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MRC RECEIVABLES CORP. v. Zion

Citation: 218 P.3d 621Docket: 60926-2-I

Court: Court of Appeals of Washington; October 16, 2009; Washington; State Appellate Court

Narrative Opinion Summary

In this appellate case, the parties involved include a debtor contesting a summary judgment ruling and a debt collection company, MRC Receivables Corp. The primary legal issue revolves around MRC's standing to collect an unpaid credit card debt initially owed to Providian Bank. MRC's lawsuit, filed in April 2007, claimed authority to collect the debt, but it failed to present evidence of a written assignment as required by RCW 4.08.080, leading the appellate court to reverse the summary judgment. The debtor contended MRC's lack of qualification to operate and disputed the debt's validity. MRC's motion for summary judgment, supported by an affidavit and some unauthenticated documents, was initially granted by the trial court. However, the appellate court highlighted the necessity of a written assignment for an assignee to sue and noted procedural deficiencies, including the absence of a formal request for a continuance under CR 56(f). The case was remanded for further proceedings to address unresolved issues, such as the legitimacy of the debt assignment and the adequacy of business record foundations, with neither party prevailing on the award of fees pending the final outcome.

Legal Issues Addressed

Burden of Proof for Debt Collection Standing

Application: The burden of proof lies with the debt collector to demonstrate ownership of the debt through a valid assignment.

Reasoning: MRC was required to demonstrate a valid assignment to succeed in its summary judgment motion but failed to provide evidence of a written assignment as mandated by RCW 4.08.080.

Exception to Written Assignment Requirement

Application: An exception to the requirement of a written assignment exists if the assignor testifies, but this must be supported by evidence.

Reasoning: Washington law allows an exception to the writing requirement for assignments if the assignor testifies, but MRC did not address this requirement nor present evidence from Providian to support the exception.

Necessity of Written Assignment under RCW 4.08.080

Application: In the context of debt collection, the assignee must provide evidence of a written assignment to establish standing.

Reasoning: MRC failed to provide evidence of a written assignment as mandated by RCW 4.08.080.

Requirements for a CR 56(f) Continuance

Application: A formal request under CR 56(f) must be made to obtain a continuance for further discovery, and failure to do so means the court is not obligated to consider it.

Reasoning: Zion's counsel did not formally request a continuance of the summary judgment motion under CR 56(f), nor did he file a separate motion to continue or reference CR 56(f) in his response.

Standards for Granting Summary Judgment

Application: Summary judgment is appropriate only when there is no genuine issue of material fact and the moving party is entitled to judgment as a matter of law.

Reasoning: The court reviewed the case de novo, emphasizing that summary judgment is appropriate only when there is no genuine issue of material fact and the moving party is entitled to judgment as a matter of law.