326 P.3d 764
Wash. Ct. App.2014Background
- Department assessed unpaid unemployment taxes against eight Carriers; seven involved here.
- Carriers administratively appealed and negotiated settlement; negotiations produced drafts but no formal agreement.
- Carriers believed an agreement existed; ALJ deemed not authority to enforce it.
- Carriers obtained ex parte show cause order in superior court to enforce the agreement.
- Department argued lack of personal jurisdiction and that no settlement existed; Carriers cross-appealed for sanctions.
- Superior court found jurisdiction and enforced the settlement; Department appeals and Carriers seek sanctions
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Was there personal jurisdiction to enforce the settlement via show cause? | Department argues no proper commencement; ex parte show cause cannot confer jurisdiction. | Carriers contend court had jurisdiction to enforce under show cause. | No; lack of personal jurisdiction; show cause insufficient |
| Did the sanctions request lie within the court's jurisdiction? | Department argues sanctions are inappropriate given lack of jurisdiction. | Carriers seek sanctions for bad faith; otherwise frivolous appeal. | sanctions denied due to lack of jurisdiction |
| Is the appeal for sanctions/fees itself frivolous? | Department argues the appeal lacks merit due to jurisdiction issues. | Carriers contend merits exist in sanction issue. | Because jurisdiction lacked, sanctions/fees issue dismissed |
Key Cases Cited
- Wichert v. Cardwell, 117 Wn.2d 148 (1991) (due process requires notice and opportunity to be heard for personal jurisdiction)
- Prof’l Marine Co. v. Certain Underwriters at Lloyd’s, 118 Wn. App. 694 (2003) (void judgment if no personal jurisdiction; outlines jurisdiction principles)
- Minnesota ex rel. Burleigh v. Johnson, 31 Wn. App. 704 (1982) (show cause Proceedings distinguished; Burleigh supports show cause in absence of statute but not here)