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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link=blue vlink=purple><div class=WordSection1><p class=MsoPlainText>The latest word, I think, which is not entirely clear around the edges:<o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText> ¶ 22 Both parties rely on principles from our payment application jurisprudence to support their respective positions. <b>As a general rule, we have held that “ ‘when a debtor fails to direct how a payment is to be applied the creditor may make the application as he may see fit.’</b> ” United States Fid. & Guar. Co. v. E.I. Dupont De Nemours & Co., 197 Wash. 569, 579, 85 P.2d 1085 (1939) (quoting 21 Ruling Case Law 90, § 95). <b>Where neither creditor nor debtor appropriates the payment, a court will apply the payment “ ‘according to its own notion of the intrinsic equity and justice of the case</b>.’ ” Post–Intelligencer Publ'g Co. v. Harris, 11 Wash. 500, 502, 39 P. 965 (1895) (quoting Cremer v. Higginson, 1 Mason 323, 6 F. Cas. 797, 802 (C.C.D.Mass.1817)). Tyko relies on *744 these rules in arguing that we should conclude that the payments it received were applied to both the materials and labor portions of its contract. <b>However, at least one court has concluded that the payment application rules operate only where there is an established debtor/creditor relationship. See Oakes Logging, Inc. v. Green Crow, Inc., 66 Wash.App. 598, 603, 832 P.2d 894 (1992) (where no contractual relationship existed, owner became subcontractor's debtor only by virtue of an enforceable logger's lien).<o:p></o:p></b></p><p class=MsoPlainText> ¶ 23 <b>The Oakes Logging court's recognition that a valid debtor/creditor relationship is necessary to implicate the payment application rules is correct. </b>The rules exist to allow parties with legal obligations to one another to plan their behavior according to reasonably certain outcomes. Where no relationship exists, the payment application default rules have no effect. When Hamre issued the $7,000 jointly payable check to C & R and Tyko, Tyko had no contractual or statutory right to payment from Hamre on its materials claim. On point of fact, the materials claim was permanently barred for failure to provide preclaim notice. Tyko did, however, maintain a right to payment for the labor portion of its work against Hamre, which requires no preclaim notice. While Tyko could sustain the argument that it applied the payments on a pro rata basis to its claim against C & R—because it maintained a contractually based right to payment for both labor and materials against C & R—we are concerned here only with the relationship between Hamre and Tyko. Thus, with regard to its pursuit of recovery against Hamre, Tyko could have applied payments received only to the valid labor claim. The labor portion of Tyko's contract amounted to $7,483. Tyko received $9,628.22. Therefore, Tyko's labor claim against the contractor's bond and retained percentage has been fully satisfied.<o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText>LRS Elec. Controls, Inc. v. Hamre Const., Inc., 153 Wash. 2d 731, 743–44 (2005)<o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText>Rob<o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText>Robert D. Wilson-Hoss <o:p></o:p></p><p class=MsoPlainText>Hoss & Wilson-Hoss, LLP <o:p></o:p></p><p class=MsoPlainText>236 West Birch Street <o:p></o:p></p><p class=MsoPlainText>Shelton, WA 98584 <o:p></o:p></p><p class=MsoPlainText>360 426-2999<o:p></o:p></p><p class=MsoPlainText>www.hossandwilsonhoss.com<o:p></o:p></p><p class=MsoPlainText>rob@hctc.com<o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText>This message is intended solely for the use of the addressee and may contain information that is privileged, confidential, and exempt from disclosure under applicable law. If you are not the addressee, you are hereby notified that any use, distribution, or copying of this message is strictly prohibited. If you received this message in error, please notify us by reply e-mail or by telephone (call us collect at the number listed above) and immediately delete this message and any and all of its attachments. Thank you.<o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText>THIS OFFICE DOES DEBT COLLECTION AND THIS E-MAIL MAY BE AN ATTEMPT TO COLLECT A DEBT, ANY INFORMATION OBTAINED WILL BE USED FOR THAT PURPOSE. To the extent the Federal Fair Debt Collection Practices Act (15 U.S.C. § 1692) applies this firm is acting as a debt collector for the condominium/homeowners' association named above to collect a debt owed to it. Any information obtained will be used for collection purposes. You have the right to seek advice of legal counsel.<o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText>-----Original Message-----<br>From: wsbarp-bounces@lists.wsbarppt.com [mailto:wsbarp-bounces@lists.wsbarppt.com] On Behalf Of Kathryn R. McKinley<br>Sent: Thursday, November 08, 2018 12:05 PM<br>To: 'WSBA Real Property Listserv'<br>Subject: Re: [WSBARP] Partial Satisfaction of Judgment<o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText>Assuming your judgment includes attorneys' fees and costs incurred for collection of the judgment, I would apply the funds first to unpaid interest on the judgment, then to costs and fees incurred in collection since the judgment was entered, and then to principal.<o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText>Kathryn R. McKinley<o:p></o:p></p><p class=MsoPlainText>Partner<o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText>717 W Sprague Ave, Ste 1200 <o:p></o:p></p><p class=MsoPlainText>Spokane, WA 99201-3505 <o:p></o:p></p><p class=MsoPlainText>509.455.6017<o:p></o:p></p><p class=MsoPlainText>kathryn.mckinley@painehamblen.com<o:p></o:p></p><p class=MsoPlainText>This message is private or privileged. If you are not the person for whom this message is intended, please delete it and notify me immediately, and please do not copy or send this message to anyone else.<o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText>-----Original Message-----<o:p></o:p></p><p class=MsoPlainText>From: wsbarp-bounces@lists.wsbarppt.com [mailto:wsbarp-bounces@lists.wsbarppt.com] On Behalf Of Paul Neumiller<o:p></o:p></p><p class=MsoPlainText>Sent: Thursday, November 8, 2018 11:29 AM<o:p></o:p></p><p class=MsoPlainText>To: wsbarp@lists.wsbarppt.com<o:p></o:p></p><p class=MsoPlainText>Subject: [WSBARP] Partial Satisfaction of Judgment<o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText>Listmates, a little litigator help would be appreciated here. I won a monetary judgment on behalf of a client. Judgment Debtor has delivered a check to me as a partial payment, wants me to prepare the partial satisfaction of judgement, and wants me to tell them the balance due. Is there any guidance on how to apply the payment? Twelve percent interest is owed on the judgment so can I apply the payment to accrued interest first and then to principal reduction? Thanks for your assistance. -Paul Neumiller <o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText>_______________________________________________<o:p></o:p></p><p class=MsoPlainText>WSBARP mailing list<o:p></o:p></p><p class=MsoPlainText>WSBARP@lists.wsbarppt.com<o:p></o:p></p><p class=MsoPlainText>http://mailman.fsr.com/mailman/listinfo/wsbarp<o:p></o:p></p></div><div id="DAB4FAD8-2DD7-40BB-A1B8-4E2AA1F9FDF2">
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