Dee Ann Stiles used to be the Secretary for the Shore Woods Homeowners’ Association (“Association”). Gerald Kearney was a former member of the Association’s Executive Board (prior to Stiles’s tenure) and apparently he didn’t think Stiles was doing a very good job. Kearney wrote some “hostile” emails to the Board claiming that there were “inherent problems” with Stiles’s work on the Board and specifically stating that her meeting minutes were “written from the point of view of someone with an axe to grind” and telling Stiles, “Do your job even-handedly or step down.”
So of course, Stiles sued for defamation! Unfortunately (for her) the trial court concluded that she failed to offer any “credible or cognizable evidence” regarding (1) the falsity of Kearney’s statements, (2) whether the statements were privileged, or (3) her claimed damages. That’s no good. The court “concluded that the complaint was not well-grounded in fact or law and that Young [Stiles’s attorney] failed to conduct a reasonable inquiry before filing the complaint.” Accordingly, the trial court awarded sanctions against Stiles and Young under CR 11 and RCW 4.84.185.
Stiles appealed. The Court of Appeals, in Dee Ann Stiles v. Gerald Kearney (Division 2, February 29, 2012) (published May 22, 2012), affirmed the trial court in full. The Court of Appeals’ decision was initially unpublished, which likely explains why the Court’s analysis of the sanction issue is very superficial. Basically, the Court sets out the general legal standards, states that the trial court properly recognized those standards, and that the decision to impose sanctions based on a “well-written six-page memorandum opinion” was not an abuse of discretion. Continue reading