Williams v. PRK Funding Servs., Inc.

• Decision Date: 08 January 2019
• Docket Number: CASE NO. C18-48RSM
• Citation: 596 B.R. 375
• Court: U.S. District Court — Western District of Washington
• Parties: Damon Charles WILLIAMS, Plaintiff, v. PRK FUNDING SERVICES, INC., et al., Defendants.

596 B.R. 375

Damon Charles WILLIAMS, Plaintiff,

v.PRK FUNDING SERVICES, INC., et al., Defendants.

CASE NO. C18-48RSM

United States District Court, W.D. Washington, at Seattle.

Signed January 8, 2019

Damon Charles Williams, San Francisco, CA, pro se.

Richard A Fraser, III, Attorney General's Office, Christopher MacMillan, Demco Law Firm, Seattle, WA, for Defendant.

ORDER ON PENDING MOTIONS

RICARDO S. MARTINEZ, CHIEF UNITED STATES DISTRICT JUDGE

I. INTRODUCTION

This matter is before the Court on several pending motions and sua sponte on the Court's Order to Show Cause Regarding Service. Dkt. # 108. The motions pending are:

1. Plaintiff's Motion to Direct Expungement ("Expungement Motion"). Dkt. # 116.

2. Defendants Kirill Gavrylyuk and Chandrika Shankarnarayan's Motion for Summary Judgment. Dkt. # 122. The Court will refer to Kirill Gavrylyuk and Chandrika Shankarnarayan as "Defendant Owners."

3. Defendants Windermere Services Company's and Kathyrn [sic] Hinds' Joinder in Defendants Kirill Gavrylyuk and Chandrika Shankarnarayan's Motion for Summary Judgment. Dkt. # 125. The Court will refer to Windermere Services Company as "Defendant Windermere," to Kathryn Hinds as "Defendant Hinds," and to these Defendants collectively as the "Windermere Defendants."

4. PRK Defendants' Motion for Joinder in Defendants Kirill Gavrylyuk and Chandrika Shankarnarayan's Motion for Summary Judgment. Dkt. # 126. The "PRK Defendants" consist of PRK Funding Services, Inc. ("Defendant PRK"), Jeffrey Pyatt ("Defendant Pyatt"), Michael James Warren ("Defendant Warren"), Eric S. Carlson ("Defendant Carlson"), Michael Lawrence Thayer ("Defendant Thayer"), Joanne C. Van Sickle ("Defendant Van Sickle"), Richard Beselin ("Defendant Beselin"), Private Asset Management, Inc. ("Defendant Private Asset"), Pyatt Broadmark Management, LLC ("Defendant Broadmark"), PLG Fund I, LLC ("Defendant PLG I"), and Private Lenders Group, LLC ("Defendant PLG").

5. Defendant Dallas William Jolley, Jr.'s Joinder in Defendants Kirill Gavrylyuk and Chandrika Shankarnarayan's Motion for Summary Judgment. Dkt. # 132. The Court will refer to Dallas William Jolley, Jr. as "Defendant Jolley."

6. Plaintiff's Motion to Join Additional Parties. Dkt. # 134.

All motions have been fully briefed.¹ The Court finds that oral argument is unnecessary to its resolution of these matters. Having reviewed the extensive record and for the reasons set forth below, the Court resolves the matters as follows.

II. BACKGROUND

A. Factual Background

Plaintiff owned a parcel of property located in Seattle, at 515 35th Avenue South. On August 3, 2005, a quit claim deed was recorded that transferred 100% of Plaintiff's ownership interest to Williams Family Holdings LLC, whose sole member was Plaintiff. Dkt. # 123-1 at 2. Williams Family Holdings LLC secured a loan of one million three hundred eleven thousand dollars ($ 1,311,000) from Defendant PLG on or about January 24, 2007. See Dkt. # 111 at 17–33. The loan was intended to facilitate the construction of a single family residence on the property. Id. at 17. The loan was secured by a deed of trust upon the property, executed the same day by Plaintiff as the Managing Member of Williams Family Holdings LLC. Dkt. # 144-1 at 45–68. Plaintiff also personally guaranteed the loan. Dkt. # 111 at 18–33. On January 25, 2007, Defendant PLG recorded a January 22, 2007 assignment of the Deed of Trust Defendant PRK, as custodian for the noteholders in Defendant PLG I. Dkt. # 144-1 at 15–16.

Plaintiff began construction on the property but the project was not completed in the anticipated timeframe and ran into financial trouble due to the conduct of Defendant PLG and its agents. Dkt. # 3 at ¶ 34; Dkt. # 111 at 2–13. Plaintiff attempted to refinance the project. Id. But the trustee on the deed of trust ultimately initiated non-judicial foreclosure under Chapter 61.24, Revised Code of Washington. Dkt. # 111 at 37–39; 84–85. The trustee sale was scheduled for September 11, 2009. Id. at 38. Plaintiff, with Defendant Jolley's assistance, filed for voluntary Chapter 7 bankruptcy on September 10, 2009. Id. at 15. Nevertheless, the trustee held the trustee sale, as scheduled, on September 11, 2009, with Defendant PRK purchasing the property. Id. at 37–39. Plaintiff's Chapter 7 bankruptcy was later dismissed, on October 7, 2009, "for Failure to File Schedules or Statements." Id. at 68.

