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T-mobile Usa, Inc. v. Platinumtel Communications, Llc
75208-1
| Wash. Ct. App. | Sep 18, 2017
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Background

  • T-Mobile and Platinumtel (Ptel) entered a Wholesale Supply Agreement with a security interest in Ptel’s equipment, accounts, bank funds, and other collateral; the contract required arbitration for billing/service disputes and provided that the prevailing party could recover attorneys’ fees.
  • T-Mobile alleged Ptel defaulted on >$3M in payments, cut off service, and filed (1) a court Complaint for Replevin and Injunction to take possession of collateral and (2) an arbitration proceeding under the contract.
  • The trial court issued a temporary restraining order but later denied T-Mobile’s motion for a writ of replevin and preliminary injunction, finding T-Mobile failed to show imminent dissipation of collateral and that much of the listed collateral (funds, accounts) was not subject to replevin or was insufficiently described.
  • Ptel moved to fix fees and enter judgment; three days later T-Mobile filed an amended complaint and opposed the fee motion. The trial court awarded Ptel attorneys’ fees as the prevailing party and dismissed T-Mobile’s court claims with prejudice.
  • Arbitration continued; T-Mobile expected an arbitration award in its favor. T-Mobile appealed the trial-court judgment, arguing the court lacked authority to enter final judgment and award fees while the central dispute remained in arbitration and that replevin was improperly denied.

Issues

Issue T-Mobile's Argument Ptel's Argument Held
Whether court could enter final judgment/determine prevailing party and award fees while central dispute pending in arbitration Court could not enter final judgment or name a prevailing party until all claims (including arbitration) resolved Trial court properly resolved the limited, ancillary court proceeding and could declare Ptel prevailing for those claims Court affirmed: trial court could enter final judgment on the limited replevin/injunction proceeding and award fees under the contract
Whether trial court erred by denying replevin for insufficient specificity Secured party may not be able to identify collateral/location when debtor conceals assets; replevin should be available despite lack of exact particularity Replevin requires specific description and location; funds/accounts not subject to ordinary replevin absent designation Court affirmed denial: T-Mobile failed to describe collateral and location with required particularity; money/bank accounts generally not repleviable unless identified
Whether RCW 4.84.330 statutory “prevailing party” definition controls contractual fee clause Statutory prevailing-party definition should prevent fees until final resolution Contract contained a bilateral fee provision; RCW 4.84.330 inapplicable to bilateral contractual clauses Court held RCW 4.84.330 did not control; bilateral contract language governing fees applied
Whether T-Mobile preserved challenge that amended complaint created live claims preventing judgment Amended complaint created ongoing court claims that barred final judgment T-Mobile failed to identify or press specific live claims and did not respond to Ptel’s arguments about loss of right to amend after losing dispositive ruling Court held T-Mobile did not preserve this argument; vague references insufficient

Key Cases Cited

  • Kaintz v. PLG, Inc., 147 Wn. App. 782 (recognizing review de novo for statutory/contractual fee-authority questions)
  • Hawk v. Branies, 97 Wn. App. 776 (1999) (RCW 4.84.330 generally inapplicable where contract contains bilateral fee clause)
  • Wachovia SBA Lending, Inc. v. Kraft, 165 Wn.2d 481 (2009) (statutory provision designed to make unilateral fee clauses bilateral; does not override plain bilateral contract language)
  • State v. Taylor, 150 Wn.2d 599 (2003) (definition and substance-over-form test for final judgment)
  • Apgar v. Great American Indem. Co., 171 Wash. 494 (1933) (replevin is action to determine right of possession to personal property; statutory requirements on description)
Read the full case

Case Details

Case Name: T-mobile Usa, Inc. v. Platinumtel Communications, Llc
Court Name: Court of Appeals of Washington
Date Published: Sep 18, 2017
Docket Number: 75208-1
Court Abbreviation: Wash. Ct. App.