Brennan Heating And Air Conditioning, Resp v. Jeffrey M. Mcmeel, App ( 2019 )


Menu:
  •                                                                                                 Filed
    Washington State
    Court of Appeals
    Division Two
    June 11, 2019
    IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON
    DIVISION II
    BRENNAN          HEATING AND      AIR                             No. 51506-7-II
    CONDITIONING LLC, a Washington limited
    liability company,
    Respondent,
    v.
    JEFFREY MARK McMEEL aka “the McMeel                        UNPUBLISHED OPINION
    Estate”,
    Appellant.
    MELNICK, J. — Brennan Heating and Air Conditioning LLC laid off Jeffrey McMeel and
    denied him severance pay. McMeel filed lien for “$1,0012,000.00” on property belonging to
    Brennan. The trial court lifted the lien and McMeel appeals, arguing that the trial court lacked
    jurisdiction, erred by failing to enter findings of fact and conclusions of law, and that the judgment
    mischaracterizes the record. We affirm.
    FACTS
    McMeel worked for Brennan as an at-will employee. Brennan terminated McMeel’s
    employment and rejected his demands for severance pay. McMeel then filed a “claim of lien for
    severance pay” naming as grantors Brennan and Costco Wholesale Corp.,1 as well as two
    individuals he listed as their attorneys. He named himself as the sole grantee. McMeel described
    1
    Costco is a business affiliate of Brennan.
    51506-7-II
    the lien as a “federal common law lien pursuant to RCW Ch. 60, Internal Revenue Code and the
    bankruptcy laws of the United States,” and stated it applied to two surety bonds belonging to Darrin
    Paul Erdahl of Brennan Heating LLC.           CP at 18.     He claimed the principal amount as
    “$1,0012,000.00 [sic].” CP at 18.
    Brennan filed an ex parte petition for an order to show cause as to why McMeel’s lien
    should not be stricken and why Brennan should not be awarded attorney fees and costs.2 With its
    petition, Brennan filed a declaration of Eric Beardemphl, one of its owners. A superior court
    commissioner granted the petition and set a hearing for McMeel to appear and show cause why
    his lien should not be stricken and why an award of fees and costs should not be entered against
    him.
    At the show cause hearing, the trial court offered McMeel an opportunity to make his case
    in support of the lien. McMeel submitted a document labeled “Notice to the Court” which, among
    other contentions, denied the court could order monetary judgments “[w]ith no gold or silver coin
    Money in general circulation” and accused Brennan’s attorney of threatening him and conspiring
    against him. CP at 44-45.
    McMeel then said, “I’m not sure what jurisdiction the plaintiff is bringing. And so I’d like
    to know what jurisdiction you are running this court under from so—before I can proceed.” Report
    of Proceedings (RP) at 5. The court responded, “Okay. Thanks,” and asked Brennan if it wished
    to be heard. RP at 5. It then gave McMeel another opportunity to make his case and McMeel
    responded, “I’m waiting for an answer on the jurisdiction question before I can proceed.” RP at
    6. The court again said, “Okay. Thanks,” and then granted Brennan’s petition. RP at 6.
    2
    See RCW 60.70.060(1).
    2
    51506-7-II
    Brennan requested attorney fees and costs, and McMeel objected, arguing, “I haven’t
    gotten an answer to the jurisdiction question I asked the court. I have not yet been given a chance
    to show cause in here. That’s what it—it’s a show cause hearing. I wasn’t given an opportunity
    to show cause.” RP at 6. The court told him, “That’s why we’re here. If you have—if you can
    show cause today, I’ll hear from you.” RP at 6. McMeel then argued there was “no lien before
    the court” because he had released it. RP at 7. Brennan responded that McMeel had not correctly
    released the lien and McMeel responded he had made a “good faith attempt to release the lien”
    such that there was “nothing before the court” and “no claim to even be brought.” RP at 7. He
    attempted to provide the court a document he called a “Release of Lien” which stated that all the
    parties he originally filed the lien against “are hereby released from a LIEN which was recorded
    under a mistake of facts.” CP at 54. The trial court did not view the document, as Brennan’s
    counsel stated the release was not correctly executed.
