Viking Properties, Inc. v. Holm

118 P.3d 322
CourtWashington Supreme Court
DecidedAugust 18, 2005
Docket75240-1
StatusPublished

This text of 118 P.3d 322 (Viking Properties, Inc. v. Holm) 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
Viking Properties, Inc. v. Holm, 118 P.3d 322 (Wash. 2005).

Opinion

118 P.3d 322 (2005)

VIKING PROPERTIES, INC., Respondent,
v.
Oscar William HOLM, Jr., and Martha Jean Holm, husband and wife; Robert E. Shelley and Kristin L. Shelley, husband and wife; Sam G. Deliganis and Vicki Deliganis, husband and wife; Bronston S. Kenny III (also appearing of record as Bronston Shelby Kenney and Bronston S. Kenney III); Robert R. Otto and Maureen J. O'Neill, husband and wife; Aldene C. Dunn; James L. Arnett and Catherine S. Osborne, husband and wife; Richard N. Davies; James J. Birchman and Christina Lee Birchman, husband and wife; Ann M. O'Connor; Mark E. Basel and Jeanne M. Basel, husband and wife; and James E. McManigal and Dorothy McManigal (also appearing of record as Dorothy G. McManigal), husband and wife, Petitioners.

No. 75240-1.

Supreme Court of Washington, En Banc.

Argued February 17, 2005.
Decided August 18, 2005.

*324 Chryssa V. Deliganis, Shoreline, Steve P. Calandrillo, UW School of Law, Seattle, for Petitioners.

Richard L. Settle, Patrick John Schneider, Foster Pepper & Shefelman PLLC, Seattle, for Respondent.

David Scott Mann, Seattle, for Amicus Curiae 1000 Friends of Wash.

William B. Stoebuck, UW Law School, Seattle, for Amicus Curiae Professor William B. Stoebuck.

J.M. JOHNSON, J.

¶ 1 Appellant homeowners (Homeowners) and respondent Viking Properties, Inc. (Viking) own residential properties in a subdivision in the City of Shoreline (City) subject to a decades-old restrictive covenant. The covenant bars racial minorities from ownership of the land and imposes a density limitation providing that there may be no more than one dwelling on each one-half acre. Viking asked Homeowners to release the entire covenant so Viking could redevelop a lot it purchased in 2002. After Homeowners refused this demand, Viking filed a declaratory judgment action to invalidate the covenant.

¶ 2 On summary judgment, the trial court invalidated the entire covenant on the following grounds: (1) the racial restriction was unenforceable and not severable from the remainder of the covenant; (2) the density limitation violated public policy as set forth in the Growth Management Act (GMA), chapter 36.70A RCW, the City's comprehensive plan, and the City's zoning regulations; and (3) judicial enforcement of the covenant would violate Viking's substantive due process rights. We reverse and remand, severing the racial provision and upholding the density limitation as enforceable.

I. FACTS AND PROCEDURAL HISTORY

¶ 3 The parties to this suit all own property derived in title from a common grantor. In 1932, the grantor acquired a block of property located in the Richmond Beach neighborhood of what is now the city of Shoreline and subdivided the block into lots. Between 1937 and 1941, the grantor sold each lot within the subdivision subject to an identical restrictive covenant. The covenant contains four sentences and states:

[1.] This property shall not at any time, directly or indirectly, be sold, conveyed, rented or leased in whole or in part, to any person or persons not of the White or Caucasian race. [2.] No person other than one of the White or Caucasian race shall be permitted to occupy any portion of any residence tract or of any building thereon, except a domestic servant actually employed by a White occupant of such tract and/or building. [3.] No building or structure shall be erected, constructed, maintained or permitted upon this property except a single family, detached private dwelling house on each one-half acre in area. [4.] As appurtenant to such dwelling house a private garage, garden house, pergola, convervatory [sic], servant quarters or other private appurtenant outbuildings *325 or structures, may be erected, constructed and maintained.

Clerk's Papers (CP) at 44.

¶ 4 All parties agree that the racial restrictions contained in the first two sentences are unenforceable and void under Shelley v. Kraemer, 334 U.S. 1, 68 S.Ct. 836, 92 L.Ed. 1161 (1948), and RCW 49.60.224, enacted by Laws of 1969, 1st Ex.Sess., ch. 167, § 6.[1] However, the Homeowners claim that they purchased and developed their properties in reliance on the continued validity and enforceability of the density limitation contained in the last two sentences of the covenant, which has been continuously observed.

