Glidden v. Municipal Authority of Tacoma

Mount Bay Corporation owned a property subject to liens held by Marian Glidden (plaintiff), the Municipal Authority of Tacoma (Tacoma) (defendant), and Old Stone Bank (OSB). Tacoma and OSB were junior lienors. Glidden foreclosed on the property. Patricia Rourke (plaintiff), trustee under the property’s deed of trust, recorded the notice of sale and posted notice on the property but did not directly notify any lienholders of the sale as required by Washington’s deeds of trust act. Before the sale, OSB initiated its own foreclosure proceedings and gave notice to Rourke and Tacoma. Tacoma, which learned of Rourke’s foreclosure sale from the posted notice, purchased the property at the sale and received a deed from Rourke stating that notice of the sale was served on “all persons entitled thereto.” No junior lienholders attended the sale. When Rourke learned that OSB had not received notice of the sale, she attempted to void the sale, but Tacoma refused. Glidden and Rourke brought suit to void the sale. OSB intervened and filed a motion for summary judgment on its continuing right as a lienholder to foreclose on the property. The trial court granted the motion. Tacoma petitioned the Supreme Court of Washington for direct review, claiming that as a bona fide purchaser for value, its title to the property was clean regardless of any failure to provide notice in accordance with the deeds of trust act.