State v. Hood

611 P.2d 758, 93 Wash. 2d 603, 1980 Wash. LEXIS 1304
CourtWashington Supreme Court
DecidedMay 22, 1980
DocketNo. 46678
StatusPublished

This text of 611 P.2d 758 (State v. Hood) 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
State v. Hood, 611 P.2d 758, 93 Wash. 2d 603, 1980 Wash. LEXIS 1304 (Wash. 1980).

Opinion

Rosellini, J.

The Attorney General brought this action on behalf of the State Auditor, pursuant to RCW 43.09.330.1 The complaint sought damages allegedly resulting from certain procedures and activities of the defendants, as members of the Washington State Liquor Control Board (Board) in the years 1971 through May 1975, with respect to liquor samples furnished by manufacturers.2

After pretrial discovery was completed, and upon the pleadings and affidavits and other evidence then before the court, the defendants' motion for summary judgment was granted. The Superior Court explained its decision in a thoughtfully written opinion, which has been of much help to this court in reviewing the Superior Court's order. The following is substantially that court's summary of pertinent undisputed facts:

[605]*605Prior to May 14, 1971, and apparently for the entire history of the liquor board since 1934, liquor board regulations had permitted local distillery representatives to receive monthly allotments of liquor provided at the expense of their respective companies but upon which the state collected no profit or taxes. The regulations further permitted, but did not require, liquor manufacturers to provide free samples to the board itself for purposes of "negotiating sales." The so-called "board samples" were restricted to a maximum of one case per submission per board member and included providing board members with samples of liquor containers (bottles). The regulations, and the practices followed under them, did not include a specific accounting or record of the ultimate disposition of any samples.
The main events giving rise to this lawsuit seem to start with a State Auditor's preliminary draft of a post-audit report in December 1970 which was critical of liquor samples rules and practices. As a result of this report, and apparently some oral discussion with the State Auditor the board adopted new regulations on January 1, 1971, requiring payment of state taxes on and new methods of handling of dealer representative samples. On May 14, 1971, the State Auditor officially issued post-audit report No. 2729 which includes the comment that:
"On March 4, 1971, we received copies of Board minutes and other instructions issued by the Board relative to samples. It is apparent that these materials meet the basic thrust of the recommendations offered."
On September 28, 1971, the then three board members, including two of the present members, were indicted by a King County grand jury. Following this action the assistant attorneys general who worked with the liquor board were instructed by the Attorney General to cease advising the board on the subject of liquor samples. The indicted board members obtained private counsel to defend them against the indictments and were advised by this attorney to maintain the "status quo" as to their samples regulations and practices.
On September 15, 1972, the Auditor wrote anothér preliminary draft of a post-audit report, again critical on the subject of liquor samples, but when the official report No. 2973 was issued on May 4, 1973, all such criticism [606]*606was deleted. This action was taken on advice of the Auditor's "legal counsel" (the Attorney General). Following the preliminary draft of September 1972, the senior assistant attorney general representing the liquor board advised the board (in October 1972) that its practices relative to samples was "okay to continue."
On July 1, 1973, the board entirely discontinued the practice of allowing dealer representatives to receive sample allotments as in the past. On June 7, 1974, the Auditor issued another report which again deleted comments on the board's sample practices upon advice of "our legal counsel." In September 1974 the grand jury indictments were dismissed. [See State v. Sponburgh, 84 Wn.2d 203, 525 P.2d 238 (1974).]
Effective July 1, 1975, on an emergency basis and on September 21, 1975, on a final basis, the board adopted further regulations relating to samples, including, a limit on samples to the board in accordance with the federal Bureau of Alcohol, Tobacco and Firearms standards for retail dealers.
Finally, on October 24, 1975, the Auditor issued Report No. 3279 which, on a post-audit (or after-the-fact) basis, provided a sharp detailed attack on the past regulations and practices of the liquor board relative to samples but which concedes that the board had corrected the problems.
"In summary, the Board has taken action to satisfactorily resolve to our satisfaction all problem areas which we pointed out in the handling of 'samples.' The final action, as previously cited, took place on July 1, 1975."
The present action is the result of audit report No. 3279.
During the years prior to May 14, 1971, the commencement of the period of time involved in this case, the liquor board was represented by assistant attorneys general who have worked directly with the board. During the critical period of May 14, 1971, and June 30, 1974, this practice continued and the board was represented by its chief legal counsel, Mr. Arthur Mickey, and two attorney assistants. Mr. Mickey has been a lawyer for the board for more than 24 years and bears the title of "Senior Assistant Attorney General. ”
[607]*607It is this court's opinion that there is no genuine issue of fact but that Mr. Mickey, as the authorized legal adviser of the board, has at all times material to this action advised the liquor board that its regulations and practices relative to samples were within the authority delegated to the board by the legislature and that the board has relied upon his advice.

In State ex rel. Day v. Martin, 64 Wn.2d 511, 520, 392 P.2d 435 (1964), we said:

State officials who take official action in accordance with the advice of the Attorney General are protected from liability in connection therewith.

It is undisputed that the actions complained of here were official actions of the Board.

The Auditor does not quarrel with the rule. But he contends that the evidence of reliance upon advice of the Attorney General was insufficient to establish that fact, and that in any event such reliance was unjustified. The rule as stated in State ex rel. Day v. Martin, supra, does not require that reliance be proved; only that the action be taken in accord with the advice. However, since the advice here did not involve practices affirmatively suggested by the Attorney General but rather involved the approval of a course of action previously adopted by the Board, we will assume that reliance is a necessary element.

RCW 66.08.022 provides:

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Related

State Ex Rel. Day v. Martin
392 P.2d 435 (Washington Supreme Court, 1964)
State v. Sponburgh
525 P.2d 238 (Washington Supreme Court, 1974)

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Bluebook (online)
611 P.2d 758, 93 Wash. 2d 603, 1980 Wash. LEXIS 1304, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-v-hood-wash-1980.