West Coast, Inc. v. Snohomish County

48 P.3d 997
Court of Appeals of Washington·Decided June 18, 2002·No. 48439-7-I·Published·Cited by 8 cases

Opinion

48 P.3d 997 (2002)
112 Wash.App. 200

WEST COAST, INC., a Washington Corporation, Appellant,
v.
SNOHOMISH COUNTY, a Municipal Corporation, Respondent.

No. 48439-7-I.

Court of Appeals of Washington, Division 1.

May 6, 2002.
Publication Ordered June 18, 2002.

*999 W. Mitchell Cogdill, Everett, for Appellant.

Thomas M. Fitzpatrick, Everett, for Respondent.

*998 COX, A.C.J.

This is an action for damages arising from Snohomish County's denial of a preliminary plat application for a subdivision. West Coast maintains that the County misrepresented its policy regarding the imposition of a development moratorium on property logged under a Class III non-conversion permit. West Coast further claims that it relied on those representations when deciding to purchase the land in question and was damaged as a result. West Coast appeals the adverse judgment on its negligent misrepresentation claim against the County. West Coast also appeals the summary dismissal of its intentional misrepresentation claim.

Because West Coast failed to establish a genuine issue of material fact for the intentional misrepresentation claim, the trial court properly granted summary judgment. And the public duty doctrine bars West Coast's recovery for negligent misrepresentation. Moreover, the hearing examiner's decision denying West Coast's preliminary subdivision application was a superseding intervening cause precluding County liability for negligent misrepresentation. We affirm.

West Coast, Inc. develops real estate and owns several acres of real property, known as Diamond Ridge Estates, in Snohomish County. John Robinett is the president of West Coast, and Gary Ball is the vice-president. West Coast purchased Diamond Ridge from Peter Krenzke in 1996. While he was the owner, Krenzke obtained a Class III non-conversion permit from the Washington State Department of Natural Resources and logged the property extensively.

In the spring of 1996, West Coast learned that the property was for sale. West Coast knew that Krenzke had logged the property under a Class III non-conversion permit. West Coast also knew that the County could apply a six-year moratorium on development to property logged under such a permit. Concerned about this possibility, Robinett and Ball met with Steve Holt, the Director of the County's Department of Planning and Development Services (PDS), before purchasing the property to discuss the County's policy regarding application of the moratorium. West Coast's attorney, Martin Robinett, also attended the meeting.

West Coast argues that, during this meeting, Holt misrepresented the County's policy regarding its discretionary application of the six-year development moratorium. West Coast purchased the property in July 1996, several weeks after this meeting. The next month, West Coast submitted an application for a rural cluster subdivision called Diamond Ridge Estates. In mid-November 1997, the PDS staff recommended that the County apply the six-year moratorium and deny the application. After a hearing, Snohomish County hearing examiner John Galt denied West Coast's application. West Coast appealed to the County Council, which affirmed the hearing examiner's decision.

West Coast filed a petition under LUPA, along with a claim for damages. West Coast also commenced this action alleging tort claims. The trial court consolidated the cases, and summarily dismissed all but *1000 West Coast's claim for negligent misrepresentation. After a bench trial, the court entered a judgment in the County's favor on West Coast's claim for negligent misrepresentation. West Coast appeals the summary dismissal of its claim for intentional misrepresentation, and the adverse judgment on its claim for negligent misrepresentation.[1]

Intentional Misrepresentation

West Coast argues that the trial court erred by summarily dismissing its intentional misrepresentation claim. We hold that summary judgment was proper.

This court will affirm an order granting summary judgment if there are no genuine issues of material fact and the moving party is entitled to judgment as a matter of law.[2] We consider all facts and reasonable inferences in the light most favorable to the nonmoving party.[3] Our review of questions of law is de novo.[4]

The moving party bears the initial burden of showing the absence of a genuine issue of material fact.[5] Once met, the burden shifts to the party with the burden of proof at trial to make a showing sufficient to establish the existence of an element essential to that party's case.[6] If the claimant fails to meet that burden, summary judgment is appropriate because there can be no genuine issue of material fact given that a complete failure of proof concerning an essential element of the nonmoving party's case necessarily renders all other facts immaterial.[7]

The nine elements of intentional misrepresentation, or fraud, are: (1) representation of an existing fact; (2) materiality; (3) falsity; (4) the speaker's knowledge of its falsity; (5) intent of the speaker that it should be acted upon by the plaintiff; (6) plaintiff's ignorance of its falsity; (7) plaintiff's reliance on the truth of the representation; (8) plaintiff's right to rely upon the representation; and (9) damages suffered by the plaintiff.[8]

West Coast failed to establish that there were genuine issues of material fact with respect to the first essential element. A promise of future performance is not a representation of an existing fact and will not support a fraud claim.[9] According to West Coast, Holt promised that the County would not automatically impose a development moratorium on Category III and IV wetlands. West Coast also argued that Holt promised that, were mitigation necessary, the County would not require the company to return the property to its pre-logged state. These are promises of future performance by the County, and are not representations of existing facts.

Because a failure to establish an element essential to its claim makes all other elements immaterial, West Coast failed to establish that there were genuine issues of material fact sufficient to withstand the County's motion for summary judgment. Summary dismissal of its intentional misrepresentation claim was proper.

Negligent Misrepresentation

West Coast argues that the trial court erred by concluding that the public duty *1001 doctrine bars it from recovering against the County as a matter of law. We disagree.

We review the trial court's findings of fact to determine whether they are supported by substantial evidence in the record.[10] We then determine whether those findings of fact support the trial court's conclusions of law.[11] Unchallenged findings are verities for purposes of appeal.[12] We review conclusions of law de novo.[13]

Under the public duty doctrine, a government entity will not be liable for negligence unless the entity owes a duty to the plaintiff as an individual, rather than to the public in general.[14] There are four exceptions to the public duty doctrine, including (1) legislative intent; (2) failure to enforce; (3) the rescue doctrine; and (4) a special relationship.[15]

West Coast argues that the special relationship exception applies here.

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West Coast, Inc. v. Snohomish County, 48 P.3d 997 (Wash. Ct. App. 2002).

48 P.3d 997 (West Coast, Inc. v. Snohomish County) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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