    The court entered judgment in favor of Brennan. Its written order stated that its oral
    decision “included the Court’s findings of fact and conclusions of law.” CP at 49. It struck
    McMeel’s lien as unenforceable and “not supported by fact or law” and awarded $8,886.50 in
    costs and fees to Brennan. CP at 50. McMeel appeals.
    ANALYSIS3
    I.     SUBJECT MATTER JURISDICTION
    McMeel contends that the superior court lacked subject matter jurisdiction to decide this
    case. We disagree.
    3
    McMeel requests that we consider three documents he attached to his brief as part of the record,
    including a case cover sheet, a notice of assignment to a superior court judge, and a notice of
    appearance of Brennan’s counsel. These documents are not part of the appellate record and are
    not relevant to any issue or argument on appeal. We do not consider them.
    3
    51506-7-II
    “A court must have subject matter jurisdiction in order to decide a case.” Eugster v. Wash.
    State Bar Ass’n, 
    198 Wn. App. 758
    , 774, 
    397 P.3d 131
     (2017). “A court has subject matter
    jurisdiction where it has authority ‘to adjudicate the type of controversy involved in the action.’”
    In re Marriage of McDermott, 
    175 Wn. App. 467
    , 480-81, 
    307 P.3d 717
     (2013) (quoting Shoop v.
    Kittitas County, 
    108 Wn. App. 388
    , 393, 
    30 P.3d 529
     (2001)). Washington’s superior courts are
    courts of general jurisdiction with the “‘power to hear and determine all matters, legal and
    equitable, . . . except in so far as these powers have been expressly denied.’” In re Marriage of
    Major, 
    71 Wn. App. 531
    , 533, 
    859 P.2d 1262
     (1993) (quoting State ex rel. Martin v. Superior
    Court, 
    101 Wash. 81
    , 94, 
    172 P. 257
     (1918)).
    “A judgment entered by a court that lacks subject matter jurisdiction is void.” Cole v.
    Harveyland, LLC, 
    163 Wn. App. 199
    , 205, 
    258 P.3d 70
     (2011). Whether a court has subject matter
    jurisdiction is a question of law we review de novo. Dougherty v. Dep’t of Labor & Indus., 
    150 Wn.2d 310
    , 314, 
    76 P.3d 1183
     (2003).
    A.      FAILURE TO PROVIDE “AFFIDAVIT”
    McMeel contends that the trial court lacked subject matter jurisdiction to decide this case
    because Brennan included only a “declaration” but not an “affidavit” with its petition for a show
    cause order, as required by RCW 60.70.060. He also claims Brennan’s petition failed to include
    a statement of jurisdiction. McMeel contends that these defects deprived both the commissioner
    who ordered the show cause hearing and the trial court judge who granted judgment for Brennan
    of subject matter jurisdiction. We disagree with McMeel.
    RCW 60.70.060(1) provides that persons whose real or personal property is subject to a
    recorded claim of common law lien “may petition the superior court of the county in which the
    claim of lien has been recorded for an order, which may be granted ex parte, directing the lien
    4
    51506-7-II
    claimant to appear before the court . . . and show cause, if any, why the claim of lien should not
    be stricken.” Such petitions “shall state the grounds upon which relief is requested, and shall be
    supported by the affidavit of the petitioner or his or her attorney setting forth a concise statement
    of the facts upon which the motion is based.” RCW 60.70.060(1).
    After a show cause hearing, if “the court determines that the claim of lien is invalid,” it
    shall “issue an order striking and releasing the claim of lien and awarding costs and reasonable
    attorneys’ fees to the petitioner to be paid by the lien claimant.” RCW 60.70.060(4).
    “‘By definition an affidavit is a sworn statement in writing made . . . under an oath or on
    affirmation before . . . an authorized officer.’” Our Lady of Lourdes Hosp. v. Franklin County,
    
    120 Wn.2d 439
    , 452, 
    842 P.2d 956
     (1993) (internal quotation marks omitted) (quoting Mason v.
    Clark, 
    920 F.2d 493
    , 495 (8th Cir. 1990)). An affidavit “is a solemn, formal asseveration, under
    oath, upon which others might rely.” Kent v. Lee, 
    52 Wn. App. 576
    , 579, 
    762 P.2d 24
     (1988).
