Garrison First Family Ltd. Partnership v. Department of Health

128 Wash. App. 290
CourtCourt of Appeals of Washington
DecidedJuly 7, 2005
DocketNo. 31556-4-II
StatusPublished
Cited by4 cases

This text of 128 Wash. App. 290 (Garrison First Family Ltd. Partnership v. Department of Health) 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
Garrison First Family Ltd. Partnership v. Department of Health, 128 Wash. App. 290 (Wash. Ct. App. 2005).

Opinion

[293]*293¶1 This matter arises from a protracted dispute between the Garrison First Family Limited Partnership (GFFLP)1 and the Point Allen Water Association (PAWA), a Washington nonprofit corporation licensed to supply water to property owners within its service area near the south tip of Camano Island, Washington. It follows two civil lawsuits in Island County Superior Court, the first in 1991 and the second in 1992; mediation with Judge Charles S. Burdell, Jr., of Judicial Arbitration and Mediation Services; settlement agreements in 1992 and 1994; an agreement for Christon C. Skinner to referee issues in the 1992 lawsuit; arbitration with Skinner in 1997 under the 1994 settlement agreement; and further action GFFLP initiated in Island County Superior Court in 1998 to set aside Skinner’s December 15, 1997 decision and to nullify the 1994 settlement agreement. In its 1998 decision, the Island County Superior Court did not vacate Skinner’s arbitration decision or the 1994 settlement agreement. Neither party appealed the trial court’s decision, nor did they pursue or exhaust the many remedies that court described.

Van Deren, J.

¶2 The 1994 settlement agreement expressly gave GFFLP the right to reopen the 1992 lawsuit if the Island County Commissioners or the Department of Health (DOH) continued to refuse revision of the PAWA service area boundaries. GFFLP did not pursue this remedy. Instead, in February 2001, GFFLP applied to DOH for an owner’s operating permit to serve the Point Allen service area.

¶3 DOH denied GFFLP’s request because GFFLP was not the owner of the water system. An administrative law judge (ALJ) upheld DOH’s denial of the permit in a sum[294]*294mary judgment proceeding. Thurston County Superior Court upheld the ruling of the ALJ.

¶4 GFFLP now appeals the trial court’s order. GFFLP asserts that DOH erred by (1) concluding that only the owner of a water system can apply for an operating permit under the applicable regulations and statutes, (2) refusing to condition the continuation of PAWA’s operating permit on the provision of service to GFFLP or to revoke its operating permit for failure to provide service to GFFLP’s remaining lots, and (3) considering an improper arbitrator’s award determining ownership of the water system. GFFLP requests attorney fees and costs under RCW 4.84.350; and PAWA requests its costs under RAP 14.3. Finding no error, we affirm and award costs to PAWA.

FACTS

¶5 In 1974, the Garrisons incorporated PAWA as a nonprofit corporation to provide a water system in Point Allen. At one time, the Garrisons owned all of the properties in the PAWA service area. The Garrisons paid for the development and installation of the water system infrastructure for PAWA. GFFLP is the successor in interest to the Garrisons. It continues to own a substantial number of lots in the service area.

¶6 In 1975, the Department of Ecology issued the first groundwater rights to PAWA and DOH approved the system for 28 service connections. It approved the system for 99 connections in 1986, which was sufficient for the entire service area. In January 1991, however, DOH suggested that PAWA observe a 60-connection limit until source capacity was determined.

¶7 In 1991, GFFLP filed the first lawsuit against PAWA in Island County Superior Court, seeking 26 water hookups. On January 9, 1992, DOH reduced PAWA’s service connections to 50. The reduction created further impetus for this ongoing dispute.

f 8 In 1992, as a result of mediation, the parties entered into a settlement agreement. Under this agreement, the parties planned to work together to make necessary improvements to achieve greater source production for [295]*295PAWA’s water system. But later that year, GFFLP filed a second lawsuit against PAWA to rescind the settlement agreement. The parties agreed to appoint Skinner to referee issues in the lawsuit.

¶9 DOH began issuing water system operating permits to PAWA in 1993, shortly after establishing the permitting program. And for many years now, DOH has been entangled in the legal dispute between PAWA and GFFLP.

¶10 In 1994, DOH denied a joint request by PAWA and GFFLP to allow PAWA to serve GFFLP’s lots. DOH was unwilling to approve new connections until demand decreased within PAWA’s service area or until PAWA obtained new source capacity. To resolve the dispute, PAWA requested that Island County reduce the area PAWA served. The County refused this request.

¶11 In 1994, PAWA and GFFLP entered into a settlement agreement relating to the 1992 litigation in Island County. But the settlement agreement did not fully resolve the dispute between the parties. In 1995 and 1996, the Island County Commissioners denied GFFLP’s request to form a new water system and PAWA’s request to reduce its service area under the Public Water System Coordination Act of 1977 (Coordination Act).2 Chapter 70.116 RCW.

¶ 12 In 1996, GFFLP asked DOH to withhold issuance of an operating permit to PAWA, claiming that PAWA did not own the system. DOH denied the request because the public health criteria for denying or revoking a permit had not been satisfied. Following DOH’s denial, GFFLP made several attempts to obtain an operating permit for the PAWA water system, claiming that GFFLP was the true owner of [296]*296the system. DOH encouraged the parties to resolve their disputes through the Coordination Act.

¶13 In December 1997, under the 1994 settlement agreement, the arbitrator determined that PAWA had a prescriptive easement to the Point Allen water system. On January 6, 1998, the arbitrator issued a letter clarifying that the “water system infrastructure ... is owned by PAWA.”3 Administrative Record (AR) at 175.

¶14 Subsequently, GFFLP returned to Island County Superior Court seeking to set aside the arbitrator’s ruling and to nullify the 1994 settlement agreement. On December 18, 1998, the Island County Superior Court issued a letter decision denying GFFLP’s requests.

¶15 On February 28, 2001, GFFLP submitted an application to DOH, once again requesting an owner’s operating permit for the Point Allen service area. DOH denied the request because GFFLP was not listed as the water system owner. GFFLP appealed. An ALJ upheld DOH’s denial on summary judgment. The trial court affirmed their ruling. This timely appeal follows.

ANALYSIS

I. Standard of Review

¶16 The Administrative Procedure Act (Act), chapter 34.05 RCW governs our review of administrative agency actions. This Act specifies nine grounds for relief. Former RCW 34.05.570(3) (1995). GFFLP claims that it is entitled to relief based on the following grounds:

(b) The order is outside the statutory authority or jurisdiction of the agency conferred by any provision of law;
(c) The agency has engaged in unlawful procedure or decision-making process, or has failed to follow a prescribed procedure;
[297]*297(d) The agency has erroneously interpreted or applied the law;

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Bluebook (online)
128 Wash. App. 290, Counsel Stack Legal Research, https://law.counselstack.com/opinion/garrison-first-family-ltd-partnership-v-department-of-health-washctapp-2005.