RRW Legacy Management Group, Inc. v. Walker

Filing 203

JUDGMENT by Judge Marsha J. Pechman ordering that Plaintiff CIC is awarded judgment against Defendant Campbell Walker in the principal amount of $4,537,085.00. Additionally, Plaintiff CIC is awarded pre-judgment interest in the amount of $1,734,560.68, for a total judgment amount of $6,271,645.68. Post-judgment interest on the judgment sum shall accrue at the rate of 0.55 percent per annum from the date of entry hereof. (PM)

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Hon. Marsha J. Pechman

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UNITED STATES DISTRICT COURT
WESTERN DISTRICT OF WASHINGTON
AT SEATTLE

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RRW LEGACY MANAGEMENT
GROUP, INC., a Washington corporation,
and ANTOINETTE WALKER, individually
and as a Limited Partner of Argyll Limited
Partnership,

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No. 2:14-cv-00326MJP
(Consolidated with 2:14-cv-1544)
JUDGMENT

Plaintiffs,
CLERK’S ACTION REQUIRED

v.
CAMPBELL WALKER,

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Defendant.

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CAMPBELL INVESTMENT COMPANY,
a Washington corporation,

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Plaintiff,
v.
CAMPBELL M. WALKER, a foreign
individual,
Defendant.

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JUDGMENT SUMMARY

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Judgment Creditor:

Campbell Investment Company, Inc. Plaintiff

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Judgment Debtor:

Campbell M. Walker, Defendant

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JUDGMENT (Consol. No. 2:14-cv-00326) – Page 1

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Principal Judgment Amount:

$4,537,085.00

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Pre-Judgment Interest at the rate of
5.5% per annum pursuant to
RCW 4.56.1101

$1,734,560.68

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Total Judgment Amount:

$6,271,645.68

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Post-Judgment Interest Rate
pursuant to 28 U.S.C. § 19612

0.55%

Attorneys for Judgment Creditor
Campbell Investment Company

Randall P. Beighle
Andrew G. Yates
Lane Powell PC
1420 Fifth Avenue, Suite 4200
Seattle, Washington 98101

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Malaika M. Eaton
McNaul Ebel Nawrot & Helgren PLLC
600 University Street, Suite 2700
Seattle, Washington 98101

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Attorneys for Judgment Debtor
Campbell Walker:

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ORDER

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Bradley R. Duncan
Josh A. Rataezyk
Hillis Clark Martin & Peterson, P.S.
1221 Second Avenue, Suite 500
Seattle, Washington 98101

In response to the parties’ respective motions for summary judgment, the Court

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entered an order dated October 9, 2015 (Dkt. 141). That order granted summary judgment

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in full to Plaintiff RRW Legacy Management Group, Inc. (“RRW”). It also granted

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RRW’s request to dismiss Defendant Campbell Walker’s counterclaims. Finally, it

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granted Plaintiff Campbell Investment Company’s (“CIC”) motion for partial summary

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judgment as to liability on CIC’s breach of fiduciary duty claim against Defendant

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Campbell Walker.

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This amount is calculated assuming that judgment is entered on July 28, 2016. If
judgment is entered on a different date, the daily amount that accrues on the portion of the
principal judgment on which prejudgment interest runs ($3,775,966.00) is $568.98 each day
($3,775,966.00 x 0.055/365).
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This rate assumes that judgment is entered during the week of July 28, 2016.

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JUDGMENT (Consol. No. 2:14-cv-00326) – Page 2

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As described in the Court’s order on summary judgment, the Court grants RRW
the following declaratory relief:
1.

Defendant Campbell Walker was properly removed from his position as

General Partner of Argyll Limited Partnership for cause under the Argyll Limited
Partnership Agreement Section 7.1, which describes “cause” as “acts of the General
Partner … which constitute larceny, fraud, deceit, willful misconduct or a crime otherwise
involving moral turpitude, willful misrepresentation to Partners, or the continued and
habitual misuse of alcohol or any use of controlled substances.”
2.

