Articles Posted in Washington Supreme Court

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The Washington Supreme Court was presented an issue of first impression: whether Washington should adopt the "apparent manufacturer" doctrine for common law product liability claims predating the 1981 product liability and tort reform act (WPLA). By this opinion, the Court joined the clear majority of states that formally adopted the apparent manufacturer doctrine. Applying that doctrine to the particular facts of this case, the Court held genuine issues of material fact existed as to whether a reasonable consumer could have believed Pfizer was a manufacturer of asbestos products that caused Vernon Rublee's illness and death. The Court reversed the court of appeals and remanded this case for further proceedings. View "Rublee v. Carrier Corp." on Justia Law

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FutureSelect Portfolio Management Inc. sought to challenge a 2011 Superior Court order granting KPMG LLP's motion to compel arbitration. Lead plaintiff FutureSelect was headquartered in Washington state, and managed a number of investment funds. The second named defendant, Tremont Partners Inc., was headquartered in New York and served as the general partner to the Rye Funds, whose status as feeder funds to Bernard L. Madoff Investment Securities LLC (BMIS) was at the heart of this dispute. Tremont allegedly offered FutureSelect a valuable opportunity to invest with BMIS, and made assurances regarding its oversight and understanding of BMIS's operation. Relying on these assurances and the audit opinions of the accounting firm hired by Tremont, FutureSelect decided to invest in the Rye Funds in 1998. Between 1998 and late 2008, when BMIS's Ponzi scheme finally came to light, FutureSelect continued investing additional funds in the Rye Funds allegedly based on the representations it regularly received from Tremont and its auditors. In all, FutureSelect invested $195 million with Tremont. FutureSelect argued that the Court of Appeals erred by dismissing its appeal as untimely because either the relevant law changed after 2011 in the Washington Supreme Court’s decision in Hill V. Garda CL Northwest, Inc., 308 P.3d 635 (2013), the 2016 appeal followed entry of a final judgment against another defendant, or discretionary review was appropriate. Because none of these rationales provided a basis for FutureSelect's untimely appeal, the Washington Court upheld the Court of Appeals' order of dismissal. View "Futureselect Portfolio Mgmt., Inc. v. Tremont Grp. Holdings, Inc." on Justia Law

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FutureSelect Portfolio Management Inc. sought to challenge a 2011 Superior Court order granting KPMG LLP's motion to compel arbitration. Lead plaintiff FutureSelect was headquartered in Washington state, and managed a number of investment funds. The second named defendant, Tremont Partners Inc., was headquartered in New York and served as the general partner to the Rye Funds, whose status as feeder funds to Bernard L. Madoff Investment Securities LLC (BMIS) was at the heart of this dispute. Tremont allegedly offered FutureSelect a valuable opportunity to invest with BMIS, and made assurances regarding its oversight and understanding of BMIS's operation. Relying on these assurances and the audit opinions of the accounting firm hired by Tremont, FutureSelect decided to invest in the Rye Funds in 1998. Between 1998 and late 2008, when BMIS's Ponzi scheme finally came to light, FutureSelect continued investing additional funds in the Rye Funds allegedly based on the representations it regularly received from Tremont and its auditors. In all, FutureSelect invested $195 million with Tremont. FutureSelect argued that the Court of Appeals erred by dismissing its appeal as untimely because either the relevant law changed after 2011 in the Washington Supreme Court’s decision in Hill V. Garda CL Northwest, Inc., 308 P.3d 635 (2013), the 2016 appeal followed entry of a final judgment against another defendant, or discretionary review was appropriate. Because none of these rationales provided a basis for FutureSelect's untimely appeal, the Washington Court upheld the Court of Appeals' order of dismissal. View "Futureselect Portfolio Mgmt., Inc. v. Tremont Grp. Holdings, Inc." on Justia Law

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This case involved an issue of whether the purchaser of a lien release bond was an indispensable party in an action under chapter 60.04 RCW by a lien claimant against the surety of the release bond. Inland Empire Dry Wall Supply Company entered into an agreement to supply drywall materials to Eastern Washington Drywall & Paint (EWD&P). EWD&P contracted with Fowler General Construction to work on an apartment complex in Richland, Washington. Inland Empire claims EWD&P never paid it for the materials supplied. To pursue payment, Inland Empire filed a preclaim notice and timely recorded a mechanics' lien against the construction project under RCW 60.04.091. To release the project property from the lien. Fowler obtained a lien release bond in the amount of $186,979.57 from Western Surety Company. The lien release bond identified Fowler as the "Principal," Western as the "Surety," and Inland Empire as the "Obligee." The Court of Appeals, in a divided opinion, reversed the trial court's grant of summary judgment in favor of the surety and held that a claim against a lien release bond could be pursued solely against the surety. Finding no reversible error in that decision, the Washington Supreme Court affirmed. View "Inland Empire Dry Wall Supply Co. v. W. Sur. Co." on Justia Law

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Weyerhaeuser Company challenged an award of industrial insurance benefits to its former employee, Roger Street, for his low back condition, a claimed occupational disease. Weyerhaeuser argued that a worker must present expert medical testimony that the disease "arises naturally" out of employment. The Court of Appeals rejected Weyerhaeuser's argument, holding that the controlling case law required Street to present expert medical testimony to show that his back condition "arose naturally" from employment. Because there was medical testimony supporting the "arises proximately" requirement and lay testimony supporting the "arises naturally" requirement, the appeals court held that Street proved his low back condition was an occupational disease and affirmed the jury award of benefits. Finding no reversible error in the Court of Appeals’ decision, the Washington Supreme Court affirmed. View "Street v. Weyerhaeuser Co." on Justia Law

