Justia International Law Opinion SummariesArticles Posted in Washington Supreme Court
Hill & Stout, PLLC v. Mut. of Enumclaw Ins. Co.
In early 2020, to help curtail the spread of COVID-19, Washington Governor Inslee issued Proclamation 20-24 prohibiting non emergency dental care. The issue this case presented for the Washington Supreme Court’s review centered on the lost business income from the Proclamation and the interpretation of an insurance contract under which the insurance company covered lost business income for the “direct physical loss of or damage to Covered Property” and excluded coverage for loss or damage caused by a “virus.” Drs. Sarah Hill and Joseph Stout were dentists who operated two dental offices under their business Hill and Stout PLLC (HS). HS bought a property insurance policy from Mutual of Enumclaw Insurance Company (MOE) that covered business income lost due to “direct physical loss of or damage to” the properties. HS sued MOE for coverage because of its inability to use its offices for nonemergency dental practice under the Proclamation and later amended to add a putative class action. MOE moved to dismiss, arguing that HS failed to show a “direct physical loss of or damage to” the property and that the virus exclusion applied. The trial court denied the motion. After review, the Supreme Court affirmed the trial court granting summary judgment in favor of MOE. “It is unreasonable to read ‘direct physical loss of . . . property’ in a property insurance policy to include constructive loss of intended use of property. Such a loss is not ‘physical.’ Accordingly, the Proclamation did not trigger coverage under the policy.” View "Hill & Stout, PLLC v. Mut. of Enumclaw Ins. Co." on Justia Law
Shanghai Commercial Bank, Ltd. v. Kung Da Chang
Kung Da Chang entered into a credit facility arrangement with Shanghai Commercial Bank (SCB) between March and April 2008 by executing five agreements. Together, these five agreements enabled Chang and his father, Clark Chang, to borrow large sums from SCB, and those sums make up the underlying debt obligation at issue in this lawsuit. These five documents defined Chang and SCB's agreement and governed their obligations. The parties' agreement explicitly included a choice of law provision selecting Hong Kong law as the governing law. SCB delivered the agreement papers for Chang's signature to an address in Shanghai that was actually Clark's residence. Clark sent the documents to his son in Seattle. Chang signed the documents, returned them to his father in Shanghai, and Clark forwarded them to SCB in Hong Kong. There was no indication that SCB knew that it was dealing with a person residing in Seattle. Chang ultimately defaulted on the debt obligation, and the parties litigated the matter in Hong Kong. SCB prevailed and secured a $9 million judgment. The Hong Kong judgment encompassed what Washington State considered Chang and his wife's marital community; Hong Kong law exempted solely separate property of a spouse, not community property, from judgments entered against one spouse. The issue this case presented for the Washington Supreme Court's review was whether the Hong Kong judgment as enforceable against marital community property in Washington State. Specifically, the issue was whether the choice-of-law provision in the contracts along with application of the "most significant relationship" test for determining conflict of law issues, and ultimately, whether Hong Kong law should be applied to reach the community assets in Washington to satisfy the valid and enforceable foreign judgment. The Washington Supreme Court determined that under the facts of this case, the debtor's community property could be reached to satisfy the Hong Kong judgment. View "Shanghai Commercial Bank, Ltd. v. Kung Da Chang" on Justia Law