Ken Schumm v. Kenneth Spiller

Court of Appeals of Washington·Decided May 30, 2018·No. 50174-1·Unpublished

Opinion

Filed

Washington State

Court of Appeals

Division Two

May 30, 2018

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON

DIVISION II

KEN SCHUMM, a single person, No. 50174-1-II

Appellant,

v.

KENNETH SPILLER and MICHAELEEN SPILLER, individually and the marital community thereof, UNPUBLISHED OPINION

Respondents.

WORSWICK, J. — Kenneth and Michaeleen Spiller sold real property to Ken Schumm without disclosing that the property was habitat to a threatened species of gopher. Schumm sued the Spillers, alleging fraud, misrepresentation, and breach of contract. The superior court dismissed all claims on summary judgment. We affirm.

FACTS

I. BACKGROUND

The Spillers owned a home and property in Thurston County (County). In September 2013, Mary Linders, a biologist from the Washington Department of Fish and Wildlife (WDFW), and Brad Thompson, a biologist from the United States Fish and Wildlife Department Service (USFWS), conducted a site visit on the Spillers’ property. During the visit, the biologists determined that Mazama pocket gophers occupied the Spillers’ property.1

1 This specific type of gopher inhabits certain parts of Thurston County and is an important species to the prairie landscape.

Following the site visit, Thompson sent a letter to the Spillers stating:

Thank you for allowing us to visit your property this morning. We appreciate your willingness to share information on the distribution of the Mazama pocket gopher in your neighborhood and specifically on your property. It is useful for us to observe and discuss the kinds of practices that allow landowners to co-exist with pocket gophers on their properties. We are interested in gaining a full understanding of all the places on the landscape where pocket gophers occur in Thurston County so that the decisions we make about the status of the species will be fully informed and it is through direct interactions with citizens like you that will allow us to make the most informed determination.

If you have any further questions or concerns about having pocket gophers or your property or if you would like more information on entering into a conservation partnership with the U.S. Fish and Wildlife Service, please do not hesitate to contact me.

Clerk’s Papers (CP) at 132. The Spillers did not join the conservation partnership.

In April 2014, USFWS issued a press release announcing that the legal status of Mazama pocket gophers in the County had been changed to “threatened species.”2 CP at 45. In August

2 A “threatened species” is any species which is likely to become an endangered species within the foreseeable future throughout all or a significant portion of its range under the Endangered Species Act, 16 U.S.C. § 1532(20) (ESA). After a species is classified as threatened under the ESA, they are generally protected from “take.” 50 C.F.R. § 17.21. The federal regulations define “take” as to “harass, harm, pursue, hunt, shoot, wound, kill, trap, capture, or collect, or to attempt to engage in any such conduct.” 16 U.S.C. § 1532(19). While threatened species are protected, federal regulations allow the issuance of “special rules” for individual threatened species. 50 C.F.R. § 17.40. The federal regulations also allow the federal government the discretion to determine what “prohibitions, exemptions, or authorizations are necessary and advisable for a species.” In re Polar Bear Endangered Species Act Listing & 4(d) Rule Litig., 818 F. Supp. 2d 214, 228 (D.D.C. 2011) (alteration in original). For example, 50 C.F.R. § 17.32 and 17.40 provide that special permits can be issued to allow continued farming and ranching activities, routine maintenance at airports and road right-of-ways, and certain activities on noncommercial, single-family residential properties that contain a threatened species. In this case, prior to 2014, the Mazama pocket gophers were considered a species of concern by the USFWS. In April 2014, the pocket gophers were finally listed as a threatened species under the ESA. 50 C.F.R. § 17 (2014). After receiving this classification, the gophers were protected from “take” and this protection continues today. However, take of the gophers is still subject to certain exceptions and special rules under 16 U.S.C. § 1533d of the ESA.

2014, after listing their home for sale, the Spillers completed a “Form 17” seller’s disclosure statement as required under RCW 64.06.020 and presented the form to Schumm. CP at 36. On this form, the Spillers checked “No” in response to the following questions:

1. TITLE ....

I. Are there any zoning violations, nonconforming uses, or any other unusual restrictions on the property that would affect future construction or remodeling?

....

10. FULL DISCLOSURE BY SELLERS A. . . . .

Are there any other existing material defects affecting the property that a prospective buyer should know about?

CP at 36, 40. Schumm and the Spillers then entered into a residential real estate purchase and sale agreement and the parties finalized the property sale in December 2014.

In June 2015, the County issued a press release encouraging residents who were planning to build on their property to apply for building permits. The press release stated that properties listed in a building permit application would be screened for the presence of Mazama pocket gophers. The press release further stated that the County was creating a habitat conservation plan with the federal government.

Later the same month, Schumm submitted an application to build a two-story garage on the property. After Schumm’s property was screened, the County notified Schumm that his property was located within a zone that may contain a gopher species and that the zone was a protected critical area. The County did not approve Schumm’s building application.

The USFWS sent Schumm a letter in November, notifying him that his proposed building project did not comply with federal regulations. The USFWS informed Schumm that his options included modifying the footprint of his project, developing his own USFWS-approved habitat conservation plan, or waiting for the County to finalize its USFWS-approved habitat conservation plan.3 II. ACTION FOR FRAUD, MISREPRESENTATION, AND BREACH OF CONTRACT Nearly a year later, Schumm sued the Spillers for damages, alleging fraud, misrepresentation, and breach of the purchase and sale agreement. Schumm alleged that the Spillers committed fraud and misrepresentation by answering “No” on the seller’s disclosure Form 17 in response to questions 1(I) and 10(A). CP at 7.

III. MOTION FOR SUMMARY JUDGMENT The Spillers moved for summary judgment dismissal, asserting that Schumm could not produce prima facie evidence for his claims. In support of their motion for summary judgment, the Spillers submitted a copy of the September 2013 letter from Thompson and a copy of their Form 17 disclosures.

In response, Schumm asserted that (1) the Spillers’ failure to disclose both the gophers’

presence and the September 2013 letter from Thompson created issues of material facts, (2) Form 17 created a duty on the Spillers to disclose the gophers’ presence as “potential problems,” (3) the Spillers made false representations about the condition of their property and about their knowledge of the gophers, (4) Schumm was entitled to rely on the false disclosures in Form 17,

3 Concurrently with these events, the County became involved in a lawsuit over its implementation of the gopher screening process. Litigation is ongoing.

and (5) Schumm would not have purchased the property if the Spillers had been honest in their disclosures. CP at 126.

With his response, Schumm submitted an unsigned declaration from Thompson.4 Schumm later filed a notice of errata and filed an amended signed declaration from Thompson. The signed declaration differed materially from the unsigned declaration.

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