Elliott L.l.c. v. Gregory Nickel
72668-4
| Wash. Ct. App. | Jun 5, 2017Background
- Nickel owned and operated businesses called Nickel Works that leased commercial property from Elliott; lease required base rent plus "Additional Rent" (utilities, taxes, insurance, maintenance).
- After defaults, Elliott filed unlawful detainer; parties mediated and in October 2011 executed a settlement agreement, a stipulated judgment (fixing $87,574.70 as amount owing as of 2011), and a guaranty by Gregory Nickel guaranteeing payment of amounts in the stipulated judgment.
- Settlement preserved Elliott’s right to file the stipulated judgment upon default and allowed amendment to add future defaults; Nickel Works vacated at lease end but failed to pay certain additional rent for Jan–Mar 2012.
- Elliott moved for partial summary judgment in 2013 to enter the stipulated judgment; the trial court entered judgment against Nickel Works for $87,574.70; Nickel Works did not appeal that order.
- After Nickel dismissed a bankruptcy petition, Elliott sought to enforce the stipulated judgment against Gregory Nickel under the guaranty; Nickel did not oppose the 2014 summary judgment motion and did not appear at the hearing; the trial court entered judgment against Nickel personally and his marital community for $87,574.70 plus interest.
- The Court of Appeals affirmed both the 2013 stipulated-judgment entry (as effectively before the court) and the 2014 entry against Nickel personally, and awarded Elliott attorney fees as prevailing party under the guaranty.
Issues
| Issue | Elliott's Argument | Nickel's Argument | Held |
|---|---|---|---|
| Whether Nickel is personally liable under the guaranty for the stipulated judgment | Guaranty unambiguously guarantees full payment of amounts payable by Nickel Works under the stipulated judgment; no factual dispute | Nickel asserted insufficient service of process and later argued scope/payment method issues, but raised no opposition below | Held for Elliott: guaranty establishes personal liability; summary judgment appropriate |
| Whether the 2013 partial summary judgment entering the stipulated judgment was erroneous | Entry was proper because Nickel Works admitted failing to pay additional rent; stipulated judgment fixed 2011 amount and could be amended for later defaults | Nickel argued factual disputes about amounts owed and Elliott’s bad faith meant summary judgment was inappropriate | Held for Elliott: Nickel Works defaulted; amount in judgment reflected 2011 indebtedness and was properly entered |
| Whether the Court can review the 2013 order though not designated in the notice of appeal | Elliott argued the 2013 order is necessary to review the 2014 judgment because the 2014 would not exist without the 2013 order | Nickel sought review of the 2013 order despite not designating it | Held for Elliott: 2013 order prejudicially affects the 2014 order, so appellate review appropriate |
| Whether Nickel forfeited procedural objections by failing to raise them below | Elliott contended procedural defects (service, scope arguments) were not preserved because raised first on appeal or in reply brief | Nickel raised service and scope issues on appeal and in reply | Held for Elliott: appellate court declined to consider issues raised first on appeal or first in reply; preserved record controlled |
Key Cases Cited
- Ski Acres, Inc. v. Kittitas County, 118 Wn.2d 852 (summary judgment standard)
- Right-Price Recreation, LLC v. Connells Prairie Community Council, 105 Wn. App. 813 (review of undesignated orders interrelation)
- Right-Price Recreation, LLC v. Connells Prairie Cmty. Council, 146 Wn.2d 370 (an undesignated order prejudicially affects a designated order if the latter would not have occurred absent the former)
- State v. Taylor, 150 Wn.2d 599 (definition of an aggrieved party for appellate standing)
- State of Cal. v. State Tax Comm'n, 55 Wn.2d 155 (corporation as separate legal entity)
- Cowiche Canyon Conservancy v. Bosley, 118 Wn.2d 801 (issues first raised in a reply brief generally not considered)
