Costanich v. WASHINGTON STATE DSHS

194 P.3d 988
CourtWashington Supreme Court
DecidedOctober 30, 2008
Docket80874-1
StatusPublished
Cited by13 cases

This text of 194 P.3d 988 (Costanich v. WASHINGTON STATE DSHS) 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
Costanich v. WASHINGTON STATE DSHS, 194 P.3d 988 (Wash. 2008).

Opinion

194 P.3d 988 (2008)

Kathie COSTANICH, Petitioner,
v.
WASHINGTON STATE DEPARTMENT OF SOCIAL AND HEALTH SERVICES, Respondent.

No. 80874-1.

Supreme Court of Washington, En Banc.

Argued May 13, 2008.
Decided October 30, 2008.

*989 Carol Farr, Ruth A. Stacey Moen, Leonard W. Moen & Associates, Renton, WA, Catherine Wright Smith, Valerie A. Villacin, Edwards Sieh Smith & Goodfriend PS, Seattle, WA, for Petitioner.

Michael W. Collins, Attorney General's Office, Seattle, WA, Carol A. Murphy, Attorney General's Office, Olympia, WA, for Respondent.

Sarah A. Dunne, ACLU, Seattle, WA, Amicus Curiae on behalf of American Civil Liberties Union.

Paul Marvy, Northwest Justice Project, Seattle, WA, Jennifer Elaine Bell, Northwest Justice Project, Tacoma, WA, Amicus Curiae on behalf of Northwest Justice Project.

Lisa Marie Stone, Northwest Women's Law Center, Seattle, WA, Amicus Curiae on behalf of Northwest Women's Law Center.

Kelby Dahmer Fletcher, Peterson Young Putra, Seattle, WA, Bryan Patrick Harnetiaux, Attorney at Law, Spokane, WA, Sarah *990 C. Schreck, Attorney at Law, Portland, OR, Amicus Curiae on behalf of Washington State Trial Lawyers Association.

David Ruzumna, Carly Cozine Hansen, Law Office of David Ruzumna PLLC, Seattle, WA, for Other Party (Valerie Rogan).

C. JOHNSON, J.

¶ 1 This case asks us to determine whether RCW 4.84.350, which provides a statutory cap on attorney fees, establishes a limit for each level of judicial review of an agency action or on all levels of review combined. Consistent with the purpose of the equal access to justice act (EAJA), RCW 4.84.340,.350, and .360, we hold that the statute provides a cap on attorney fees for each level of judicial review, and reverse the Court of Appeals.

FACTS

¶ 2 Under the Administrative Procedure Act (APA), chapter 34.05 RCW, Kathie Costanich sought review in superior court of an administrative ruling affirming the Department of Social and Health Services' (Department) revocation of her foster care license. The superior court reversed the Department's decision and awarded Costanich $25,000 in attorney fees, the statutory cap under RCW 4.84.350. Costanich's attorneys at this point in the appellate process had accumulated over $160,000 in attorney fees and costs.[1]

¶ 3 The Department appealed the superior court decision. The Court of Appeals affirmed the superior court but reversed the superior court's award of attorney fees. Costanich filed a motion for reconsideration, asking attorney fees be awarded by the Court of Appeals and reinstated at the superior court level, pursuant to RCW 4.84.350. The motion was granted.

¶ 4 Pursuant to RAP 18.1(d), Costanich filed an affidavit for attorney fees that went uncontested by the Department. The commissioner found Costanich's request reasonable and awarded her the $46,239 requested in attorney fees and costs. The State then filed a motion to modify the order, arguing that RCW 4.84.350 limits the total attorney fee awards on judicial review to $25,000, the amount Costanich had already been awarded by the superior court. The court granted the motion and denied Costanich attorney fees on appeal but imposed $1,000 in sanctions against the Department because this was the first time the Department had raised these arguments. Costanich then sought review by this court under RAP 13.5(b)(2), arguing that the Court of Appeals committed probable error altering the status quo and limiting her freedom to act. We granted review to resolve this issue of first impression.

ISSUES

(1) Whether the attorney fee limit provided by RCW 4.84.350(2) applies to each level of judicial review.
(2) Whether the Department waived application of the statutory cap by failing to timely object.

ANALYSIS

Statutory Cap on Attorney Fees

¶ 5 In 1995, the legislature enacted the EAJA, chapter 4.84 RCW, to ensure citizens a better opportunity to defend themselves from inappropriate state agency actions. Laws of 1995, ch. 403, § 901. The relevant statute provides that "a court shall award a qualified party that prevails in a judicial review of an agency action fees and other expenses, including reasonable attorneys' fees." RCW 4.84.350(1) (emphasis added). Under the statute, the reasonable attorney fees cannot exceed $25,000. RCW 4.84.350(2).[2] Although subsection (2) provides *991 for the attorney fee cap, it is the language of subsection (1) and the definition of "judicial review" that is the focal point of our inquiry in this case. The question we must answer is whether the $25,000 cap on attorney fees applies to all levels of judicial review combined or to each level separately. Both parties argue the statute is clear and by its plain meaning supports their opposing assertions.

¶ 6 A judicial review is not defined in the statute, but RCW 4.84.340 states that a judicial review is defined by chapter 34.05 RCW. Unfortunately, chapter 34.05 RCW does not actually define judicial review. The Department argues that because the statute references the entire chapter, 34.05 RCW, which uses the term "judicial review" to refer to review by the superior court, the Court of Appeals, and the Supreme Court, it is meant to encompass all levels of review combined. However, the Department does not cite to any specific subsection of chapter 34.05 RCW that suggests that these levels of judicial review are collectively the judicial review referenced in RCW 4.84.350; consequently this argument is not persuasive.

¶ 7 Without clear guidance, judicial review is susceptible to different meanings and could mean either each level of judicial review or all levels combined. Because the statute is ambiguous, we must discern and implement the legislature's intent. See Campbell v. Dep't of Soc. & Health Servs., 150 Wash.2d 881, 894, 83 P.3d 999 (2004).

¶ 8 The Department alternatively argues that even if we find the statute ambiguous, we should interpret judicial review to mean all levels of review combined. The Department cites to one case in support of its interpretation, Alpine Lakes Prot. Soc.'y v. Dep't of Natural Res., 102 Wash.App. 1, 979 P.2d 929 (1999). The court in Alpine

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194 P.3d 988, Counsel Stack Legal Research, https://law.counselstack.com/opinion/costanich-v-washington-state-dshs-wash-2008.