Historical Military Sales, Inc. v. City Of Lakewood ( 2015 )


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  •                                                                                                     FILED
    COURT OF APPEALS
    IN THE COURT OF APPEALS OF THE STATE OF WASHINGTOl '
    V I S f O N 11
    2015 MAR 3f     AM 13: 24
    DIVISION II
    STATE
    HISTORICAL                 MILITARY       SALES,      INC.                   No. 45615 -0 -II
    BY
    UBI: 602078140) and DAVID ROBINSON,
    Appellants,
    v.
    CITY OF LAKEWOOD,                                                   UNPUBLISHED OPINION
    Respondent.
    MELNICK, J. —          Historical Military Sales, Inc. and owner David Robinson ( collectively,
    HMS) sought review of the City of Lakewood' s revocation of HMS' s business license under the
    Administrative Procedures Act ( APA),            chapter   34. 05 RCW.   The trial court ruled that it lacked
    subject matter jurisdiction to consider the petition because HMS failed to timely serve Lakewood
    with a   copy   of   its   petition.   On appeal, HMS argues that the trial court erred by dismissing its
    petition for want of subject matter jurisdiction and by denying HMS' s motion to amend its petition
    to replace the APA claim with other claims. Because Lakewood is not a state agency to which the
    APA applies, the trial court properly dismissed this case without prejudice and without granting
    HMS' s motion to amend. We affirm and award Lakewood attorney fees on appeal.
    FACTS
    Following a joint investigation by local and military law enforcement agencies, an
    undercover officer sold military hardware to HMS that was otherwise unavailable for civilian use
    and marked as United States government property. This sale resulted in the execution of a search
    warrant at    HMS that       yielded significant amounts of contraband    military   materials.
    45615 -0 -II
    Lakewood revoked HMS' s business license, and HMS appealed that revocation to a city
    hearing   examiner.        Following two days of hearings, the hearing examiner upheld Lakewood' s
    revocation     decision.     The city clerk e- mailed the hearing examiner' s decision to the parties on
    August 5, 2013, and deposited the decision in the mail on August 7.
    On September 4, 2013, HMS filed a petition in Pierce County Superior Court seeking
    review of the hearing examiner' s decision, asserting that the court had jurisdiction over its petition
    under   the APA. HMS did            not serve   Lakewood   until   September 13, 2013. Lakewood moved to
    dismiss, arguing that HMS improperly invoked the court' s jurisdiction because the APA does not
    apply to municipal decisions and because HMS failed to timely serve its petition on Lakewood.
    On October 24, HMS moved for leave to amend its petition under CR 15 and to relate all claims
    back to the initial        filing   date.   Its proposed amendment deleted the APA claim and sought
    declaratory relief as well as statutory and constitutional writs of review.
    Following a hearing, the trial court granted Lakewood' s motion to dismiss, ruling that it
    lacked subject matter jurisdiction over the petition because HMS had not complied with the APA' s
    service   requirements.        The trial court denied the motion to amend as moot and dismissed the
    petition without prejudice.
    On appeal, HMS argues that the trial court erred by ruling that the failure to comply with
    the APA' s service requirements deprived the court of subject matter jurisdiction and that the court
    should have allowed HMS to file an amended petition that related back to the filing date of the
    initial petition.
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    45615 -0 -II
    ANALYSIS
    I.         SUBJECT MATTER JURISDICTION
    Jurisdiction is a question of law that we review de novo. City of Tacoma v. Mary Kay, Inc.,
    
    117 Wn. App. 111
    , 114, 
    70 P. 3d 144
     ( 2003).           Subject matter jurisdiction refers to a court' s ability
    to entertain a type of case. In re Marriage ofBuecking, 
    179 Wn.2d 438
    , 448, 
    316 P. 3d 999
     ( 2013),
    cert. denied, 
    135 S. Ct. 181
     ( 2014).