After the trustee sale, Defendant PRK and Plaintiff each asserted ownership over the property. Id. at 78, 84–85. On January 19, 2010, Plaintiff filed a "Notice of Fraud and Intent to Litigate" against the property with the King County Auditor. Id. at 89–92. Defendant PRK initiated an unlawful detainer action against Plaintiff in King County Superior Court on January 29, 2010. Id. at 111–17. Also on January 29, 2010, Plaintiff filed a lis pendens against the property with the King County Auditor. Id. at 131–33. Defendant PRK ultimately was granted a Writ of Restitution to restore possession of the property. Dkt. # 123-1 at 32–34.

Ultimately, the property was sold, on December 8, 2010, to Defendant Owners via a Statutory Warranty Deed that was recorded on December 14, 2010. Dkt. # 123-1 at 36–37. The Defendant Owners only connection to Plaintiff is that they own the property that he also claims to own. Prior to instituting this action, Plaintiff recorded several documents against the property. These included an Affidavit of Patent, an Affidavit of Acceptance, and a Quit Claim Deed. Dkt. # 123-1 at 39–52.

B. Procedural Background

On January 11, 2018, Plaintiff filed this action against 29 named defendants. Dkt. # 1. On July 6, 2018, the Court granted several motions and dismissed Plaintiff's claims against seven defendants and several claims against Windermere Defendants. Dkt. # 107. In that Order, the Court determined that Plaintiff's Complaint had not adequately pled RICO claims as to any Defendant. Id. at 9–12. Additionally, the Court found that the majority of Plaintiff's state law claims were subject to a three year statute of limitations. Because Plaintiff's claims against the moving defendants were all premised on activity taking place prior to January 11, 2015, they were untimely and Plaintiff did not point to any contradictory authority. Id. at 12–24. Accordingly, the Court dismissed certain claims and granted Plaintiff leave to amend. Plaintiff did not file an amended complaint. Because several defendants had not appeared and Plaintiff had not provided proof of service, the Court also subsequently issued an Order to Show Cause, directing Plaintiff to show cause as to proper service of those defendants or, alternatively, why he should be granted an extension to properly serve those defendants. Dkt. # 108.

III. DISCUSSION

A. Moving Defendants are Entitled to Summary Judgment on All of Plaintiff's Claims

1. Legal Standard

Summary judgment is appropriate where "the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law." FED. R. CIV. P. 56(a) ; Anderson v. Liberty Lobby, Inc. , 477 U.S. 242, 247, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). Material facts are those which might affect the outcome of the suit under governing law. Anderson , 477 U.S. at 248, 106 S.Ct. 2505. In ruling on summary judgment, a court does not weigh evidence to determine the truth of the matter, but "only determine[s] whether there is a genuine issue for trial." Crane v. Conoco, Inc. , 41 F.3d 547, 549 (9th Cir. 1994) (citing Federal Deposit Ins. Corp. v. O'Melveny & Myers , 969 F.2d 744, 747 (9th Cir. 1992) ).

On a motion for summary judgment, the court views the evidence and draws inferences in the light most favorable to the non-moving party. Anderson , 477 U.S. at 255, 106 S.Ct. 2505 ; Sullivan v. U.S. Dep't of the Navy , 365 F.3d 827, 832 (9th Cir. 2004). However, the non-moving party must present significant and probative evidence to support its claim or defense. Intel Corp. v. Hartford Accident & Indem. Co. , 952 F.2d 1551, 1558 (9th Cir. 1991). "The mere existence of a scintilla of evidence in support of the [non-moving party's] position will be insufficient; there must be evidence on which the jury could reasonably find for the [non-moving party]." Anderson , 477 U.S. at 251, 106 S.Ct. 2505. Uncorroborated allegations and self-serving testimony will not create a genuine issue of material fact. Villiarimo v. Aloha Island Air, Inc. , 281 F.3d 1054, 1061 (9th Cir. 2002) ; T.W. Elec. Serv. v. Pac. Elec. Contractors Ass'n , 809 F.2d 626, 630 (9th Cir. 1987). Rather, the non-moving party must make a "sufficient showing on [each] essential element of her case with respect to which she has the burden of proof" to survive summary judgment. Celotex Corp. v. Catrett , 477 U.S. 317, 323, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986).

2. Trustee Sale Did Not Violate Plaintiff's Bankruptcy Stay

The crux of Plaintiff's case is the failed premise that the trustee sale of property owned by Williams Family Holdings LLC violated the automatic bankruptcy stay effected upon filing of Plaintiff's personal bankruptcy petition.² Because that premise fails, the majority of Plaintiff's claims fail and summary judgment is properly granted.

"The filing of a bankruptcy petition creates a bankruptcy estate, which is protected by an automatic stay of actions by all entities to collect or recover on claims. 11 U.S.C. § 362(a). ‘The automatic stay is self-executing, effective upon the filing of the bankruptcy petition.’ " Burton v. Infinity Capital Mgmt. , 862 F.3d 740, 746 (9th Cir. 2017) (quoting Gruntz v. Cnty. of Los Angeles , 202 F.3d 1074, 1081 (9th Cir. 2000) ). Actions taken in violation of the stay are void. Schwartz v. United States , 954 F.2d 569, 571 (9th Cir. 1992). Further, debtors have a cause of action for violations of the stay. 11 U.S.C. § 362(k). Relevant to this action, the stay applies to "any act to obtain possession of property of the estate or of property from the estate or...