Allan Margitan, et ux v. Spokane Reg'l Health Dist. ( 2018 )

FILED
JULY 24, 2018
In the Office of the Clerk of Court
WA State Court of Appeals, Division III
IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON
DIVISION THREE
ALLAN MARGITAN and GINA ) No. 34606-4-III
MARGITAN, husband and wife, )
)
Appellants, )
)
v. )
)
SPOKANE REGIONAL HEALTH ) UNPUBLISHED OPINION
DISTRICT, a municipal corporation and )
SPOKANE REGIONAL HEALTH )
DISTRICT BOARD OF HEALTH, a )
municipal corporation, MARK HANNA )
and JENNIFER HANNA, husband and )
wife, )
)
Respondents. )
LAWRENCE-BERREY, C.J. — Allan and Gina Margitan appeal from the trial court’s
summary judgment order, which dismissed their claims against Spokane Regional Health
District (SRHD). We affirm.
FACTS
Spokane County Short Plat 1227-00 consists of “Parcels” 1, 2, and 3. Parcel 1 is
to the east of Parcel 2, and Parcel 2 is to the east of Parcel 3. The short plat map shows a
40 foot wide access and utility easement across Parcels 1 and 2 in favor of Parcel 3. A
note on the map requires the applicant to secure public water for each of the three parcels.
No. 34606-4-III
Margitan v. Spokane Reg’l Health Dist.
In April 2002, the Margitans purchased Parcel 1. In May 2002, the Hannas
purchased Parcel 2. One month earlier, Mr. Hanna mistakenly informed the contractor
hired to build his house that the easement was 20 feet wide. On May 1, 2002, Mr. Hanna
learned that the easement through Parcel 2 was 40 feet wide, not 20 feet wide. Mr. Hanna
neglected to inform his contractor of this.
In June 2002, Larry Cook Excavating Inc. applied to SRHD for a permit to build
an on-site sewage system on behalf of the Hannas. SRHD issued the permit in January
2003, and Cook Excavating built the septic system. In March 2003, Cook Excavating
submitted an “as built” drawing of the septic system. Clerk’s Papers (CP) at 82. The “as
built” drawing erroneously depicts the easement as 20 feet, and shows an 11 foot
separation between the depicted easement and the closest corner of the drain field. Had
the actual 40 foot easement been depicted on the drawing, it would show that the closest
corner of the drain field extends 9 feet into the easement.
In 2010, the Margitans purchased Parcel 3, including the existing home. The
following year, the Margitans began to remodel the home so they could lease it out as a
high-end rental.
In 2012, the Hannas filed a quiet title action in Spokane County Superior Court
against the Margitans to reduce the 40 foot easement to a 20 foot easement. About one
2
No. 34606-4-III
Margitan v. Spokane Reg’l Health Dist.
year into that litigation, the Margitans learned that the Hannas’ drain field was built 9 feet
into their easement. The Margitans notified SRHD of this. The litigation was later
amended to a quiet title action that sought to determine the rights of all Parcel 2 easement
holders of record.
In July 2013, the Margitans filed a complaint with SRHD. The complaint alleged
that the Hannas’ drain field was within their 40 foot easement.
The Margitans told Steven Holderby, SRHD’s Liquid Waste Program Manager,
that they were remodeling the old house on Parcel 3 and they planned on leasing it for
income. Mr. Holderby confirmed to the Margitans that if his investigation determined
that the Hannas’ drain field was in the easement, SRHD would have the drain field
relocated promptly.
In October 2013, SRHD and the Hannas entered into an agreement concerning
their on-site sewage system. The Margitans were not party to this agreement and neither
SRHD nor the Hannas consulted the Margitans about the agreement. The agreement
required the Hannas to promptly relocate their drain field after completion of their quiet
title litigation. Notwithstanding that requirement, the agreement required the Hannas to
immediately take corrective action if it appeared to SRHD that the drain field posed a
public health risk.
3
No. 34606-4-III
Margitan v. Spokane Reg’l Health Dist.
