Lewis County v. State Of Washington ( 2013 )

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2013 DEC 17 AM S. 4 9
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IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON
DIVISION II
LEWIS COUNTY, I No. 43790 -2 -II
Appellant,
V.
STATE OF WASHINGTON, I PUBLISHED OPINION
JOHANSON, J. — Lewis County appeals the trial court' s order dismissing its declaratory
judgment action without prejudice. The County argues that the trial court erred in dismissing its
case because ( 1) it meets all four justiciable controversy elements under the " Uniform
Declaratory Judgments Act" ( UDJA), chapter 7. 24 RCW; and ( 2) in the alternative, it is a case of
major public importance. We affirm because the trial court did not abuse its discretion in
dismissing the County' s case which neither meets the justiciable controversy elements nor
presents an issue of major public importance.
FACTS
In October 2011, the County sought judgment declaring that the State, and not the
County, bears civil liability for the official acts of Lewis County Superior Court judges,
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commissioners, juvenile court and juvenile detention staff, and other officers and employees
hereinafter " the Judicial Branch "). The County alleged that from time to time, parties bring
proceedings against it claiming money damages and other relief due to acts of the Judicial
Branch. In the past, the County was liable for such money damages, and the County sought a
declaration that all future successful similar disputes be the State' s financial responsibility. The
County alleged that this case presented a question of great public importance to each of
Washington' s counties and to all people of Washington. The State responded that the County' s
case did not present a justiciable claim under the UDJA and alleged that the trial court lacked
jurisdiction to hear the case.
The County then filed several declarations that explained how the superior court judges
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had handled proceedings involving the Judicial Branch in the past. One declaration was from
Vyrle Hill, Executive Director of the Washington Counties Risk Pool ( " Risk Pool "), the
County' s insurance provider. Hill' s declaration listed the claims and lawsuits submitted to the
Risk Pool from 2000 through 2011 relating to actions of the Judicial Branch.
The State filed a motion for judgment on the pleadings under CR 12( c) and claimed lack
of subject matter jurisdiction under CR 12( b)( 1). The State argued that the judgment the County
1 The chief civil deputy of the prosecuting attorney' s office filed a declaration explaining that
when legal or administrative actions involving the Judicial Branch had arisen in the past, that the
judges would decide whether to use the prosecutor' s attorneys or private. practice defense
attorneys to handle the action. The County' s human resources administrator filed a declaration
explaining that the judges did not regularly ask him for human resource advice, did not have
their own human resources specialist, and did not contract with an outside human resources
specialist. A County commissioner filed a declaration explaining that the judges made their own
employment decisions and that the commissioners could offer advice but could not adopt any
policies to reduce civil liability for the Judicial Branch.
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sought would reverse 123 years of established law and practice by relieving the County of all
liability for the official acts of the Judicial Branch, and that this practice would be more proper
for the legislature, not the court, to change if it desired. The State also argued that the court
should dismiss the County' s complaint because it asked the court to speculate about hypothetical
fact patterns that may never arise, had not pleaded a justiciable controversy under the UDJA, and
had not joined necessary parties. In response, the County argued that the State should be
financially responsible for the Judicial Branch because the County is unable to control or direct
the Judicial Branch' s conduct, that its claim met all the UDJA' s justiciability elements, that all
necessary parties were joined, and that its complaint presented a significant and continuing
matter of public importance.2
The trial court granted the State' s motion to dismiss and ordered judgment on the
pleadings. After quoting the elements for a justiciable controversy, the court ruled that judgment
for the State was appropriate because ( 1) the County did not present "`` an actual, present, and
existing dispute, "' quoting Walker v. Munro, 124 Wash. 2d 402, 411, 879 P.2d 920 ( 1994); ( 2) the
County did not present interests that were direct and substantial; and ( 3) there was no tort claim
pending against the County. The court also ruled that the County' s case did not present an issue
of major public importance and dismissed the County' s complaint without prejudice. The
County appeals.
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The County supported its response with a declaration from the County' s risk and safety
administrator, who explained that the Risk Pool decides whether to settle or defend claims and
that if the County disagreed with the Risk Pool' s decision, the County could lose its insurance
coverage.
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ANALYSIS
1. STANDARD OF REVIEW
A court will refuse to consider a declaratory judgment action when it determines that the
plaintiff has not presented a judiciable controversy and has not presented an issue of major
public importance. Nollette v. Christianson, 115 Wash. 2d 594, 598, 800 P.2d 359 ( 1990); Kitsap
County v. Smith, 143 Wash. App. 893, 902, 180 P.3d 834, review denied, 164 Wash. 2d 1036 ( 2008).
