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HERRINGTON v. DAVID D. HAWTHORNE, CPA, P.S.

No. 47962-8-I.

47 P.3d 567 (2002)

111 Wash.App. 824

Herbert HERRINGTON and Jean Herrington, husband and wife, and their marital community; Glenn Kramer, Kay Kagey, and Jewel Armstrong, on behalf of themselves and all similarly situated, Appellants, v. DAVID D. HAWTHORNE, CPA, P.S., a Washington professional service corporation; David D. Hawthorne and Jane Doe Hawthorne, husband and wife, and their marital community; Tollefsen & Company P.C. Business Lawyers, an Oregon corporation; John Tollefsen and Jane Doe Tollefsen, husband and wife, and their marital community; Robert A. Kaye and Jane Doe Kaye, husband and wife, and their marital community; John A. Duke as trustee of the John A. Duke Trust and John A. Duke and Jane Doe Duke, husband and wife, and their marital community; Sandra Kintner and William Kintner, husband and wife, and their marital community, Respondents.

Court of Appeals of Washington, Division 1.

As Amended June 24, 2002.

As Amended on Denial of Reconsideration August 13, 2002.

Attorney(s) appearing for the Case

Charles Kenneth Wiggins, Kenneth Wendell Masters, Bainbridge Is, David R. Major, Mark Adam Griffin, Seattle, for Appellants.

Steven Anthony Rockey, Mary C. Eklund, Seattle, for Respondent (Hawthorne and Kaye).

Douglas Wayne Purcell, Kokie Elizabeth Adams, Lynnwood, Ilene A. Lund, Seattle, for Respondent (Duke).

COX, A.C.J.

At issue is the propriety of the summary dismissal of a civil conspiracy claim and claims under the Washington State Securities Act (WSSA) by investors against John A. Duke. We hold that Duke was neither a control person nor a partner of a seller under RCW 21.20.430(3). Thus, he was not secondarily liable under the WSSA. There are genuine issues of material fact regarding whether Duke, who was not a partner in the companies issuing the allegedly fraudulent...

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