Udall v. T.D. Escrow Services, Inc.

William Udall (plaintiff) sued T.D. Escrow Services Inc. (T.D.) and lender U.S. Bancorp (defendants) to quiet title in property Udall bought at auction for $100,000 less than T.D. had authorized. After the previous homeowners defaulted, U.S. Bancorp directed T.D. to commence nonjudicial foreclosure proceedings. T.D. properly recorded a notice of trustee’s sale stating that it would sell the property at public auction. T.D. used ABC Legal Services (ABC) to auction foreclosed homes in Washington State. The morning of the auction, T.D. called and told ABC opening bids for that day by telephone, stating the opening bid for the property Udall bought was $159,421. But when ABC auctioneer Donna Hayes distributed the information sheet listing properties and opening bids, the sheet listed $59,421 as the opening bid, dropping the initial number. Hayes read the standard foreclosure-sale script and announced an opening bid of $59,421. Udall bid $1 more. Nobody else bid, so Hayes closed the sale. Udall paid the $59,421, and Hayes gave him a receipt for the property but not a deed of trust in keeping with T.D.’s policy. Five days later, T.D. sent Udall a refund check with a letter explaining the discrepancy, but Udall rejected the refund and sued to quiet title to the property. The trial court entered summary judgment for Udall, but the appellate court reversed and entered summary judgment for T.D., reasoning ABC lacked authority to sell for $59,422. Udall appealed to the Washington Supreme Court.