    GR 13 provides that “whenever a matter is required or permitted to be supported or proved
    by affidavit, the matter may be supported or proved by an unsworn written statement, declaration,
    verification, or certificate executed in accordance with RCW 9A.72.085,” if the statement is
    submitted “under penalty of perjury under the laws of the State of Washington.” RCW 9A.72.0854
    provides a list of criteria for such statements, including that they be subscribed by the person, be
    declared true under penalty of perjury, state their date and place of execution, and be certified or
    declared under the laws of the State of Washington.
    4
    The legislature recently amended RCW 9A.72.085 to additionally provide a definition of “digital
    signature.” LAWS OF 2019, ch. 132 § 2. These amendments were not in effect at the time Brennan
    filed its petition and do not affect our decision.
    5
    51506-7-II
    Brennan filed a petition for a show cause order directing McMeel to appear and show cause
    why his claim of lien should not be stricken and why Brennan should not be awarded attorney fees
    and costs. It filed alongside this petition a “Declaration of Eric Beardemphl” stating facts in
    support of the petition. CP at 9.
    Beardemphl’s declaration included all the essential facts of the case and Beardemphl
    declared under penalty of perjury under the laws of the State of Washington that his statements
    were true and correct. His declaration is signed, dated, and includes its place of execution.
    Beardemphl’s declaration met all the requirements to substitute for an affidavit under GR 13.
    B.      COMMISSIONER ORDER
    McMeel contends that the common law lien statute directs that petitions be filed in
    “superior court where matters are heard by judges, not commissioners.”5 Br. of Appellant at 13.
    The superior court commissioner had authority to order McMeel to appear and show cause why
    his lien should not be stricken.
    The Washington Constitution provides that “[t]here may be appointed in each county, by
    the judge of the superior court having jurisdiction therein, one or more court commissioners.”
    WASH. CONST. art. IV, § 23. These commissioners “have authority to perform like duties as a
    judge of the superior court at chambers,” including “to take depositions and to perform such other
    business connected with the administration of justice as may be prescribed by law.” WASH. CONST.
    art. IV, § 23. Court commissioners “take and subscribe an oath to support the Constitution of the
    5
    McMeel also claims that the commissioner lacked authority to enter an order in this case because
    the statute providing authority to trial court commissioners refers to the “state of Washington,”
    which he believes distinct from the “State of Washington.” We reject McMeel’s contention that
    alternate use of capital letters creates an “impostor ‘state’ which offends the due process clause.”
    Br. of Appellant at 17.
    6
    51506-7-II
    United States, the Constitution of the state of Washington, and to perform the duties of such office
    fairly and impartially and to the best of [their] ability.” RCW 2.24.020.
    Commissioners may “hear and determine ex parte and uncontested civil matters of any
    nature.” RCW 2.24.040(9). RCW 60.70.060(1) specifically states that petitions to challenge
    common law liens “may be granted ex parte, directing the lien claimant to appear before the court.”
    The commissioner’s order “came before the court on [Brennan’s] Ex Parte Petition for an Order
    to Show Cause” and set a hearing before a superior court judge for McMeel to appear and show
    cause why the lien should not be lifted, consistent with express powers of the superior court
    commissioner. CP at 41.
    C.         STATEMENT OF JURISDICTION
    McMeel contends that the trial court failed to respond to his challenges to its jurisdiction,
    at which point “the burden shifted to the Trial Court which previously had been operating under
    only a presumption of jurisdiction.” Br. of Appellant at 27. He claims the trial court “abused its
    discretion by failing to disclose the jurisdiction which interfered with [his] right to an impartial
    hearing” and to due process. Br. of Appellant at 27. Because the trial court had subject matter
    jurisdiction, McMeel does not show error.
    Washington’s superior courts are courts of general jurisdiction with the power to hear and
    determine all legal and equitable matters unless expressly denied. Major, 
    71 Wn. App. at 533
    .
    RCW 60.70.060 specifically provides for the filing of petitions to strike common law liens in the
    superior court.