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The principal issue in this case was whether taxpayers could bring federal or state tort claims to challenge tax assessments, or instead must rely on the normal state tax appeals process. The taxpayers here are trucking companies that were assessed unemployment taxes after the Washington State Employment Security Department audited and reclassified their employment relationship with owner-operators who owned and leased out their own trucking equipment. The trucking companies, joined by their trade organization, Washington Trucking Associations, brought this suit asserting a civil rights claim under 42 U.S.C. 1983 and a state common law claim for tortious interference with business expectancies. The superior court dismissed the suit, holding that the trucking companies must challenge the tax assessments through the state tax appeals process. The Court of Appeals reversed in part, holding that the comity principle precluded the section 1983 claim only "to the extent that [Washington Trucking Associations] and the [trucking companies] seek damages based on the amounts of the assessments, but not to the extent that they seek damages independent of the assessment amounts." The Supreme Court reversed the Court of Appeals and reinstated the superior court's dismissal of both the federal and state claims. View "Wash. Trucking Ass'ns v. Emp't Sec. Dep't" on Justia Law

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In 2004, respondents Robert Ingersoll and Curt Freed began a committed, romantic relationship. In 2012, the Washington legislature passed Engrossed Substitute Senate Bill 6239, which recognized equal civil marriage rights for same-sex couples. Respondents intended to marry in September 2013. By the time he and Freed became engaged, Ingersoll had been a customer at Arlene's Flowers for at least nine years, purchasing numerous floral arrangements from Stutzman and spending an estimated several thousand dollars at her shop. Baroronelle Stutzman owned and was the president of Arlene's Flowers. Stutzman knew that Ingersoll is gay and that he had been in a relationship with Freed for several years. The two men considered Arlene's Flowers to be "[their] florist." Stutzman’s sincerely held religious beliefs included a belief that marriage can exist only between one man and one woman. Ingersoll approached Arlene's Flowers about purchasing flowers for his upcoming wedding. Stutzman told Ingersoll that she would be unable to do the flowers for his wedding because of her religious beliefs. Ingersoll did not have a chance to specify what kind of flowers or floral arrangements he was seeking before Stutzman told him that she would not serve him. They also did not discuss whether Stutzman would be asked to bring the arrangements to the wedding location or whether the flowers would be picked up from her shop. Stutzman asserts that she gave Ingersoll the name of other florists who might be willing to serve him, and that the two hugged before Ingersoll left her store. Ingersoll maintains that he walked away from that conversation "feeling very hurt and upset emotionally." The State and the couple sued, each alleging violations of the Washington Law Against Discrimination and the Consumer Protection Act (CPA). Stutzman defended on the grounds that the WLAD and CPA did not apply to her conduct and that, if they did, those statutes violated her state and federal constitutional rights to free speech, free exercise, and free association. The Superior Court granted summary judgment to the State and the couple, rejecting all of Stutzman's claims. Finding no reversible error in that judgment, the Supreme Court affirmed. View "Washington v. Arlene's Flowers, Inc." on Justia Law

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Avnet Inc. was a New York corporation, headquartered in Arizona, and a major distributor of electronic components and computer technology worldwide. Avnet sold products through its headquarters in Arizona and through its many regional sales offices, including one in Redmond, Washington. Following an audit, the Washington State Department of Revenue (Department) determined that from 2003 to 2005, Avnet underreported its business and operations (B&O) tax liabilities by failing to include its national and drop-shipped sales in its tax filings. At issue in this appeal was whether national and drop-shipped sales were subject to Washington's B&O tax under the dormant commerce clause and the Department former "Rule 193." The Washington Supreme Court concluded that neither the dormant commerce clause nor Rule 193 barred the imposition of a B&O tax to Avnet's national and drop-shipped sales delivered in Washington. View "Avnet, Inc. v. Dep't of Revenue" on Justia Law

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Alsco, Inc. was a textile rental and sales company that supplied uniforms, linens, and other products to other businesses in industrial, hospitality, health care, and other fields. Alsco did not provide products or services for resale. Alsco and its employees were covered by a collective bargaining agreement (CBA). The issue this case presented for the Supreme Court's review turned on whether Alsco was a "retail or service establishment" (RSE) under chapter 49.46 RCW for purposes of an exemption to the overtime pay requirement. The trial court granted the employees' motion for summary judgment regarding entitlement to overtime pay, finding that Alsco was not an RSE for purposes of the overtime pay exception. In granting the employees' subsequent motion for summary judgment on the issue of calculating the amount of overtime due, the court calculated the "regular rate of pay" by dividing the total weekly compensation actually paid by 40 hours, not by hours actually worked. The Washington Supreme Court accepted direct review and reversed the trial court. The Supreme Court held that Alsco was an RSE for purposes of the overtime pay requirement. View "Cooper v. Alsco, Inc." on Justia Law

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The State of Washington sued more than 20 foreign electronics manufacturing companies (including petitioners) for price fixing. The State claimed the foreign companies conspired to fix prices by selling CRTs (cathode ray tubes) into international streams of commerce intending they be incorporated into products sold at inflated prices in large numbers in Washington State. The trial court dismissed on the pleadings, finding it did not have jurisdiction over the foreign companies. The Court of Appeals reversed, concluding the State alleged sufficient minimum contacts with Washington to satisfy both the long arm statute and the due process clause. After review, the Washington Supreme Court affirmed the Court of Appeals. View "Washington v. LG Elecs., Inc." on Justia Law