Lyons v. U.S. Bank National Association

Lyons · Supreme Court of the State of Washington · October 30, 2014 · No. 89132-0

Summary

The Washington Supreme Court considers claims arising from a nonjudicial foreclosure that was discontinued before a sale occurred. It holds that the Deed of Trust Act does not provide an independent damages claim absent a completed foreclosure sale, but that related conduct may support a Consumer Protection Act claim. The court affirms summary judgment on the Deed of Trust Act and intentional infliction of emotional distress claims, reverses summary judgment on the Consumer Protection Act claim, and remands.

Holdings

  1. A plaintiff may not bring an independent claim for damages under the Deed of Trust Act based on alleged statutory violations when no nonjudicial foreclosure sale has been completed.
  2. A homeowner may maintain a Consumer Protection Act claim based on alleged Deed of Trust Act violations even when no foreclosure sale has occurred, subject to the ordinary elements of a Consumer Protection Act claim.
  3. Summary judgment for NWTS on the Consumer Protection Act claim was improper because material factual disputes existed concerning whether NWTS breached its statutory duty of good faith and whether it possessed adequate proof that the beneficiary owned the note before initiating the trustee's sale.
  4. Summary judgment for NWTS was proper because the alleged foreclosure-related conduct was not sufficiently extreme and outrageous to support intentional infliction of emotional distress.

Questions Presented

  1. Whether a homeowner may bring a claim for damages under Washington's Deed of Trust Act when no nonjudicial foreclosure sale has occurred.
  2. Whether a homeowner may bring a Consumer Protection Act claim based on alleged Deed of Trust Act violations when no foreclosure sale has occurred.
  3. Whether summary judgment was proper on Lyons's Consumer Protection Act claim where factual disputes existed concerning the trustee's good faith, impartiality, and proof of beneficiary ownership.
  4. Whether summary judgment was proper on Lyons's intentional-infliction-of-emotional-distress claim.

Disposition

reversed_and_remanded

Cases Cited (19)

  • Frias v. Asset Foreclosure Services, Inc., 334 P.3d 529 (Wash. 2014)(followed)
  • Dreiling v. Jain, 151 Wash. 2d 900, 93 P.3d 861 (2004)(applied)
  • Reid v. Pierce County, 136 Wash. 2d 195, 961 P.2d 333 (1998)(applied)
  • Bain v. Metropolitan Mortgage Group, Inc., 175 Wash. 2d 83, 285 P.3d 34 (2012)(followed)
  • Walker v. Quality Loan Service Corp. of Washington, 176 Wn. App. 294, 308 P.3d 716 (2013)(applied)
  • Vawter v. Quality Loan Service Corp. of Washington, 707 F. Supp. 2d 1115 (W.D. Wash. 2010)(applied)
  • Klem v. Washington Mutual Bank, 176 Wn.2d 771, 295 P.3d 1179 (2013)(followed)
  • Hangman Ridge Training Stables, Inc. v. Safeco Title Insurance Co., 105 Wn.2d 778, 719 P.2d 531 (1986)(applied)
  • Panag v. Farmers Insurance Co. of Washington, 166 Wn.2d 27, 204 P.3d 885 (2009)(applied)
  • Mason v. Mortgage America, Inc., 114 Wn.2d 842, 792 P.2d 142 (1990)(applied)

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