In early December 2013, SRHD received a letter from the Margitans. In the letter,
the Margitans expressed concern that the Hannas’ drain field might contaminate their
water. Soon after, the Margitans asked Dr. Joel McCullough, the health officer for
SRHD, to make an expedited decision concerning the legality of the Hannas’ drain field.
In his January 27, 2014 letter decision, Dr. McCullough concluded:
[T]here is insufficient documentation to definitely determine whether or not
your water line is within 10 feet of the drain field [as prohibited by WAC
246-272A-0210]. Therefore, it is unknown if there is non-compliance of
the [Hannas’s drain field] as it relates to the . . . pressurized water line . . . .
CP at 61. Dr. McCullough directed Mr. Hanna to provide documentation to establish the
exact location of the water line and its relationship to the drain field. Dr. McCullough
also directed the Hannas to propose how they would bring their drain field into
compliance if it was within 10 feet of the Margitans’ water line.
The Margitans appealed Dr. McCullough’s determination to the SRHD Board of
Health (Board). After an adjudicatory hearing, the Board found there was insufficient
evidence to establish the location of the water line and, for that reason, insufficient
evidence that the drain field violated the 10 foot separation requirement. The Board also
determined, if the drain field was within 10 feet of the water line, the health risk was
minimal. Specifically, the Board found that no water contamination could occur unless
the water line broke near the drain field. The Board noted that a break in the line would
4
No. 34606-4-III
Margitan v. Spokane Reg’l Health Dist.
be obvious to the Margitans because it would cause a noticeable reduction in water
pressure.
In the summer of 2014, the Margitans completed their remodel work. They
requested a final building inspection so they could obtain a certificate of occupancy.
When the building inspector arrived, the Margitans’ water was off. Mr. Margitan
explained his concern that the proximity of the water line to the drain field might cause
the water to be unsafe.
In early September 2014, the building inspector issued a brief report denying the
Margitans a certificate of occupancy. The report notes:
You have notified us of encroachment of a septic drain field into the
restricted zone of your water supply line which you claim endangers your
potable water supply. You have also provided us corroboration of the issue
through copies of SRHD documentation. A Certificate of Occupancy can
be issued upon receipt of documentation (SRHD and/or water puveyor
[sic]) accepting the waterline and it’s [sic] adequacy for residential use.
CP at 1271.
The Margitans filed suit against SRHD and the Hannas. This appeal concerns only
the Margitans’ claims against SRHD. Those claims center around SRHD’s failure to
promptly require the Hannas to relocate their drain field outside the 40 foot easement.
The Margitans claimed that SRHD’s failure caused the certificate of occupancy not to be
issued, leading to their loss of rental income.
5
No. 34606-4-III
Margitan v. Spokane Reg’l Health Dist.
The parties conducted discovery. The Hannas retained Shawn Rushing to use a
tracer wire to locate the water line and determine if it was within 10 feet of the drain field.
Mr. Rushing determined that the closest the water line came to the drain field was 14 feet.
SRHD filed a motion for summary judgment requesting that the trial court dismiss
the Margitans’ claims. During the briefing process, SRHD deposed the building
inspector.
Q. Did [Mr. Margitan] tell you why he was not comfortable with
the potability of the water to Parcel 3?
A. . . . [H]e said he felt that the [water line] was close to a . . .
drain field . . . in the easement of Parcel 2.
And I said, “Well, then, just get something that—from your purveyor
that says it’s potable. You know, somebody, tell me it’s good water. I
don’t care who it is.”
....
Q. . . . So if you had gone out there [to re-inspect] and the water
is running and the short plat says it’s potable, would [it] have been
sufficient for you?
A. Yes, ma’am.
CP at 1521.
The trial court granted SRHD’s motion, and the Margitans timely appeal. 1
1
After the parties filed their appellate briefs, the Margitans filed a motion asking
this court to take judicial notice of the permit that SRHD issued to the Hannas in
conjunction with the Hannas relocating their drain field. The permit, issued during the
pendency of this appeal, shows that SRHD did not require the Hannas to dig up their
former drain field.
6
No. 34606-4-III
Margitan v. Spokane Reg’l Health Dist.
ANALYSIS
The Margitans claim that the trial court erred by granting SRHD’s summary
judgment motion.
