Jon Gibson, et ux v. City of Spokane Valley

CourtCourt of Appeals of Washington
DecidedSeptember 5, 2013
Docket30802-2
StatusUnpublished

This text of Jon Gibson, et ux v. City of Spokane Valley (Jon Gibson, et ux v. City of Spokane Valley) 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.

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Jon Gibson, et ux v. City of Spokane Valley, (Wash. Ct. App. 2013).

Opinion

FILED SEPTEMBER 5, 2013 In the Office of the Clerk of Court W A State Court of Appeals, Division ITI

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON DIVISION THREE

JON GmSON AND MARY LOIS ) No. 30802-2-111

GmSON, husband and wife, and )

WESLEY HILL AND JEANNA HILL, )

husband and wife, d/b/a MONTGOMERY )

COURT APARTMENTS, ) ) Appellants, ) ) v. ) UNPUBLISHED OPINION ) CITY OF SPOKANE VALLEY, a )

municipal corporation, )

)

Respondent. )

KULIK, J. - Jon and Mary Gibson sued the city of Spokane Valley (the City),

alleging the City inversely condemned their apartment complex by cmstructing a

roundabout that restricted access to the apartments. The trial court granted the City's

motion for summary judgment dismissal and denied the Gibsons' motion for

reconsideration. The Gibsons appeal, contending there are genuine issues of material fact

regarding the severity of the access restrictions on the property. They also contend that

the trial court erred in dismissing an equitable estoppel claim. We agree with the trial No.30802-2-II1 Gibson v. City ofSpokane Valley

court that the access, while more circuitous, does not result in compensable damage but

we conclude that the trial court improperly dismissed the equitable claim. Therefore, we

affirm the summary judgment in favor of the City on all claims except the promissory

estoppel claim. We reverse dismissal of that claim and remand for trial.

FACTS

Jon and Mary Gibson own the Montgomery Court Apartments, a commercial

apartment complex at 2301 N. Wilbur Road in the City. The southeast comer of the

apartment complex abuts the three-way intersection of East Montgomery Drive, North

Wilbur Road, and East Mansfield Street. The apartments have one driveway to access the

complex, which is located on Wilbur north of the roundabout at issue here.

In 2003, Spokane Countyl approached the Gibsons on behalf of the City seeking

an easement on their property to modifY the intersection to improve traffic congestion in

the area of the Pines-Indiana-Montgomery 1-90 interchange. The Gibsons eventually

reached an agreement with the City and executed the requested easement and a right-of­

way deed in exchange for $69,000.

In 2008, the City built a three-way roundabout at the intersection, which prohibited

traffic traveling east on Montgomery from making a left tum onto Wilbur to access the

I At that time, the project area was an unincorporated portion of Spokane County.

No. 30802-2-III Gibson v. City o/Spokane Valley

apartments. Instead, travelers were required to tum left onto Jackson Avenue to reach

Wilbur. Inga Note, a senior traffic engineer for the City, explained that the roundabout

was designed so people could access Wilbur from Jackson and that the City installed a

sign at the Jackson intersection to indicate this access to Wilbur. When the Gibsons

realized the roundabout would limit vehicles traveling east on Montgomery from using

Wilbur to access the apartments, they sent a letter to the City revoking the authorization to

record the easement and returned the $69,000. According to the Gibsons, most existing

and prospective tenants used Montgomery to access Wilbur Road and the Montgomery

apartments.

The Gibsons filed a claim for damages with the City, alleging it inversely

condemned the apartment complex by restricting the right of access to the complex. A

commercial real estate appraiser retained by the Gibsons estimated that the market value

of the apartments was reduced by $1,325,000 as a result of the impact from lost access

due to the roundabout. The Gibsons also raised claims for misrepresentation, damages

arising from construction of the roundabout, and estoppel, asking that the City be

estopped "from denying compensation to [the Gibsons] for the costs of constructing a

new access on Montgomery." Clerk's Papers (CP) at 8. They alleged that they had spent

time and money in obtaining estimates for a second access in reliance on representations

No.30802-2-II1 Gibson v. City o/Spokane Valley

by the City.

Both parties filed motions for partial summary judgment. The Gibsons argued

"[t]here is no issue of material fact that the Plaintiffs have been deprived access to their

property from E. Montgomery Dr.... through the construction of the roundabout."

CP at 606. They argued that the City engaged in an unconstitutional taking of their

property because access to the apartments from Montgomery had been "completely

eliminated." CP at 607. They alleged, "[t]he majority of potential renters that become

tenants at Montgomery Court Apartments learn of apartment availability by driving by the

complex, and their inability to access the entrance has caused a severe reduction in

rentals, and increased costs of advertising." CP at 598. Hank Borden, a civil engineer,

submitted a declaration in support of the Gibsons' motion, stating that "a driver

unfamiliar with the area would have difficulty locating that [Wilbur] entrance."

CP at 423.

The City countered that the inverse condemnation claim should be dismissed

because alteration of traffic flow by the apartment complex was not a compensable

deprivation ofa property.right under Washington law. Specifically, it pointed out that

Washington cases distinguish between impainnent of access on and off property from

noncompensable alterations of traffic flow to and from an owner's property, noting that in

No. 30802-2-111 Gibson v. City ofSpokane Valley

this case there had "been no change at all in the ability of motorists to drive onto and exit

the apartment parcel by way ofits entrance on Wilbur." CP at 338. The City pointed out

that the Gibsons lost traffic flow in one direction, but that there had been no change for

drivers headed westbound, which constituted the majority of traffic.

The court granted the City's motion for summary judgment and dismissed the

Gibsons' claims for inverse condemnation and equitable relief, noting that access from

Wilbur, the directly abutting street, remained unrestricted. It concluded, "[t]he placement

and resulting re-routing caused by the round-about, although curious and unfortunate,

does not create a circumstance that as a matter of law leaves plaintiffs with a remedy."

CP at 796. The court denied the dismissal of the misrepresentation claim and the

Gibsons' motion for partial summary judgment.

The Gibsons moved for reconsideration, arguing that as abutting property owners

to Montgomery, they were entitled to per se compensation based on the impaired access.

The court denied the Gibsons' motion for reconsideration. The Gibsons later moved for

voluntary dismissal of the remaining claims. The Gibsons appeal the dismissal of their

claims for inverse condemnation and equitable relief.

No. 30802~2-III Gibson v. City o/Spokane Valley

ANALYSIS

Summary Judgment. The Gibsons maintain that they presented sufficient evidence

to raise genuine issues of material fact regarding the severity of the access restrictions

imposed by the City's construction of the roundabout. Specifically, they contend that the

effect of the roundabout constitutes a compensable taking under the Washington

Constitution because access to their property from Montgomery Road has been "totally

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