Dashiell v. Stevens County, Washington

District Court, E.D. Washington·Decided September 30, 2024·No. 2:23-cv-00239·Unknown

Opinion

U.S. F DIL ISE TD R I IN C TT H CE O URT EASTERN DISTRICT OF WASHINGTON Sep 30, 2024 SEAN F. MCAVOY, CLERK DONALD L. DASHIELL and No. 2:23-CV-00239-MKD GLENDA A. DASHIELL, husband and wife; WESLEY LEWIS MCCART ORDER GRANTING IN PART and PAMELA JOYCE MCCART, AND DENYING IN PART husband and wife; and STEVENS DEFENDANTS’ MOTIONS FOR LYNN PARKER and ANTOINETTE SUMMARY JUDGMENT AND LYNN PARKER, husband and wife, DECLINING SUPPLEMENTAL JURISDICTION Plaintiffs, ECF Nos. 18, 20 v.

STEVENS COUNTY, a municipal corporation and political subdivision of the State of Washington; and TIM RASMUSSEN, both in his official capacity as Stevens County Prosecutor and individually, Defendants. On April 30, 2024, the Court conducted a hearing on Defendant Rasmussen’s Motion for Summary Judgment, ECF No. 18, and Defendant Stevens County’s Motion for Summary Judgment, ECF No. 20. Luke O’Bannan appeared on behalf of Plaintiffs. Neal Peters appeared on behalf of Defendant Stevens County. Shane Brady and George Ahrend appeared on behalf of Defendant Tim Rasmussen, who was present. The Court has reviewed the briefing and heard from

counsel and is fully informed. For the reasons explained below, the Court grants in part and denies in part both motions and declines to exercise jurisdiction over Plaintiffs’ state-law claims.

A. Factual History The following facts are undisputed. Plaintiffs Donald Dashiell, Wesley McCart, and Steven Parker (“Plaintiff Commissioners”) were members of the

Stevens County Board of Commissioners between 2012 and 2020. ECF No. 31 at 2 ¶¶ 1-3. Defendant Tim Rasmussen was the Prosecuting Attorney for Defendant Stevens County from 2006 to 2022. ECF No. 19 at 2 ¶ 2.

In September 2018, Rasmussen began investigating Plaintiff Commissioners’ July 9, 2018, vote to pay approximately $30,000 from Stevens County’s homelessness fund to local residents J.B. and A.B (the “J&AB Payment”). ECF No. 31 at 6-7 ¶¶ 18-19; ECF No. 19 at 2-3 ¶ 4-6; ECF No. 22 at 2

¶ 3. Plaintiff Commissioners approved the J&AB Payment to reimburse J.B. and A.B. for the expense of relocating their home, after it was rendered uninhabitable by flooding and erosion of a nearby riverbank. ECF No. 19 at 2-3 ¶¶ 4-5; ECF

No. 19-1 at 8; ECF No. 21-10 at 4. On September 13, 2018, Rasmussen communicated his concerns about the J&AB Payment to Plaintiff Commissioners, stating he would work with them to

determine how to resolve the matter. ECF No. 28 at 4-5 ¶ 11; ECF No. 29 at 5 ¶ 13; ECF No. 30 at 4-5 ¶ 12. On September 17, 2018, Rasmussen reported the J&AB payment to the Washington State Auditor’s Office (“State Auditor”) and

requested further “examin[ation]” of the situation. ECF No. 27-1 at 13-14. On September 24, 2018, Rasmussen notified Plaintiff Commissioners that the J&AB Payment was an unlawful gift of public funds and advised them to seek counsel. ECF No. 27-1 at 20; ECF No. 19 at 5 ¶ 13; ECF No. 21-10 at 3. That

same day, Rasmussen reported to the Washington State Patrol his belief that the J&AB Payment was “an illegal transaction with a private party” and that the Stevens County Sheriff recommended this “be investigated by an outside agency.”

