Hair Plus Beauty Outlet, Inc. v. OMH, Inc., No. 75348-7-I, 2018 Wash. App. LEXIS 362 (2018)

Facts

  • Hair Plus Beauty Outlet, Inc. (Hair Plus) was an Ohio corporation owned by Soo Jin Jung; OMH, Inc. (OMH) was a Washington corporation owned by Min Hwan Oh.
  • The dispute concerned commercial premises in Seattle where a beauty-related business operated.
  • In January 2007, a sublease for the premises was executed between Thrifty Payless, Inc. and Hair Art Beauty and Salon (Hair Art), a business associated with Jung.
  • In November 2007, OMH purchased the Hair Art business from Jung; the purchase was conditioned on OMH obtaining lease rights to the premises by assignment of the existing lease or a new lease.
  • After the business relationship deteriorated, OMH sued Jung and obtained a 2012 judgment that included ownership of Hair Art; the judgment did not specify who held the enforceable lease rights to the premises.
  • Hair Plus later asserted that it—not OMH—held the lease rights and demanded that OMH vacate.
  • Hair Plus filed an action seeking to remove OMH from the premises (styled as an unlawful detainer/possession claim based on Hair Plus’s alleged leasehold right).
  • At trial, Hair Plus attempted to prove its right to possession by offering Exhibit 3, a copy of the lease/sublease it claimed controlled the premises.
  • OMH objected, arguing Exhibit 3 was not the complete lease because the lease incorporated additional documents by reference; Jung testified that additional incorporated documents existed and that he had signed them.
  • The trial court excluded Exhibit 3 as an incomplete and unreliable duplicate offered to prove the contents of a written lease.
  • After the exclusion, Hair Plus moved for voluntary dismissal; the trial court dismissed Hair Plus’s case with prejudice.
  • Hair Plus appealed, challenging (1) the exclusion of Exhibit 3 and (2) the with-prejudice dismissal.

Issues

  1. Did the trial court abuse its discretion by excluding Exhibit 3, the proffered lease copy, where the evidence showed the lease incorporated additional documents not included in the exhibit?
  2. Did the trial court abuse its discretion by dismissing Hair Plus’s action with prejudice after Hair Plus moved for voluntary dismissal at trial?

Decision

  • The Court of Appeals affirmed the exclusion of Exhibit 3, holding the trial court acted within its discretion in applying the original-writing (best evidence) rules and in concluding the offered copy was incomplete and not a reliable duplicate of the full lease agreement.
  • The Court of Appeals affirmed the dismissal with prejudice, holding the trial court acted within its discretion to end the litigation given the posture of the case and Hair Plus’s inability—after extended litigation—to produce admissible evidence of the lease essential to its claim.
  • Disposition: affirmed.
  • When a party seeks to prove the contents of a written lease, Washington’s original-writing rules generally require the original writing, or a duplicate that reliably and fully reproduces the original.
  • A duplicate may be excluded if there is a genuine question about the authenticity, completeness, or reliability of the duplicate, including where testimony establishes that incorporated-by-reference attachments or related writings are missing.
  • In a possession-based action grounded on lease rights, the plaintiff bears the burden of producing competent, admissible evidence establishing its superior right to possession.
  • Evidentiary rulings are reviewed for abuse of discretion; an appellate court will not reverse unless the decision is manifestly unreasonable or based on untenable grounds.
  • A trial court has discretion under Washington practice to grant voluntary dismissal on terms the court finds proper, including dismissal with prejudice, particularly where dismissal is sought after significant proceedings and where allowing a do-over would unfairly prejudice the opposing party or would be futile given the plaintiff’s failure to produce essential proof.

Conclusion

The Court of Appeals held that the trial court reasonably excluded Hair Plus’s proffered lease copy because it was missing incorporated documents and therefore was not a complete, reliable substitute for the original lease, and it further held that the trial court acted within its discretion in dismissing the action with prejudice after Hair Plus moved to voluntarily dismiss once it could not prove its lease-based right to possession.