King County, V. D & R Excavating, Inc.

CourtCourt of Appeals of Washington
DecidedFebruary 6, 2023
Docket83596-3
StatusUnpublished

This text of King County, V. D & R Excavating, Inc. (King County, V. D & R Excavating, Inc.) 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
King County, V. D & R Excavating, Inc., (Wash. Ct. App. 2023).

Opinion

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON

KING COUNTY, a political subdivision of the State of Washington, DIVISION ONE

Plaintiff, No. 83596-3-I

v. UNPUBLISHED OPINION

CPM DEVELOPMENT CORP., dba ICON MATERIALS, a Washington corporation,

Defendant.

CPM DEVELOPMENT CORP., dba ICON MATERIALS, a Washington corporation,

Third-Party Respondent,

v.

D & R EXCAVATING, INC., a Washington corporation; DOUGLAS D. HOFFMANN and SUSAN K. HOFFMANN, and the marital community composed thereof,

Third Party Appellants.

D & R EXCAVATING, INC., a Washington corporation,

Fourth Party Appellant,

v. No. 83596-3-I/2

FIDELITY & DEPOSIT COMPANY OF MARYLAND PAYMENT BOND NO. 9283912,

Fourth Party Respondent.

DWYER, J. — This appeal arises from a dispute between King County,

CPM Development Corp., d/b/a ICON Materials (ICON), and D & R Excavating

concerning the unlawful disposal of recycled asphalt pavement millings on

Vashon Island. D & R appeals from the judgment on a jury verdict awarding

damages to ICON and King County. Finding no error, we affirm.

I

On May 15, 2018, King County executed a contract with ICON to act as

the general contractor for its Vashon Island Highway Pavement Preservation

project. This project entailed the removal, repair, and replacement of

approximately 12 miles of roadway on Vashon Island.

Under the terms of the contract, ICON was required to grind or plane the

top layer of the asphalt road on Vashon Highway SW, so that new pavement

could be applied. The contract specified that ICON was to dispose of the asphalt

millings in accordance with section 2-03.3(7)(C) of the 2018 WSDOT1 Standard

Specifications for Road, Bridge and Municipal Construction. This provision

states:

If the Contracting Agency provides no waste site, but requires disposal of excess excavation or other materials, the Contractor shall arrange for disposal at no expense to the Contracting Agency, except as provided in Section 2-03.3(7)(B), item 2.

1 Washington State Department of Transportation.

2 No. 83596-3-I/3

The Contractor shall acquire all permits and approvals required for the use of the disposal sites before any waste is hauled off the project.

The King County Code (KCC) specifies that asphalt millings may not be

disposed of in any area classified as a critical aquifer recharge area. KCC

16.82.100(A)(4)(d). King County has classified all of Vashon Island as a critical

aquifer recharge area.

In accordance with the contract, King County provided a temporary

disposal site for asphalt millings at a location known as the Melita Pit on Maury

Island. All millings needed to be removed from the Melita Pit within 30 days after

substantial completion of the pavement project. If ICON wished to use any

additional disposal sites, it was required to obtain any permits necessitated by

law, as well as receive approval from the County.

ICON entered into a subcontract with D & R2 to haul the asphalt millings

away from the project site and properly dispose of them. The subcontract

between ICON and D & R expressly incorporated all terms of ICON’s contract

with King County. Paragraph 1.6 of the subcontract also stated:

Subcontractor has fully acquainted itself with and shall be solely responsible for all physical and nonphysical conditions affecting the Subcontractor’s Work, the Project site, and surrounding conditions, as well as all laws, ordinances, regulations, and governmental requirements applicable to the Work, including the proper removal and disposal of waste and contaminants encountered on the Project.

Additionally, the scope of the work defined by the subcontract clarified that all

“Milled Asphalt to be disposed of at approved site.”

2 D & R is a construction service company owned by Douglas and Susan Hoffmann.

3 No. 83596-3-I/4

Attached to the subcontract was an addendum which reads, in relevant

part, as follows:

Subcontractor shall defend, indemnify and hold harmless Contractor and its affiliates and corporate parents, officers, directors, sureties, agents and employees, and any entities to whom Contractor has Indemnification obligations under the Contract (“the Indemnities”), from and against any and all losses, costs, claims (even though such claims may prove to be false, groundless, or fraudulent), demands, penalties, damages, expenses or liabilities, arising from, resulting in any manner directly or indirectly from or connected with or in the course of the performance of the Subcontractor Work or the Subcontractor obligations.

ICON initially sought approval from King County to utilize a property

known as the Williams Property as a temporary disposal site for the asphalt

millings, in addition to the Melita Pit. King County rejected the request. ICON

notified D & R of King County’s rejection.

Despite knowing that the site was not approved, D & R nevertheless

disposed of some of the asphalt millings at the Williams Property. After County

staff observed asphalt millings stockpiled at the Williams Property, King County

sent a notice to ICON to cease further disposal of asphalt millings at the property.

King County subsequently issued a stop work order, directing ICON to

immediately cease stockpiling asphalt millings at the Williams Property and

directed it to relocate the millings to an approved location. ICON informed D & R

of the notice and stop work order, advised D & R that it was in breach of its

subcontract, and demanded that D & R remove the millings. D & R took no

action.

King County subsequently received complaints from members of the

4 No. 83596-3-I/5

community about asphalt millings being disposed of at various private properties

on Vashon Island, including the Misty Isle Farm and property belonging to the

Hoffmanns. D & R had disposed of asphalt millings at these sites without

obtaining either permits or approval from King County. On August 14, 2018, King

County issued stop work notices for the Williams Property, the Misty Isle Farm,

and the Hoffmanns’ private property. Again, D & R took no action.

On October 10, 2018, King County declared the project substantially

complete, triggering the 30-day window for removal of all millings from the Melita

Pit. ICON sent two letters to D & R, requesting that it provide ICON with a

mitigation plan for removal of millings from the Melita Pit and various private

properties that D & R had used to dispose of asphalt millings. D & R responded

that it would take no action until it “worked through these matters with King

County.”

In light of D & R’s failure to remove any of the millings after multiple

demands from ICON, ICON terminated the subcontract on November 19, 2018.

ICON then removed the millings from the Williams Property, Melita Pit, Misty Isle

Farm, and six other private properties, incurring substantial costs in doing so.

ICON contacted D & R and the Hoffmanns on two separate occasions,

requesting that they grant access to the Hoffmann property so that ICON could

remove the asphalt millings located on that property. The Hoffmanns refused to

grant ICON access to their property.

On May 3, 2019, King County issued a Notice of King County Code

Violation to ICON and the Hoffmanns for improperly disposing of asphalt millings

5 No. 83596-3-I/6

in a critical aquifer recharge area. ICON appealed through administrative

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