Saddle Mountain Minerals, LLC v. Joshi

95 P.3d 1236
CourtWashington Supreme Court
DecidedAugust 12, 2004
Docket73899-8
StatusPublished
Cited by2 cases

This text of 95 P.3d 1236 (Saddle Mountain Minerals, LLC v. Joshi) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Saddle Mountain Minerals, LLC v. Joshi, 95 P.3d 1236 (Wash. 2004).

Opinion

95 P.3d 1236 (2004)

SADDLE MOUNTAIN MINERALS, L.L.C., a Washington Limited Liability Company, Gary Maughan and Carol Maughan, husband and wife, Respondents,
v.
Arun JOSHI and Vandana Joshi, husband and wife, and A & V Enterprises, Inc., a Washington corporation, Petitioners.

No. 73899-8.

Supreme Court of Washington, En Banc.

Argued February 26, 2004.
Decided August 12, 2004.

*1237 John P. Raekes, Diehl Randall Rettig, Kennewick, for Petitioners.

Gregory S. McElroy, McElroy Law Firm PLLC, Seattle, Lisa A. Brautigam, Fennemore Craig, Phoenix, AZ, for Respondents.

Timothy Dunning Ford, Olympia, for Amicus Curiae (Building Industry Assoc. of Washington).

MADSEN, J.

Arun and Vandana Joshi (the Joshis) challenge the Court of Appeals decision reversing the trial court's summary judgment in their favor in a case involving trespass to land and conversion. The owners of the mineral estate in the land in question, Saddle Mountain Minerals, L.L.C. (Saddle Mountain), brought an action for damages, alleging that the Joshis exported sand and gravel from the property without permission from or payment to Saddle Mountain. The trial court ruled as a matter of law that Saddle Mountain is barred from recovering damages from the Joshis because mining is not permitted under the relevant zoning ordinance. The trial court also held that the Joshis' right to subjacent support bars recovery. We hold that summary judgment was improperly granted and affirm the Court of Appeals.

FACTS

This case involves 18.16 acres of property located in the city of Richland. The property was previously owned by Glacier Park Company (GPC). In 1990, GPC sold the property, less mineral rights, to the Youngs. According to the warranty deed for this sale, minerals including sand and gravel were excluded from the sale and the mineral owner had a right to enter upon the surface of the property for the purpose of drilling, extracting, operating, and working any extraction and processing facilities by any procedures whatsoever.[1]

*1238 In 1993, Richland rezoned the property to R-2, a high density residential use district. Ch. 23.24 Richland Municipal Code (RMC). Under the municipal code, mining is neither listed as a permitted use nor as special use in an R-2 district. RMC 23.24.020, .030, .035.

In October 1995, GPC conveyed its mineral rights to Gary and Carol Maughan by a quitclaim deed. In May 2000, the Maughans quitclaimed these rights to Saddle Mountain. The quitclaim deed listed mineral and other rights conveyed in language identical to the warranty deed for the sale between GPC and the Youngs.

In 1999, the Joshis purchased the property, without mineral rights as specified above, from the Youngs. At the time of his purchase Arun Joshi knew that he did not own the mineral rights on the purchased property. As the Joshis intended to construct a residential home development called Gage Galaxy on the property, the purchase was contingent upon Richland's approval of a preliminary plat for Gage Galaxy. Richland approved the preliminary plat on November 3, 1999.

On October 30, 2000, Saddle Mountain sent a letter to Richland, informing the city that he owned the mineral rights to the Gage Galaxy site being developed by the Joshis. Richland informed the Joshis of Saddle Mountain's claim and approved the final plat the next day.

Because the Gage Galaxy site was undeveloped, some areas had to be graded or cut, while other areas had to be built up or filled before developing the site. The Joshis moved topsoil from a cut area to an area that needed filling. The Joshis also built a road access to Gage Galaxy from Gage Boulevard. The road crosses an abandoned railroad right-of-way as well as property not owned by the Joshis. Saddle Mountain claims that the Joshis exported sand and gravel, possibly as much as 5,000 cubic yards, from the Gage Galaxy site in order to fill the railroad right-of-way. The Joshis deny Saddle Mountain's claim.

On April 11, 2001, Saddle Mountain filed suit against the Joshis in Benton County Superior Court. Saddle Mountain alleged that the Joshis committed statutory trespass under RCW 4.24.630, trespass to mineral rights in land under common law and common law conversion, claiming that the Joshis exported minerals, including sand and gravel, from the Gage Galaxy site without paying royalties to Saddle Mountain. The Joshis denied Saddle Mountain's allegations and moved for summary judgment. In support of the motion, the Joshis asserted that Saddle Mountain suffered no damage because Richland's zoning ordinance destroyed Saddle Mountain's mineral rights. Additionally, the Joshis argued that Saddle Mountain was not damaged because the Joshis are entitled to subjacent support, which would preclude mining sand and gravel. Saddle Mountain moved for a partial summary judgment, asking the trial court to find as a matter of law that the Joshis are liable to Saddle Mountain for trespass to and removal of minerals. Saddle Mountain also filed a motion for continuance on the Joshis' motion for summary judgment in order to complete discovery on the issue of whether the Joshis exported sand and gravel from the Gage Galaxy site.

The trial court granted the Joshis' motion for summary judgment, holding that Saddle Mountain had not been damaged by the Joshis' actions, even assuming that they had removed sand and gravel, since the mineral rights were rendered worthless by the zoning ordinance prior to acquisition by Saddle Mountain. The trial court also held that the Joshis' absolute right to subjacent support precluded sand and gravel mining as a matter of law. Finally, the trial court held that a residential developer, such as the Joshis, had a lawful right to utilize the surface soil in the *1239 development of the Gage Galaxy site. On the same day, the trial court issued an order denying Saddle Mountain's motion for continuance.

Saddle Mountain appealed and the Court of Appeals reversed. Saddle Mountain Minerals, L.L.C. v. Joshi, 116 Wash.App. 198, 65 P.3d 366 (2003). The court pointed out that it was not clear whether the mineral rights were actually destroyed through the rezone or whether they were merely restricted. It then held that a reasonable juror could conclude either that any mining of sand and gravel from the site was prohibited or that only certain methods of acquiring sand and gravel from the site were prohibited by RMC. Id. at 205, 65 P.3d 366 (emphasis in original). Thus, the Court of Appeals concluded that the summary judgment in favor of the Joshis was improper.

The Joshis filed a petition for review in this court. Saddle Mountain answered to the petition, raising additional issues. We limited review to the question of whether Saddle Mountain is barred from recovering damages because Saddle Mountain's mineral rights were rendered worthless by Richland's zoning code prohibiting mining and the Joshis' right to subjacent support.[2]

ANALYSIS

We review the summary judgment granted by the trial court de novo. The appellate court engages in the same inquiry as the trial court. Citizens for Responsible Wildlife Management v. State, 149 Wash.2d 622, 630, 71 P.3d 644 (2003); Herron v. Tribune Publishing Co., 108 Wash.2d 162, 169, 736 P.2d 249 (1987). The appellate court treats all facts and inferences in the light most favorable to the nonmoving party.

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Bluebook (online)
95 P.3d 1236, Counsel Stack Legal Research, https://law.counselstack.com/opinion/saddle-mountain-minerals-llc-v-joshi-wash-2004.