Wash. Court of Appeals published opinion — D2 59088-3-II Published Opinion.pdf

Citation: Wash. Court of Appeals published opinion — D2 59088-3-II Published Opinion.pdf
Jurisdiction: Washington (state)
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no fault of the buyer are not property of the seller’s estate.” Br. of Resp’t at 20-21. We agree with

this general principle, and as discussed above, the receivership statute essentially instructs as

much. RCW 7.60.130. But the crux here is that the $450,000 is no longer in escrow and again,

the only funds available to return the deposit are funds within the receivership estate.

LGI also argues, citing to bankruptcy principles and specifically In re Summit Airlines,14

that funds no longer held aside in an escrow account, but traceable to an escrow account, must be

returned to the depositor of those funds in the event of a breach of contract. However, we need

not look to bankruptcy law. While the receivership statute may not contemplate the exact facts of

this case, the receivership statute provides instruction on what happens when a party to a rejected

executory contract has a claim.

14
94 B.R. 367, 368 (Bankr. E.D. Pa. 1988), aff’d, 102 B.R. 32 (E.D. Pa. 1989).

19
For the current opinion, go to https://www.lexisnexis.com/clients/wareports/.

No. 59088-3-II

RCW 7.60.130(2) states:

The other party to an executory contract . . . that is rejected by a general receiver
may take such steps as may be necessary under applicable law to terminate or cancel
the contract . . . . The claim of a party to an executory contract . . . resulting from
a general receiver’s rejection of it shall be served upon the receiver in the manner
provided for by RCW 7.60.210 within thirty days following the rejection.

(Emphasis added.)

Courts look to the plain language of a statute and its context to determine legislative intent.

Umpqua Bank, 194 Wn. App. at 693. While there are similarities between bankruptcy law and