326 P.3d 768
Wash. Ct. App.2014Background
- Trujillo obtained a $185,900 loan from Arboretum Mortgage in 2006 secured by a March 29, 2006 deed of trust recorded in King County.
- The deed of trust was assigned to Wells Fargo from Arboretum on February 2, 2012.
- Trujillo defaulted on November 1, 2011, triggering nonjudicial foreclosure by NWTS as successor trustee.
- Wells Fargo delivered a beneficiary declaration March 14, 2012 asserting it was the holder or had authority to enforce the note.
- NWTS recorded a Notice of Trustee’s Sale on July 3–10, 2012, scheduling a sale for November 9, 2012.
- Trujillo filed suit in February 2013 alleging violations of the Deeds of Trust Act and related claims; NWTS’s CR 12(b)(6) motion to dismiss was granted.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the Wells Fargo beneficiary declaration satisfies RCW 61.24.030(7)(a) for proof of authority. | Trujillo argues declaration may not show owner status. | NWTS contends holder status suffices; declaration proves authority. | Declaration satisfies the statute; NWTS could rely on it. |
| Whether NWTS breached its duty of good faith by relying on the declaration. | Trujillo asserts reliance violated RCW 61.24.010(4). | NWTS complied with 61.24.030(7)(b) and did not breach. | No breach; reliance on the declaration was proper under the statute. |
Key Cases Cited
- Bain v. Metropolitan Mortgage Group, Inc., 175 Wn.2d 90 (Wash. 2013) (holding on holder vs. owner distinctions under the Deeds of Trust Act and UCC)
- Cutler v. Phillips Petroleum Co., 124 Wn.2d 755 (Wash. 1994) (deference to de novo review of 12(b)(6) motions and summary-judgment standards)
- Sea-Pac Co. v. United Food & Commercial Workers Local Union 44, 103 Wn.2d 800 (Wash. 1985) (context on foreclosures and notice requirements under DOT)
- Aba Sheikh v. Choe, 156 Wn.2d 441 (Wash. 2006) (statutory interpretation principles for Deeds of Trust Act)