This court reviews summary judgment orders de novo, engaging in the same
inquiry as the trial court. Smith v. Safeco Ins. Co., 150 Wash. 2d 478, 483, 78 P.3d 1274
(2003). Summary judgment is appropriate only if there is no genuine issue as to any
material fact and the moving party is entitled to judgment as a matter of law. CR 56(c).
All facts and reasonable inferences are considered in a light most favorable to the
nonmoving party. Berger v. Sonneland, 144 Wash. 2d 91, 102-03, 26 P.3d 257 (2001).
When reasonable minds can only reach one conclusion, questions of fact may be
determined as a matter of law. Ruff v. County of King, 125 Wash. 2d 697, 704, 887 P.2d 886
(1995).
The party opposing summary judgment “may not rely on speculation,
argumentative assertions that unresolved factual issues remain, or in having its affidavits
considered at face value . . . .” Seven Gables Corp. v. MGM/UA Entm’t Co., 106 Wn.2d
Facts that a court may judicially notice are those “‘facts capable of immediate and
accurate determination by resort to easily accessible sources of indisputable accuracy and
verifiable certainty.” CLEAN v. State, 130 Wash. 2d 782, 809, 928 P.2d 1054 (1996)
(quoting State ex rel. Humiston v. Meyers, 61 Wash. 2d 772, 779, 380 P.2d 735 (1963)).
Because a permit does not qualify under this standard, we deny the Margitans’ motion.
7
No. 34606-4-III
Margitan v. Spokane Reg’l Health Dist.
1, 13, 721 P.2d 1 (1986). Instead, it must put forth evidence showing the existence of a
triable issue. Id. at 12-13. The evidence must be admissible. CR 56(e) (affidavits “shall
set forth such facts as would be admissible in evidence”).
“In a summary judgment motion, the moving party bears the initial burden of
showing the absence of an issue of material fact.” Young v. Key Pharms., Inc., 112
Wash. 2d 216, 225, 770 P.2d 182 (1989).
If the moving party is a defendant and meets this initial showing, then the
inquiry shifts to the party with the burden of proof at trial, the plaintiff. If,
at this point, the plaintiff “fails to make a showing sufficient to establish the
existence of an element essential to that party’s case, and on which that
party will bear the burden of proof at trial”, then the trial court should grant
the motion.
Id. (quoting Celotex Corp. v. Catrett, 477 U.S. 317, 322, 106 S. Ct. 2548, 91 L. Ed. 2d
265 (1986)).
A. UNCONSTITUTIONAL TAKING
The Margitans assert that SRHD violated their property rights by executing the
October 2013 agreement with the Hannas. They argue that the agreement allowed the
encroachment to continue and was thus an unconstitutional taking.
Article I, section 16 of the Washington Constitution states that “‘[n]o private
property shall be taken or damaged for public or private use without just compensation
8
No. 34606-4-III
Margitan v. Spokane Reg’l Health Dist.
having been first made.’” Woods View II, LLC v. Kitsap County, 188 Wash. App. 1, 38-39,
352 P.3d 807 (2015) (alteration in original).
Under existing Washington and federal law, a police power measure can
violate article I, section 16 of the Washington State Constitution or the Fifth
Amendment to the United States Constitution and thus be subject to a
takings challenge when (1) a regulation affects a total taking of all
economically viable use of one’s property, (2) the regulation has resulted in
an actual physical invasion on one’s property, (3) a regulation destroys one
or more of the fundamental attributes of ownership (the rights to possess,
exclude others from, and dispose of property), or (4) the regulations were
employed to enhance the value of publicly held property.
Id. at 39 (citations omitted). A constitutional taking is a permanent or recurring invasion
of private property. Miotke v. City of Spokane, 101 Wash. 2d 307, 334, 678 P.2d 803 (1984)
(quoting N. Pac. Ry. v. Sunnyside Valley Irrig. Dist., 85 Wash. 2d 920, 924, 540 P.2d 1387
(1975)). In order to constitute a taking, a governmental intrusion must be “‘chronic and
unreasonable,’” and not simply a temporary interference that is unlikely to recur.
