ABC Holdings Inc. v. Kittitas County

Procedural entryThis page is a short order in ABC Holdings Inc. v. Kittitas County. Read the opinion of the Court — 187 Wash. App. 275
Court of Appeals of Washington·Decided April 23, 2015·No. 30770-1·Published

Opinion

FILED

APRIL 23, 2015

In the Office of the Clerk of Court

W A State Court of Appeals, Division III

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON

DIVISION THREE

ABC HOLDINGS, INC., and CHEM-SAFE ) No. 30770-1-111 ENVIRONMENTAL, INC., ) Consolidated with ) No. 31712-9-111 and Appellants, ) No. 32301-3-111 ) v. ) ) PUBLISHED OPINION KITTITAS COUNTY, ) ) Respondent. )

BROWN, AC.J. - Today, we decide three consolidated appeals. First, Chern-Safe

Environmental, Inc. and its parent company, ABC Holdings, Inc. (collectively CSE)

appeal the superior court's public nuisance order, affirming the Kittitas County hearing

examiner's decision upholding the county's notice of violation and abatement (NOVA)

for handling moderate risk waste (MRW) without proper county permits. Second, CSE

appeals the court's contempt order based on its failure to adhere to the NOVA Third,

CSE appeals the court's denial of its motion to vacate the NOVA CSE contends (1) the

NOVA was factually unsupported, beyond the county's authority, and procedurally

defective, (2) the court erred in finding contempt, and (3) the court erred in denying its

reconsideration request in light of newly discovered evidence. We conclude the No. 30770-1-111 cons. w/31712-9-111 & 32301-3-111 ABC Holdings, Inc. v. Kittitas County

contempt appeal is moot because CSE has since purged the contempt without

sanctions and we reject CSE's remaining contentions. Accordingly, we affirm.

FACTS

The facts are drawn primarily from the hearing examiner's unchallenged findings

offact. From July 10, 2008 through January 27,2011, CSE collected MRW materials

on its property before transporting the waste to disposal facilities. CSE claimed it was in

the process of obtaining a permit. On January 27, 2011-, a county's health department

inspector, James Rivard, visited CSE's property. He had inspected the site in the past

and had warned CSE it needed a permit. Mr. Rivard found MRW material on the

property, which Mr. Rivard believed was dry cleaning solvent (dichloromllthyl ether),

labeled P016-a hazardous waste number designated by 40 C.F.R. § 261.33. CSE did

not have a permit from the county's health department to collect MRW or operate a

MRW facility on the property, violating Kittitas County Code Ordinance 1999-01 and

chapter 173-350 WAC.

The county issued a NOVA to CSE including a description of the alleged

violation, notice of a $500 fine payable within 30 days from the end of the appeal period,

a description of abatement action necessary, a statement that CSE could request an

administrative hearing, and notice the county may assess costs of abatement against

CSE. The NOVA ordered CSE to "test the concrete floor and ground at the facility site

for contamination. All test methods and sample locations must be pre-approved by [the

County] in consultation with [the Department of Ecology] prior to any testing. Testing

No. 30770-1-111 cons. w/31712-9-111 & 32301-3-111 ABC Holdings, Inc. v. Kittitas County

cannot be performed by [CSE], but must be done by a neutral 3rd party who is

approved by [the County] in consultation with ~OE.'' Clerk's Papers (CP) at 536.

Lastly, the county concluded CSE's actions amounted to a public nuisance.

CSE requested an administrative hearing but did not dispute it had been

operating during Mr. Rivard's investigation without a required permit. CSE, however,

argued it was in the process of applying for the proper permit and asserted the county

had approved its operation during the application period. The county pointed out Mr.

Rivard's declaration submitted to the hearing examiner made reference to a drum

observed at the CSE facility that Mr. Rivard initially believed contained "P016." The

county explained to the hearing examiner Mr. Rivard's understanding of the label was

mistaken and that it actually listed "0016." The county informed the hearing examiner

that 0016 was listed as a dangerous waste per WAC 173-303-090(S)(c) and at 40

C.F.R. § 261.21.

The hearing examiner found the county had allowed CSE to operate their waste

facility during the application process, but were not estopped to revoke that consent to

protect the public health, safety and welfare. The examiner found the county lacked

authority to waive the permitting requirements. And, that CSE "does not dispute that

they operated without the required license/permit." CP at S. The examiner affirmed the

NOVA and denied reconsideration. By this time, CSE had ceased operating at its

property.

I I i No. 30770-1-111 cons. w/31712-9-1I1 & 32301-3-111 . ABC Holdings, Inc. v. Kittitas County

I In March 2012, CSE appealed to the superior court; the superior court affirmed,

filing a memorandum decision.

In April 2012, CSE appealed here and requested the superior court stay NOVA

enforcement until this appeal was decided. CSE mainly wanted to stay the required

testing of the facilities' floor and ground below. In June 2012 the superior court denied

CSE's stay request, finding it did not have jurisdiction because a notice of appeal had

been filed. This court directed the parties to RAP 7.2 and RAP 8.1 regarding post

judgment motions and the right to stay enforcement of trial court decisions.

Based on this court's directive, CSE moved for reconsideration of the June 2012

order denying its stay request, based on CR 59(a){8) (error of law), or alternatively,

under CR 60(b)(3) (newly discovered evidence based on Mr. Rivard's later declaration

regarding the drums' labeling). In October 2012, the superior court denied CSE's stay

request, but did not address its CR 60 motion. In November 2012, CSE unsuccessfully

requested reconsideration of the court's denial of its stay motion.

In April 2013, the county requested a show cause hearing on why CSE should

not be found in contempt for failing to adhere to the NOVA. In May 2013, the court

found CSE in contempt, stating, "The contempt may be purged if appellants both

formulate and execute a satisfactory sampling/testing plan." CP at 885. CSE appealed

the court's contempt order to this court. In December 2013, the court ruled CSE had

purged the contempt and denied the county's request for sanctions.

No. 30770-1-111 cons. w/31712-9-1I1 & 32301-3-111 ABC Holdings, Inc. v. Kittitas County

In February 2014, eSE requested clarification of the court's November 2012

denial of its request for reconsideration. Filing another memorandum decision, the

superior court clarified its denial of eSE's motion to vacate based on newly discovered

evidence, finding Mr. Rivard's subsequent declaration regarding the drums' labeling was

before the hearing examiner and not newly discovered evidence. eSE separately

appealed that ruling as well. This court consolidated the three matters.

ANALYSIS

A. Permit Requirement

The issue is whether the hearing examiner erred in affirming the county's NOVA

for eSE's operation without a permit. eSE contends it was not required to have a

permit, the NOVA was issued without due process, and the required abatement

amounts to an imper.missible taking.

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