judgment before us is not divisible and is primarily based on the tortious conduct of the defending insurers, we hold that the governing rate is that specified in RCW 4.56.110(3), the rate for "[j]udgments founded on the tortious conduct of individuals or other entities." We affirm.[1]

¶ 2 Fireman's Fund Insurance Company and National Surety Corporation, its corporate affiliate, (collectively "Fireman's Fund") provided liability insurance for Dr. Robert Woo, an oral surgeon.[2] Tina Alberts, a former employee of Dr. Woo, sued him based on a practical joke he played on her while she was under anesthesia during a dental procedure.[3] She claimed outrage, battery, invasion of privacy, false light, public disclosure of private acts, nonpayment of overtime wages, retaliation for requesting payment of overtime wages, medical negligence, lack of informed consent, and negligent infliction of emotional distress.[4] At the time of Alberts's suit, Woo's policy contained provisions for professional liability, employment practices liability, and general liability. Nevertheless, some five months after Alberts sued, Fireman's Fund notified Woo that his policy did not cover the claims asserted in her suit and declined to fund his defense.

¶ 3 Because Fireman's Fund refused to defend him, Woo incurred attorney fees to defend against the claims. Just prior to trial, he settled with Alberts for $250,000.

¶ 4 Woo then commenced this action against Fireman's Fund, alleging breach of the duty to defend under the policies, bad faith, and violation of the CPA. He also claimed that Fireman's Fund was estopped from denying coverage under the policies as a result of its breach of the duty to defend.

¶ 5 On cross-motions for summary judgment, the trial court granted Woo's motion for partial summary judgment that Fireman's Fund breached its duty to defend. The case proceeded to trial on the bad faith and CPA claims. By special verdict, the jury found that Fireman's Fund failed to act in good faith and that the failure was the proximate cause of Dr. Woo's damages in the amount of $750,000. The jury also found that Fireman's Fund violated the CPA and the violation was the proximate cause of Dr. Woo incurring legal expenses to defend against Alberts's claim.

¶ 6 On September 15, 2003, the trial court entered a corrected judgment on the verdict against Fireman's Fund. The judgment included a principal judgment amount of *560 $1,081,554.95 together with prejudgment interest, attorney fees, and costs.[5]

¶ 7 Fireman's Fund appealed. In 2004, while the appeal was before this court for review, the legislature amended RCW 4.56.110 to set the interest rate for judgments founded on tortious conduct.[6] Before the amendment, the statute had no separate interest rate for judgments founded on tortious conduct.[7] The legislature specifically made the amendment retroactive to include judgments that were entered before its effective date and still accruing interest on the effective date of the amendment.[8] The corrected judgment that the trial court entered in this case fell within the scope of this 2004 amendment.

¶ 8 Following a decision adverse to Dr. Woo from this court,[9] the supreme court granted review, reversed in part this court's decision, and reinstated Dr. Woo's corrected judgment.[10] The parties then returned to the trial court for further proceedings.

¶ 9 In February 2008, Fireman's Fund paid Dr. Woo the amount it had calculated as due on the corrected judgment plus post-judgment interest. Fireman's Fund also paid Dr. Woo additional funds in recognition that it would also have to pay attorney fees and costs for the first appeal, amounts that had not yet been awarded by the court.

¶ 10 Thereafter, Fireman's Fund moved for full satisfaction of judgment, which Dr. Woo opposed in part. The trial court granted the motion.

¶ 1 Dr. Woo appeals.

INTEREST ON JUDGMENTS

Mixed Judgment: Single or Multiple Rates

¶ 2 We first address a threshold question: whether a mixed judgment — one based on multiple types of claims — is subject to multiple post-judgment interest rates. The parties appear to agree that only one interest rate under RCW 4.56.110 should apply to the corrected judgment in this case. We agree that only one interest rate applies to the corrected judgment here.

¶ 13 Our fundamental objective in reading a statute is to ascertain and carry out the legislature's intent.[11] If a statute's meaning is plain on its face, then we must give effect to that plain meaning.[12] Under the plain meaning rule, such meaning is derived from all that the legislature has said in the statute and related statutes that disclose legislative intent about the provision in question.[13] An undefined statutory term should be given its usual and ordinary meaning.[14] A court should not adopt an interpretation that renders any portion meaningless.[15] The interpretation that the court adopts should be the one that best advances the legislative purpose.[16] Strained meanings and absurd results should be avoided.[17] The meaning of a statute is a question of law that we review de novo.[18]

¶ 14 RCW 4.56.110 sets forth the interest rate for four categories of judgments: (1) breach of contract where an interest rate is specified; (2) child support; (3) tort *561 claims; and (4) all other claims. It provides, in relevant part:

Interest on judgments shall accrue as follows:
(1) Judgments founded on written contracts, providing for the payment of interest until paid at a specified rate, shall bear interest at the rate specified in the contracts....
(2) All judgments for unpaid child support... shall bear interest at the rate of twelve percent.

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Cite This Page — Counsel Stack

Bluebook (online)
208 P.3d 557, Counsel Stack Legal Research, https://law.counselstack.com/opinion/woo-v-firemans-fund-ins-co-washctapp-2009.