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Joe Brandmeier And Lisa Brandmeier, Apps. v. Noele Miller And Wah Investments, Inc., Res.
80111-2
Wash. Ct. App.
Dec 14, 2020
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Background

  • Joe and Lisa Brandmeier provided property management, bookkeeping, and accounting to WAH/Marina Park in exchange for a recorded declaration of trust giving them a 7% interest in the property.
  • Dispute arose when Miller sought to refinance; the Brandmeiers recorded the trust and later sued separately under TEDRA while Miller had already filed a main case (fraud, conversion, breach, declaratory relief) against the Brandmeiers.
  • The Brandmeiers commenced a separate TEDRA action (as TEDRA requires new actions) seeking removal of the trustee, damages for fiduciary breaches and waste, document turnover, and statutory fees; a receiver was appointed for WAH and sold Marina Park, with sale proceeds partially interpleaded.
  • The Brandmeiers later asserted substantially identical trust-related counterclaims in the main case; Miller moved to strike/dismiss the TEDRA petition under CR 12(f) as redundant.
  • The trial court struck and dismissed the TEDRA action with prejudice under CR 12(f); the Brandmeiers appealed.
  • The Court of Appeals held that striking a TEDRA action under CR 12(f) conflicted with TEDRA (which mandates a new action and contemplates consolidation), so the strike was erroneous but harmless because identical trust claims remained pending in the main case; affirmed.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether the trial court properly struck a separately filed TEDRA action under CR 12(f) as duplicative Brandmeiers: TEDRA requires a new, separate action and CR 12(f) may not be used to eliminate a TEDRA petition; court should consolidate under RCW 11.96A.090(3) Miller: TEDRA claims are redundant of the main case; CR 12(f) properly strikes redundant pleadings Court: Trial court erred to rely on CR 12(f) because TEDRA controls and contemplates separate actions and consolidation; striking TEDRA claims under CR 12(f) was inappropriate
Whether the error required reversal or caused prejudice (including loss of TEDRA statutory remedies) Brandmeiers: dismissal harms their statutory TEDRA remedies (notably discretionary attorney fees) Miller: No prejudice because identical trust claims and remedies remain pending in the main case; fees and remedies can be considered there Court: Error was harmless—trust claims remain intact in the main case; trial court should consider TEDRA fee statute when exercising discretion on fees in the main case; appellate fees denied

Key Cases Cited

  • King County Fire Prot. Districts No. 16, No. 36 & No. 40 v. Housing Auth. of King County, 123 Wn.2d 819, 872 P.2d 516 (1994) (standard and deference for striking pleadings reviewed for abuse of discretion)
  • In re Marriage of Littlefield, 133 Wn.2d 39, 940 P.2d 1362 (1997) (abuse of discretion standard explained)
  • Swak v. Dep’t of Labor & Indus., 40 Wn.2d 51, 240 P.2d 560 (1952) (judicial notice may be taken of ancillary or supplementary proceedings)
Read the full case

Case Details

Case Name: Joe Brandmeier And Lisa Brandmeier, Apps. v. Noele Miller And Wah Investments, Inc., Res.
Court Name: Court of Appeals of Washington
Date Published: Dec 14, 2020
Citation: 80111-2
Docket Number: 80111-2
Court Abbreviation: Wash. Ct. App.