Facts: Signature Bail Bonds issued a number of bail bonds in Pierce County on behalf of respondent Ranger Insurance Company as well as on behalf of Granite State Insurance Company that were forfeited when defendants failed to appear in court. After Signature Bail Bonds used funds provided by Ranger Insurance Company to cover not only the forfeited bonds issued in Ranger Insurance Company’s name but also those issued in Granite State Insurance Company’s name and subsequently failed to forward bond money returned to it by Pierce County when the defendants were apprehended, Ranger Insurance Company charged Pierce County with negligently handling its funds and filed suit against it. The trial court granted summary judgment for Pierce County, ruling that the county had observed the requisite standard of care. Upon appeal, the Washington Court of Appeals reversed, holding that there was no record of Ranger Insurance Company making any objective manifestations supporting Signature Bail Bonds’ apparent authority to divert its funds to satisfy obligations belonging to other sureties. Pierce County appealed this decision to the Supreme Court of Washington.

Question(s): Is there a genuine issue of material fact as to whether Pierce County observed the requisite standard of care in allowing Signature Bail Bonds to divert Ranger Insurance Company’s funds to satisfy obligations belonging to other sureties?

Conclusion: Justice Sanders’ opinion for a unanimous Court affirmed the Washington Court of Appeals, concluding that a genuine issue of material fact exists insofar as a reasonable jury could find that Pierce County failed to act as a reasonably prudent clerk in receiving, allocating, and disbursing funds insofar as the only objective manifestations made by Ranger Insurance Company with regard to Signature Bail Bonds’ authority to act on its behalf were limited to bonds issued in Ranger Insurance Company’s name. Thus, the Court remanded the case to the trial court.

Docket No. 80389-7 (from Court of Appeals Division II Case No. 34729-6)

Petitioner: Pierce County

(Counsel: Douglas Warren Vanscoy)

Respondent: Ranger Insurance Company

(Counsel: Brett Andrews Purtzer)

Briefs:

Argument: Thursday, May 8, 2008 10:30am

[Source: TVW, http://tvw.org]

Decided: Thursday, May 8th, 2008

Prevailing Party: Ranger Insurance Company (Respondent)

Vote: 9-0

Citation: Pending

Court: Alexander4 Court (2008-2009)

Alexander

Johnson

Madsen

Sanders
(Majority)

Chambers

Owens

Fairhurst

Johnson

Stephens