Paradise, Inc. v. Pierce County

124 Wash. App. 759
CourtCourt of Appeals of Washington
DecidedDecember 6, 2004
DocketNo. 51098-3-I
StatusPublished
Cited by4 cases

This text of 124 Wash. App. 759 (Paradise, Inc. v. Pierce County) 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
Paradise, Inc. v. Pierce County, 124 Wash. App. 759 (Wash. Ct. App. 2004).

Opinion

¶1

Cox, C.J.

— At issue in this appeal is whether the Pierce County ordinance banning social card rooms constitutes either a taking or a denial of due process. We must also decide whether Pierce County is estopped from enforcing the ordinance and whether that ordinance either violates equal protection or is in conflict with and thus preempted by state statute.

¶2 We reach the substantive issues in this appeal and hold that the ordinance does not constitute either a taking or a denial of due process. The County is not estopped from enforcing the ordinance. And the ordinance does not violate the equal protection clause. The ordinance is not preempted on the grounds that Paradise, Inc., argued. We reverse.

[764]*764¶3 The gambling act of 1973 (RCW 9.46.010-.903) limits the nature and scope of gambling activities and subjects such activities to strict regulation and control.1 In 1974, the Legislature enacted RCW 9.46.295, which legalizes gambling in counties, but allows counties and cities to prohibit at any time such activity within their respective jurisdictions.

¶4 In 1997, gambling regulations changed to allow “house-banked” gaming.2 RCW 9.46.070(2) provides that the state gambling commission may “authorize and issue licenses for a period not to exceed one year to any . . . business primarily engaged in the selling of items of food or drink for consumption on the premises,... to conduct social card games as a commercial stimulant.” The Washington State Gambling Commission enacted rules for such gaming and provided for a pilot program to study the Commission’s proposed rules.3

¶5 In 1998, Paradise, Inc. (Paradise) applied to the Commission to participate in the enhanced gaming card room pilot program. Prior to entering the program for enhanced gaming, Paradise operated a bowling alley and restaurant with a five-table social card room. The pilot program permitted operation of up to 15 tables.4

¶6 Acceptance into the program required Paradise to install a security system and other improvements. Paradise obtained a permit from the County to install the improvements and remodel the premises. Paradise obtained a license to operate under the pilot program until March 31, 2000.

f 7 Paradise began operating an enhanced gaming room in January 1999. The facility is situated next to a church and parochial school, near Pacific Lutheran University. After several other entities applied for gaming licenses in [765]*765the area, citizens complained to the county council. The council held two hearings regarding a potential ban on gaming. Paradise testified at both hearings.

¶8 In July 1999, the council adopted ordinance 99-80, banning for-profit social card games. The ordinance is set out in Pierce County Code 9.52.010 and .020, and states:

The operation or conduct of social card games as defined by RCW 9.46.0282 is prohibited within unincorporated Pierce County.
A. Bona fide charitable or nonprofit organizations may operate or conduct social card games pursuant to RCW 9.46.0311.
B. Social card games operating and open for business on or before the effective date of this Ordinance may be conducted and operated in accordance with the provisions of Chapter 9.46 RCW and the rules and regulations adopted thereunder until August 15, 2002[ 5 ]

¶9 Nearly two years following the County’s adoption of the ordinance, Paradise commenced this action seeking damages as well as declaratory and injunctive relief. Paradise claimed that the ordinance was invalid in that it violated equal protection and substantive and procedural due process, and constituted a taking. It also sought a determination that the County was equitably estopped from enforcing the ordinance against Paradise and an injunction prohibiting the County from enforcing the ordinance. In addition, Paradise sought substantial damages.

¶10 In 2001, the County moved pursuant to CR 12(b)(6) to dismiss all claims as a matter of law. The trial court denied the motion. The County sought discretionary review, which this court denied.

¶11 In July 2002, just prior to the commencement of the trial of this action, the County again moved to dismiss, focusing on the statute of limitations, regulatory taking, equal protection, and equitable estoppel claims. The motion did not address the due process claims of Paradise. The trial court granted the motion in part by dismissing the equal [766]*766protection claim and ruling that RCW 9.46.295 does not preempt the ordinance, there being no conflict between the two. The matter proceeded to trial.

¶12 A jury found by special verdict that the ordinance constituted a wrongful taking. Further, the jury found that the ordinance violated Paradise’s due process rights. The jury awarded damages of $1.5 million to Paradise for the wrongful taking. Paradise elected to have the court issue an injunction against enforcement of the ordinance against it in lieu of a money judgment on the jury verdict for damages against the County.

¶13 After the jury’s verdict, the trial court found separately that the County was estopped from enforcing the ordinance.

¶14 The County appeals, and Paradise cross-appeals.

STATUTE OF LIMITATIONS

¶15 The County first claims that this action is untimely because Paradise did not commence it within a reasonable period of time following passage of the challenged ordinance. Specifically, the County claims a reasonable period of time is any one of four analogous time periods that should govern this case. Paradise counters that the governing limitations period is three years under RCW 4.16.080(2) because it claims an injury to its personal property, the license.

¶16 While this question is interesting, we decline to resolve it in this case. Rather, because of the importance of the substantive issues to the parties, we assume without deciding and for purposes of this opinion only that the action was timely.

TAKING

¶17 The County argues that the trial court erred in failing to grant its CR 12(b)(6) motion to dismiss this claim. We agree.

[767]*767 ¶18 A trial court’s ruling on a motion to dismiss for failure to state a claim upon which relief can be granted under CR 12(b)(6) is a question of law that we review de novo.6 Trial courts should dismiss a claim under CR 12(b)(6) only if it appears beyond a reasonable doubt that no facts exist that would justify recovery.

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Cite This Page — Counsel Stack

Bluebook (online)
124 Wash. App. 759, Counsel Stack Legal Research, https://law.counselstack.com/opinion/paradise-inc-v-pierce-county-washctapp-2004.