Timberland Bank v. Shawn Mesaros & Jane Doe Mesaros State Of Wa Dshs
49156-7
| Wash. Ct. App. | Dec 12, 2017Background
- Mesaros borrowed $375,000 from Timberland Bank and granted a deed of trust on commercial property; he defaulted on the note.
- Timberland sued for judicial foreclosure; the superior court entered a judgment and decree of foreclosure and awarded a deficiency judgment.
- The court issued an Order of Sale on February 5, 2016 and directed the sheriff to sell the property; a sale date was set and notices were published.
- The court extended the Order of Sale 30 days on April 29; the sheriff issued postponement notices and ultimately sold the property to Timberland on May 27, 2016.
- The sheriff filed a return on sale on June 2; the superior court confirmed the sale on June 27 over Mesaros’s objection and denied his motion for an upset price.
- Mesaros appealed, arguing the sale was void because it occurred after the statutory period for return of execution had expired; the Court of Appeals reversed and remanded.
Issues
| Issue | Plaintiff's Argument (Mesaros) | Defendant's Argument (Timberland) | Held |
|---|---|---|---|
| Whether the sheriff's sale was void because it occurred after the Order of Sale expired under statutory timing. | Sale was void: sheriff failed to sell and return execution within the statutory period following the Order of Sale. | Issue was not preserved for appeal; alternatively, sale was valid. | Sale was void: timing requirements were statutory and the sale occurred without authority, so confirmation is set aside. |
| Whether the jurisdictional challenge may be raised for first time on appeal. | N/A (relies on jurisdictional nature of the defect). | Challenge forfeited for not being raised below. | Void orders affecting authority are reviewable at any time; Mesaros may raise the challenge on appeal. |
| Whether the superior court abused discretion by denying hearing to set upset price. | Requested hearing to set upset/upset price due to inadequate sale price. | Insufficient evidence to warrant upset price hearing. | Court did not address merits because sale and confirmation were void; but it found insufficient evidence below. |
| Whether a deficiency judgment could be imposed after a potentially defective sale. | N/A (contested generally). | N/A. | Court did not reach remaining issues after holding sale void. |
Key Cases Cited
- Hazel v. Van Beek, 135 Wn.2d 45 (challenge to void judgment may be raised at any time)
- Albice v. Premier Mortg. Servs. of Wash., Inc., 174 Wn.2d 560 (statutory time limits are jurisdictional; actions beyond authority are invalid)
- Le Tastevin, Inc. v. Seattle First Nat’l Bank, 95 Wn. App. 224 (judgment creditor execution procedures under Chapter 6.17)
- Kave v. McIntosh Ridge Primary Rd. Ass’n, 198 Wn. App. 812 (preservation of issues for appeal guidance)