Lambier v. City of Kennewick, 56 Wash. App. 275, 283, 783 P.2d 596 (1989) (quoting
Orion Corp. v. State, 109 Wash. 2d 621, 671, 747 P.2d 1062 (1987)).
Here, the agreement allows the drain field to exist in the easement only
temporarily. The agreement requires the Hannas to relocate their drain field soon after
9
No. 34606-4-III
Margitan v. Spokane Reg’l Health Dist.
the rights of all easement holders are adjudicated. The encroachment, therefore, is only
temporary, not permanent. 2
The Margitans argue that Miotke supports their position by recognizing that a
taking may be temporary. Their argument is supported only by the dissent in Miotke.
The dissenting opinion is not binding and is contradicted by a majority of the justices on
the issue.
B. NEGLIGENCE AND PUBLIC DUTY DOCTRINE
The Margitans next contend the trial court erred by dismissing their claim that
SRHD was negligent in not requiring the Hannas to promptly relocate their drain field
outside the easement. The Margitans argue that SRHD owed them a duty. We disagree.
In any negligence action against a governmental entity, the threshold determination
is whether a duty of care was owed to the injured plaintiff individually rather than to the
public in general; this is known as the public duty doctrine. Babcock v. Mason County
Fire Dist. No. 6, 144 Wash. 2d 774, 785, 30 P.3d 1261 (2001). This doctrine is a “focusing
tool” designed to determine whether the governmental entity owed a duty to the general
2
A constitutional taking does not occur unless the property owner suffers a loss
because of governmental interference with the owner’s property. See Tapio Inv. Co. I v.
Dep’t of Transp., 196 Wash. App. 528, 541, 384 P.3d 600 (2016), review denied, 187
Wash. 2d 1024, 390 P.3d 331 (2017). We question whether the Margitans have sustained
any loss, given that the drain field is more than 10 feet from the water line.
10
No. 34606-4-III
Margitan v. Spokane Reg’l Health Dist.
public or to a particular plaintiff. Munich v. Skagit Emergency Commc’ns Ctr., 175
Wash. 2d 871, 878, 288 P.3d 328 (2012).
There are four exceptions to the public duty doctrine that enable a plaintiff to
establish that he or she was owed a duty of care by the governmental entity: (1) legislative
intent, (2) failure to enforce, (3) rescue, and (4) special relationship. Id. at 879. The
Margitans assert that three of the four exceptions apply.
1. Exception 1: legislative intent
The legislative intent exception applies where legislation or regulation, by its
terms, evidences a clear intent to identify and protect a particular class of persons rather
than the general public. 1515-1519 Lakeview Boulevard Condo. Ass’n v. Apt. Sales
Corp., 102 Wash. App. 599, 607-08, 9 P.3d 879 (2000), rev’d in part and remanded, 146
Wash. 2d 194, 43 P.3d 1233 (2002). The legislation or regulation must clearly express the
intent to identify and protect a particular class of persons; it may not be implied.
Ravenscroft v. Wash. Water Power Co., 136 Wash. 2d 911, 930, 969 P.2d 75 (1998). Where
the purpose of a statute or regulation is to protect the health, safety, and welfare of the
general public, and not a particular person or class, the exception is not applicable. Id.
11
No. 34606-4-III
Margitan v. Spokane Reg’l Health Dist.
RCW 43.20.050 is the statutory authority for WAC 246-272A-0210. The statute
expressly states the purpose of adopting water system rules is to “protect public health.”
RCW 43.20.050(2). Similarly, the rules identify the purpose for chapter 246-272A WAC:
(1) The purpose of this chapter is to protect the public health by
minimizing:
(a) The potential for public exposure to sewage from on-site sewage
systems; and
(b) Adverse effects to public health that discharges from on-site
sewage systems may have on ground and surface waters.
WAC 246-272A-0001. The Margitans do not point us to any language in the statutes or
regulations that contain an express intent to protect a particular class of persons.
