Wilmington, DE / Seattle, WA Devlin Law Firm LLC is pleased to announce that Partner Christina Henry has secured a significant victory before the Washington State Supreme Court in Gabriel Marquez Vargas v. RRA CP Opportunity Trust 1 et al., No. 1037350. In its opinion dated April 30, 2026, the Court unanimously answered two certified questions from the United States District Court for the Western District of Washington, establishing important new protections for homeowners across the state.
The Court held that a home equity line of credit (HELOC) agreement is not a negotiable instrument under Article 3 of Washington’s Uniform Commercial Code (RCW 62A.3-104) because it does not contain an unconditional promise to pay a fixed amount of money. The Court further held that the term “holder” under Washington’s Deed of Trust Act (RCW 61.24) refers exclusively to the holder of a negotiable instrument as defined by the UCC. Because a HELOC agreement cannot have a “holder” within this statutory meaning, lenders cannot satisfy the prerequisite for nonjudicial foreclosure under RCW 61.24.030(7)(a).
The practical effect of this ruling is that lenders and their assignees seeking to enforce HELOC obligations secured by deeds of trust in Washington must now pursue judicial foreclosure or receivership rather than nonjudicial trustee’s sales. The decision adds a critical procedural safeguard for borrowers in second-lien positions and has been widely recognized as one of the most consequential Washington real estate decisions in recent years.
“This decision reaffirms a fundamental principle: the statutory protections embedded in Washington’s Deed of Trust Act must be construed in accordance with their plain meaning, and lenders cannot circumvent those protections by treating non-negotiable instruments as if they were negotiable,” said Christina Henry. “For homeowners facing foreclosure on HELOCs, this ruling ensures that they receive the full procedural safeguards that judicial foreclosure provides, including the right to a hearing and the statutory right of redemption.”
Christina Henry filed the case with co-counsel and argued the certified questions before the state’s highest court. Her work on this matter reflects the breadth of legal expertise within Devlin Law Firm, which represents clients across a wide range of intellectual property, commercial litigation, and complex legal matters.
About Devlin Law Firm LLC
Devlin Law Firm LLC is a success-oriented, client-driven law firm headquartered in Wilmington, Delaware, specializing in patent litigation, intellectual property counseling, and complex commercial litigation. The firm combines big-firm experience with an entrepreneurial approach to deliver strategic, cost-effective legal representation. For more information, visit devlinlawfirm.com.
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Disclaimer: This press release is for informational purposes only and does not constitute legal advice or establish an attorney-client relationship. Prior results do not guarantee a similar outcome in future matters.