Opinion ID: 775593
Heading Depth: 3
Heading Rank: 3

Heading: Appellant Daugs

Text: 19 Appellant Dennis Daugs is vice-president of SeaTac Escrow, Inc. (SeaTac), which provides escrow services to buyers and sellers in connection with real estate transactions. Daugs is also a licensed LPO, but he refuses to comply with Rule 12.1 because he ha[s] determined that doing so would violate SeaTac's Fifth Amendment rights (as the holder of legal title to funds in the escrow account) and those of [his] customers (who hold equitable title to the funds).  Under Washington law, however, legal title does not include any valuable beneficial interests. See, e.g., Lee v. Wrixon, 79 P. 489, 490 (Wash. 1905) ([T]he bare legal title, . . . uncoupled with a beneficial interest, is not subject to execution.). Thus, assuming, without deciding, that Daugs holds legal title to the principal placed in the escrow account, that alone does not confer on him a right of ownership. Although Daugs may have legitimate objections to the IOLTA program and may believe his clients are better served by disregarding its dictates, he does not own the principal that is deposited in the IOLTA accounts, and therefore, he has no claim to the generated interest. Without the requisite property right, Daugs lacks standing to challenge the IOLTA program on Fifth Amendment grounds. We thus affirm the district court's judgment as to Appellant Daugs.