Olympic Pipe Line Co. v. Thoeny

101 P.3d 430
CourtCourt of Appeals of Washington
DecidedNovember 23, 2004
Docket31613-7-II
StatusPublished
Cited by17 cases

This text of 101 P.3d 430 (Olympic Pipe Line Co. v. Thoeny) 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
Olympic Pipe Line Co. v. Thoeny, 101 P.3d 430 (Wash. Ct. App. 2004).

Opinion

101 P.3d 430 (2004)
124 Wash.App. 381

OLYMPIC PIPE LINE COMPANY, Respondent,
v.
George and Peggy THOENY, Appellants.

No. 31613-7-II.

Court of Appeals of Washington, Division 2.

November 23, 2004.

*432 Mark Robert Johnsen, Attorney at Law, Seattle, WA, for Respondent.

Steven B. Tubbs, Attorney at Law, Vancouver, WA, for Appellant.

QUINN-BRINTNALL, C.J.

Property owners appeal a superior court order condemning a portion of their property in favor of Olympic Pipe Line Company under RCW 81.88.020 and chapter 8.20 RCW. They contend that the trial court erred in denying their motion to dismiss Olympic's action because Olympic's statutory authority violates article I, section 16 of the Washington Constitution.[1] Correspondingly, they argue that the trial court erred in dismissing their inverse condemnation and trespass claims and in denying them interest on their stipulated damages and attorney fees.

We hold that RCW 8.20.160 is constitutionally valid. We also hold that dismissal of George and Peggy Thoeny's inverse condemnation claim was proper but that the parties' agreement regarding just compensation does not preclude the Thoenys from bringing their claims for an additional trespass in a separate tort action. Further, although we hold that the Thoenys are entitled to interest from the date Olympic's possession of the right-of-way became non-permissive until compensation was paid into the court, we also hold that because the Thoenys failed to satisfy the necessary criteria, they are not entitled to attorney fees at trial or on appeal. Thus, we affirm in part and reverse in part.

FACTS

In 1965, the Northern Pacific Railway Company granted Olympic permission to place an underground pipeline on the railroad's property for $300 per year. In early 1998, the annual fee was raised to $600. Six *433 months later, the then-owner of the railroad[2] sold the 5.59-acre parcel to the Thoenys for $13,000.[3] In October 2000, the Thoenys told Olympic they were raising the fee to $2,000 per month.[4] At that time, the Thoenys also informed Olympic that they intended to terminate their agreement on April 12, 2001.[5]

Olympic disputed the Thoenys' right to unilaterally raise the fee and sought mediation, which was unsuccessful. In April 2001, the Thoenys sent Olympic a letter terminating the agreement, but the parties later agreed to extend the agreement until July 12, 2001. In the meantime, the parties attempted to negotiate an easement for the portion of its pipeline running over their property, but negotiations failed.[6]

On July 23, 2001, 11 days after the expiration of the parties' temporary agreement, Olympic filed a petition for eminent domain. On August 13, the Thoenys filed an answer, challenging Olympic's authority to institute the proceedings and asserting counterclaims for breach of contract, trespass, and inverse condemnation. In October 2001, the court entered an order finding that the appropriation was necessary for public use. The Thoenys did not appeal the order. Then, on January 14, 2002, the trial court denied the Thoenys' motion to dismiss Olympic's condemnation action. A trial for compensation was set and, after considering the parties' pretrial conference statements, on July 10, 2002, the trial court dismissed the Thoenys' counterclaims with prejudice. But on February 20, 2003, before the trial to determine compensation was held, the parties stipulated: "[J]ust compensation in this case is determined by the difference between the fair market value of the owners' property without the pipeline easement and the fair market value of the ... property subject to the easement," or $10,000. Clerk's Papers (CP) at 28-29.

On February 28, 2003, the trial court entered a "Judgment and Decree of Appropriation of Easement" under RCW 81.88.020 and chapter 8.20 RCW[7] granting Olympic a 15-foot pipeline easement over the Thoenys' property "with all reasonable rights to operate, access, maintain, service, and repair the pipeline without interference." CP at 33. The court ordered the $10,000 be paid over[8] to the Thoenys and it awarded them $750 in statutory costs under RCW 8.25.020.[9] Apparently *434 the trial court denied the Thoenys' request for interest and attorney fees because such fees were not awarded in the written judgment and decree.

On March 18, 2003, the Theonys appealed the superior court's January 14 and July 10, 2002 orders (denial of motion to dismiss Olympic's petition and dismissal of Thoeny's counterclaims) and February 28, 2003 judgment directly to our Supreme Court, which transferred the appeal to this court.

ANALYSIS

APPEALABILITY

As a preliminary matter, Olympic argues that in a condemnation action, once public use and necessity are determined, only the amount of damages awarded may be appealed — and because here the parties stipulated to the compensation, there is nothing for this court to review. We disagree.

An eminent domain, or condemnation, proceeding consists of three phases: (1) adjudication of public use and necessity; (2) determination of compensation; and (3) payment of award with entry into possession. Orion Corp. v. State, 109 Wash.2d 621, 667, 747 P.2d 1062 (1987) (citing State ex rel Lange v. Superior Court, 61 Wash.2d 153, 156, 377 P.2d 425 (1963)), cert. denied, 486 U.S. 1022, 108 S.Ct. 1996 (1988); City of Seattle v. Loutsis Inv. Co., 16 Wash.App. 158, 166, 554 P.2d 379 (1976), review denied, 88 Wash.2d 1016 (1977).

Condemnation proceedings are entirely statutory. Pelley v. King County, 63 Wash.App. 638, 641, 821 P.2d 536 (1991) (citing In re Southwest Suburban Sewer Dist., 61 Wash.2d 199, 201, 377 P.2d 431 (1963)), review denied, 119 Wash.2d 1003, 832 P.2d 487 (1992). After the public use and necessity judgment is entered and final, the sole remaining issue is the "compensation and damages to be paid." Pelley, 63 Wash.App. at 641, 821 P.2d 536 (quoting RCW 8.08.040; 6 J. SACKMAN, NICHOLS' EMINENT DOMAIN, § 26.72 (3d ed.1986) (collateral attacks on condemnation proceedings are prohibited unless procured by fraud, lack of jurisdiction, or an otherwise void judgment)).

Here, a private corporation instituted the condemnation action, so the procedures for condemnation fall under chapter 8.20 RCW, "Eminent Domain by Corporations." See Taylor v. Greenler, 54 Wash.2d 682, 684,

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Bluebook (online)
101 P.3d 430, Counsel Stack Legal Research, https://law.counselstack.com/opinion/olympic-pipe-line-co-v-thoeny-washctapp-2004.