ECF No. 27-1 at 18; ECF No. 19 at 5 ¶ 14. On October 4, 2018, Rasmussen requested that the State Auditor conduct an “accelerated investigation” of the J&AB Payment. ECF No. 27-1 at 16. At some point thereafter, Rasmussen learned that Plaintiff Commissioners

had approved two payments in 2014 and 2017 to the Pay-It-Forward Foundation, totaling approximately $90,000 of County homelessness funds (the “Pay-It- Forward Payments”). ECF No. 19 at 5-6 ¶ 15; ECF No. 19-1 at 8. The Pay-It-

Forward Foundation had requested these funds to construct a temporary housing and rehabilitation program for individuals with spinal cord injuries and similar conditions. ECF No. 28 at 3-4 ¶ 8; ECF No. 29 at 3-4 ¶ 10; ECF No. 30 at 3-4 ¶ 9;

ECF No. 19-1 at 8. On October 29, 2018, Rasmussen requested that the State Auditor’s investigation of the J&AB Payment be expanded to include the Pay-It- Forward Payments. ECF No. 27-1.

On February 1, 2019, Rasmussen appointed George Ahrend as a Special Deputy Prosecutor to represent Stevens County “on the matter of the Stevens County Commissioners[’] expenditures from the homelessness fund.” ECF No. 27-1 at 60.

On February 21, 2019, the State Auditor issued an Accountability Audit Report, which concluded that Stevens County “did not have an adequate application and approval process over the homeless housing and assistance

program to ensure compliance with the County’s homeless plan and state law.” ECF No. 19-1 at 2-17. In particular, the Report found that the Stevens County “Board of Commissioners believed that the direct assistance provided was consistent with statewide guidelines and its homeless housing plan [and therefore]

did not seek legal counsel before approving payments.” Id. at 8. The Report found that, as an “[e]ffect” of this situation, the J&AB Payment and Pay-It-Forward Payments were “made for activities not specified in the County’s homeless housing

plan and [were] therefore considered an unallowable use of the restricted funds and . . . gift[s] of public funds.” Id.

On February 22, 2019, Rasmussen appointed Pam Loginsky as a Special Deputy Prosecutor to represent Stevens County “on the matter of the Stevens County Commissioners[’] expenditures from the homelessness fund.” ECF

No. 27-1 at 61. Rasmussen had previously consulted with Loginsky while investigating the J&AB Payments. ECF No. 19 at 3 ¶ 7, 5 ¶ 12. On March 14, 2019, Rasmussen requested that the Washington Attorney General’s Office appoint an assistant attorney general to pursue criminal charges

against Plaintiff Commissioners, as he believed it would be “inappropriate” to pursue criminal charges himself while he was representing Stevens County “in trying to recover the unlawfully authorized gifts” from Plaintiff Commissioners.

ECF No. 27-1 at 23-25. B. State Court Proceedings 1. Ex Parte Action On February 26, 2019, Plaintiff Commissioners filed an ex parte motion in

Stevens County Superior Court for appointment of counsel in relation to the J&AB and Pay-It-Forward Payments (the “Ex Parte Action,” case no. 19-2-00084-33). ECF No. 19 at 8 ¶ 22; ECF No. 19-1 at 40-43.

On May 24, 2019, the state superior court denied Plaintiff Commissioners’ request for appointed counsel. ECF No. 19-1 at 40-43.

2. Bond Action and Declaratory Action On March 21, 2019, Rasmussen filed two actions in Stevens County Superior Court—one action sought to recoup the value of the J&AB and Pay-It-

Forward Payments from Plaintiff Commissioners’ official bonds (the “Bond Action,” case no. 19-2-00122-33), and the other sought a declaratory judgment that Plaintiff Commissioners were not entitled to counsel at public expense for litigation on these issues (the “Declaratory Action,” case no. 19-2-00121-33). ECF

No. 19 at 7 ¶ 18, 8 ¶ 23; ECF No. 19-1 at 19-31, 45-47. On July 20, 2020, Plaintiff Commissioners tendered checks totaling $130,326.25 to the Stevens County Treasurer “in order to put an end” to the Bond

Action. ECF No. 27-1 at 45-48. On August 20, 2020, the superior court granted summary judgment for Rasmussen in the Bond Action and found Plaintiff Commissioners liable for $130,326.25 in unconstitutional gifts of public funds. ECF No. 19-1 at 33-35.

On August 24, 2020, Rasmussen advised County employees that the August 20 order in the Bond Action “ha[d] the legal effect of creating vacancies in the Stevens County Commissioner’s offices” and “[a]s a consequence, this board

of County Commissioners no longer has legal authority.” ECF No. 31 at 11-12 ¶ 41; ECF No. 27-1 at 27.

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