Pacific Highway Park, Llc v. Dept. Of Transportation

Court of Appeals of Washington·Decided June 3, 2014·No. 44198-5·Unpublished

Opinion

FILED

OF APPEALS

IS ON11

20111 JUAN - 3 AM 8: 36

IN THE COURT OF APPEALS OF THE STATE OVSNAG ON

DIVISION II {. Y.:

DE TY

PACIFIC HIGHWAY PARK, LLC, No. 44198 -5 - II

Appellant,

v.

WASHINGTON STATE DEPARTMENT OF UNPUBLISHED OPINION TRANSPORTATION,

Respondent.

MAxA, J. — Pacific Highway Park, LLC (PHP) appeals the trial court' s dismissal on summary judgment of its claims against the Washington State Department of Transportation WSDOT) for inverse condemnation, trespass, and damage to property under RCW 4. 24. 630. PHP alleged that these claims arose from WSDOT' s alterations to surface water drainage facilities in a 2001 project to widen nearby, State Route ( SR) 99, which allegedly resulted in the . deposit of excess stormwater on PHP' s property.

We hold that ( 1) because PHP did not purchase the property at issue until after the alleged taking occurred, the subsequent purchaser doctrine precludes PHP from asserting an inverse condemnation claim; ( 2) questions of fact exist about whether WSDOT' s 2001 drainage

work resulted in an invasion of PHP' s property; and (3) PHP' s trespass and RCW 4. 24. 630 claims are not precluded on other legal grounds. Therefore, we hold that the trial court properly dismissed on summary judgment PHP' s inverse condemnation claim but erred in granting

No. 44198 -5 - II

summary judgment on PHP' s trespass and RCW 4.24.630 claims. We affirm in part, reverse in part, and remand for further proceedings.

FACTS

PHP purchased the property at issue in 2006. The property is adjacent to and west of SR 99. The southeastern portion of the property is the lowest part of the property, and this low area

is part of a larger wetland / asin area adjacent to SR 99. The low point of the basin is near the

b

eastern property line. The original construction of SR 99 ( more than 80 years ago) cut off drainage from the west to the east. Stormwater on the west side of SR 99 was conveyed

primarily through an open ditch system to the basin area. The only drainage outlet from the basin area was a 24 -inch culvert that ran under SR 99 and connected to the county storm sewer system on the east side.

In 2001, WSDOT widened SR 99 adjacent to what is now PHP' s property. As part of this project, WSDOT installed a 36 -inch pipe along the west side of SR 99 to replace the open ditch stormwater conveyance system. A 54 -inch catch basin adjacent to the PHP property now collects the water from the 36 -inch pipe. WSDOT also installed- 18 -inch and 24 -inch pipes that

run from the PHP property and connect to the catch basin. The catch basin connects to the pre- existing 24 -inch culvert under SR 99. Gravity carries the stormwater from the catch basin

through the culvert under SR 99 to WSDOT -

owned stormwater detention and treatment ponds

on the east side of SR 99.

PHP' s expert Norman Olson stated that although the 18 -inch and 24 -inch pipes appear to

flow into the catch basin, they in fact accommodate flow in both directions depending on the amount of stormwater water present. According to Olson, at high storm water flows the catch

No. 44198 -5 -II

basin is inundated and backflows through the pipes onto PHP' s property. WSDOT engineer Fred Tharp confirmed that water could flow from WSDOT' s pipe system back onto PHP' s property. PHP contends that WSDOT designed this system to allow use of PHP' s property as a detention pond for excess stormwater in high flow events, which causes the property to be unusable for planned development.

PHP applied for a conditional use permit from Pierce County to develop the property for operation of a semi -trailer storage business. Pierce County determined that two wetlands existed on the property, which would impact PHP' s proposed use of the property. PHP unsuccessfully appealed to the Pierce County hearing examiner. PHP next filed a Land Use Petition Act LUPA) 1 petition in superior court to appeal the hearing examiner' s decision and asserted an inverse condemnation claim against Pierce County. PHP also included a claim for inverse condemnation against WSDOT for the alleged storage of stormwater on the property.

