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<p class="MsoNormal">Listmates:<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">The WA Supreme Court just issued this decision: <o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><a href="http://www.courts.wa.gov/opinions/pdf/938237.pdf">http://www.courts.wa.gov/opinions/pdf/938237.pdf</a><o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">The short version: A Hong Kong bank only got the husband’s signature on loan docs which also included choice of law and forum clauses designating Hong Kong (which, like most foreign jurisdictions and states, does not recognize community
property).<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">On obtaining a judgment, it attempted to collect on both the husband’s separate property and the community property. The husband and wife argued that, per WA law, without her signature, it could not collect against the community property
– only against his (limited) separate property. Enforcing the clause and finding that, even if the clause was not effective, Hong Kong law would apply, the Supreme Court affirmed a Court of Appeals decision that the judgment could be enforced against all
interests of the couple other than her separate property.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">A cautionary tale to WA residents who may think that they may have a “gotcha” where a foreign company does not get both members of a marital community to sign.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">As our firm does a fair bit of international transactions, this sort of issue occasionally raises its head.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<div>
<p class="MsoNormal"><span style="color:#002060">Mark J. Phelps<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#002060">Attorney, Litigation Practice Group Leader<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#002060">Desh International & Business Law ·
<a href="http://www.deshlaw.com/"><span style="color:#002060">www.deshlaw.com</span></a><o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#002060">11400 SE 8<sup>th</sup> Street, Suite 260, Bellevue, WA 98004<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#002060">Direct: (425) 242-3398 <b>·</b> Fax: (425) 968-7571<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#002060">Email: <a href="mailto:mphelps@deshlaw.com">
mphelps@deshlaw.com</a><o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#002060">Podcast: <a href="http://www.deshlaw.com/deshcast">
http://www.deshlaw.com/deshcast</a><o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#002060"><o:p> </o:p></span></p>
<p class="MsoNormal"><a href="http://www.deshlaw.com/"><span style="color:windowtext;text-decoration:none"><img border="0" width="392" height="167" style="width:4.0833in;height:1.7395in" id="Picture_x0020_1" src="cid:image002.png@01D3434A.6F42DC50" alt="Email Signature Image"></span></a><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:9.0pt;color:black;background:#F9F9F9">This message may contain information which is confidential and/or protected by attorney-client privilege. If you are not the intended recipient, disclosure, copying, distribution,
or use of the contents of this message is prohibited.</span><span style="font-size:9.0pt"> Any advice in this communication, including attachments, must not be used for the purpose of avoiding penalties under the Internal Revenue Code or for promoting, marketing
or recommending to another party any tax-related matter(s) addressed. This message does not create an attorney-client relationship.</span><o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
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