We review a trial court' s refusal to consider a declaratory judgment action for an abuse of
discretion. Nollette, 115 Wash. 2d at 599; Kitsap County, 143 Wn. App. at 902. A trial court
abuses its discretion when its decision is manifestly unreasonable or based on untenable grounds.
Kitsap County, 143 Wash. App. at 902.
A court' s decision is manifestly unreasonable if it is outside the range of
acceptable choices, given the facts and the applicable legal standard; it is based on
untenable grounds if the factual findings are unsupported by the record; it is based
on untenable reasons if it is based on an incorrect standard or the facts do not
meet the requirements of the correct standard."
Kitsap County, 143 Wash. App. at 902 ( quoting Lu v. King County, 110 Wash. App. 92, 99, 38 P.3d
1040 ( 2002)).
Here, the trial court refused to consider the declaratory judgment action because the
County had failed to present a justiciable controversy and did not present an issue of major
public importance. Thus, we must determine whether it abused its discretion in doing so.
II. DISCUSSION
Courts have the "`` power to declare rights, status and other legal relations "' by declaratory
judgment. League of Educ. Voters v. State, 176 Wash. 2d 808, 816, 295 P.3d 743 ( 2013) ( quoting
RCW 7. 24. 010). For a trial court to render a declaratory judgment under the UDJA, there must
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be a justiciable controversy, unless the case presents an issue of major public importance. Wash.
State Republican Party v. Wash. State Pub. Disclosure Comm' n, 141 Wash. 2d 245, 284, 4 P.3d
808 ( 2000). We agree with the trial court that the County presented neither type of qualifying
issue here.
A. Justiciable Controversy
A justiciable controversy is
1) ... an actual, present and existing dispute, or the mature seeds of one, as
distinguished from a possible, dormant, hypothetical, speculative, or moot
disagreement, ( 2) between parties having genuine and opposing interests, ( 3)
which involves interests that must be direct and substantial, rather than potential,
theoretical, abstract or academic, and ( 4) a judicial determination of which will be
final and conclusive."
Republican Party, 141 Wash. 2d at 284 ( quoting Wash. State Coal. for the Homeless v. Dep' t of
Soc. & Health Servs., 133 Wash. 2d 894, 917, 949 P.2d 1291 ( 1997)). Each of these four elements
must be met, otherwise the court " steps into the prohibited area of advisory opinions."
Diversified Indus. Dev. Corp. v. Ripley, 82 Wash. 2d 811, 815, 514 P.2d 137 ( 1973).
Addressing the first justiciability element, the County argues that its case presents an
actual, present and existing dispute, or the mature seeds of one" because of the frequency and
regularity with which damage claims against the officers and employees of all 39 Washington
superior courts arise. Republican Party, 141 Wash. 2d at 284. The State argues that the County' s
case presents only a speculative or moot disagreement because the County did not currently have
any individuals suing or even making a demand on the County for tortious conduct of any of the
Judicial Branch. The State is correct. The County makes bare assertions but does not cite
similar cases that would show that its case presents an actual, present, and existing dispute or
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even the mature seeds of such a dispute. Thus the County gives us no basis to hold that the trial
court abused its discretion.
Furthermore, as the State points out, this case is very similar to Diversified Industries
where our Supreme Court held that the first justiciability element had not been met. 82 Wash. 2d
815. In Diversified Industries, a lessor brought a declaratory judgment action against residential
unit lessees and their liability insurer, asking the court to declare who would be financially
responsible for accidents or injuries to a social guest on the lessees' premises. 82 Wash. 2d at 812.
For the first justiciability element, the Supreme Court held that until the claim for financial
responsibility from the social guest became " something more discernible than an unpredictable
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contingency," the case was a hypothetical or speculative dispute. Diversified Indus., 82 Wash. 2d
at 815. Therefore, the court reversed the trial court' s declaratory judgment and dismissed the
case without prejudice. Diversified Indus., 82 Wash. 2d at 815. Here, the County presents a similar
hypothetical or speculative dispute and simply cannot show that the first justiciability element is
met.4
Addressing the third justiciability element, the County argues that the amount of money
at stake in the future creates a direct and substantial interest here, citing Hill' s declaration listing
the claims and lawsuits submitted to the Risk Pool from 2000 through 2011, and citing Health &
3 The court also discussed the fourth justiciability element and explained that because the
legislature had just recently made changes to the tenant laws,
landlord - other intervening
developments in the field could easily have an effect on any interpretation that the declaratory
judgment might provide. Diversified Indus., 82 Wash. 2d at 815.
4 Because the County must establish all four elements to demonstrate a justiciable controversy
the failure to establish any one element is fatal to its claim. Nonetheless, we exercise our
discretion to address the third justiciability element as well.
