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July 21st 2008

Do Not Pass “GO” - Wrongful Eviction in Washington

In Washington a residential landlord may serve with the summons and complaint a notice requiring the tenant to pay rent within seven days or serve a response indicating no rent is owed.

If the writ of restitution is issued the defendant is entitled to a hearing to dispute the amount of rent owed.

A question arises when the landlord loses the case at the subsequent hearing. Although the question is unsettled law, the tenant may have a claim for wrongful eviction.

A Washington tenant may present a claim for wrongful eviction if a writ of restitution is issued and executed upon and the tenant later successfully challenges the issuance of the writ. Iverson v. Marine Bancorporation 86 Wn.2d 562, 546 P.2d 454 (1976).

In Iverson the landlord’s attorney wrote a letter to tenant stating she could stay through a date certain upon certain conditions. One of the conditions was formally appearing in the unlawfully detainer action. The tenant did not comply and in fact her attorney withdrew when the tenant specifically instructed her attorney not to appear.

The landlord obtained and executed upon a writ of restitution. The trial court in the unlawful detainer matter (not a separate action) held the tenant’s reliance on the letter justifiable and awarded damages for wrongful eviction including “moving expenses, costs of relocation, loss of opportunity and pain and suffering”. The award was upheld on appeal.

In a case of wrongful eviction, the tenant is entitled to recover all the damages that reasonably flowed from the landlord’s wrongful act, including the expense of moving. McKennon v. Anderson, 49 Wn.2d 55, 62, 298 P.2d 492 (1956); Chung v. Louie Fong Co., 130 Wash. 154, 162, 226 P. 726 (1924). Damages must be proved with reasonable certainty or supported by competent evidence in the record. Chung v. Louie Fong Co., supra at 162; Aro Glass &Upholstery Co. v. Munson-Smith Motors, Inc., 12 Wn. App. 6, 11,528 P.2d 502 (1974). An honest and reasonable effort to mitigate damages is required. Myers v. Western Farmers Ass’n, 75 Wn.2d 133, 136, 449 P.2d 104 (1969).

See also the New York opinion 430 Realty Assoc. v. McLeod, 557 N.Y.S.2d 1016 (1990).

RCW 59.18.375 is not a final adjudication of the parties’ rights. “Issuance of a writ of restitution under this section shall not affect the defendant’s right to a hearing to contest the amount of rent alleged to be due.”

Even if it were, subject matter jurisdiction (unlike personal jurisdiction) cannot be consented to or waived and may be raised as a defense at any time. Any relief granted is void ab initio in the absence of subject matter jurisdiction. In an unlawful detainer action failure to properly serve a notice to pay rent or vacate or other pre-litigation notice deprives the court of jurisdiction.

If the landlord loses on a basis that deprives the court of subject matter jurisdiction the tenant has a good argument for a claim for wrongful eviction per Iverson.

This is one reason some Washington landlord attorneys do not serve RCW 59.18.375 notices.

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June 15th 2008

New Law Protects Foreclosure Scam Victims

A new law addressing distressed property transactions went into effect June 12, 2008. The new law defines a distressed home as one that is in danger of foreclosure or in the process of foreclosure.

A “Distressed home conveyance” means a transaction in which:

(a) A distressed homeowner transfers an interest in the distressed home to a distressed home purchaser;

(b) The distressed home purchaser allows the distressed homeowner to occupy the distressed home; and

(c) The distressed home purchaser or a person acting in participation with the distressed home purchaser conveys or promises to convey the distressed home to the distressed homeowner, provides the distressed homeowner with an option to purchase the distressed home at a later date, or promises the distressed homeowner an interest in, or portion of, the proceeds of any resale of the distressed home.

The law adds a new section to the Residential Landlord Tenant Act. In an eviction action involving a distressed home the landlord is required to disclose to the court whether the defendant previously held title.

Also the court may not require the defendant to “escrow any money pending trial when a material question of fact exists as to whether the landlord acquired title from the defendant directly or indirectly through a distressed home conveyance”.

The new section also states that “[t]here must be both an automatic stay of the action and a consolidation of the action with a pending or subsequent quiet title action when a defendant claims that the landlord acquired title to the property through a distressed home conveyance.”

In addition to protection from eviction, the new law creates a private right of action entitling the defendant to attorney’s fees and punitive damages of up to one hundred thousand dollars.

If you sold your home to save it from foreclosure you have important legal right. You should consult with an attorney – especially if you are being threatened with eviction.

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June 15th 2008

New Law Changes Landlord’s Obligations to Store Tenant’s Property

Important Changes in 2008 

The Washington Court of Appeals Division III held in a 2007 decision that the Residential Landlord-Tenant Act required the landlord to store the tenant’s belongings when the tenant is evicted. <!–[if !supportFootnotes]–>[1]<!–[endif]–>    

A new law has significantly changed the procedures and the landlord’s obligations. 

Tenant Must Request StorageUnder the new law the tenant must request storage.  The request form is a mandatory form the landlord presents to the sheriff with the writ of restitution.  The form is posted by the sheriff along with the writ.   

The tenant must complete the form and it must be received by the landlord within three days.  If the tenant fails to complete and return the form to the landlord the landlord is not obligated to store the tenant’s belongings.   

If the tenant requests storage the landlord may store the belongings in the rental property. 

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