Michael Schreck, App. V. Seattle Office Of Economic Development, Res.

CourtCourt of Appeals of Washington
DecidedJuly 15, 2024
Docket85154-3
StatusUnpublished

This text of Michael Schreck, App. V. Seattle Office Of Economic Development, Res. (Michael Schreck, App. V. Seattle Office Of Economic Development, Res.) 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
Michael Schreck, App. V. Seattle Office Of Economic Development, Res., (Wash. Ct. App. 2024).

Opinion

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

MICHAEL SCHRECK, No. 85154-3-I

Appellant,

v. UNPUBLISHED OPINION SEATTLE OFFICE OF ECONOMIC DEVELOPMENT, SEATTLE RESTORED, and ANDREA PORTER,

Respondents.

BOWMAN, J. — Michael Schreck appeals the trial court’s CR 12(b)(6)

dismissal of his complaint alleging that the Seattle Office of Economic

Development’s (OED’s) program, “Seattle Restored,” is unconstitutional and

violates RCW 49.60.400 because it gives preference to applicants who are

Black, indigenous, or people of color (BIPOC). Because Schreck does not assert

in his complaint that he actually applied for the program or that the city denied his

application, we affirm.

FACTS

Seattle Restored is a program run by OED that helps artists and “pop-up

shops” rent vacant storefronts around Seattle. Schreck wanted to open a “food

pop-up” called “Batch” and sought assistance from the program. Schreck tried to

apply for the program but “was thwarted” by technical difficulties. He then tried to No. 85154-3-I/2

obtain technical support from OED, but “[n]othing could be done.” As a result,

Schreck did not submit an application.

In September 2022, Schreck sued the OED, Seattle Restored, and Seattle

Restored’s program director Andrea Porter (collectively City).1 In his complaint,

Schreck alleged that the program gave an improper preference to BIPOC

applicants over white applicants and to artists over restaurants, which violates

the equal protection and due process clauses of the United States Constitution

and RCW 49.60.400. He alleged that Seattle Restored’s website “claimed

preference would be given to BIPOC” individuals and that Porter “verified this via

phone conversation.” Schreck also alleged that during a telephone call, Porter

said she “ ‘just wanted to give the money to artists,’ ” and that Seattle Restored

awarded no grant to restaurants. He asked for “one million dollars in damages or

a halt to racial preference in [c]ity contracting and programs.”

The City moved to dismiss Schreck’s complaint under CR 12(b)(6).2 It

argued that because Schreck did not apply for the program, he lacked standing

and could not state a claim for which the court could grant relief. It also argued

that the issue was moot because the city was no longer funding grants. Schreck

did not respond.

1 Schreck also moved for an ex parte temporary restraining order (TRO), seeking to stop the city from awarding Seattle Restored grants. A King County Superior Court commissioner denied the TRO, concluding Schreck must give notice to the city unless he could show that providing notice would result in “immediate and irreparable harm.” 2 The City’s motion to dismiss is not in the record.

2 No. 85154-3-I/3

On February 24, 2023, the court held a hearing on the City’s motion. The

City rested on its brief, and Schreck argued that he should prevail on the merits

of his claim. The court reserved its ruling.

Three days later on February 27, the court issued an order granting the

City’s motion and dismissing Schreck’s complaint with prejudice.3 The court

explained that Schreck “never applied for the program, according to his

complaint,” and that “[h]e needed to actually apply to have standing in his claim

of discrimination.” Or, “[p]ut another way, for him to state a claim he needed to

allege some act that caused him damage, and that has to be more than simply

telling the City that the racial preference was wrong.”

Schreck appeals.

ANALYSIS

Schreck argues that the trial court erred by dismissing his complaint for

lack of standing.4 We disagree.

We review de novo an order dismissing a case for lack of standing under

CR 12(b)(6). Kanam v. Kmet, 21 Wn. App. 2d 902, 909, 508 P.3d 1071 (2022).

Dismissal under CR 12(b)(6) is proper where “ ‘it appears beyond doubt that the

plaintiff can prove no set of facts consistent with the complaint that would entitle

3 The court also concluded that his claims were moot. 4 Schreck also assigns error to the commissioner’s denial of his motion for an ex parte TRO, the conduct of the King County Superior Court Clerk’s Office, and the actions of a superior court bailiff. But he fails to support his assignments of error with meaningful legal citations or analysis, so we do not address those claims. RAP 10.3(a)(6); Cowiche Canyon Conservancy v. Bosley, 118 Wn.2d 801, 809, 828 P.2d 549 (1992) (we consider argument in an opening brief waived if it is unsupported by reference to the record or citation to authority).

