In a 5-4 decision, the Washington State Supreme Court upheld a Thurston County jury’s award of over $57 million to live-in individual care providers (“providers”). Eight of the nine justices agreed to overturn an additional $39 million in prejudgment interest the providers also received at trial. All of the justices agreed that the recipients of the providers’ care (“clients”) were not entitled to recover damages, though for different reasons.
Continue Reading State Supreme Court Upholds $57 Million Verdict for In-Home Care Providers

Donatelli v. D.R. Strong Consulting Engineers, Inc. [Wash. Sup. Ct. No. 86590-6]

A five justice majority in this case continued to develop the “independent duty doctrine” in Washington. That doctrine has superseded the “economic loss rule,” which previously limited recovery of economic damages to contract claims and recovery of non-economic damages to tort claims. According to the majority opinion, described in greater length below, a contracting party can have a duty in tort to another contracting party if and only if the duty is independent of the agreement. If the contract is unclear, then it must be interpreted by a trier of fact before dismissal based on the independent duty doctrine is proper. As explained by the four-justice dissent, this analysis is unnecessary to the independent duty doctrine, cannot be harmonized with the parties’ agreement, and is not supported by settled principles of contract law. Consistent with those legal principles, the dissent would limit the plaintiff to contract damages where, as here, the parties’ agreement encompasses the risk of harm that is claimed.
Continue Reading Washington Supreme Court Breaks New Ground with Independent Duty Doctrine

In Hill v. Garda CL NW, Inc., the Washington Supreme Court reiterated that courts have the power and obligation to resolve dsputes going to the validity of arbitration agreements, unless an arbitration agreement clearly and unmistakably provides otherwise. Unconscionability is one such dispute, and the Court ruled that an arbitration agreement severely limiting the rights of employees was unconscionable.

Background:Continue Reading Washington Supreme Court Clarifies that Courts Must Resolve Disputes that go to the Validity of an Arbitration Agreement (e.g., Unconscionability) before Compelling Arbitration