PHP and Pierce County subsequently negotiated an interim settlement. As part of the settlement, the hearing examiner vacated his earlier decision and approved the conditional use permit and wetland variance, allowing PHP to develop a portion of its property. By stipulated order, the trial court dismissed PHP' s LUPA petition and inverse condemnation claim against

Pierce County.

PHP' s remaining claim was an inverse condemnation claim against WSDOT. PHP filed an amended complaint, adding claims of trespass and damage to property under RCW 4.24. 630 against WSDOT. WSDOT moved for summary judgment on liability. The trial court granted WSDOT' s motion for summary judgment and dismissed all of PHP' s claims. PHP appeals.

1 Chapter 36. 70C RCW.

No. 44198 -5 -II

ANALYSIS

A. STANDARD OF REVIEW

We review a trial court' s order granting summary judgment de novo. Loeffelholz v. Univ.

of Wash., 175 Wn.2d 264, 271, 285 P. 3d 854 ( 2012). Summary judgment is appropriate where there is no genuine issue of material fact and the moving party is entitled to judgment as a matter of law. CR 56( c); Donatelli v. D.R. Strong Consulting Eng' rs, Inc., 179 Wn.2d 84, 90, 312 P. 3d

620 ( 2013). " A genuine issue of material fact exists where reasonable minds could differ on the

facts controlling the. outcome of the litigation." Ranger Ins. Co. v. Pierce County, 164 Wn.2d 545, 552, 192 P. 3d 886 ( 2008). In making this determination, we must view the facts and all reasonable inferences therefrom in the light most favorable to the nonmoving party. Donatelli, 179 Wn.2d at 90. If reasonable minds can reach only one conclusion on an issue of fact, that

issue may be determined on summary judgment. M. . Mortenson Co. v. Timberline Software

A

Corp., 140 Wn.2d 568, 579, 998 P. 2d 305 ( 2000).

The moving party bears the initial burden of showing that there is no genuine issue of material fact. Young v. Key Pharm. -Inca 1121Wn.2d-216, 225, 770 P.2d 182 (1-989). Amoving defendant can meet this burden by showing that there' is an absence of evidence to support the plaintiffs case. Howell v. Spokane & Inland Empire Blood Bank, 117 Wn.2d 619, 624, 818 P. 2d

1056 ( 1991). The burden then shifts to the plaintiff to come forward with sufficient evidence to establish the existence of each essential element of the plaintiff's case. Howell, 117 Wn.2d at 625. If the plaintiff does not submit such evidence, summary judgment is appropriate. Howell, 117 Wn.2d at 625.

No. 44198 -5 -II

A nonmoving party must present more than " mere possibility or speculation" to successfully oppose summary judgment. Doe v. Dep' t of Transp., 85 Wn. App. 143, 147, 931 P. 2d 196 ( 1997). "[ M] ere allegations, denials, opinions, or conclusory statements" do not establish a genuine issue of material fact. Int '1 Ultimate, Inc. v. St. Paul Fire & Marine Ins. Co.,

122 Wn. App. 736, 744, 87 P. 3d 774 ( 2004). B. INVERSE CONDEMNATION CLAIM

1. Legal Principles

Article I, section 16 of the Washington Constitution imposes limits on the State' s inherent power of eminent domain by requiring the government to pay reasonable compensation for taking or damaging private property for public use. Phillips v. King County, 136 Wn.2d 946, 956 & n. 3, 968 P. 2d 871 ( 1998). Inverse condemnation is an action instituted by a landowner to recover the value of property which has been appropriated in fact, but with no formal exercise of the power of eminent domain." Phillips, 136 Wn.2d at 957. This theory originally was developed to provide a remedy because the government could not be sued in tort. Tom v. State, 164 Wn. App. 609, 614, 267 P. 3d 361 011-

The elements of an inverse condemnation claim are ( 1) a taking or damaging (2) of private property ( 3) for public use ( 4) without just compensation ( 5) by a governmental entity that has not instituted formal eminent domain proceedings. Phillips, 136 Wn.2d at 957. With

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