Steven G. Wraith and Kellan W. Byrne won summary judgment dismissal in Ballard v. Rainier Custom Homes, Inc. in King County Superior Court. The case involved the 2016 construction of a home in Poulsbo, Washington. Steve and Kellan’s client was not involved in the home’s construction, but purchased the assets of the project’s general contractor in 2018, nearly two years after completion. The plaintiff homeowners sued the general contractor for construction defects, and brought claims against Steve and Kellan’s client for fraudulent transfer and corporate successor liability. Plaintiffs based their claims on the facts that Steve and Kellan’s client (1) maintained the general contractor’s physical office for some short period of time; (2) included a photo of the subject home on its website; and (3) hired two individuals that had previously worked for the general contractor. Plaintiffs, however, did not present any evidence regarding the purchase of assets, the amounts paid, or the value of the assets transferred. The Court found that plaintiffs’ evidence was wholly insufficient to establish a prima facie case concerning the essential elements of the Uniform Fraudulent Transfer Act and successor corporate liability claims, and granted dismissal of all claims against Steve and Kellan’s client.
Dec 16, 2020