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<p class="MsoNormal"><span style="color:#1F497D">Catherine--Did you get any response on this? I don't know of a specific case, but I think the analysis is the same as for the chains of BFPs under UCC law, so you might look there. Also there might be some "holder
in due course" cases that provide a good analogy.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D">If I remember correctly, it has to do with direct knowledge of the title defect. For example, with three parties X, Y, and Z, where X and Z know of the title defect, it's not possible to launder the title by
X conveying to Y (who is a BFP without notice), and Y conveying to Z (who isn't). In your case, the LLC is Z and has knowledge because your client Y's knowledge is imputed to the wholly-owned entity.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D">However--again going off of memory--I think there is an exception when title has been cleaned at the "Y" stage by a judgment confirming Y's status as BFP, and quieting title to Y. At that point the title defect
is eliminated by the court, and it's possible for Y to convey to Z because Z no longer has "knowledge of a defect"--the defect no longer exists, per adjudication. (And assuming no conspiracy between the parties.) This exception might be classified more as
res judicata than BFP doctrine.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:#1F497D">Sincerely,<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:#1F497D">Eric<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:#1F497D">Eric C. Nelsen<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:#1F497D">SAYRE LAW OFFICES, PLLC<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:#1F497D">1320 University St<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:#1F497D">Seattle WA 98101-2837<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:#1F497D">phone 206-625-0092<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:#1F497D">fax 206-625-9040<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
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<p class="MsoNormal"><b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif"">From:</span></b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif""> wsbarp-bounces@lists.wsbarppt.com [mailto:wsbarp-bounces@lists.wsbarppt.com]
<b>On Behalf Of </b>Clark, Catherine<br>
<b>Sent:</b> Tuesday, September 08, 2015 8:42 AM<br>
<b>To:</b> WSBA Real Property Listserv<br>
<b>Subject:</b> [WSBARP] Corporations Question<o:p></o:p></span></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">All:<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Do you know of any cases in which a person, who acquired property and was determined by a tribunal to be an innocent purchaser/BFP, and who later transfers that property into a LLC (in which they are the sole member) which held that they
lost that innocent purchaser/BFP status by the transfer. Do you know of any cases the other way around?<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Thank You.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="font-size:10.5pt;font-family:"Copperplate Gothic Light";color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.5pt;font-family:"Copperplate Gothic Light";color:#1F497D">Catherine C. Clark<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.5pt;font-family:"Copperplate Gothic Light";color:#1F497D">Law Office of Catherine C. Clark PLLC<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.5pt;font-family:"Copperplate Gothic Light";color:#1F497D">701 Fifth Avenue, Suite 4105<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.5pt;font-family:"Copperplate Gothic Light";color:#1F497D">Seattle, WA 98104<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.5pt;font-family:"Copperplate Gothic Light";color:#1F497D">Direct Dial: (206) 342-6276<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.5pt;font-family:"Copperplate Gothic Light";color:#1F497D">Fax: (206) 374-3003<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.5pt;font-family:"Copperplate Gothic Light";color:#1F497D">Email:
<a href="mailto:cat@loccc.com"><span style="color:blue">cat@loccc.com</span></a><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.5pt;font-family:"Copperplate Gothic Light";color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.5pt;font-family:"Copperplate Gothic Light";color:#1F497D">NOTICE: The information contained in this electronic information transmission is confidential. If you are not the intended recipient, or the employee or
agent responsible for delivering it to the intended recipient, you are hereby notified that any use, dissemination, distribution or copying of this communication is prohibited. If you received this communication in error, please immediately notify the sender
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