State v. Costich

117 Wash. App. 491
CourtCourt of Appeals of Washington
DecidedJune 19, 2003
DocketNos. 21114-2-III; 21243-2-III
StatusPublished
Cited by5 cases

This text of 117 Wash. App. 491 (State v. Costich) 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
State v. Costich, 117 Wash. App. 491 (Wash. Ct. App. 2003).

Opinions

Sweeney, J.

In a condemnation action, the State must have a written offer of settlement in effect for 30 days before a trial to fix just compensation. RCW 8.25.070(1). If the jury’s compensation award exceeds that offer by more than 10 percent, the landowner gets attorney fees and costs. Here, the State made what it called an “all inclusive offer.” But, when pressed by the landowner to specify the amount of just compensation being offered, the State refused to break down the total to show the amount being offered for just compensation. So it was impossible for the landowner to compare any subsequent jury award to the State’s pretrial offer.

[496]*496The question before us is whether this “all inclusive offer” satisfied the requirements of RCW 8.25.070(1). We conclude that it did not. And we therefore affirm the judgment of the trial court awarding fees and costs.

FACTS

The Washington State Department of Transportation sued to condemn a piece of north Spokane property owned by Phillip Costich. The State established a just compensation value of $134,000 based on preliminary appraisals. Following the statutory condemnation protocol, the State made a written offer and paid $134,000 into the registry of the court in exchange for Mr. Costich’s stipulation to immediate possession and use. Phillip Costich declined the $134,000 offer and demanded a jury trial.

Trial was set for March 4, 2002 on the only unresolved question — the amount of just compensation to be paid for the property. Meanwhile, on August 21, 2001, the State received a second appraisal of $191,200. Although this was the just compensation value the State planned to offer at trial, the offer was not passed along to Mr. Costich.

On January 30, 2002 — 34 days before trial — the State made a written settlement offer of $282,500. The State described this offer as “all-inclusive” and told Mr. Costich1 that the offer would expire on February 8.

Mr. Costich responded by asking what portion of the offer represented the State’s fair market value offer for the land and what part of the remainder represented interest, attorney fees, and so forth. The State responded that “our offer is the written settlement offer referred to in RCW 8.25.070.”2 Clerk’s Papers (CP) at 78. The State persisted in its refusal to identify how much, if any, of the offer was for [497]*497amounts extraneous to the fair market value offer for the land. In response to every inquiry, the State simply reiterated that the offer was a “global settlement”: “[i]n formulating this offer in settlement we did not itemize the categories . . . this offer is all-inclusive.” CP at 79-80. “All-inclusive means that the offer settles all claims in this condemnation action.” CP at 103. Mr. Costich proceeded on the assumption that the “all-inclusive” offer included interest, attorney fees, and so forth, as well as the fair market value, and asked the State to advise immediately if that assumption was wrong.

Mr. Costich then moved for a pretrial ruling that the State’s “all-inclusive” offer did not constitute an offer for the purpose of determining his entitlement to fees under RCW 8.25.070. He argued that the lack of a clear statement of the State’s fair market value determination rendered the offer useless for the purpose of comparison with the jury award. The judge agreed. The court ruled that the offer did not comply with the statute and was invalid. This left the original $134,000 offer as the highest written offer in effect for the purposes of comparison with any jury award. In addition, the court concluded that the offer was doubly invalid because it did not remain open for 30 days before the trial as required by the statute.

Following the court’s ruling, on February 19 (less than 30 days before trial), the State made another written offer of $283,000. Mr. Costich again asked for a breakdown. This time the State said the $283,000 was the sum of its offers for just compensation, interest, and an unspecified amount for the time the State would save by not preparing for trial and appeal. The State suggested that Mr. Costich could submit a separate attorney fee request for its discretionary consideration. Mr. Costich ignored this invitation.

Trial was held to fix the amount of just compensation. The jury fixed the fair market value of the Costich property at $252,000. The court entered judgment for Mr. Costich for $365,669.20. This included $88,157.75 for attorney fees; [498]*498$12,582.35 for expert witness fees; $1,214.52 for costs; and $11,714.58 in prejudgment interest.

The State filed a timely notice of appeal. A month later, the State returned to the superior court and filed a belated motion for an order of appropriation, vesting title to the property in the State upon its payment into court of $252,000 — the amount of just compensation sans costs and fees. Mr. Costich challenged the superior court’s jurisdiction after the State had filed an appeal and argued that title could vest only upon payment of the total judgment. The superior court ruled against Mr. Costich and entered an order of appropriation vesting title in the State upon payment of $252,000 (the jury’s just compensation award).

Before this court are two appeals. The State appeals the order invalidating its January 30 “all-inclusive offer” and the award of attorney fees. Mr. Costich appeals the entry of the order of appropriation vesting title in the State on payment of less than the full judgment amount.

DISCUSSION

The State’s Appeal

RCW 8.25.070(1) provides in part:

[I]f a trial is held for the fixing of the amount of compensation . . ., the court shall award . . . reasonable attorney’s fees and reasonable expert witness fees in the event of any of the following:

(a) If the condemnor fails to make any written offer in settlement to condemnee at least thirty days prior to commencement of said trial; or
(b) If the judgment awarded as a result of the trial exceeds by ten percent or more the highest written offer in settlement submitted to those condemnees appearing in the action by condemnor in effect thirty days before the trial.

(Emphasis added.)

We are asked to review the trial court’s interpretation of the statutory term “highest written offer in settle[499]*499ment.” Our review is, therefore, de novo. State ex rel. Wash. State Convention & Trade Ctr. v. Allerdice, 101 Wn. App. 25, 28, 1 P.3d 595 (2000). Our determination is dispositive on the issue of attorney fees. We need not, therefore, address the State’s contention that an offer is “in effect thirty days before the trial” if it is operative, however fleetingly, on the 30th day before trial.

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Related

Union Elevator & Warehouse Co. v. State
215 P.3d 257 (Court of Appeals of Washington, 2009)
Union Elevator & Warehouse Co. v. WSDOT
215 P.3d 257 (Court of Appeals of Washington, 2009)
State v. Costich
98 P.3d 795 (Washington Supreme Court, 2004)
State v. Costich
72 P.3d 190 (Court of Appeals of Washington, 2003)

Cite This Page — Counsel Stack

Bluebook (online)
117 Wash. App. 491, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-v-costich-washctapp-2003.