The Margitans rely on two cases to support their argument that the legislative
intent exception applies. The first case is Halvorson v. Dahl, 89 Wash. 2d 673, 574 P.2d
1190 (1978). There, the plaintiff, an occupant of a building, was injured because the city
of Seattle was negligent in not enforcing its housing code. Id. at 675. The Halvorson
court analyzed the housing code’s declaration of purpose and found express language
evidencing a legislative intent to protect a particular class of persons. Id. at 676-77. The
declaration of purpose provided: “‘Such conditions and circumstances are dangerous and
a menace to the health, safety, morals or welfare of the occupants of such buildings and of
the public . . . .” Id. at 677 n.1 (emphasis added) (quoting Seattle Housing Code
12
No. 34606-4-III
Margitan v. Spokane Reg’l Health Dist.
§ 27.04.020). No such express language appears in the enabling statute or the regulations
at issue in this case.
The Margitans also cite Campbell v. City of Bellevue, 85 Wash. 2d 1, 530 P.2d 234
(1975). There, a person was electrocuted because the city of Bellevue’s electrical
inspector failed to sever faulty electrical equipment from the power source. Id. at 3-6.
Bellevue Municipal Code § 16.32.090 in effect at the time stated:
“In order to safeguard persons and property from the danger
incident to unsafe or improperly installed electrical equipment, the building
official shall immediately sever any unlawfully made connection of
electrical equipment to the electrical current if he finds that such severing is
essential to the maintenance of safety and the elimination of hazards.”
Id. at 5 (emphasis added). The Campbell court held that the city was liable because its
ordinance explicitly safeguarded people from the danger of unsafe electrical equipment
and required the inspector to sever the dangerous electrical connection. Id. at 13.
Campbell is distinguishable because there is nothing in the enabling statute or regulations
at issue in this case that explicitly safeguards people from the possibility of contaminated
water.
2. Exception 2: failure to enforce
This exception applies when all four elements are shown where: (1) governmental
agents are responsible for enforcing statutory requirements, (2) governmental agents
13
No. 34606-4-III
Margitan v. Spokane Reg’l Health Dist.
possess actual knowledge of a statutory violation, (3) governmental agents fail to take
corrective action despite a statutory duty to do so, and (4) the plaintiff is within the class
the statute intended to protect. Bailey v. Town of Forks, 108 Wash. 2d 262, 268, 737 P.2d
1257 (1987); Woods View II, 188 Wash. App. at 26. This exception is construed narrowly
to avoid dissuading governmental officials from carrying out public duties. Woods View
II, 188 Wash. App. at 26-27.
Here, the Margitans complain that SRHD failed to enforce WAC 246-272A-
0210’s five foot separation requirement between a drain field and an easement. We
disagree. SRHD enforced the separation requirement by requiring the Hannas to relocate
their drain field immediately if it appeared to SRHD that there was a public health risk,
or, if no such risk appeared to SRHD, after the Hannas completed their quiet title
litigation. The Margitans fail to point to any statute, regulation, or decisional authority
that required SRHD to take immediate enforcement action absent a public health risk.
3. Exception 4: special relationship
“A special relationship arises where (1) there is direct contact or privity between
the public official and the injured plaintiff which sets the latter apart from the general
public, and (2) there are express assurances given by a public official, which (3) gives rise
14
No. 34606-4-III
Margitan v. Spokane Reg’l Health Dist.
to justifiable reliance on the part of the plaintiff.” Taylor v. Stevens County, 111 Wash. 2d
159, 166, 759 P.2d 447 (1988).
Here, Mr. Holderby assured the Margitans that if the Hannas’ drain field was
within the easement, SRHD would promptly require the Hannas to relocate their drain
field. However, the Margitans did not rely on this assurance. The record is undisputed
that the Margitans purchased Parcel 3 and began remodeling the old house long before
Mr. Holderby gave the Margitans any assurances.
C. INTENTIONAL FAILURE TO ENFORCE WAC 246-272A-0210
The Margitans claim the trial court erred by determining there is no cause of action
for intentional failure to enforce chapter 246-272A WAC.
