Mark and Lynn Stephens v. Town of Steilacoom

CourtCourt of Appeals of Washington
DecidedOctober 14, 2025
Docket60051-0
StatusUnpublished

This text of Mark and Lynn Stephens v. Town of Steilacoom (Mark and Lynn Stephens v. Town of Steilacoom) 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
Mark and Lynn Stephens v. Town of Steilacoom, (Wash. Ct. App. 2025).

Opinion

Filed Washington State Court of Appeals Division Two

October 14, 2025

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON

DIVISION II MARK D. STEPHENS and LYNN No. 60051-0-II STEPHENS,

Appellants,

v. UNPUBLISHED OPINION TOWN OF STEILACOOM, a municipal corporation,

Respondent.

VELJACIC, J. — Mark and Lynn Stephens (the Stephens) appeal the trial court’s entry of

summary judgment in favor of the Town of Steilacoom (Town). The Stephens argue that the court

erred in dismissing their inverse condemnation and related tort claims. Because the Stephens’

inverse condemnation claim is barred by the subsequent purchaser doctrine, and their related tort

claims are subsumed, we affirm and deny their request for attorney fees on appeal. 60051-0-II

FACTS

I. THE HISTORY OF THE STEPHENS’ PROPERTY

The Stephens own three adjacent parcels in the Town of Steilacoom.

N

Clerk’s Papers (CP) at 146. The parcels at issue, highlighted in blue, include lots 17, 18, and 19

(collectively referred to as the Stephens’ property). A ditch runs along the southern border of lot

2 60051-0-II

17 and 18 and continues northeast around the parcels. The parties dispute the history of the ditch

and whether it is the product of a longstanding, regulated wetland.

The earliest evidence of the ditch is from 1971. That year, the local school district began

construction on Saltar’s Point Elementary, which is south of the Stephens’ property. Construction

plans of the school show that the ditch (also referred to as waterway) was to be “retained.” CP at

61.

CP at 61. The Stephens maintain that the construction plans do not “show water flowing from the

construction site to the Stephens[’] property.” Br. of Appellant at 6.

In 1998, the local school district redeveloped a parking lot at the elementary school. The

ditch could also be seen in the redevelopment plans.

3 60051-0-II

CP at 62. The parking lot was completed in 2002.

In 2010, Joey Hollow, a development company constructing a nearby subdivision,

submitted a storm drainage and wetland hydrology report to the Town. Joey Hollow explained

that it would install a new bioswale, which would be located south of the Stephens’ property. The

new bioswale would collect runoff water not captured by other flow control measures. The Town

approved the plans in 2013 and the bioswale was completed in 2014. The Stephens argue that this

construction resulted in “significant seasonal saturation of water” on their property, resulting in

wetland characteristics, because it redirected runoff from other areas.1

In 2013, the Town also issued a stormwater comprehensive plan. In the plan, the Town

outlined several projects, including a project that would replace a 12-inch pipe along Beech Street.

The Town wanted to replace the pipe to “correct a deficiency identified by the hydraulic model”

in the area. CP at 432. The pipe ran along the southern border of the Stephens’ property. The

parties dispute when the pipe was originally installed.

1 The Stephens do not point to any conduct that occurred after they purchased the property in 2018 that resulted in alleged wetland characteristics on the property.

4 60051-0-II

II. THE STEPHENS’ ACQUISITION OF THE PROPERTY

The Stephens purchased lots 17 and 18 in late 2018. The Stephens paid $75,000 for each

parcel, which they believed to be fair market value.

Prior to purchasing lots 17 and 18, the Stephens inspected the property. The Stephens “did

not observe any water running through the ditch.” CP at 146. But the Stephens did recognize that

the property was “covered [with] sticker bushes, trees, and other thick vegetation.” CP at 146-47.

There was no documentation filed with the local county auditor’s office about the

Stephens’ property being a regulated wetland, nor was there any information related to the

construction projects for the elementary school and the Joey Hollow subdivision. The prior owners

also did not disclose the existence of a wetland in a disclosure statement.

The previous owners did, however, provide the Stephens with a wetland reconnaissance

and verification report for lots 17 and 18 that was completed in 2010 (Comis Report). The Comis

Report explained that “[w]etland areas were identified” on the property. CP at 84. The report

made this determination based on the current “Washington State Wetlands Identification and

Delineation Manual for Western Washington.” CP at 84 (emphasis omitted).2 The report also

noted that “[t]he Pierce County [Geographic Information System (GIS)] Map for [the] area

show[ed] possible wetlands in the onsite and adjacent offsite areas.” CP at 85. The report also

indicated that the area had an “Ordinary High Water Mark (OHWM) along an Unnamed Tributary,

which extends along the eastern side of [the property], and appears to flow to the north into an

identified stream that continues flowing north toward the Puget Sound.” CP at 85 (internal

quotation marks omitted) (emphasis omitted). A figure detailing the report’s findings is as follows:

2 A report commissioned by an owner of an adjoining parcel to the Stephens’ property in 2000 also concluded that a wetland was present on the property. The report did not reference the Stephens’ property.

5 60051-0-II

CP at 88. The report noted that it did “not include a detailed delineation of wetland boundaries.”

CP at 84 (emphasis omitted).

III. FACTS LEADING TO THE STEPHENS’ LAWSUIT

Following the purchase of the two parcels, the Stephens obtained a limited clearing permit

in October 2018. Because the parcels were “so heavily vegetated, [the Stephens] needed to remove

brush from the corners” of the property. CP at 67. In addition to clearing out all vegetation on the

6 60051-0-II

parcels, the Stephens began to truck in fill dirt. The Stephens “did not disturb the areas of

vegetation along the [bioswale].” CP at 149.

A resident in the area notified the Town of the Stephens’ actions. After receiving a report

detailing the violation, the Town issued a stop work order in January 2019, noting that the Stephens

were violating the municipal code by clearing a regulated wetland. The Army Corps of Engineers

(Corps) also sent a cease-and-desist letter to the Stephens, explaining that they “discharged fill in

a wetland.” CP at 401.3 The Town explained that to get rid of the stop work order, the Stephens

had to “prepare a critical areas report . . . and a restoration plan.” CP at 96.

After receiving the stop work order, the Stephens commissioned additional studies showing

that the wetlands on the property were not naturally sustaining. Instead, reports concluded that the

wetland characteristics on the property were attributable to construction in the surrounding area

that directed runoff water onto the Stephens’ property.

Despite the Stephens’ existing issues with lots 17 and 18, they purchased another parcel in

October 2019. Both the Town and the Department of Ecology provided the Stephens with

alternative pathways for developing the property, such as obtaining wetland permits, stormwater

permits, or disputing the jurisdiction over the wetland, but the Stephens did not pursue these

avenues. The Stephens also did not file an administrative challenge to the stop work order or the

determination that the property qualified as a regulated wetland.

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