    At the show cause hearing, when the court gave McMeel an opportunity to show cause
    why the lien should not be stricken, McMeel responded by questioning the court’s jurisdiction.
    The court ignored his question and heard argument from Brennan. It then gave McMeel another
    7
    51506-7-II
    opportunity to present his case and he said, “I’m waiting for an answer on the jurisdiction question
    before I can proceed.” RP at 6. The court then granted Brennan’s petition. McMeel objected on
    the grounds that he hadn’t “gotten an answer to the jurisdiction question.” RP at 6.
    McMeel does not allege that the trial court lacked jurisdiction because it did not answer his
    questions, but rather that the “burden is still on the Trial Court” to identify its jurisdiction. Br. of
    Appellant at 27. Because the trial court had subject matter jurisdiction to hear this matter, we
    affirm.
    II.       FINDINGS AND CONCLUSIONS
    McMeel contends that the trial court’s decision violates CR 52 because the trial court did
    not enter findings of fact and conclusions of law. We conclude that the oral and written record in
    this case is sufficient to permit appellate review.
    CR 52(a)(1) requires that “[i]n all actions tried upon the facts without a jury,” the trial court
    “shall find the facts specially and state separately its conclusions of law.”6 “‘[W]here findings are
    required, they must be sufficiently specific to permit meaningful review.’” In re Dependency of
    A.D., 
    193 Wn. App. 445
    , 462, 
    376 P.3d 1140
     (2016) (quoting In re Det. of LaBelle, 
    107 Wn.2d 196
    , 218, 
    728 P.2d 138
     (1986)).
    “When the findings and conclusions are missing or are defective, the proper remedy is to
    remand for entry of adequate ones unless the appellate court is persuaded that sufficient basis for
    review is present in the record.” Columbia State Bank v. Invicta Law Grp. PLLC, 
    199 Wn. App. 306
    , 323, 
    402 P.3d 330
     (2017). “[A]ll that is required is that the trial court inform the appellate
    court, on material issues, ‘what questions were decided by the trial court, and the manner in which
    6
    The show cause hearing in this case was not a trial. Neither party argues that findings and
    conclusions were not required and the record is adequate to permit effective review, so we do not
    address whether findings and conclusions were required.
    8
    51506-7-II
    they were decided.’” Garcia v. Henley, 
    190 Wn.2d 539
    , 544, 
    415 P.3d 241
     (2018) (internal
    quotation marks omitted) (quoting Daughtry v. Jet Aeration Co., 
    91 Wn.2d 704
    , 707, 
    592 P.2d 631
    (1979)).
    The trial court’s written judgment stated, “The lien [McMeel] recorded in the records of
    the Thurston County Recorder, [lien number], is not supported by fact or law, is held to be
    unenforceable, as is hereby stricken” and awarded Brennan $8,886.50 in costs and fees. CP at 50.
    McMeel at no time took the position that the lien was valid or enforceable, rather arguing before
    the trial court about jurisdiction, the validity of United States currency, and whether the case was
    moot given that he had already attempted to withdraw the lien. The record before us is sufficient
    to permit effective review.
    III.   INADEQUATE SERVICE
    McMeel contends that he was not served with the November commissioner’s order setting
    the show cause hearing until two months after the decision, depriving him of his right to seek
    revision of the ruling. He claims this delayed service deprived him of his due process rights and
    that he was never “served with a summons and complaint,” depriving the superior court of
    jurisdiction. Br. of Appellant at 26.
    The record contains no information about when McMeel was served with notice of the
    commissioner’s decision setting the show cause hearing. Additionally, the statutory scheme for
    lien proceedings does not require filing of a complaint or summons; only a petition for an order to
    show cause which Brennan filed in this case. McMeel’s argument is unsupported by the record.
    IV.    ERRONEOUS FINDINGS
    McMeel challenges numerous facts from the trial court’s judgment that he claims are false,
    including that “Jeremy Pon” was present at the show cause hearing, that Jacob Zuniga appeared as
    9
    51506-7-II
    attorney for Brennan, and that the court “received the evidence and testimony offered by the
    parties” at the show cause hearing.7 Br. of Appellant at 30-31.