    Lakewood argued below that the trial court lacked subject matter jurisdiction over HMS' s
    petition   for   review   because the APA does         not   apply to     municipal   decisions. We agree. Because
    Lakewood is not a state agency that is subject to the APA, the trial court had no jurisdiction to
    consider HMS' s petition for review of the hearing officer' s decision. See Riggins v. Hous. Auth.
    of Seattle, 
    87 Wn.2d 97
    , 100, 
    549 P. 2d 480
     ( 1976) (                    legislature intended APA to apply only to
    government entities        involved in   statewide programs);            Plumbers & Steamfitters Union Local 598
    v.    Wash. Pub. Power       Supply Sys.,      
    44 Wn. App. 906
    , 911, 
    724 P. 2d 1030
     ( 1986) (    municipal
    corporation      is local agency to      which       APA does      not   apply).   We may sustain the trial court' s
    decision on any grounds within the pleadings and the proof. Cmty. Invs., Ltd. v. Safeway Stores,
    Inc., 
    36 Wn. App. 34
    , 38, 
    671 P. 2d 289
     ( 1983).               Accordingly, we affirm the trial court' s ruling that
    it lacked jurisdiction over HMS' s petition without addressing whether HMS timely complied with
    the APA service requirements.
    II.        AMENDMENT UNDER CR 15
    HMS argues that even without jurisdiction to consider the APA claim, the trial court should
    have allowed it to amend its petition under CR 15 by substituting new causes of action that related
    back to the APA       petition' s
    filing   date.    HMS' s amendments sought declaratory relief as well as
    statutory and constitutional writs of review.
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    45615 -0 -II
    CR 15( a) provides that a party may amend its pleading after a response is filed " only by
    leave of court or by written consent of the adverse party; and leave shall be freely given when
    justice   so requires."   An amendment relates back to the date of the original pleading when the
    claim asserted in the amended pleading " arose out of the conduct, transaction, or occurrence set
    forth   or attempted   to be   set   forth in the   original   pleading."    CR 15( c).
    Lakewood responds that without subject matter jurisdiction over. HMS' s initial APA
    pleading, the trial    court   had    no   jurisdiction to     consider   the   motion   to   amend   that pleading.   See
    Shoop v. Kittitas County,       
    149 Wn.2d 29
    , 35, 
    65 P. 3d 1194
     ( 2003) ( when court lacks subject matter
    jurisdiction, dismissal is only            permissible    action    court   may take).        Lakewood also questions
    whether CR 15 even applies under these circumstances.
    The civil rules are intended to apply only to civil actions invoking the general jurisdiction
    of the superior courts. Diehl v. W. Wash. Growth Mgmt. Hearings Bd., 
    153 Wn.2d 207
    , 216, 
    103 P. 3d 193
     ( 2004). Review of the APA invokes appellate and not general or original superior court
    jurisdiction. Diehl, 
    153 Wn.2d at 216
    .   In addition, the superior court civil rules are procedural
    rules that apply only after the action commences, and they do not purport to extend the subject
    matter jurisdiction of the court. Diehl, 
    153 Wn.2d at 216
    . Here, the APA action never commenced
    because the trial court never had jurisdiction over that action. CR 15 was not the means by which
    a different type of action could be initiated, nor the means by which a different type ofjurisdiction
    could be invoked.
    Where a party chooses an incorrect procedural vehicle to obtain review of a local
    administrative decision, its failure to comply with the procedural requirements of the correct
    vehicle merits dismissal of the action. Mary Kay, 117 Wn. App. at 115 -16. In Mary Kay, Tacoma
    appealed a hearing examiner' s decision to the superior court. 117 Wn. App. at 113. When Tacoma
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    45615 -0 -II
    proceeded with discovery, Mary Kay moved to dismiss or to bar discovery, arguing that the notice
    of appeal had invoked only appellate rather than original jurisdiction and that discovery was
    improper.      Mary Kay,   117 Wn.         App.    at   114.    The trial court denied the motion and ruled that
    Tacoma'    s appeal   had invoked its       original    jurisdiction     and permitted         discovery. Mary Kay, 117
    Wn. App. at 113 - 14.
