Pepper v. J.J. Welcome Construction Co.

871 P.2d 601, 73 Wash. App. 523
CourtCourt of Appeals of Washington
DecidedMay 6, 1994
Docket29128-9-I
StatusPublished
Cited by59 cases

This text of 871 P.2d 601 (Pepper v. J.J. Welcome Construction 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
Pepper v. J.J. Welcome Construction Co., 871 P.2d 601, 73 Wash. App. 523 (Wash. Ct. App. 1994).

Opinion

Webster, C.J.

— Robert Pepper, Peggy Pepper French, and Larry and Debra Jaffe appeal an award of damages for *528 injury to their properties caused by excessive water runoff from a private residential development. They argue the trial court stripped away their claims against King County, severely impaired their claims against L.A., Betty, R.R., and Barbara Welcome, Joy and William Backstrom and J.J. Welcome Construction Company, and eviscerated the jury award. Welcome and Backstrom cross-appeal.

Facts

Pepper/Jaffe own adjoining properties at the eastern base of an upland plateau known as Novelty Hill. Welcome Wood is a Novelty Hill subdivision owned and developed by the Welcomes and Backstroms (Welcome). King County approved short plats for the Welcome Wood project in 1981/ 1982. Welcome hired Meriweather-Leachman to design the plans and J.J. Welcome Construction Company (owned by Welcome) to build a road and drainage system. J.J. Welcome subsequently revised the drainage system eliminating check dams and level overflows, which had been designed to reduce concentrated water runoff from the site.

The Welcome Wood road and drainage system were substantially complete in November 1983. The County gave final approval in April 1984, and accepted them for county maintenance in March 1985. Welcome sold lots with the last lot being sold in 1990. Various lot owners constructed homes, built driveways and cleared trees for views and pastures.

In the fall of 1978, Pepper first observed increased runoff and deposits of sediment on his property allegedly from Novelty Hill’s clearing and grading of land. Similar problems occurred during the winter storms over the next several years. 1 Pepper filed suit in October 1986, and was joined by Jaffe in August 1987-

Discussion

Pepper/Jaffe claim the court erred in (a) dismissing their claims for inverse condemnation, injunctive relief, public and private nuisance, trespass, intentional tort, and Pepper’s

*529 emotional distress claim, Ob) limiting their damages to those occurring after 1983/1984, (c) reducing the jury’s award of damages to the lesser of the cost of restoration or the diminution in value of their properties, (d) allowing the jury finding that the damage was temporary, and (e) ruling that the Washington tort reform act was not unconstitutional and that they were not entitled to attorneys’ fees. 2 Welcome and J.J. Welcome cross-claim that the court erred in denying their summary judgment motions to dismiss.

Welcome’s Motion To Dismiss

Welcome claims that the court erred in denying their m'otion for summary judgment because they had no duty which would prevent them from developing and selling residential lots on their property and they are not personally liable for the acts of the independent contractor, J.J. Welcome; thus, there was no proximate cause between their activities and Pepper/Jaffe’s injuries.

Here, it was disputed whether: (1) the 2- or 3-year statute of limitations applied; (2) the common law discovery rule had been met as to Jaffe; (3) the independent contractor, J.J. Welcome, was in fact independent; (4) Welcome had a nondelegable duty; and (5) Welcome negligently hired J.J. Welcome, the independent contractor. These issues were material to the outcome, and thus, the court properly denied the motion for a summary judgment of dismissal.

J.J. Welcome’s Motion To Dismiss

J.J. Welcome claims the court erred in finding a disputed issue of material fact as to whether it was Welcome’s "alter ego”. It argues it was entitled to a dismissal since it was an independent contractor and the 3-year statute of limitations had expired. It contends that the doctrine of piercing the "corporate veil” may apply to shareholders’ liability for a corporation’s actions, but not to a corporation’s liability for its shareholders’ acts.

*530 It is true that the "alter ego” doctrine is most commonly invoked to impose liability upon corporate officers for fraud committed by a corporation. However, this doctrine has also been recognized as imposing liability on a corporation for acts of its shareholders where the corporation and the shareholders are one and the same; hence, the act of the individual was the act of the corporation. Standard Fire Ins. Co. v. Blakeslee, 54 Wn. App. 1, 6, 771 P.2d 1172, review denied, 113 Wn.2d 1017 (1989).

Here, there was a genuine issue as to whether J.J. Welcome acted as an independent contractor, was one and the same as the Welcome Defendants, or acted as their agent. Thus, summary judgment dismissing J.J. Welcome would have been inappropriate. CR 56(c).

Inverse Condemnation Claims Against King County

Pepper /Jaffe claim that the court improperly dismissed their inverse condemnation claims against King County. They argue that in failing to enforce its own ordinances, the County took or caused damage to their property without just compensation. 3

The term inverse condemnation has been used to describe an action alleging a governmental taking, brought to recover the value of property which has been appropriated in fact, but with no formal exercise of its eminent domain power. Lambier v. Kennewick, 56 Wn. App. 275, 279, 783 P.2d 596 (1989), review denied, 114 Wn.2d 1016 (1990). Liability may exist where the alleged taking or damage was caused by affirmative action of a government entity, i.e., appropriating the land, restricting its use through regulation, or causing damage by constructing a public project to achieve a public purpose. Rains v. Department of Fisheries, 89 Wn.2d 740, 745- *531 47, 575 P.2d 1057 (1978). A public project requires a "governmental enterprise, the value of which is enhanced by the State’s actions”, see Maple Leaf Investors, Inc. v. Department of Ecology, 88 Wn.2d 726, 733, 565 P.2d 1162 (1977).

Here, the damages to the Pepper/Jaffe properties were not the result of the County appropriating or regulating their use of the land. There was no allegation that Welcome Wood was a government project, or that King County affirmatively participated in any way. The fact that a county regulates development and requires compliance with road and drainage restrictions does not transform a private development into a public project. Since Welcome Wood was not a public project, the County did not appropriate Pepper/Jaffe’s land, and land use regulation of their property did not cause the damages, no inverse condemnation was involved. The dismissal was proper.

Tort and Injunctive Relief Claims Against King County

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Judith Cruz, V. Jeremy Jon Cheung
Court of Appeals of Washington, 2025
Rebecca Thorley & Monica Baxter v. Donald E. Nowlin, et ux
542 P.3d 137 (Court of Appeals of Washington, 2024)
Buchanan v. Simplot Feeders LLC
E.D. Washington, 2023
Smith v. BNSF Railway Company
E.D. Washington, 2020
in the Interest of K.I.B.C., a Child
Court of Appeals of Texas, 2015
in the Interest of A.G. and F.G., Children
Court of Appeals of Texas, 2015
in the Interest of S. R.- M. C.
Court of Appeals of Texas, 2015
Woods View II, LLC v. Kitsap County
352 P.3d 807 (Court of Appeals of Washington, 2015)
Lee v. Jasman
332 P.3d 1106 (Court of Appeals of Washington, 2014)
D. Angus Lee v. Jerry Jasman
Court of Appeals of Washington, 2014
Hurley v. Port Blakely Tree Farms LP
332 P.3d 469 (Court of Appeals of Washington, 2014)

Cite This Page — Counsel Stack

Bluebook (online)
871 P.2d 601, 73 Wash. App. 523, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pepper-v-jj-welcome-construction-co-washctapp-1994.