Campbell v. Saunders

546 P.2d 922, 86 Wash. 2d 572, 1976 Wash. LEXIS 880
CourtWashington Supreme Court
DecidedMarch 4, 1976
Docket43679
StatusPublished
Cited by20 cases

This text of 546 P.2d 922 (Campbell v. Saunders) 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
Campbell v. Saunders, 546 P.2d 922, 86 Wash. 2d 572, 1976 Wash. LEXIS 880 (Wash. 1976).

Opinion

Finley, J.

Plaintiff petitioned the superior court for a writ of mandamus directing that interest must be paid on a tort judgment obtained against the City of Bellevue. The superior court denied the petition. This appeal followed.

The dispositive issues are: (1) Did the City of Bellevue have the legislative authorization to enact Bellevue Municipal Code § 2.24.020 (Ordinance No. 146, § 2 (1956))? And (2) did the enactment of this ordinance create a right to the payment of interest on tort judgments rendered against the City? The answer to both issues is yes.

A judgment on a jury verdict for wrongful death and personal injury was entered against the City on October 10, 1973. The judgment was affirmed in Campbell v. Bellevue, 85 Wn.2d 1, 530 P.2d 234 (1975), and became final on February 11, 1975. On February 11, 1975, the City paid the principal amount of the judgment with costs, but without interest. Plaintiff subsequently made a written demand on the defendant, Director of Finance for the City of Bellevue, to draw a warrant on the City’s accident fund for the amount of the interest on the judgment at the rate of 8 percent per annum in the sum of $27,004.90, from October 10, 1973, to February 10, 1975. When defendant refused the demand, plaintiff petitioned the superior court for a writ *574 of mandamus directing that interest be paid on the tort judgment. The writ was denied and this appeal followed.

Bellevue Municipal Code § 2.24.020, 1 which provides for the payment of interest on tort judgments, became effective in 1956 when Bellevue was classified as a third-class city. In 1970, Bellevue became a noncharter, optional municipal code city governed by RCW Title 35A. The provisions of the 1956 ordinance have remained in effect as originally enacted.

With respect to the first issue, plaintiff contends that the City had the authority to enact the ordinance because of the legislature’s enactment of RCW 35.31.050, 2 and Bellevue Municipal Code § 2.24.020 is consistent with the legislature’s enactment of RCW 35A.31.060. 3

Defendant argues that the City did not have the authority to enact the ordinance because it was enacted before either case law 4 or statute 5 abrogated sovereign immunity for municipalities.

Municipal corporations, as creatures of the state, derive their authority and powers from the state’s legis *575 lative body. Campbell v. Bellevue, supra at 14; Othello v. Harder, 46 Wn.2d 747, 752, 284 P.2d 1099 (1955); P. Trautman, Legislative Control of Municipal Corporations in Washington, 38 Wash. L. Rev. 743, 744 (1963). Likewise, the protection provided municipalities under the principle of sovereign immunity is derived from the state. Silvernail v. County of Pierce, 80 Wn.2d 173, 492 P.2d 1024 (1972); Kelso v. Tacoma, 63 Wn.2d 913, 916, 390 P.2d 2 (1964). With respect to a municipality’s immunity from liability for payment of interest on tort judgments rendered against it, a city can be sued only when, in the manner, and to the extent that the legislature has given its consent. See Silvernail v. County of Pierce, supra at 174; Fosbre v. State, 76 Wn.2d 255,256,456 P.2d 335 (1969).

Laws of 1909, ch. 128, § 1, p. 423, authorized second-, third-, and fourth-class cities to create an accident fund to pay judgments for personal injuries rendered against such cities. State ex rel. Billings v. Lamprey, 57 Wash. 84, 88, 106 P. 501 (1910). Section 2 of that statute (Laws of 1909, ch. 128, § 2, p. 423) provided that “the clerk shall draw warrants upon the accident fund for the full amount of said judgment, interest and costs as shown by said transcript of judgment.” 6

In 1967, the Optional Municipal Code was adopted. It provides that code cities “may create an accident fund upon which the clerk shall draw warrants for the full amount of any judgment including interest and costs” for the payment of tort judgments rendered against such cities. RCW 35A.31.060. Also, RCW 35A.90.010 7 further provides that all city ordinances lawfully in force at the time of becoming a code city, and not inconsistent with the Optional Munici *576 pal Code, are to continue in force until amended or repealed.

The language in the 1909 statute and its successors did not require but permitted third-class and code cities to create an accident fund. The City of Bellevue had the requisite legislative authority to enact an ordinance to create an accident fund and to provide for the payment of tort judgments, including interest and costs. The Bellevue ordinance is consistent with the Optional Municipal Code, and it was lawfully in effect at the time the original judgment in Campbell v. Bellevue, supra, was entered.

The second issue is whether the city ordinance created a right to, as opposed to a mere procedure for, the payment of interest on tort judgments.

Plaintiff contends that the ordinance establishes a right against the City of Bellevue for payment of tort judgments rendered against it, including liability for interest. In this respect, plaintiff argues that either the express language or a reasonable construction of the ordinance evidences the City’s prior consent to pay interest on tort judgments.

Defendant’s response is that (1) the ordinance establishes a method, and not an independent right, for payment of interest on judgments and (2) RCW 4.96.010 8 expresses a limited legislative consent allowing municipalities to be sued for tortious conduct, but does not expressly or by reasonable construction provide for interest, and none should be imposed, and (3) no statute or ordinance, prior to the passage of Laws of 1975, ch. 26, § 1, p. 39, 9 created an *577

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Bluebook (online)
546 P.2d 922, 86 Wash. 2d 572, 1976 Wash. LEXIS 880, Counsel Stack Legal Research, https://law.counselstack.com/opinion/campbell-v-saunders-wash-1976.