Steinbock v. FERRY COUNTY PUBLIC UTILITY

269 P.3d 275, 165 Wash. App. 479
CourtCourt of Appeals of Washington
DecidedDecember 29, 2011
Docket29836-1-III
StatusPublished
Cited by39 cases

This text of 269 P.3d 275 (Steinbock v. FERRY COUNTY PUBLIC UTILITY) 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
Steinbock v. FERRY COUNTY PUBLIC UTILITY, 269 P.3d 275, 165 Wash. App. 479 (Wash. Ct. App. 2011).

Opinion

269 P.3d 275 (2011)
165 Wn. App. 479

Ray STEINBOCK, a married individual, and Barbara Steinbock, a married individual, Appellants,
v.
FERRY COUNTY PUBLIC UTILITY DISTRICT NO. 1, a Public Utility District, Roberta B. Weller, Chris A. Kroupa, Kathryn L. Ciais, Gregg B. Caudell and Does 1-100, inclusive, Respondents.

No. 29836-1-III.

Court of Appeals of Washington, Division 3.

October 10, 2011.
Publication Ordered December 29, 2011.

*277 James Alan Von Sauer, Law Office of James Von Sauer, Republic, WA, for Appellants.

Stephen Thomas Graham, Attorney at Law, Republic, WA, for Respondents.

SIDDOWAY, J.

¶ 1 Barbara and Ray Steinbock appeal the dismissal of this, their second action against Ferry County Public Utility District No. 1(PUD) arising out of the PUD's termination of electric service to their commercial and residential properties. The trial court properly concluded that the tort claims the Steinbocks asserted and proposed to assert in this second action necessarily fail, given the contractual nature of their relationship with the PUD and the determination in the first action that the PUD fulfilled its contractual obligations. We affirm.

*278 FACTS AND PROCEDURAL BACKGROUND

¶ 2 In 2005, Barbara and Ray Steinbock purchased the Hitch-n-Post Restaurant and Lounge, located in Republic. As security for the purchase, they pledged all of their real property owned in Ferry County, including Park Place Mobile Home Estates, owned individually by Ms. Steinbock. The application for service that they signed with the PUD provided (as had Ms. Steinbock's prior applications for service to other properties) that they authorized the PUD to furnish electric energy

subject to all provisions of PUD Rules, Regulations & Rate Schedules now existing or hereafter adopted, copies of which are available at the District office, and agree to pay all charges as provided for therein and that the obligations of the parties are covered thereby.

Clerk's Papers (CP) at 96(service application for Barbara Steinbock dba Hitch-n-Post Restaurant and Lounge), 97(application for Barbara Steinbock dba Park Place Mobile Home Estates), 98 (application for Barbara Steinbock). By November the Steinbocks were delinquent in their payment to the PUD. By May 2006, the amount owing was over $9,000. The PUD notified the Steinbocks at that point that they must pay at least $1,822.61 to continue service. When they failed to do so, the service was disconnected.

¶ 3 The Steinbocks reached agreement with the PUD for scheduled payment of the arrears and the PUD restored service. When the Steinbocks failed to make the payments as agreed, however, service was terminated again. Eventually the Steinbocks lost the Hitch-n-Post and their other properties in foreclosure. In August 2006 they filed their first action against the PUD, asserting claims for negligence, breach of contract, and tortious interference, and seeking damages for the failure of the restaurant and lounge.

¶ 4 The PUD obtained dismissal of the tort claims in the first action because the Steinbocks failed to comply with RCW 4.96.020(4), which requires that tort claims be presented to a governmental entity at least 60 days before filing suit. Those claims were dismissed without prejudice. It successfully moved for summary judgment dismissing the Steinbocks' breach of contract claim on the merits. The Steinbocks appealed both dismissals, which were affirmed by this court.

¶ 5 The Steinbocks filed this second action on May 4, 2009. In addition to naming the PUD, it named as defendants the district's manager, its elected commissioners, and John Does 1-100. The complaint renewed the Steinbocks' claim of negligence and added claims for negligent supervision, outrage, harassment, and wrongful debt collection practices. The tort claims were generally alleged to arise out of the conduct of the district's manager, who the Steinbocks contend dictated collection positions and service termination that did not comply with PUD service policies. The remainder of the Steinbocks' claims were based on the alleged failure of PUD to work out a reasonable deferred repayment schedule for their account arrears.

¶ 6 Shortly after the second action was filed the PUD[1] moved for summary judgment dismissing the Steinbocks' claims. Before the motion was heard, the Steinbocks moved to amend their complaint to add a claim for violation of their civil rights and for declaratory relief. The trial court denied the motion to amend, concluding that the additional causes of action would be "futile and meritless." CP at 193. It thereafter granted the PUD's motion for summary judgment dismissing the five claims asserted by the first amended complaint. The Steinbocks timely appealed.

ANALYSIS

I

¶ 7 We first address the Steinbocks' contention that the trial court wrongly granted summary judgment dismissing the PUD's claims for negligence, negligent supervision, outrage, harassment, and wrongful debt collection practices.

*279 ¶ 8 Our review of an order granting summary judgment is de novo. Swinehart v. City of Spokane, 145 Wash.App. 836, 843, 187 P.3d 345 (2008). Summary judgment is proper where the record before the court shows that there is no genuine issue of material fact and the moving party is entitled to judgment as a matter of law. CR 56(c). The moving party bears the burden of showing the absence of a material issue of fact. An appellate court may affirm on any basis supported by the record. Swinehart, 145 Wash. App. at 844, 187 P.3d 345.

¶ 9 Most of the legal argument in the Steinbocks' brief on appeal is devoted to their arguments that (1) the trial court based its decision on collateral estoppel, which they argue was error inasmuch as the tort-based claims asserted in their first action were dismissed without prejudice, and (2) the court improperly required an election of remedies. Election of remedies was not a basis for the trial court's decision. Collateral estoppel played a much more limited role in the dismissals than the Steinbocks appear to understand.

¶ 10 Central to the Steinbocks' misreading of the trial court's decisions is their position that while a promise made by the PUD solely to them gives rise to a contractual duty, a promise made by the PUD to all of its members, through service policies, gives rise to a duty actionable in tort. The claims asserted in this second action rely substantially on the PUD's undertakings in section 15 of its service policies. The Steinbocks rely, for instance, on the section's statement that "[i]t is a general policy of the District that the District's Credit Manager shall make every effort to arrange a reasonable and feasible deferred payment program for the customer with a bona fide temporary financial difficulty" taking into account factors identified in the policies, and that the district's policy was prepared "to clearly define the steps to be taken by the District prior to termination of electric service ... and to help ensure that customers are provided every opportunity to avoid termination of service." CP at 78.

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Cite This Page — Counsel Stack

Bluebook (online)
269 P.3d 275, 165 Wash. App. 479, Counsel Stack Legal Research, https://law.counselstack.com/opinion/steinbock-v-ferry-county-public-utility-washctapp-2011.