Eugster v. City of Spokane

63 P.3d 841
Court of Appeals of Washington·Decided February 20, 2003·No. 21473-7-III·Published·Cited by 5 cases

Opinion

63 P.3d 841 (2003)
115 Wash.App. 740

Stephen K. EUGSTER, et ux., Appellants,
v.
CITY OF SPOKANE, a Washington First Class Charter City; and the Spokane City Council, Respondents.

No. 21473-7-III.

Court of Appeals of Washington, Division 3, Panel Three.

February 20, 2003.

*843 Stephen K. Eugster, Eugster Law Offices PSC, Spokane, WA, for Appellants.

Milton G. Rowland, Attorney at Law, Spokane, WA, for Respondents.

*842 SWEENEY, J.

State law requires municipalities to provide counsel at public expense to defend officials in suits arising from the performance of their official duties. RCW 4.96.041(1). Spokane City Council member Stephen K. Eugster is a lawyer. He contends that because RCW 4.96.041 does not say otherwise, it requires the City of Spokane to hire him to defend himself and his wife in a suit filed by a developer. We disagree. Moreover, the Spokane City Charter prohibits any city officer from benefiting from a city contract. And the charter does not conflict with RCW 4.96.041. We also reject Mr. Eugster's equal protection argument. We therefore affirm the trial court's dismissal of his petition for writ of mandamus.

FACTS

Stephen Eugster is an attorney and an elected member of the Spokane City Council. He sued the City of Spokane and the developers of the River Park Square project both in his private and official capacities. In June 2001, the developers answered and counterclaimed against the city council members and the mayor in their official capacities. The developers also sued former mayor John Talbot and his wife, and city council members Steve Corker and Cherie Rodgers, as well as Mr. Eugster and his wife as individuals.[1] The developers sought compensatory and punitive damages under various common law and statutory theories, including interference with their contractual rights and business expectations. The allegations included unspecified tortious conduct by the named officials, both within and beyond the scope of their official duties.

Mr. Eugster responded to the counterclaim by asserting the defense of citizen immunity: "A person who in good faith communicates a complaint or information to any agency of federal, state, or local government... is immune from civil liability for claims based upon the communication...." Former RCW 4.24.510 (1999).

He notified the city attorney of the action against him and requested indemnification under Spokane Municipal Code (SMC) 3.07.200. SMC 3.07.200 sets out the procedure for providing a legal defense. It calls for the city council, upon the recommendation of the mayor, to authorize the city attorney to defend. Mr. Eugster did not want the city attorney to represent him, however. He felt the city attorney was not aggressively pursuing numerous portions of what has come to be known as the River Park Square litigation. He also felt the city attorney's office had a conflict of interest with respect to himself as a defendant. Mr. Eugster was willing, however, to accept city-appointed counsel to pursue actions against the city in which he was the plaintiff. But he insisted that only his own law firm could defend him and his wife against the developers' counterclaim.

On August 23, the city attorney responded to Mr. Eugster's request by explaining that both the municipal code and the city charter prohibit the City from appointing Eugster Law Offices, PSC. Spokane City Charter Section 36 prohibits the City from entering into a contract with a city officer from which the officer benefits directly or indirectly. The city attorney acknowledged that the City's interest in minimizing its liability created a conflict of interest. The developers' claims against Mr. Eugster asserted tortious conduct both within and exceeding his official duties. But the exact nature of their complaints *844 was not clear from the pleadings. The City was not responsible for conduct outside the actual or good-faith-belief scope of official duties.

The city attorney offered to retain independent counsel to represent the Eugsters' interests, subject to a reservation of rights. The City offered to provide the Eugsters with independent counsel on the same terms as counsel had been offered to Mr. Corker, Ms. Rogers, and Mr. Talbot.

The city council rejected a proposed council resolution offered by Mr. Eugster to retain his firm, Eugster Law Offices, of which Mr. Eugster is the sole shareholder. The City relied on the anti-corruption provisions of City Charter Section 36. Mr. Eugster engaged his own firm, nonetheless.

Mr. Eugster petitioned the Spokane superior court for a writ of mandamus to compel the City to appoint Eugster Law Offices to represent him. The court denied his writ. It concluded that RCW 4.96.041 did not require the City to retain Mr. Eugster's own law firm, and that the City Charter prohibited it.

Mr. Eugster petitioned for direct review by the Supreme Court, which denied his petition and transferred the case to us.

DISCUSSION

Mr. Eugster contends that, because it does not expressly provide otherwise, RCW 4.96.041 operates to:

(1) guarantee him the right to retain counsel of his choice and
(2) require that the City must either:
(a) contract directly with his chosen counsel to conduct the defense, or
(b) reimburse Mr. Eugster for expenses he incurs by contracting with counsel himself.

The City responds that RCW 4.96.041 does not give Mr. Eugster the absolute right to represent himself.

STATUTORY INTERPRETATION

Standard of Review. Statutory (and municipal code) interpretation is a question of law. So our review here is de novo. State v. Keller, 143 Wash.2d 267, 276, 19 P.3d 1030 (2001), cert. denied, 534 U.S. 1130, 122 S.Ct. 1070, 151 L.Ed.2d 972 (2002). We must construe legislative enactments to carry out their manifest intent. City of Seattle v. Fontanilla, 128 Wash.2d 492, 498, 909 P.2d 1294 (1996). We read the statute as a whole, giving effect to all its terms and harmonizing related provisions wherever possible. Id.

State Statute. RCW 4.96.041

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Eugster v. City of Spokane, 63 P.3d 841 (Wash. Ct. App. 2003).

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