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Hospital Corp. of Marion County v. Marion County, 470 N.E.2d 1348, 1353 ( Ind. App. 1984).
But the County' s sole citation to Health & Hospital Corp. is not persuasive. First, Health &
Hospital Corp. is a nonbinding opinion from another state in which the court did not apply the
same justiciable controversy test that we apply in Washington, and second, the amounts at issue
were much higher than the amounts claimed here. 470 N.E.2d at 1353. In Health & Hospital
Corp., nearly one million dollars was at issue for the year 1978, and over one million dollars was
at issue for each of the years 1979, 1980, and 1981. 470 N.E.2d at 1353. Here, as the State
points out, the amount of money at issue is far lower. According to the County' s own
declarations, past claims against the Judicial Branch average less than $ 17, 000 a year— nowhere
near the one million dollars that created a substantial interest in Health & Hospital Corp. The
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County' s arguments and cited authority are unpersuasive.
As in Diversified Industries, the County presents a question of an unpredictable
contingency because the County' s action did not include facts of any financial liability claim that
it presently faced. 82 Wash. 2d at 815. The County does not cite any cases where aggregation of
several past claims have been sufficient to create an " actual, present and existing dispute, or the
mature seeds of one." Republican Party, 141 Wash. 2d at 284. And we do not agree that the trial
court abused its discretion in refusing to find that the amount of money at issue here creates
direct and substantial" interests. Republican Party, 141 Wash. 2d at 284. We hold that the County
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Additionally, the County cites several more out -of-state cases to support its argument that state
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constitutional issues are well suited for declaratory judgments. But for a court to reach these
grounds, it must first find that the justiciability elements are met and here the County cannot
overcome this hurdle. The County fails to explain how its case resembles the cited cases, why
established Washington case law is insufficient, or how the court abused its discretion in ruling
that the justiciability elements were not met.
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failed to meet its burden of showing that the trial court abused its discretion in concluding that
the County failed to meet the four justiciability elements and, thus failed to present a justiciable
controversy.
B. Major Public Importance Exception
Alternatively, the County argues that if we determine that the justiciability elements were
not met, we should hold that declaratory judgment would have been proper because it presents an
issue of major public importance regarding the constitutional status of the Judicial Branch in the
context of tort or contract litigation. We disagree.
If the four justiciability elements are not met, a court may still enter declaratory judgment
if the issue is one of major public importance. Republican Party, 141 Wash. 2d at 284. Whether an
issue is one of major public importance depends on " the extent to which public interest would be
enhanced by reviewing the case." Snohomish County v. Anderson, 124 Wash. 2d 834, 841, 881
P.2d 240 ( 1994) ( emphasis omitted). Courts will apply the major public importance exception
only in rare cases where the public' s interest is overwhelming and the issue has been adequately
briefed and argued. To -Ro Trade Shows v. Collins, 144 Wash. 2d 403, 416, 27 P.3d 1149 ( 2001),
cent. denied, 535 U.S. 931 ( 2002). For the exception to apply, the dispute must also be ripe.
League of Educ. Voters, 176 Wash. 2d at 820. Whether a claim is ripe depends on whether the
issues raised are " primarily legal, and do not require further factual development, and if the
challenged action is final." dafar v. Webb, 177 Wash. 2d 520, 525, 303 P.3d 1042 ( 2013). If a
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claim is speculative and hypothetical, it is not ripe. Diversified Indus., 82 Wash. 2d at 815. We
also consider the hardship to the parties of withholding court consideration. Jafar, 177 Wash. 2d at
525.
The County asserts that its case is ripe, arguing that because the state' s 39 counties spend
hundreds of thousands of dollars each year on such claims, its case " surely shows that the present
action relates to anything but a hypothetical or speculative matter." Br. of Appellant at 17 -18.
But even if we agreed that the County' s claim was ripe for review, the County fails to show that
the public' s interest is overwhelming.
The County does not compare its case to other cases where the major public importance
exception has applied. Washington courts have applied this exception in cases involving, for
example, eligibility to stand for public office, freedom of choice in elections, and the
constitutionality of excise taxes. Coal. for the Homeless, 133 Wash. 2d at 917. Clearly issues
involving elections, public office, and constitutionality of taxes affect every citizen in the State,
while the County' s case here really affects only the corresponding budgets of the County and the
State. A declaratory judgment here ultimately would not even directly affect citizens who bring
claims against the Judicial Branch because the only issue presented is who is financially
responsible: the County or the State.
We hold that the trial court did not abuse its discretion in ruling that the County' s case
does not present an issue of major public importance.
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We affirm.
Johanson, J.
We concur:
a
xuntJ.
Worswick, C. J.
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