WESTVIEW INVESTMENTS, LTD. v. U.S. BANK NAT. ASSOC.

Nos. 56305-0-I, 56306-8-I.

138 P.3d 638 (2006)

WESTVIEW INVESTMENTS, LTD, a Washington Corporation; LV Associates, LLC, a Washington limited liability company; and Mercer View, LLC, a Washington limited liability company; and Mercer View, LLC, a Washington limited liability company; and Tukwila Self Storage, LLC, Appellants, v. U.S. BANK NATIONAL ASSOCIATION, and Construction Associates, Inc., a Washington corporation, Respondents.

Court of Appeals of Washington, Division 1.

July 3, 2006.


Attorney(s) appearing for the Case

Anthony L. Rafel, Duncan Emerson Manville, Rafel Manville PLLC, Seattle, for Appellants Westview Investments; Mercer View, LLC; LV Associates, LLC.

Lawrence Ronald Cock, John Goodwin Bauer, Cable Langenbach Kinerk & Bauer LLP, Seattle, WA, for Appellants Tukwila Self Storage.

Greg Montgomery, Miller Nash LLP, Seattle, WA, for Respondent.


GROSSE, J.

¶ 1 A bank that has knowledge sufficient to require inquiry whether funds deposited by a general contractor into its bank account are trust funds cannot, as against the subcontractors, set off the funds to pay an indebtedness owed the bank by the general contractor. Here, the construction contracts at issue created express trusts designating progress payments made for the benefit of subcontractors to be trust funds. Because there is a genuine issue...

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