    We review challenged findings of fact for substantial evidence. Tomlinson v. Puget Sound
    Freight Lines, Inc., 
    166 Wn.2d 105
    , 109, 
    206 P.3d 657
     (2009). Substantial evidence is evidence
    “sufficient ‘to persuade a fair-minded, rational person of the truth of a declared premise.’”
    Alejandre v. Bull, 
    159 Wn.2d 674
    , 681, 
    153 P.3d 864
     (2007) (internal quotation marks omitted)
    (quoting Davis v. Microsoft Corp., 
    149 Wn.2d 521
    , 531, 
    70 P.3d 126
     (2003)). “[A]n erroneous
    finding of fact that does not materially affect conclusions of law is not prejudicial.” Ritter v. Bd.
    of Registration for Prof’l Eng’rs & Land Surveyors, 
    161 Wn. App. 758
    , 762 n.1, 
    255 P.3d 799
    (2011). Such errors do not warrant reversal. State v. Caldera, 
    66 Wn. App. 548
    , 551, 
    832 P.2d 139
     (1992).
    Whether “Jeremy Pon” was present at the show cause hearing is immaterial to any decision
    that the court made and did not prejudice McMeel.
    As to McMeel’s other factual challenges, the record is clear that Zuniga represented
    Brennan at the show cause hearing. While the trial court did not hear testimony from any
    witnesses, it heard all argument offered by the parties before it made its decision. Neither party
    attempted to call any witnesses or present any evidence in this case.
    McMeel has not demonstrated that any material finding of fact from the judgment is
    unsupported by substantial evidence.
    7
    McMeel also contends that the judgment’s fees and costs award to Brennan “does not contain the
    word ‘dollars’ or ‘cents,’” but only “a symbol followed by a set of numbers.” Br. of Appellant at
    31. McMeel acknowledges that the judgment awarded “$8,886.50” and does not appear to
    challenge this award.
    10
    51506-7-II
    ATTORNEY FEES
    Brennan requests an award of attorney fees and costs on appeal pursuant to RAP 18.1 and
    18.9(a), as well as under RCW 60.70.060(4). We award Brennan its reasonable costs and fees.
    On our own initiative or on motion of a party, we may order a party who files a frivolous
    appeal “to pay terms or compensatory damages to any other party who has been harmed.” RAP
    18.9(a). “Appropriate sanctions may include, as compensatory damages, an award of attorney fees
    and costs to the opposing party.” Yurtis v. Phipps, 
    143 Wn. App. 680
    , 696, 
    181 P.3d 849
     (2008).
    An appeal is frivolous where “it presents no debatable issues and is so devoid of merit that
    there is no reasonable possibility of reversal.” Carrillo v. City of Ocean Shores, 
    122 Wn. App. 592
    , 619, 
    94 P.3d 961
     (2004). “[A]n appeal that is affirmed simply because the arguments are
    rejected is not for that reason alone frivolous.” Carrillo, 122 Wn. App. at 619. “[W]e resolve all
    doubts to whether an appeal is frivolous in favor of the appellant.” Granville Condo. Homeowners
    Ass’n v. Kuehner, 
    177 Wn. App. 543
    , 558, 
    312 P.3d 702
     (2013).
    McMeel has not provided any debatable issues of law. McMeel began this case by filing
    a meritless lien for over $10,000,000 on Brennan’s property and has never provided any argument
    in support of the lien; instead attacking the institution of the court itself, the legitimacy of United
    States currency, and Brennan’s counsel. We conclude his appeal is frivolous and order him to pay
    Brennan’s reasonable costs and attorney fees.8
    8
    Because we award Brennan its reasonable costs and fees pursuant to RAP 18.9(a), we do not
    reach its statutory argument for fees.
    11
    51506-7-II
    CONCLUSION
    We affirm the trial court and order McMeel to pay Brennan’s reasonable costs and attorney
    fees for filing a frivolous appeal.
    A majority of the panel having determined that this opinion will not be printed in the
    Washington Appellate Reports, but will be filed for public record in accordance with RCW 2.06.040,
    it is so ordered.
    Melnick, J.
    We concur:
    Maxa, C.J.
    Sutton, J.
    12