Central Puget Sound Regional Transit Authority v. Airport Investment Co.

376 P.3d 372, 186 Wash. 2d 336
CourtWashington Supreme Court
DecidedAugust 4, 2016
DocketNo. 91653-5
StatusPublished
Cited by7 cases

This text of 376 P.3d 372 (Central Puget Sound Regional Transit Authority v. Airport Investment Co.) 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
Central Puget Sound Regional Transit Authority v. Airport Investment Co., 376 P.3d 372, 186 Wash. 2d 336 (Wash. 2016).

Opinions

Stephens, J.

¶1 Central Puget Sound Regional Transit Authority (Sound Transit) condemned property owned by Airport Investment Company (AIC) in order to secure easements to construct and operate an elevated light rail. The parties could not agree on the amount of just compensation for the taking, so the matter proceeded to trial. AIC contends it is statutorily entitled to attorney fees because Sound Transit failed to make a valid settlement offer 30 days before trial. Specifically, AIC argues that the 30-day offer Sound Transit made did not reflect the reduced temporary construction easement it ultimately obtained, making the offer ineffective or resulting in a total abandonment of the condemnation. AIC also seeks a new trial, alleging the trial court erroneously allowed Sound Transit’s counsel to question AIC’s president, Sandra Oh, about the taking valuation of a nontestifying appraisal expert.

¶2 We affirm the Court of Appeals. A condemnee is entitled to attorney fees under RCW 8.25.070(1)(a) only “[i]f [the] condemnor fails to make any written offer in settlement” at least 30 days before trial. Sound Transit made a timely settlement offer, which was not rendered ineffective by subsequent revisions to reduce the impact of its tempo[339]*339rary construction easement. AIC’s evidentiary objection is also unavailing: the trial court properly admitted Oh’s testimony under ER 801(d)(2) as an admission of a party opponent.

FACTS AND PROCEDURAL HISTORY

¶3 Sound Transit is a regional transit organization authorized to construct and operate a high-capacity electric light rail system (Light Rail). RCW 81.112.010; Clerk’s Papers (CP) at 1-2. Pursuant to its statutory authority to condemn real property to construct the Light Rail, Sound Transit sought easements over property owned by AIC. The property consists of approximately 112,626 square feet of land area and is developed with a four-story, 130-room hotel constructed in 1988.

¶4 In the condemnation action, Sound Transit sought to take a portion of the property for a permanent guideway easement (PGE) to construct the Light Rail along the property’s western boundary. It also sought a temporary construction easement (TCE), which afforded Sound Transit a nonexclusive, three-year time period to construct the Light Rail and encumbered up to 3,882 square feet of the property.1 Except when Sound Transit required exclusive occupancy, the TCE afforded AIC the right to use the TCE area for any purpose that did not interfere with Sound Transit’s construction activities.

¶5 In May 2012, Sound Transit sent AIC a valuation offer of $142,300 for both easements. This offer was based on an initial valuation by its appraiser of $79,825 for the PGE, $46,600 for the TCE, and $15,875 for improvements. Sound Transit advised AIC that it had the right to obtain its own appraisal at Sound Transit’s expense. Id. AIC exercised [340]*340this right, and its appraiser valued the easements at $485,000. AIC submitted its appraisal to Sound Transit in July 2012 in a letter expressing its belief that it was entitled to $485,000 for the easements. Suppl. Br. of Resp’t Sound Transit, App. A at 1. Rejecting AIC’s valuation, Sound Transit asked AIC to reconsider its original offer.

¶6 On June 14, 2013, 30 days before trial, Sound Transit made a written settlement offer to AIC of $463,500. The offer was for both the PGE and the TCE, and was marked “For Settlement Purposes Only.” CP at 1334. The offer provided that it “remain[ed] open until accepted, rejected, or until withdrawn by Sound Transit” and was “made subject to Sound Transit’s reservation of its right to reevaluate this offer and submit a revised 30-day offer if the pending trial date is continued.” Id. The parties could not agree on the amount of just compensation due, and the matter proceeded to trial.

¶7 On July 1, 2013, Sound Transit informed AIC that it would change the configuration of the TCE because it no longer needed to relocate the property’s driveway to construct the Light Rail.2 That same day, Sound Transit provided AIC with an updated parcel map and updated right-of-way plan showing the change. The modification reduced the total TCE area by approximately 1,000 square feet. Suppl. Br. of Resp’t Sound Transit at 3. These changes to the TCE were designed to ameliorate AIC’s loss of business costs from the property’s use as a parking lot. Notwithstanding the language in the TCE, Sound Transit communicated to AIC that its construction would require only sporadic use of the TCE area during the three-year period.3 Sound Transit did not revoke or reduce its settlement offer despite the reduced easement.

[341]*341¶8 AIC then filed a motion in limine, requesting that the trial court exclude any evidence that Sound Transit intended to use the TCE area for less than the entire three-year term. At oral argument on the motion, the trial court agreed with AIC that if Sound Transit had the right to exclusive use of the TCE area for the entire three-year term, it could not tell the jury that its actual use would be less. The trial court granted AIC’s motion, “provided, however, this ruling . . . does not preclude [Sound Transit] from submitting a revised form of [TCE] providing for the actual time of use of the easement area.” CP at 904.4

¶9 On the first day of trial, Sound Transit withdrew its 30-day settlement offer. With leave of the trial court, Sound Transit provided AIC with revised TCE language regarding time of use. This occurred after jury selection, but before opening statements. Although the revised TCE still provided a three-year easement term, it limited Sound Transit’s exclusive use of the TCE to a maximum of 160 nonconsecutive days.

¶10 AIC also moved in limine to exclude evidence of its July 2012 valuation letter stating that it was entitled to $485,000 for the easements. Sound Transit responded that it had no objection to AIC’s motion so long as Sound Transit’s first appraisal would also be excluded on the grounds that both parties’ appraisals were for purposes of settlement negotiations. Finding that neither initial appraisal letter constituted a settlement offer under ER 408 (and also rejecting AIC’s claim of work product privilege), the trial court ruled that AIC and Sound Transit could “figure out if you want to get into this history [of the first appraisals]. If one of you does, the other one can.” Verbatim Report of Proceedings (VRP) (July 16, 2013) at 53-54. Accordingly, the trial court did not “grant [ ] this motion on either side.” Id. at 55.

[342]*342¶11 At trial, Sound Transit’s appraisal expert, Murray Brackett, testified that the PGE was worth $113,169, the TCE was worth $61,503, and AIC was not entitled to severance damages. VRP (July 24, 2013) at 1072, 1094. AIC’s appraisal expert, Scott Biethan, testified that the PGE was worth $210,000, the TCE was worth $32,124, and AIC was entitled to $1,457,000 for diminished value, totaling $1,699,124 in just compensation due. VRP (July 29, 2013) at 1502-03.

¶12 During its case in chief, Sound Transit called AIC president Oh to testify about the July 2012 valuation letter. Before doing so, Sound Transit inquired about possible avenues to introduce the letter into evidence.

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Bluebook (online)
376 P.3d 372, 186 Wash. 2d 336, Counsel Stack Legal Research, https://law.counselstack.com/opinion/central-puget-sound-regional-transit-authority-v-airport-investment-co-wash-2016.