Plein v. Lackey
Supreme Court of Washington
67 P.3d 1061 (2003)
Alpen Group, Inc. (Alpen) purchased real estate from Sunset Investments (Sunset) by a promissory note for $75,000. Lee Cameron (defendant) was one of three owners of Alpen, and he signed the promissory note individually, along with the other owners. The promissory note was secured by a deed of trust. Paul Plein (plaintiff) was one of the other owners of Alpen. Plien also signed the note individually. Alpen began constructing a log home on the property, but did not have enough money to complete the project. Several trade creditors sued Alpen. That lawsuit involved several claims and cross-claims, and one result of the suit was a judgment against Alpen for $45,000 in favor of Plein. Cameron then, individually, paid off the promissory note due to Sunset. Sunset endorsed the promissory note over to Cameron and assigned its interest in the deed of trust to Cameron. Cameron initiated nonjudicial foreclosure proceedings against Alpen based on Alpen’s default on the promissory note through attorney Chester Lackey (defendant). Plein and the trade creditors sued Lackey and Cameron, seeking a declaration that the deed of trust was void, because the debt underlying the promissory note had been paid. The trial court granted summary judgment to Cameron. Plein appealed, and the court of appeals reversed. Cameron then appealed to the Supreme Court of Washington.
Rule of Law
Holding and Reasoning (Madsen, J.)
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