Schons v. Department of Transportation

715 P.2d 1142, 43 Wash. App. 160
Court of Appeals of Washington·Decided December 20, 1985·No. No. 13523-6-I·Published·Cited by 3 cases

Opinion

Swanson, J.

Michael L. Schons appeals a superior court judgment affirming administrative denials of Schons's claims for damages. The claims were made pursuant to RCW 8.26, the relocation assistance act, after Schons relocated his dairy herd from Yakima to Skagit County following the State's condemnation of his farm for highway construction.

Michael L. Schons and his family operated a dairy farm near Sunnyside in the Yakima Valley. The 75-acre farm was subject to a condemnation action when it was determined that interstate highway 1-82 would bisect Schons's property. The eminent domain action was settled in April 1979 prior to trial when the State purchased 25 acres for $400,000. Schons eventually traded the remaining 50 acres for 360 acres of land in Skagit County and moved his herd in early 1980.

Following the move, Schons applied for and received approximately $14,000 in relocation assistance pursuant to RCW 8.26, the relocation assistance act. The denial of claims for three items is the subject of this appeal. Schons [162]*162first appealed the denial through the administrative process. Following a hearing in November 1981, a hearing examiner prepared a memorandum opinion and findings of fact and conclusions of law. The hearing examiner’s denial of Schons's claims was later affirmed by the Secretary of Transportation and by the Superior Court for Skagit County.

Schons's general allegation on appeal is that he has been denied just compensation for the taking of his property. However, because the eminent domain proceeding for Schons's land was settled by the parties prior to trial, Schons asserts his claims in the context of RCW 8.26. RCW 8.26 is similar to the federal Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, 42 U.S.C. § 4601 et seq., and was not intended to provide an alternative basis for full "just compensation" claims. See, e.g., Division of Admin., State Dep't of Transp. v. Grant Motor Co., 345 So. 2d 843 (Fla. Dist. Ct. App. 1977) (construing comparable federal provisions).

In his assignments of error and formulation of issues, Schons implies, among other things, (1) that the trial court improperly entered findings that were inadvertently omitted by the hearing examiner; (2) that loss of milk production constitutes "personal property" within the meaning of RCW 8.26; and (3) that WAC regulations prohibiting compensation for lost profits as a moving expense are unconstitutional. Not one of these contentions is specifically addressed in the argument section of Schons's brief or supported by citation to relevant legal authority.

Schons's argument on appeal rests solely on a recitation of general legal principles pertaining to the concept of "just compensation." Assignments of error unsupported by legal argument and citation to authority need not be considered on appeal. Transamerica Ins. Group v. United Pac. Ins. Co., 92 Wn.2d 21, 29, 593 P.2d 156 (1979); In re Port of Seattle, 80 Wn.2d 392, 399, 495 P.2d 327 (1972); In re Ferguson, 41 Wn. App. 1, 4, 701 P.2d 513 (1985). We therefore decline to address Schons's general allegations.

[163]*163Moreover, upon a careful reading of the record below and a study of the provisions of the act, we are convinced that Schons's specific claims were properly denied.

I

Loss of Milk Production

Schons claimed some $68,880 in damages for a 20 percent loss in milk production in his herd caused by the stress of the relocation on the cows. Although the hearing examiner determined that the reduction in production was attributable to numerous factors surrounding the relocation, he concluded that such a loss was not compensable under the act. In particular, the examiner found that loss of milk production was the equivalent of lost profits, which are specifically excluded from recompense by WAC 365-24-440(6).

Schons's compensation claim is based on the following provision of the relocation assistance act:

(1) Whenever the acquisition of real property for a program or project undertaken by the state or a local public body will result in the displacement of any person . . ., the acquiring agency shall make a payment to any displaced person, . . . for:
(b) Actual direct losses of tangible personal property as a result of moving or discontinuing a business or farm operation, but not to exceed an amount equal to the reasonable expenses that would have been required to relocate such property, . . .

(Italics ours.) RCW 8.26.040(l)(b).

Schons cites no authority for his contention that the loss of milk production qualifies as "tangible personal property." The last clause of the provision, however, which limits compensation in any event to the amount that would have been expended to relocate the property, demonstrates that the provision is directed to physical assets and not to such intangibles as a loss in production. One court, construing the same language in the federal uniform relocation assistance act and relying on federal legislative history, found that the purpose of the provision is to provide some [164]*164compensation for situations when the relocation of fixtures or machinery is impractical or uneconomical.1 See Robzen's, Inc. v. United States Dep't of Housing & Urban Dev., 515 F. Supp. 228 (M.D. Pa. 1981) (denying compensation under federal relocation assistance act for increased weight loss of cattle caused by longer transportation distance following relocation of slaughterhouse).

The limited purpose of RCW 8.26.040(1) (b) is further underscored by WAC 365-24-440(5) and (6), which designate loss of goodwill and loss of profit as nonallowable moving expenses under the act. As the hearing examiner correctly concluded, loss of milk production in a dairy herd is but another way to describe loss of gross income and loss of profit.2 The hearing examiner's conclusion that lost milk production does not come within the benefits provided by RCW 8.26 is correct.

II

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