3 No. 85154-3-I/4

him or her to relief.’ ” Id. at 910 (quoting Larson v. Snohomish County, 20 Wn.

App. 2d 243, 263, 499 P.3d 957 (2021)). We take the plaintiff’s allegations in the

complaint as true and can consider hypothetical facts outside the record. Id. But

if a claim remains legally insufficient even under proffered hypothetical facts,

dismissal under CR 12(b)(6) is appropriate. Alim v. City of Seattle, 14 Wn. App.

2d 838, 851, 474 P.3d 589 (2020).

“ ‘Standing is a party’s right to make a legal claim or seek judicial

enforcement of a duty or a right.’ ” Kanam, 21 Wn. App. 2d at 908-095 (quoting

State v. Link, 136 Wn. App. 685, 692, 150 P.3d 610 (2007)). “ ‘The kernel of the

standing doctrine is that one who is not adversely affected by a statute may not

question its validity.’ ” Alim, 14 Wn. App. 2d at 851-52 (quoting Walker v. Munro,

124 Wn.2d 402, 419, 879 P.2d 920 (1994)). We apply a two-part test to

determine whether a party has legal standing. Nelson v. Appleway Chevrolet,

Inc., 129 Wn. App. 927, 939, 121 P.3d 95 (2005), aff’d, 160 Wn.2d 173, 157 P.3d

847 (2007). First, we ask “whether the interest asserted is arguably within the

zone of interests protected by the statute or constitutional right at issue.” Id.

Second, we determine “whether the party seeking standing has suffered an injury

in fact, economic or otherwise.” Id. A financial loss amounts to an injury in fact.

City of Longview v. Wallin, 174 Wn. App. 763, 782, 301 P.3d 45 (2013). But a

plaintiff lacks standing if their injury is merely conjectural or hypothetical.

Trepanier v. City of Everett, 64 Wn. App. 380, 383, 824 P.2d 524 (1992).

5 Internal quotation marks omitted.

4 No. 85154-3-I/5

Schreck’s complaint alleges that “Seattle Restored is a [c]ity program from

the OED” and that the program “claimed preference would be given to BIPOC”

individuals, which Porter “verified . . . via phone conversation.” Schreck explains

that Porter told him that “she ‘just wanted to give the money to artists.’ ” And he

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Related

Matter of Marriage of Olson
850 P.2d 527 (Court of Appeals of Washington, 1993)
Walker v. Munro
879 P.2d 920 (Washington Supreme Court, 1994)
Cowiche Canyon Conservancy v. Bosley
828 P.2d 549 (Washington Supreme Court, 1992)
Trepanier v. City of Everett
824 P.2d 524 (Court of Appeals of Washington, 1992)
Westberg v. All-Purpose Structures Inc.
936 P.2d 1175 (Court of Appeals of Washington, 1997)
Edwards v. Le Duc
238 P.3d 1187 (Court of Appeals of Washington, 2010)
State v. Link
150 P.3d 610 (Court of Appeals of Washington, 2007)
Nelson v. Appleway Chevrolet, Inc.
157 P.3d 847 (Washington Supreme Court, 2007)
Nelson v. Appleway Chevrolet, Inc.
121 P.3d 95 (Court of Appeals of Washington, 2005)
Omar Abdul Alim v. City Of Seattle
474 P.3d 589 (Court of Appeals of Washington, 2020)
Nelson v. Appleway Chevrolet, Inc.
160 Wash. 2d 173 (Washington Supreme Court, 2007)
Nelson v. Appleway Chevrolet, Inc.
129 Wash. App. 927 (Court of Appeals of Washington, 2005)
State v. Link
136 Wash. App. 685 (Court of Appeals of Washington, 2007)
Edwards v. Le Duc
238 P.3d 1187 (Court of Appeals of Washington, 2010)
City of Longview v. Wallin
301 P.3d 45 (Court of Appeals of Washington, 2013)
Westberg v. All-Purpose Structures, Inc.
936 P.2d 1175 (Court of Appeals of Washington, 1997)

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