They first contend that RCW 4.96.010 creates a cause of action. We disagree. The
purpose of RCW 4.96.010 is to abolish sovereign immunity. Meaney v. Dodd, 111 Wash. 2d
174, 178, 759 P.2d 455 (1988). By adopting RCW 4.96.010, the legislature declared that
municipal corporations “shall be liable for damages arising out of their tortious conduct,
or the tortious conduct of their . . . officers . . . to the same extent as if they were a private
person or corporation.” RCW 4.96.010 does not create any new causes of action, imposes
no new duties, and brings into being no new liability; it merely removes the defense of
15
No. 34606-4-III
Margitan v. Spokane Reg’l Health Dist.
sovereign immunity. Garnett v. City of Bellevue, 59 Wash. App. 281, 285, 796 P.2d 782
(1990). This statute does not support the Margitans’ claim of a cause of action here.
But even if such a cause of action existed, SRHD did enforce the separation
requirements of WAC 246-272A-0210. SRHD took corrective action, including
obtaining a commitment from the Hannas that they would immediately relocate their
drain field if it appeared to SRHD that the drain field posed a public health risk.
D. INTENTIONAL INTERFERENCE WITH BUSINESS EXPECTANCY
The Margitans next contend the trial court erred by dismissing their claim for
intentional interference with business expectancy. We disagree.
“Washington has adopted the tort of interference with a business or economic
expectancy, which consists of five elements: (1) existence of a valid contractual
relationship or business expectancy, (2) defendants had knowledge of that relationship,
(3) intentional interference inducing or causing a breach or termination of the relationship
or expectancy, (4) defendants interfered for an improper purpose or used improper means,
and (5) resultant damage.” In re Estate of Lowe, 191 Wash. App. 216, 237, 361 P.3d 789
(2015) (internal quotation marks omitted).
The parties present argument on several elements, but we focus only on whether
SRHD interfered for an improper purpose or used improper means. In their briefing, the
16
No. 34606-4-III
Margitan v. Spokane Reg’l Health Dist.
Margitans do not argue that SRHD acted for an improper purpose. They instead focus on
improper means, contending that the agreement with the Hannas was an improper means
because SRHD should have ordered the Hannas to immediately remove the noncomplying
system. We disagree.
“[A] plaintiff in Washington may establish an improper means by . . . establishing
a set of facts that raises an inference that the defendant was motivated by considerations
outside the scope of the party’s obligations, such as greed, retaliation, ill will, a desire to
gain favor with others, [or] failing to act fairly and reasonably in its dealings with the
plaintiff, or acting arbitrarily and capriciously.” 16A DAVID K. DEWOLF & KELLER W.
ALLEN, WASHINGTON PRACTICE: TORT LAW AND PRACTICE: § 23:7 Prospective
Advantage—Overview at 256 (4th ed. 2013).
The Margitans contend that SRHD’s agreement with the Hannas was an improper
means of bringing the Hannas’ drain field into compliance with WAC 246-272A-0210.
We disagree. At the time when SRHD entered into the agreement with the Hannas, the
Margitans had not alerted SRHD that their water line might be within 10 feet of the drain
field. But even so, the agreement required the Hannas to immediately take corrective
action if it appeared to SRHD that the drain field posed a public health risk. The
17
No. 34606-4-111
Margitan v. Spokane Reg 'I Health Dist.
Margitans have presented no evidence that SRHD was motivated by considerations
outside of its obligations or failed to act fairly and reasonably.
E. SRHD's REQUEST FOR ATTORNEY FEES
SRHD argues that it is entitled to reasonable attorney fees and costs pursuant to
RCW 4.84.370. That statute authorizes an award of reasonable attorney fees and costs if
a party substantially prevails in a land use decision made by a county, city, or town, and is
the prevailing party before such agency and in all judicial proceedings.
RCW 4.84.3 70 does not apply to this action. The decision on appeal was not made
by a county, city, or town. Nor did the Margitans appeal from a land use decision.
Rather, the Margitans appealed from a summary dismissal of their negligence and
intentional tort claims.
Affirmed.
A majority of the panel has determined this opinion will not be printed in the
Washington Appellate Reports, but it will be filed for public record pursuant to
RCW 2.06.040.
L~ . . ., .,.. . c.-... ~'w\."'1 · c.. ~.
Lawrence-Berrey, C.J.
Pennell, J.
18