Justia Business Law Opinion Summaries

Business Services of America II, Inc. (BSA) sued WaferTech LLC. After the trial court dismissed BSA's claims, BSA appealed. In March 2004, the Court of Appeals affirmed dismissal of all but one claim, which it remanded for trial. After remand, the case lay mostly dormant until June 2009, when BSA noted the case for trial. WaferTech then moved for dismissal. The trial court granted the motion to dismiss, and BSA appealed. BSA argued that the trial court had no discretion to dismiss the case because CR 41(b)(1) states that if a case is noted for trial before a dismissal hearing, it "shall not" be dismissed. The Court of Appeals agreed with BSA and reversed. WaferTech sought review. Upon review, the Supreme Court affirmed the Court of Appeals and remanded the case to the trial court for further proceedings.

The trial court in this case ruled that under the Washington courts' application of "Frye v. United States," there must be general acceptance in the relevant scientific community that a particular type of in utero toxic exposure can cause a particular type of birth defect before expert testimony on causation is admissible. Plaintiff Julie Anderson worked for Akzo Nobel Coatings, Inc., from 1998 until she filed a safety complaint with the Washington State Department of Labor and Industries (L&I) and was fired. While it was not officially part of her job, Plaintiff regularly mixed paint. Employees were required by official company policy to wear respirators when mixing paint, but there was reason to believe that the policy was not rigorously enforced and may have been actively undermined by management. Plaintiff gave birth to a son in January 2000. By 2003, it was clear the child suffered from "medical abnormalities." He was diagnosed with a neuronal migration defect, congenital hemiplegia, microcephalus, and a multicystic dysplastic kidney, among other things, along with "delays in motor, communication, cognitive, and adaptive behavior." Upon review of the trial record, the Supreme Court disagreed with the trial court's interpretation and subsequent ruling on the issue. The Court held that the Frye test is not implicated if the theory and the methodology relied upon and used by the expert to reach an opinion on causation is generally accepted by the relevant scientific community. The Court affirmed the trial court's rulings on comparative fault and wrongful discharge. The case was remanded back to the trial court for further proceedings.

Washington Imaging Services is a medical imaging company that retains Overlake Imaging Associates as an independent contractor. Overlakeâs radiologists interpret the images that Washington Imaging generates. Washington Imaging pays Overlake a percentage of net receipts pursuant to the terms of a contract between them. Though patients know that doctors interpret the images taken by Washington Imaging, they do not know that Overlakeâs doctors review their images. The issue for review by the Supreme Court centered on whether Washington Imaging must pay business and occupation (B&O) tax on the entire amount it received from patients, or whether the amounts that Washington Imaging paid Overlake qualify as âpass throughâ payments on which Washington Imaging does not owe the tax. The trial court ruled in the Department of Revenueâs favor, holding that the amounts paid to Overlake do not qualify for pass-through treatment. The Supreme Court affirmed the trial court. The Supreme Court found that âWashington Imaging does not act in an agentâs capacity to pass payments from the patients through to Overlake. All of the payments received by Washington Imaging constitute gross income. . . and the B&O tax is owed on the entire amount that Washington Imaging receives.â