Bank of Washington v. Burgraff

The Bank of Washington appeals a What-com County Superior Court judgment contending that the trial court erroneously set the priority and value of conflicting security interests in the proceeds from the sale of a Bellingham restaurant.

In 1972, the Lehmanns, as lessors, and the Burgraifs, as lessees, entered into a 5-year lease commencing on January 1, 1973, to permit the Burgraifs to continue to conduct their restaurant business known as the Forbidden Inn. The lease granted the Burgraifs the option to extend the lease to 1983 under the same terms.

In 1973, the Burgraifs sold their interests in…