Church Of The Divine Earth, Appellant/cross V. City Of Tacoma, Respondent/cross

CourtCourt of Appeals of Washington
DecidedJanuary 24, 2023
Docket55737-1
StatusUnpublished

This text of Church Of The Divine Earth, Appellant/cross V. City Of Tacoma, Respondent/cross (Church Of The Divine Earth, Appellant/cross V. City Of Tacoma, Respondent/cross) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Church Of The Divine Earth, Appellant/cross V. City Of Tacoma, Respondent/cross, (Wash. Ct. App. 2023).

Opinion

Filed Washington State Court of Appeals Division Two

January 24, 2023

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON

DIVISION II THE CHURCH OF THE DIVINE EARTH, No. 55737-1-II

Appellant/Cross-Respondent,

v.

CITY OF TACOMA, UNPUBLISHED OPINION

Respondent/Cross-Appellant.

LEE. J. — The Church of the Divine Earth (Church) appeals the superior court’s judgment

and findings of fact (FOF) and conclusions of law (COL) relating to an award of attorney fees.

The Church challenges the superior court’s reduction of hours reasonably expended, reduction of

the reasonable hourly rate, denial of a multiplier, and denial of legal assistant fees in calculating

the attorney fees award. The Church requests that we reverse the superior court and make our own

determination of attorney fees. The City of Tacoma (City) cross-appeals, challenging the superior

court’s determination of hours reasonably expended and arguing that remand is required for the

superior court to better articulate its reasoning for the attorney fees award.

We hold that the superior court provided sufficient reasoning such that we have insight into

the superior court’s exercise of discretion and the superior court did not abuse its discretion.

Accordingly, we affirm.

FACTS

Terence Kuehn is the pastor of the Church of the Divine Earth. In September 2013, the

Church submitted a permit application to the City of Tacoma to build a single-family “parsonage” No. 55737-1-II

on a lot the Church owned. Clerk’s Papers (CP) at 3. The City reviewed the Church’s application

and requested the Church resubmit an updated application incorporating several conditions,

including a right-of-way. The Church objected to the conditions. The City eventually dropped all

conditions except for the dedication of a right-of-way.1 The Church appealed the remaining

condition to the Hearing Examiner. In August 2014, the Hearing Examiner granted summary

judgment in favor of the City.

The Church appealed to the Pierce County Superior Court, filing a petition under the Land

Use Petition Act (LUPA), chapter 36.70C RCW, and seeking damages under RCW 64.40.020.

The Church retained Goodstein Law Group (Goodstein) to assist with the LUPA action.

Goodstein’s attorney fee agreement with the Church provided that the Church would be billed for

services on an hourly basis. The attorneys at Goodstein who at various points assisted with the

case included: Richard Sanders, who billed at $395/hour; Carolyn Lake, who billed at $295/hour;

Seth Goodstein, who billed at $200/hour; and Conor McCarthy, who billed at $280/hour. 2 The

attorney fee agreement also included a “legal assistant” billing rate at $80/hour. CP at 217.

1 The City’s stated reasoning for the dedication of the right-of-way was to promote uniformity of city streets. The street adjacent to the Church’s parcel, East B Street, was a “60 foot wide right- of-way. In order to stay consistent and provide adequate street and sidewalk area, a dedication of approximately 30 feet [was] required.” CP at 88. 2 McCarthy was not mentioned in Goodstein’s initial fee arrangement. There appears to be a discrepancy in McCarthy’s listed billing rate. In Goodstein’s itemized invoice to the Church, McCarthy has a billing rate of $280/hour. However, in Goodstein’s “Attorney Fees & Costs Calculations” breakdown, it lists McCarthy’s rate as $200/hour. CP at 266. The superior court’s FOF also state that McCarthy’s billing rate was $200/hour. However, because McCarthy’s rate is both listed as and calculated at $280/hour in Goodstein’s itemized invoice, it is listed as $280/hour here.

2 No. 55737-1-II

In October 2014, the Church amended its petition to include a Public Records Act (PRA),

chapter 42.56 RCW, claim for which it sought damages. In February 2015, the Pierce County

Superior Court granted the Church’s LUPA action and invalidated the right-of-way condition.

In May 2015, the Church moved to amend its petition to add another cause of action under

42 U.S.C. § 1983. The superior court denied the Church’s motion to amend its petition to bring a

§ 1983 claim, but allowed two amendments regarding the Church’s PRA claim. The Church

moved for reconsideration of the superior court’s denial of its claim under 42 U.S.C. § 1983. The

superior court denied the Church’s motion for reconsideration. The case proceeded to trial on

August 12, 2016 on the issue of damages under chapter 64.40 RCW and the PRA claim.

The superior court entered judgment against the City on the Church’s PRA claim in the

amount of $24,665.50. However, the superior court dismissed the Church’s cause of action under

chapter 64.40 RCW, denying damages because the City reasonably believed its right-of-way

attachment to the permit was lawful.

The Court of Appeals affirmed.3 The Supreme Court granted limited review on the issue

of whether “the City knew or should reasonably have known its requirement for a dedication of

land was unlawful,” making the City liable for damages under RCW 64.40.020. Church of Divine

Earth v. City of Tacoma, 194 Wn.2d 132, 136, 449 P.3d 269 (2019). The Supreme Court reversed

the Court of Appeals, holding that the standard for damages under RCW 64.40.020 is an objective

standard and remanding the case to the trial court to “determine whether the Church proved the

3 Church of the Divine Earth v. City of Tacoma, 5 Wn. App. 2d 471, 495, 426 P.3d 268 (2018), rev’d and remanded, 194 Wn.2d 132 (2019).

3 No. 55737-1-II

City knew or should reasonably have known its permit condition for a dedication of land was

unlawful.” Id. at 141.

On remand, the trial court determined that the City was liable under chapter 64.40 RCW,

and in January 2021, awarded damages to the Church in the amount of $8,640. The Church then

moved for attorney fees, costs, and expenses totaling $636,165.24, based on 1,104.6 claimed hours

of attorney work. The total amount requested by the Church included a lodestar of $416,817.63 4

with a multiplier of 1.5. The Church had deducted from its request $12,164.36 in prior payments

made by the City. Sanders billed the great majority of the hours. Within its attorney fees request,

the Church included $5,887.50 of legal assistant fees for work performed by Kuehn. . No

Goodstein legal assistant or non-attorney staff member worked on the case.

In March 2021, the superior court heard arguments on the Church’s attorney fees motion

to determine the award of reasonable attorney fees. During the hearing, the superior court stated:

I don’t know that it is reasonable, to be honest with you, to expect the Court to go through six or seven years worth of billings on an oral record . . . . I broke [the hours] into some detail . . . as to each of the, I guess, seven phases of litigation. I broke it down by that. That was enough detail for you to have some understanding as to what the Court was doing and its basis for it. It wasn’t in any way arbitrary.

Verbatim Report of Proceedings (VRP) (Mar. 19, 2021) at 13-14.

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