Thomas Madsen, V. Washington State Dept. Of Fish & Wildlife

561 P.3d 1216
Court of Appeals of Washington·Decided January 7, 2025·No. 58232-5·Published·Cited by 1 cases

Opinion

Filed

Washington State

Court of Appeals

Division Two

January 7, 2025

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON

DIVISION II

THOMAS and MARIE MADSEN, husband No. 58232-5-II and wife, SNOW CREEK SHELLFISH, LLC, a Washington corporation, doing business as PORT DISCOVERY SEAFARMS,

Appellants,

v. PUBLISHED OPINION

STATE OF WASHINGTON, WASHINGTON DEPARTMENT OF FISH AND WILDLIFE,

Respondents.

MAXA, P.J. – Thomas and Marie Madsen and Snow Creek Shellfish LLC, doing business as Port Discovery Seafarms (collectively the Madsens), appeal the trial court’s ruling in their trespass lawsuit that the Washington Department of Fish and Wildlife (WDFW) was immune from liability unless it acted with gross negligence or with wanton misconduct, and the subsequent jury verdict in WDFW’s favor based on that ruling.

This appeal arises out of a salmon habitat restoration project on state-owned land on Discovery Bay conducted by WDFW’s agent, the North Olympic Salmon Coalition (NOSC). NOSC obtained permits from WDFW for the project. The Madsens alleged that the project released contaminants into the water, which spread to the Madsens’ oyster farm on another part

of Discovery Bay and killed their oysters and oyster seed. The Madsens sued WDFW for trespass.

RCW 77.55.181(5) states that WDFW is immune from liability “for any adverse impacts resulting from a fish enhancement project permitted by [WDFW] . . . under the criteria of this section except upon proof of gross negligence or willful or wanton misconduct.” The term “this section” refers to the earlier subsections of RCW 77.55.181, which include various substantive and procedural criteria for a streamlined permit application approval process. NOSC did not apply for a permit under RCW 77.55.181 or identify the project as a fish habitat enhancement project under RCW 77.55.181, and WDFW did not go through the steps of streamlined permit review outlined in RCW 77.55.181. Nevertheless, WDFW claimed that it was immune from suit under RCW 77.55.181(5) because the project met the criteria of a fish habitat enhancement project under RCW 77.55.181.

The trial court ruled that RCW 77.55.181(5) applied to WDFW’s project, and instructed the jury that the Madsens could recover for trespass only if the trespass resulted from gross negligence or wanton misconduct. At trial, the jury found that NOSC was acting as WDFW’s agent and that WDFW committed a trespass against the Madsens, but that the trespass was not the result of gross negligence or wanton misconduct. Therefore, the trial court entered judgment in favor of WDFW.

The Madsens argue on appeal that the immunity in RCW 77.55.181(5) does not apply to WDFW’s project under the plain language of the statute, and therefore the trial court’s jury instructions and special verdict applying the immunity statute were improper. The Madsens also argue that we should hold that on remand that the trial will be limited to the amount of damages

without the need to prove proximate cause and that they will be entitled to treble damages under RCW 4.24.630.

We hold that RCW 77.55.181(5) does not apply to WDFW’s project because the project was not permitted by WDFW “under the criteria of this section.” Therefore, the trial court erred in ruling that immunity did apply and in requiring the jury to find that WDFW’s trespass resulted from gross negligence or wanton misconduct for the Madsens to recover damages for trespass. We direct that on remand, the new trial should address both proximate cause and the amount of damages. And we decline to address the Madsens’ arguments regarding treble damages under RCW 4.24.630 because there is no trial court ruling on this issue in the record.

Accordingly, we reverse the judgment in favor of WDFW and remand for a trial on proximate cause and on trespass damages, if the jury finds proximate cause.

FACTS

The Madsens own Port Discovery Seafarms, an oyster farm on the eastern shore of Discovery Bay in Jefferson County. The Madsens’ oyster operation began in 1989 by raising oyster larvae, known as oyster seed, grown in hatcheries into full-grown oysters sold on the market. The Madsens leased deep water shoreline areas from WDFW in addition to using their own land.

The Madsens’ oysters, in particular their Snow Creek oyster, were a commercial success.

They shipped Snow Creek oysters to distributors and restaurants across the country. The Madsens continued their oyster production and eventually started cultivating their own oyster seed.

WDFW’s Discovery Bay Projects Between 2003 and 2007, WDFW acquired land at the southern tip of Discovery Bay.

WDFW also received a transfer of the property for restoration projects involving salmon habitats within the Snow and Salmon Creek estuary.

WDFW worked with NOSC in restoring the creeks and estuaries to rebuild salmon habitat at the South end of Discovery Bay. NOSC is a nonprofit regional fisheries enhancement group that can receive state funding for various salmon restoration projects. See RCW 77.95.060.

NOSC and the State coordinated on two projects at Salmon Creek estuary: the Snow Creek Estuary Restoration and Railroad Grade Removal at the southern end of Discovery Bay, and the Maynard Nearshore Restoration on the western shore of the bay. These projects included the removal of old buildings and wood waste, regrading a former railroad, and creating channels for salmon by removing fill material.

Beginning in 2013, NOSC applied to WDFW for permits to get approval for both projects. First, NOSC submitted a joint aquatic resources permit application (JARPA). In two places on the JARPA form, the applicant is required to check a box if applying for a fish habitat enhancement exemption. NOSC did not check either box. And NOSC did not otherwise identify the project as a fish habitat enhancement project under RCW 77.55.181. In addition, NOSC did not attach a special supplemental form required to claim a fish habitat enhancement exemption.

Second, NOSC pursued a hydraulic project approval (HPA) permit for working in the water. The HPA permit stated that “[e]very effort shall be taken during all phases of this project to ensure that sediment-laden water is not allowed to enter the stream.” Ex. 24 at 5.

WDFW issued permits for the projects. The time between the permit application and permit issuance was over 600 days. The approved projects included moving thousands of cubic yards of material from the area, removing collapsed buildings and gravel berm, installing temporary culverts, and constructing tidal channels. The projects also involved removing wood waste that leaked toxic levels of metal leachates. Damage to the Madsens’ Oysters In 2014, the Madsens expanded and acquired investors to grow oyster seed in addition to their regular oyster growing operation in Discovery Bay.

In 2015, the entire oyster farm, both seed and grown oyster, experienced what Tom Madsen described as a catastrophic loss. He observed plumes of “olive drab” moving into the water from the direction of WDFW’s project site that left a “slimy goo.” Rep. of Proc. at 638- 39. The oyster seed and many of the oysters died. The surviving oysters began growing in funny shapes and funny colors. Those oysters were completely unmarketable.

The Madsens commissioned a report by a shellfish pathologist when his oysters died.

That pathologist observed that “exposure to some toxicant in the time frame of the observed plume reported by the owner is consistent with the mortality event and with the shell deformities and lesions.” Ex. 34 at 5. Procedural History The Madsens sued WDFW for trespass, negligence, nuisance and takings.1 In their complaint, the Madsens asked for treble damages under RCW 4.24.630, the trespass statute.

1 The trial court dismissed the takings claim, and the negligence and nuisance claims were not submitted to the jury. The Madsens do not appeal those determinations.

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Thomas Madsen, V. Washington State Dept. Of Fish & Wildlife, 561 P.3d 1216 (Wash. Ct. App. 2025).

561 P.3d 1216 (Thomas Madsen, V. Washington State Dept. Of Fish & Wildlife) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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