Schnitzer West, Llc & Puyallup 5th Ave, Llc, V. City Of Puyallup

CourtCourt of Appeals of Washington
DecidedOctober 12, 2021
Docket54984-1
StatusUnpublished

This text of Schnitzer West, Llc & Puyallup 5th Ave, Llc, V. City Of Puyallup (Schnitzer West, Llc & Puyallup 5th Ave, Llc, V. City Of Puyallup) 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
Schnitzer West, Llc & Puyallup 5th Ave, Llc, V. City Of Puyallup, (Wash. Ct. App. 2021).

Opinion

Filed Washington State Court of Appeals Division Two

October 12, 2021

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON

DIVISION II

SCHNITZER WEST, LLC, and PUYALLUP No. 54984-1-II 5th AVE, LLC,

Appellants,

v. UNPUBLISHED OPINION

CITY OF PUYALLUP, a Washington municipal corporation,

Respondent.

MAXA, J. – Schnitzer West, LLC appeals the trial court’s grant of summary judgment in

favor of the City of Puyallup and dismissal of Schnitzer’s claims against the City for tortious

interference and under 42 U.S.C. § 1983 based on an equal protection violation. The claims

arose from the Puyallup city council’s passage of Ordinance 3067 (the Ordinance) in 2014 that

applied a zoning overlay only to property that Schnitzer had contracted to purchase (the

Property). The Ordinance limited the size of a building that could be constructed on Schnitzer’s

property, which Schnitzer alleged hindered its plans to develop the property. But Schnitzer did

not file suit until 2019, after challenging the Ordinance in an appeal under the Land Use Petition

Act, chapter 36.70C RCW (LUPA).

Schnitzer argues that the court erred in granting summary judgment because it presented

sufficient evidence to create genuine issues of material fact on the elements of its tortious No. 54984-1-II

interference and § 1983/equal protection claims. However, we hold that (1) the legislative

immunity doctrine precludes Schnitzer’s tortious interference claim, and (2) the three-year

statute of limitations bars Schnitzer’s § 1983 claim. Therefore, we affirm the trial court’s grant

of summary judgment in favor of the City.

FACTS

Background

In 2009, the City created the Shaw-East Pioneer Overlay Zone (SPO Zone). At the time,

the Property was outside the City’s boundaries. The City annexed the Property in 2012, which

was zoned for industrial and business park uses. The City did not extend the SPO to the Property

at that time.

In 2013, Schnitzer contracted to purchase the Property with plans to develop it. Schnitzer

submitted a comprehensive plan amendment and rezone request to the City to change the zoning

to a light manufacturing/warehouse zone (ML). The city council approved the rezone. The new

zoning designation allowed construction of a warehouse on the Property.

However, in 2014 the city council subsequently adopted a 120-day emergency

development moratorium that applied to the area annexed in 2012, including the Property.

Before its enactment, Schnitzer submitted a short plat application to construct a 470,000 square

foot warehouse on the Property. This application vested the proposed project under existing land

use regulations.

Several city council members then drafted the Ordinance, which extended the SPO zone

to the Property. The city council enacted the Ordinance in May 2014. The Ordinance amended

certain sections of the Puyallup Municipal Code, added new sections to the Code, and amended

the City’s zoning map.

2 No. 54984-1-II

The Ordinance created and applied a new overlay zone for limited manufacturing uses.

But this overlay zone applied only to the Property, and did not apply to surrounding properties

even though those properties had similar characteristics and zoning. The Ordinance imposed

significant new development regulations on the Property, including limiting the size of buildings

constructed on the Property to 125,000 square feet.

Procedural History

In 2014, Schnitzer challenged the Ordinance under LUPA. The LUPA petition alleged

that adoption of the Ordinance had damaged Schnitzer in amounts to be proved at trial. The

superior court ruled in June 2015 that the Ordinance was an unlawful site-specific rezone and

therefore was invalid as a matter of law. Following the superior court’s decision, Schnitzer

completed its purchase of the Property. The purchase price was slightly over $1.5 million.

The City appealed the superior court’s invalidation of the Ordinance to this court.

Schnitzer W., LLC v. City of Puyallup, 196 Wn. App. 434, 439, 382 P.3d 744 (2016) [Schnitzer

I]. The City superseded the superior court’s judgment, which meant that the Ordinance remained

in effect. This court acknowledged that a site-specific rezone was a land use decision subject to

LUPA review, but noted that one requirement of a site-specific rezone was an application by a

specific party. Id. at 440-41. The court determined that the Ordinance was not a site-specific

rezone because it did not result from an application by a specific party, but instead was initiated

by the city council. Id. at 442-44. Therefore, the Ordinance was not a land use decision subject

to review under LUPA. Id. at 444. The court reversed and remanded for the superior court to

dismiss Schnitzer’s LUPA petition. Id.

3 No. 54984-1-II

In May 2016, while the appeal was pending before this court, Schnitzer sold the Property

to a Viking JV, LLC dba Running Bear Development Partners, LLC. The sale price was $9.25

million. Viking subsequently constructed a large warehouse on the Property that the City

approved without regard to the Ordinance, relying on the short plat application Schnitzer had

filed before the Ordinance was enacted.

Schnitzer appealed this court’s decision dismissing the LUPA petition to the Supreme

Court. Schnitzer W., LLC v. City of Puyallup, 190 Wn.2d 568, 574, 416 P.3d 1172 (2018)

[Schnitzer II]. The court held that the City could be a specific requesting party, and therefore the

Ordinance was a site specific rezone and subject to LUPA review. Id. at 580. The court also

addressed a LUPA exclusion for “ ‘applications for legislative approvals such as area-wide

rezones and annexations.’ ” Id. at 580 (quoting RCW 36.70C.020(2)(a)). The court concluded

that the Ordinance was not a legislative approval subject to the LUPA exclusion. Id. at 580-83.

The court remanded to this court to address the merits of the City’s appeal of the superior court’s

decision under LUPA. Id. at 583.

On remand, this court affirmed the superior court’s invalidation of the Ordinance because

Puyallup violated its own procedural requirements for site-specific rezones. Schnitzer W., LLC

v. City of Puyallup, No. 47900-1-II, slip op. at 2 (Wash. Ct. App. July 9, 2019) (unpublished)

(Schnitzer III), D2 47900-1-II Unpublished Opinion.pdf (wa.gov). Under the Puyallup

Municipal Code, rezone applications are within the jurisdiction of the hearing examiner. Id. at

11. Therefore, this court ruled that the City should have commenced a hearing before the

hearing examiner when considering a rezone rather than deciding the matter at the city council.

Id. at 12.

4 No. 54984-1-II

Schnitzer’s Damages Lawsuit

In March 2019, after the Supreme Court had remanded the LUPA appeal to this court,

Schnitzer filed a lawsuit for damages against the City. The lawsuit asserted four claims,

including tortious interference. In April 2020, Schnitzer filed an amended complaint that added

claims under 42 U.S.C.

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