¶ 5 Today, the subdivision contains 13 lots, each of which is at least one-half acre[2] in size and contains only one single-family dwelling. Under the City's zoning regulations, the subdivision has a prescribed minimum density of four dwelling units per acre. See Shoreline Municipal Code (SMC) Table 20.50.020(1). Up to eight dwelling units per acre are allowed under the City's "cottage housing" regulations. See SMC 20.40.120, .300(C).

¶ 6 In July 2002, Viking bought a 1.46 acre lot located within the subdivision. Viking admits that it was aware of the terms of the covenant prior to purchase. Three months after the purchase, Viking's president sent a letter to each of the Homeowners asking them to execute a total release of the covenant and informing them that they would be sued if they refused. All Homeowners declined Viking's request.

¶ 7 Viking thereafter filed a declaratory judgment action in King County Superior Court, seeking an order quieting title and declaring the covenant unenforceable in its entirety.[3] After discovery, Viking moved for partial summary judgment. Viking argued, inter alia, that (1) the covenant's racial restriction is invalid and cannot be severed from its density limitation; (2) public policy favoring higher densities as set forth in the GMA, the City's comprehensive plan, and the City's zoning regulations conflict with the density limitation, thereby rendering it unenforceable; and (3) judicial enforcement of the covenant would violate Viking's substantive due process rights because Viking could not comply with both the covenant and the applicable zoning regulations.

¶ 8 The trial court agreed with Viking, holding that the covenant was unenforceable on each of the above grounds, and entered summary judgment in Viking's favor.

¶ 9 The Homeowners moved for reconsideration, arguing that the court had wrongfully placed the burden of summary judgment on the nonmoving party. The Homeowners also submitted a declaration from the planning manager for the City, stating that she had consulted with the city attorney and had concluded that the City:

would process building permits on a lot with area that exceeded the minimum densities under the code for the land use district as a nonconforming lot. A plat application creating lots larger than the minimum density for the land use district would be approved so long as the lot configurations proposed allowed for further subdivision to the Development Code minimum density in the future. This has the *326 same effect as a provision allowing gradual but not immediate conformity with the development standards for nonconforming uses.

CP at 310-11. The City's conclusion would allow for two dwellings to be located on Viking's lot.

¶ 10 The court denied the motion for reconsideration and entered a final order incorporating the court's rulings on summary judgment and reconsideration. The Homeowners then appealed directly to this court.

II. STANDARD OF REVIEW

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Shelley v. Kraemer
334 U.S. 1 (Supreme Court, 1948)
Eurick v. Pemco Insurance Co.
738 P.2d 251 (Washington Supreme Court, 1987)
Sandy Point Improvement Co. v. Huber
613 P.2d 160 (Court of Appeals of Washington, 1980)
Cougar Mountain Associates v. King County
765 P.2d 264 (Washington Supreme Court, 1988)
Citizens for Mount Vernon v. Mount Vernon
947 P.2d 1208 (Washington Supreme Court, 1997)
Burton v. Douglas County
399 P.2d 68 (Washington Supreme Court, 1965)
Lakes at Mercer Island Homeowners Ass'n v. Witrak
810 P.2d 27 (Court of Appeals of Washington, 1991)
Schaaf v. Highfield
896 P.2d 665 (Washington Supreme Court, 1995)
Thayer v. Thompson
677 P.2d 787 (Court of Appeals of Washington, 1984)
Rivett v. City of Tacoma
870 P.2d 299 (Washington Supreme Court, 1994)
McCausland v. Bankers Life Insurance Co. of Nebraska
757 P.2d 941 (Washington Supreme Court, 1988)
State v. Stannard
742 P.2d 1244 (Washington Supreme Court, 1987)
Golberg v. Sanglier
639 P.2d 1347 (Washington Supreme Court, 1982)
Metzner v. Wojdyla
886 P.2d 154 (Washington Supreme Court, 1994)
Golberg v. Sanglier
616 P.2d 1239 (Court of Appeals of Washington, 1980)
Morin v. Johnson
300 P.2d 569 (Washington Supreme Court, 1956)
Skagit Surveyors v. FRIENDS OF SKAGIT
958 P.2d 962 (Washington Supreme Court, 1998)
Thompson v. St. Regis Paper Company
685 P.2d 1081 (Washington Supreme Court, 1984)
Presbytery of Seattle v. King County
787 P.2d 907 (Washington Supreme Court, 1990)
Mains Farm Homeowners Ass'n v. Worthington
854 P.2d 1072 (Washington Supreme Court, 1993)

Cite This Page — Counsel Stack

Bluebook (online)
118 P.3d 322, Counsel Stack Legal Research, https://law.counselstack.com/opinion/viking-properties-inc-v-holm-wash-2005.