    We reversed and held that Tacoma could invoke the superior court' s original jurisdiction
    only by filing a complaint or a writ. Mary Kay, 117 Wn. App. at 115 -16. As we explained further,
    Tacoma could have sought review either through a statutory writ under
    chapter 7. 16 RCW or by the court using its inherent power to review via a
    constitutional (common law) writ. But to secure a statutory writ of review, Tacoma
    would have had to comply with the applicable statutory requirements of chapter
    7. 16 RCW, which arguably it did not do here.
    Mary Kay,      117 Wn.   App.   at   116   n. 6.   Because Tacoma could not invoke original jurisdiction by
    filing a notice of appeal, dismissal was required. Mary Kay, 117 Wn. App. at 116.
    HMS did not comply with the applicable filing requirements in seeking declaratory relief
    or a statutory writ of review. The time limits for seeking such relief are short, with 30 days being
    typical. Clark County Pub. Util. Dist. No. 1 v. Wilkinson, 
    139 Wn.2d 840
    , 847 -48, 
    991 P. 2d 1161
    2000);    Summit -Waller Citizens Ass 'n v. Pierce County, 
    77 Wn. App. 384
    , 392, 
    895 P. 2d 405
    1995).     Constitutional writs have longer time limits, but any unreasonable delay in seeking a
    constitutional writ    bars its issuance.          Wilkinson, 
    139 Wn.2d at 848
    .   Moreover, a superior court
    may decline to issue a constitutional writ " if either a statutory writ or a direct appeal is available,
    unless    the appellant can show      good cause        for    not   using those   methods."      Birch Bay Trailer Sales
    v. Whatcom County, 
    65 Wn. App. 739
    , 746, 
    829 P. 2d 1109
     ( 1992).
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    45615 -0 -II
    HMS attempted to amend its petition for review well beyond any 30 -day time limit. The
    failure to meet these filing requirements does not appear to constitute good cause to consider the
    extraordinary remedy of a constitutional writ, but this issue is not yet ripe for review. See Coballes
    v.     Spokane   County,   
    167 Wn. App. 857
    ,      865,    
    274 P. 3d 1102
     ( 2012) (   both statutory and
    constitutional writs are   extraordinary       remedies   that   should   be   applied   sparingly).   Consequently,
    we affirm the trial court' s ruling that it lacked jurisdiction to consider this complaint as well as its
    refusal   to   allow   HMS to    amend   its   complaint under     CR 15.        Whether HMS may still seek a
    constitutional writ of review in an independent action is not now before us.
    III.      ATTORNEY FEES
    Lakewood requests an award of costs and attorney fees on appeal. RAP 18. 1 provides that
    we may award attorney fees on appeal where authorized by applicable law. Dan' s Trucking, Inc.
    v.   Kerr Contractors, Inc., 
    183 Wn. App. 133
    , 143, 
    332 P. 3d 1154
     ( 2014).            Lakewood makes its
    request under the following provision of the Lakewood Municipal Code:
    In addition to or as an alternative to any other penalty provided herein or by any
    other business license or regulation ordinance, the City shall be entitled to its costs
    and reasonable attorneys fees in any action to enforce the provisions of this Chapter
    or any other business license or regulation ordinance.
    LMC 5. 02. 230 ( citations      omitted).   We grant Lakewood' s request for reasonable attorney fees on
    appeal.
    We affirm.
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    45615 -0 -II
    A majority of the panel having determined that this opinion will not be printed in the
    Washington Appellate Reports, but will be filed for public record in accordance with RCW 2. 06. 040,
    it is so ordered.
    We concur:
    Worswick, P.J.
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