New Meadows Holding Co. v. Washington Water Power Co.

659 P.2d 1113, 34 Wash. App. 25, 1983 Wash. App. LEXIS 2179
CourtCourt of Appeals of Washington
DecidedFebruary 17, 1983
Docket4644-3-III; 4687—7—III; 4763-6-III
StatusPublished
Cited by19 cases

This text of 659 P.2d 1113 (New Meadows Holding Co. v. Washington Water Power Co.) 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
New Meadows Holding Co. v. Washington Water Power Co., 659 P.2d 1113, 34 Wash. App. 25, 1983 Wash. App. LEXIS 2179 (Wash. Ct. App. 1983).

Opinions

Munson, A.C.J.

On December 31, 1978, Mark Brown sustained serious burns when the home he rented from New Meadows Holding Company and owner Harvey Raugust (New Meadows) was destroyed by a fire. The fire began when Mr. Brown attempted to light his oil stove and unknowingly ignited natural gas leaking into his home underground from a damaged gas line several blocks away. The gas leak was allegedly caused in 1971 when Cableway, Inc. (Cableway), laying underground telephone cable for Pacific Northwest Bell (PNB), damaged a 2-inch gas transmission line owned by Washington Water Power (WWP). Several lawsuits ensued.

1. New Meadows sued WWP, PNB and Cableway. WWP answered and sought indemnity by cross claim from PNB and Cableway. PNB brought separate summary judgment motions against New Meadows and WWP asserting that both the claim and cross claim were barred by the statutes of limitation in RCW 4.16.300-.320. New Meadows did not contest that motion; WWP did contest it. Both judgments were granted. New Meadows and WWP appealed.

2. Mr. Brown sued WWP. New Meadows joined with him and amended its complaint to add a strict liability count. [28]*28Both plaintiffs, New Meadows and Mr. Brown,1 were granted summary judgment on the issue of strict liability. WWP sought discretionary review, which was granted. RAP 2.3(b). The appeals were placed on a parallel perfection schedule to be heard on the same day.

These appeals present two issues:

1. Whether New Meadows' claim and WWP's cross claim against PNB are barred by RCW 4.16.300-.3202 because more than 6 years elapsed since the project was substantially completed.

2. Whether strict liability for abnormally dangerous activities should extend to natural gas companies for damages allegedly caused by a third party's interference with underground gas mains.

[29]*29Statutes of Limitation

New Meadows did not contest PNB's motion for summary judgment; it has thus waived any claim it may have asserted against PNB.3 Curtis v. Seattle, 97 Wn.2d 59, 639 P.2d 1370 (1982); Shelton v. Farkas, 30 Wn. App. 549, 635 P.2d 1109 (1981). This court will not consider arguments raised for the first time on appeal. The court's dismissal of New Meadows' action against PNB is affirmed.

The only remaining question on this issue is whether this statute of limitation bars WWP's cross claim for indemnity should WWP be found liable in maintaining its gas line.

The purpose for such legislation was succinctly stated in Nevada Lakeshore Co. v. Diamond Elec., Inc., 89 Nev. 293, 295-96, 511 P.2d 113, 114 (1973):

The apparent purpose of NRS 11.205 [parallel statute to RCW 4.16.300-.320] is to afford ultimate repose and protection from liability for persons engaged in the designing, planning and construction of improvements to realty. Without protection such persons would be subject to liability for many years after they had lost control over the improvement or its use or maintenance.

Our courts have construed these statutes to bar claims for negligent construction brought after the 6-year period. Yakima Fruit & Cold Storage Co. v. Central Heating & Plumbing Co., 81 Wn.2d 528, 503 P.2d 108 (1972); Rodriguez v. Niemeyer, 23 Wn. App. 398, 595 P.2d 952 (1979).

WWP strenuously argues the construction statute of limitation does not apply to claims for damage to adjacent property and contends the proper statute of limitation is RCW 4.16.080(1).4 WWP is correct. In Vern J. Oja & Assocs. v. Washington Park Towers, Inc., 89 Wn.2d 72, 75-76, 569 P.2d 1141 (1977), the court stated:

[30]*30In those cases involving damage to real property arising out of construction or activity on adjacent property, the cause of action accrues at the time the construction is completed if substantial damage has occurred at that time. If the damage has not occurred when the construction is completed, the action accrues when the first substantial injury is sustained thereafter.

Although WWP may have been substantially damaged when the gas line was struck (a question not answered here), New Meadows did not sustain damage until the fire occurred. New Meadows and Mr. Brown had no cause of action prior to the fire and should not be held to a statute of limitation designed to encompass only parties directly involved in the construction project. This reasoning is buttressed by Gazija v. Nicholas Jerns Co., 86 Wn.2d 215, 543 P.2d 338 (1975), where the court stated only the infliction of actual and appreciable damages causes an action to accrue. Gazija's logic clearly applies to this situation. Here the property was several blocks away from the underground gas line; damage to Mr. Brown and New Meadows did not result for 7 years. These parties had no notice of any potential risk, much less actual damage, until the fire occurred. The trial court erred in applying RCW 4.16.300-.320; the proper statute of limitation is RCW 4.16.080(1).

PNB's reliance on Washington Natural Gas Co. v. Tyee Constr. Co., 26 Wn. App. 235, 611 P.2d 1378 (1980) is misplaced. There, the issue of damage to adjacent property was not raised. Instead, Washington Natural Gas Company argued RCW 4.16.300-.320 did not apply because laying cable was not an improvement upon real property. The court held that it was.5 The facts there indicate Washing[31]*31ton Natural Gas Company was aware of the construction and, had it used reasonable diligence, Gazija v. Nicholas Jerns Co., supra, it would have been aware of the damage much earlier than 9 years.

Moreover, Washington Natural Gas Co.

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Bluebook (online)
659 P.2d 1113, 34 Wash. App. 25, 1983 Wash. App. LEXIS 2179, Counsel Stack Legal Research, https://law.counselstack.com/opinion/new-meadows-holding-co-v-washington-water-power-co-washctapp-1983.