Ralph E. Thornton Cheryl A. Thornton v. City of St. Helens Warren Baker Brian Little

425 F.3d 1158, 2005 U.S. App. LEXIS 19207, 2005 WL 2127890
CourtCourt of Appeals for the Ninth Circuit
DecidedSeptember 6, 2005
Docket03-35994
StatusPublished
Cited by702 cases

This text of 425 F.3d 1158 (Ralph E. Thornton Cheryl A. Thornton v. City of St. Helens Warren Baker Brian Little) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ralph E. Thornton Cheryl A. Thornton v. City of St. Helens Warren Baker Brian Little, 425 F.3d 1158, 2005 U.S. App. LEXIS 19207, 2005 WL 2127890 (9th Cir. 2005).

Opinion

CLIFTON, Circuit Judge.

Ralph and Cheryl Thornton own the only automobile wrecking yard in St. Hel-ens, Oregon. The Thorntons claim that the City of St. Helens has unlawfully conditioned approval of their annual applications to renew a state wrecker’s certificate on compliance with local land use regulations. Following repeated delays in the processing of the Thorntons’ renewal applications, they filed suit in district court against the City and certain local officials. The Thorntons alleged, among other claims, that the certificate renewal procedures employed by the City had resulted in delays which amounted to a deprivation of property without due process of law. The district court denied relief. The court held that the Thorntons did not have a property interest in the timely approval of their renewal applications and that their related claims were without merit.

We affirm. An adverse judgment in a prior state court action brought by Mr. Thornton bars relitigation of the issue of whether the City has discretion to condition approval of renewal applications on compliance with local regulations. Because we must accept the state court’s determination that the City has discretion to deny a renewal application for noncompliance with local regulations, we hold that the Thorntons do not have a property interest in the timely renewal of their wrecker certificate. The Thorntons’ related claims fail as a matter of law.

*1161 I. Background

An operator of an auto wrecking yard in Oregon is required to obtain a certificate from the state and must renew the certificate each year. Or.Rev.Stat. § 822.125(1), (3). The procedure for issuing and renewing wrecker certificates is governed by Oregon Revised Statutes §§ 822.110, 822.115, 822.125, 822.135 and 822.140. Once a wrecker certificate is issued, section 822.125(3) provides that the certificate

is valid for a one-year period and may be renewed as provided by the department. The department shall only renew the certificate of any certificate holder who does all of the following:
(c) Obtains local government approval under [Or.Rev.Stat. § ] 822.140. The department may waive the requirement that an applicant for renewal obtain local government approval under [section] 822.140 of the suitability of the applicant to establish, maintain or operate a wrecking yard or business.

Or.Rev.Stat. § 822.125(3). Section 822.140(2) provides that

[a]city or county governing body shall grant approval of a wrecker certificate or renewal when requested under this section if the governing body:
(a) Approves the applicant as being suitable to establish, maintain or operate a wrecker yard or business;
(b) Determines that the location or proposed location meets the requirements for location under [Or.Rev.Stat. § ] 822.110;
(c) Determines that the location does not violate any prohibition under [Or. Rev.Stat. § ] 822.135; and
(d) Approves the location and determines that the location complies with any regulations adopted by a city or county under this section.

Or.Rev.Stat. § 822.140(2). If a renewal application is not approved before the existing certificate expires, the wrecking yard must suspend operation until a new certificate is issued. See Or.Rev.Stat. §§ 822.100(l)(a), 822.135(l)(a).

In 1998, final approval of the Thorntons’ renewal application for the 1999 wrecker certificate was delayed until April 16, 1999. Because of the delay, the Thorntons were forced to close the wrecking yard for more than three months pending approval of the application. The Thorntons blamed the processing delay on the City’s attempt to condition approval of their renewal certificate on compliance with various municipal regulations.

Mr. Thornton, filed a declaratory judgment action against the City in state court on May 23, 1999. As,amended, the complaint alleged that the City had no power to withhold approval of a renewal application. The lawsuit sought a ruling that the governing state statutes preempted the application of local regulations in the wrecker certificate renewal process.

On December 1, 1999, while the state action was pending, the City adopted Ordinance 2808, which established specific procedures and criteria for reviewing renewal applications. Shortly after Ordinance 2808 was adopted, Mr. Thornton submitted ,an application to renew his certificate for the year 2000. The application was initially approved and then later denied by the City. The City eventually withdrew its objections to the application and issued a new certificate on March 14, 2000. The wrecking yard was closed for over. two months in the interim.

Mr. Thornton moved for summary judgment in the state court action. He argued that the City lacked the power to condition approval of his renewal application on compliance with local land use laws because section 822.140 required local governments to approve any application that complied with sections -822.110 and 822.135. In re *1162 sponse, the City asserted that the relevant state statutes allowed local land use regulations to supplement state law in the approval process. The trial court denied the motion. In its oral decision, the court held that state law did not preempt local regulation of wreckers after the initial certificate had been granted. Shortly after the court issued its decision, the City moved for summary judgment. The City argued that it was entitled to dismissal because, in denying Mr. Thornton’s motion, the court had effectively resolved the action in favor of the City. The court agreed and dismissed the case with prejudice. The Oregon Court of Appeals affirmed without opinion on February 6, 2002.

The City replaced Ordinance 2808 with Ordinance 2832 on November 15, 2000. Ordinance 2832 simplified and shortened the application review process, but delays in approving the Thorntons’ annual renewal applications continued. As a result of those delays (and time taken by the State to issue and transmit the certificate), the Thorntons have been forced to close the wrecking yard for a number of days at the beginning of each year.

On March 15, 2002, the Thorntons filed the current action in federal district court. The original complaint named the City; the city manager, Warren Baker; the city planner, Brian Little; and certain St. Hel-ens elected officials as Defendants. The complaint alleged that the City lacked the power to enact Ordinance 2808 and that the requirements imposed by that measure deprived the Thorntons of property without due process of law. The Thorntons further alleged that Defendants had conspired to deny them equal protection of the law and had intentionally interfered with contractual relations.

Defendants moved for summary judgment. By order entered November 19, 2002, the district court granted the motion in part. Thornton v. City of St.

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Bluebook (online)
425 F.3d 1158, 2005 U.S. App. LEXIS 19207, 2005 WL 2127890, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ralph-e-thornton-cheryl-a-thornton-v-city-of-st-helens-warren-baker-ca9-2005.