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Newman | Du Wors attorneys, Randy Moeller and John DuWors, recently convinced the Washington Court of Appeals to reverse a superior court decision and find in favor of their client, Boeing Employees Credit Union (BECU).
The dispute arose when Russ and Suzanne Burns failed to pay both their home-mortgage loan to Wells Fargo and a second loan that BECU made to them. BECU successfully obtained a court judgment against them, but the Burnses still didn't pay. Meanwhile, Wells Fargo foreclosed on the home, and sold the property for more money than the Burnses owed on their first mortgage. So BECU asked the court for the surplus amount to satisfy its judgment.
The superior court ruled against BECU and held that the Burnses could keep the surplus money. Realizing that the decision could impact its ability to collect on other loan defaults, BECU hired John Du Wors to file an appeal. Randy Moeller drafted the brief, and John Du Wors presented oral argument. The main issue was whether BECU's judgment on a promissory note meant that it could not take amounts obtained from selling the home.
Agreeing with Newman | Du Wors on behalf of BECU, the Court of Appeals found that "a note is a separate obligation than the deed of trust" that secures the note. Thus, the judgment on the note did not extinguish BECU's right to satisfy its judgment through home-sale proceeds. The appeals court reversed the superior court's decision and disbursed the funds to BECU. Link to decision.
Although known mostly as an intellectual property and Internet-law firm, Newman | Du Wors also has a significant banking practice that John Du Wors leads, and regularly represents clients on appeal. John and his team have scored victories for banks—like BECU—and borrowers who banks have attempted to take advantage of. If you have a banking-law issue, you can reach John Du Wors at (206) 274-2800.
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