Hallas v. Ameriquest Mortgage Co.
Hallas v. Ameriquest Mortgage Co.
Opinion of the Court
MEMORANDUM
Peggy Hallas appeals the magistrate judge’s
Reformation of the deed of trust is appropriate here.
Second, the undisputed facts clearly and convincingly show that, at the time the deed of trust was signed, Hallas and Ameriquest shared an identical intent — namely, for Ameriquest to take a security interest in Hallas’ property and to reflect that interest in the loan documents. See Saterlie v. Lineberry, 92 Wash.App. 624, 962 P.2d 863, 865 (1998); Snyder v. Peterson, 62 Wash.App. 522, 814 P.2d 1204, 1206-08 (1991); Tenco, Inc. v. Manning, 59 Wash.2d 479, 368 P.2d 372, 373-74 (1962); Maxwell v. Maxwell, 12 Wash.2d 589, 123 P.2d 335, 337 (1942).
Third, Hallas’ equitable defenses to reformation fail. Insertion of the correct property description into the deed of trust after it was signed does not, under these circumstances, demonstrate the bad faith or unconscionable conduct necessary to support an unclean-hands defense. See Dahlin v. Dahlin, 30 Wash.2d 642, 193 P.2d 358, 360 (1948); J.L. Cooper & Co. v. Anchor Secs. Co., 9 Wash.2d 45, 113 P.2d 845, 857-58 (1941). And Hallas’ assertion that Ameriquest is equitably estopped from seeking reformation is contrary to Washington law. See Rogers, 42 P. at 525-26 (permitting reformation after a foreclosure sale).
Hallas waived her right to pursue her remaining claims, with the exception of her Fair Debt Collection Practices Act (“FDCPA”) claims, by failing to sue before the foreclosure sale took place. See Wash. Rev.Code §§ 61.24.130, 61.24.040(l)(f)(IX); see also Koegel v. Prudential Mut. Savs., 51 Wash.App. 108, 752 P.2d 385, 386, 389 (1988).
Hallas’ claim that Fidelity’s and Town & Country’s conduct violated 15 U.S.C. § 1692f(6) because Ameriquest did not have a security interest in her property fails because, with reformation of the deed of trust, the existence of a security interest is unarguable.
The magistrate judge did not abuse his discretion in denying Hallas’ motion to
We have considered and reject Hallas’ other claims raised on appeal.
AFFIRMED.
This disposition is not appropriate for publication and is not precedent except as provided by 9th Cir. R. 36-3.
. The parties consented to the entry of a final judgment by the assigned magistrate judge. See Fed.R.Civ.P. 73; 28 U.S.C. § 636(c).
. For purposes of this appeal, we assume (as did the magistrate judge) the truth of Hallas' contention that when she signed the deed of trust, it did not contain any legal description of the property.
. We assume, without deciding, that Fidelity and Town & Country were “debt collectors” for purposes of 15 U.S.C. § 1692f(6).
Case-law data current through December 31, 2025. Source: CourtListener bulk data.