1515-1519 LAKEVIEW v. Apartment Sales Corp.

43 P.3d 1233
CourtWashington Supreme Court
DecidedApril 18, 2002
Docket70704-9
StatusPublished
Cited by15 cases

This text of 43 P.3d 1233 (1515-1519 LAKEVIEW v. Apartment Sales Corp.) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
1515-1519 LAKEVIEW v. Apartment Sales Corp., 43 P.3d 1233 (Wash. 2002).

Opinion

43 P.3d 1233 (2002)

1515-1519 LAKEVIEW BOULEVARD CONDOMINIUM ASSOCIATION, a Washington corporation, Robert A. Ferguson, Douglas A. Taylor, Bruce E. Curnutt, Bruce A. McLaughlin, Frank Y. Fukui and Penny Fukui, husband and wife and the marital community composed thereof, Respondents,
v.
APARTMENT SALES CORPORATION, a Washington corporation, Michael K. Williams and Jane Doe Williams, husband and wife and the marital community composed thereof, Gordon Capretto and Jane Doe Capretto, husband and wife and the marital community composed thereof, Geotech Consultants, Inc., a Washington corporation, Stephen Sullivan dba Stephen Sullivan Architects, Martha Rose dba Rose Construction Management, Gary Swenson and Jane Doe Swenson, husband and wife and the marital community composed thereof, and RSP/EQE, Inc., a Washington corporation, Defendants,
City of Seattle, a Municipal Corporation, Petitioner.

No. 70704-9.

Supreme Court of Washington, En Banc.

Argued October 16, 2001.
Decided April 18, 2002.

*1234 Palmer Smith, Stanton Beck, Linda Clapham, Charles Willmes, Graham & Dunn, Stephen Goodman, Mark O'Donnell, Douglas Green, Seattle, for Defendants.

*1235 Marcia Nelson, Thomas Sheehan, Asst. Seattle City Attys., Seattle, for Petitioner.

Rand Koler, Kevin Ireland, Seattle, for Respondents.

CHAMBERS, J.

The 1515-1519 Lakeview Boulevard Condominium Association (homeowners) are the owners of three condominiums that were rendered uninhabitable when the soil underlying the property gave way precipitously during winter storms. The homeowners brought suit against several parties, including the City of Seattle (city). The homeowners argued the city should not have permitted the condominiums to be built due to the latent risk of soil movement, and that the city's storm drains had contributed to the slide. Before allowing the condominiums to be constructed, the city, concerned about the possibility of landslides, had imposed several conditions on the developer. These conditions included a covenant exculpating the city from liability for damages caused by soil movement. In this case, we are asked to determine whether an exculpatory covenant recorded in a deed runs with the land, and whether an action may be maintained against the city for alleged negligence in maintaining storm drains and granting permits. The trial court dismissed all claims against the city at summary judgment. The Court of Appeals agreed that the claims arising from permitting should be dismissed, but reinstated the claims arising from negligently maintained storm drains. We affirm the Court of Appeals dismissal of the negligent permitting claims (though on different grounds), affirm reinstatement of the claims relating to the storm drains, and remand for proceedings consistent with this opinion.

ISSUES

1. Does a covenant exculpating a city from liability for damages caused by soil movement run with the land?

2. Does a city have a duty to homeowners (1) to refuse to grant a building permit when there is a known risk of significant soil movement; or (2) to exercise due care to maintain a public drain system?

FACTS

This is the second case accepted for review by this Court (and the third where review was sought) arising out of the same unfortunate condominium project. These condominiums were built on a steep slope in between the city's Capitol Hill and Eastlake districts. The slope consists mostly of a permeable mixture of sand and fill resting on top of an impermeable mixture of silt and clay, a configuration that often leads to landslides.

Apartment Sales Corporation sought and received a permit from the city to build three townhouse condominiums on this site, 1515-1519 Lakeview Boulevard. The site consisted of a small, flat area and a steep slope running down to a section of freeway. Because the sites were in a potential slide area, the developers were required to obtain several zoning variances.

In addition to the variances, the city imposed three specific conditions before it would grant building permits. First, the developers were required to inform all purchasers of the risk of soil movement. Second, continuous insurance was required. Third, the developers were required to grant and record a covenant releasing the city from liability for damages caused by soil movement, except for damages caused by the city's sole negligence. The covenant reads in relevant part:

WHEREAS, the property is located in a "potential slide area" as defined in City of Seattle Director's Rule 2-87,[[1]] which rule requires as a condition of the issuance of land use and construction permits that this covenant be signed, acknowledged and recorded in the records of King County; NOW, THEREFORE, Owner(s) agree(s) as follows:
1. Owner(s) will inform his/her successors and assigns of the property described in Exhibit "A" that the property is in a potential slide area, of the risks associated with development *1236 thereon, of any conditions or prohibitions on development imposed by the City, and of any features in this design which will require maintenance or modification to address anticipated soils changes.

2. Owner(s) on his/her own behalf and on behalf of his/her heirs, successors and assigns hereby waives any right to assert any claim against the City for any loss, or damage to people or property either on or off the site resulting from soil movement by reason of or arising out of the issuance of the permit(s) by the City for development on this property except only for such losses that may directly result from the sole negligence of the City.

3. Requirements for continuous insurance as required by the permit authorizing the development.

Clerk's Papers (CP) at 44-45.

This covenant was referenced in the Preliminary Commitment for Title Insurance for the Fukuis, owners of 1515 Lakeview Boulevard. No documentation has been supplied on the other two units; however, the other homeowners do not dispute that it was properly recorded or that they had notice.

The homeowners received numerous assurances from the developers that the site was stable and the homes would not slip. The homeowners' complaint alleges they were assured the units would be safe, even if the soil slid away. Lakeview was flooded at least four times between November 1992 and November 1996. In each flood, at least a foot of water inundated the garages and basements of the units. Perhaps not coincidentally, the public storm drain system overflowed each time the condominiums flooded. The homeowners provided the declaration of an engineering geologist, Mackey Smith, which stated that failures of the city-maintained public drain system permitted thousands of gallons of water to inundate the condominiums. Smith also stated that these drain overflows were a contributing cause of the soil movement. There was other evidence of infrastructure failure: in November 1996 a city inspector discovered "the pipe leading from the manhole/catch basin of the former Lakeside Boulevard alignment had separated and was blocked.... This break was repaired." CP at 18.

In late December 1996, two severe storms dumped heavy snow onto soils already at or near saturation. Rain followed, saturating the snow because it could not penetrate frozen soil beneath. Then a warm rain quickly melted the saturated snow. Between December 30, 1996 and January 1, 1997 "temperatures rose rapidly and all of the snow was melted by intense warm air.

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Cite This Page — Counsel Stack

Bluebook (online)
43 P.3d 1233, Counsel Stack Legal Research, https://law.counselstack.com/opinion/1515-1519-lakeview-v-apartment-sales-corp-wash-2002.