RRW was properly appointed as the new General Partner of Argyll Limited

Partnership under Section 6.1 of the Argyll Limited Partnership Agreement.
The remaining aspects of CIC’s state law breach of fiduciary duty claim against
Campbell Walker were tried before the Honorable Marsha J. Pechman on October 27 and
28, 2015, and January 11, 2016, in the United States District Court for the Western
District of Washington. CIC appeared by and through its representative, Antoinette
Walker, and was represented by its attorneys of record, Randall P. Beighle and Andrew G.
Yates of Lane Powell, PC, and Malaika M. Eaton of McNaul Ebel Nawrot & Helgren
PLLC. Defendant Campbell Walker appeared on October 27 and 28, 2015, and was
represented by his attorneys of record, Bradley R. Duncan and Josh A. Rataezyk, of Hillis
Clark Martin Peterson, P.S. Mr. Walker chose not to appear on January 11, 2016.
On January 28, 2016, the Court issued its Findings of Fact and Conclusions of
Law (Dkt. 171), holding that Defendant Campbell Walker’s breaches of fiduciary duty
caused damages to CIC in the total amount of $4,537,085.00. Based on the Court’s
Findings, this total is made up of the following amounts:
(1)

Payments to Darshan

(2)

Travel expenses

$324,857

(3)

Consulting fees to Robert Walker

$200,000

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JUDGMENT (Consol. No. 2:14-cv-00326) – Page 3

$3,074,224

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(4)

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Funds diverted from CIC

$293,147

Professional fees

$467,972

against Defendant Campbell Walker.
“A party is entitled to prejudgment interest on liquidated claims to compensate
them for loss of use on money that is wrongfully withheld by another party.” TJ Landco,
LLC v. Harley C. Douglass, Inc., 186 Wn. App. 249, 256, 346 P.3d 777 (2015) (citing
Mall Tool Co. v. Far West Equip. Co., 45 Wn.2d 158, 169, 273 P.2d 652 (1954)). Here,
CIC is entitled to pre-judgment interest on the amounts included in items (1)–(6) awarded
to it as listed above, for a total damage award subject to prejudgment interest of
$3,775,966.00.

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$43,811

Plaintiff CIC is awarded damages in the principal amount of $4,537,085.00,

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Interest on the line of credit

(8)

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$54,646

(7)

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Contract services

(6)

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$78,428

(5)

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Payments on life insurance policy

Pre-judgment interest in a diversity action based on state law is calculated pursuant
to the applicable state rules, thus Washington law applies to this case. In re Exxon Valdez,
484 F.3d 1098, 1101 (9th Cir. 2007). Plaintiff CIC is entitled to prejudgment interest
because the damage amounts identified above are liquidated and the Court finds that the
rate specified in RCW 4.56.110 applies. Pre-judgment interest totals $1,734,560.68
through July 28, 2016. That amount is made up of the following amounts for each of the
damage categories found by the Court to be subject to prejudgment interest as of May 23,
2016:
(1)

Payments to Darshan

(2)

Travel expenses

$165,312.00

(3)

Consulting fees to Robert Walker

$136,430.00

(4)

Payments on life insurance policy

$48,456.00

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JUDGMENT (Consol. No. 2:14-cv-00326) – Page 4

$1,309,385.00

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(5)

Contract services

$22,139.00

(6)

Interest on the line of credit

$15,285.00

The Declaration of William Partin attached to Plaintiffs’ notice of presentation of
judgment submitted in May 2016 provides the calculation of these amounts. The total
amount of interest has been updated through July 28, 2016, using the per diem amount of
$568.98.
And the Court being otherwise fully advised herein, now, therefore,
HEREBY ORDERS that Plaintiff CIC is awarded judgment against Defendant
Campbell Walker in the principal amount of $4,537,085.00. Additionally, Plaintiff CIC is
awarded pre-judgment interest in the amount of $1,734,560.68, for a total judgment
amount of $6,271,645.68. Post-judgment interest on the judgment sum shall accrue at the
rate of 0.55 percent per annum from the date of entry hereof.
IT IS SO ORDERED.
DATED this _28th_ day of

July , 2016.

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A

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Marsha J. Pechman
United States District Judge

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Presented by:
McNAUL EBEL NAWROT & HELGREN PLLC
By: s/Malaika M. Eaton
Malaika M. Eaton, WSBA No. 32837
[e-mail]
600 University Street, Suite 2700
Seattle, Washington 98101
Telephone [phone]
Facsimile [phone]

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JUDGMENT (Consol. No. 2:14-cv-00326) – Page 5

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LANE POWELL PC

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By: s/Randall P. Beighle
Randall P. Beighle WSBA No. 13421
[e-mail]
Margaret M. Grega, WSBA No. 46579
[e-mail]
Andrew G. Yates, WSBA No. 34239
[e-mail]

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1420 Fifth Avenue, Suite 4200
Seattle, Washington 98101
Telephone [phone]
Facsimile [phone]

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