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DGHI Enterprises v. Pacific Cities, Inc.

Citations: 91 Wash. App. 109; 956 P.2d 324Docket: No. 38210-1-I

Court: Court of Appeals of Washington; May 18, 1998; Washington; State Appellate Court

Narrative Opinion Summary

In the case involving DGHI Enterprises and Pacific Cities Sportswear Inc., the primary legal issue centered on the breach of a commercial lease and the pursuit of personal liability against the shareholders, along with attorney fees. The case was initially presided over by Judge McCutcheon, who adopted specific findings and conclusions before his death, effectively dismissing certain claims and indicating his intent to align findings with his oral ruling. His successor, Judge Jarvis, ruled against DGHI's motion for a new trial, asserting his authority to adopt the findings under Civil Rules 52 and 63, which allow a successor judge to adopt findings established on the record. Judge Jarvis confirmed that Judge McCutcheon had substantially determined the necessary findings, and proceeded to award attorney fees to the defendants, justified by the lease's fee provision and DGHI's attempt to pierce the corporate veil. The court's decision was based on the clear procedural compliance with established findings and the reciprocal nature of the fee provision in the lease agreement. Consequently, the appellate court upheld the awards, and the respondents were entitled to fees on appeal, complying with RAP 18.1(d). This case underscores the procedural authority and discretion of successor judges in non-jury trials where findings and conclusions have been previously settled on the record.

Legal Issues Addressed

Attorney Fees under Lease Agreements

Application: DGHI's attempt to pierce the corporate veil justified the award of attorney fees to the defendants, which DGHI did not contest as unreasonable.

Reasoning: DGHI's attempt to pierce PCSI’s corporate veil, which included a fee provision, justified the award of attorney fees, affirming that DGHI would have been entitled to fees had they succeeded.

Requirement for Findings and Conclusions in Non-Jury Trials

Application: Judge McCutcheon adopted findings and conclusions before his death, which were sufficient to allow Judge Jarvis to rule without hearing the evidence personally.

Reasoning: Civil Rule (CR) 52 mandates that a judge without a jury must specially find facts and state conclusions of law to facilitate appellate review, which can be presented in various formats, including a memorandum decision.

Successor Judge Authority under CR 52 and CR 63

Application: Judge Jarvis was able to adopt the findings of Judge McCutcheon because they were clearly established on the record before Judge McCutcheon's death.

Reasoning: This situation underscores the principle that a successor judge may formally adopt findings previously approved by a predecessor if those findings were clearly established on the record.

Successor Judge Rule for New Trials

Application: Judge Jarvis, as the successor judge, chose not to grant a new trial since the findings were sufficiently documented by Judge McCutcheon.

Reasoning: The successor judge rule allows another judge from the same court to perform necessary duties if the original judge is unable to do so due to death, illness, or other disability.