HomeMy WebLinkAbout12-06-2024 - City's Reply Memo (Untimely Appeal) City Attorney’s Office Memorandum DATE: December 6, 2024 TO: Phil Olbrechts, Hearing Examiner (olbrechtslaw@gmail.com) CC: Cynthia Moya, City Clerk Specialist (cmoya@rentonwa.gov) Julie Pendleton, Counsel for Appellant Colt/Mt Olivet (pendleton@lasher.com) FROM: M. Patrice Kent (pkent@rentonwa.gov) SUBJECT: Reply to Response to Untimely Filing of Appeal (City of Renton Code Compliance Case # CODE 24-000261) Mr. Hearing Examiner, I represent the City of Renton Community and Economic Development Department, including the Code Compliance Division and its employees in the course of their assigned duties. The 4 Notices of Violation and the Email from Mr. Petzold referenced herein are attached to the email for ease of reference. In her Response dated October 3, 3024, Ms. Pendleton does not dispute that the Appeal filed on October 29, 2024 for a Notice of Violation dated May 6, 2024, (“May Violation”) was untimely. Counsel appears to consider opportunity for appeal of Renton Municipal Code (“RMC”) violation as the functional equivalent to a default judgment. Ms. Pendleton asserts that the untimely filing should be excused for equity reasons based on a good faith mistake of her office relating to “which attorney was handling the appeal.” She relies on the Division 2 unpublished Morrone v. Northwest Motorsport, Inc., 22 Wn.App.2d, 1002, 2022 WL 1468789 (2022) and in the Division 2 published VanderStoep v. Guthrie, 200 Wn.App. 500, 402 P3d 883 (2017). Each of these cases apply the 4-step analysis from White v. Holm, 73 Wn.2d 348, 352, 438 P.2d 581 (1968): MORRONE FACT COMPARISON A closer review of facts in Morrone shows it is clearly distinguishable from the code compliance case at issue here. Both Northwest Motorsport, Inc. (“NWMS”) and Mr. Colt/Mt. Olivet Cemetery Co., Inc. (together “Colt”) were untimely in their filing. At that point, the similarities end. NWMS had a corporate restructuring and change of management during the course of the case, which is not alleged here. The delay for NWMS was a matter of days rather than the Hearing Examiner: CODE 24-000261 (REPLY – Untimely Filing) Page 2 of 3 December 6, 2024 months for Colt. The counsel miscommunication for NWMS was what firm was representing the party, versus which attorney within the firm was representing Colt. In addition to the corporate restructuring, period of delay and the substance of counsel miscommunication, in the present case there were also three intervening notices of violation issued after the May Violation and before the Appeal was filed, on June 12, 2024 (“June Violation”) and on August 13, 2024 (“August Violation”) and on September 4, 2024 (“September Violation”). Each were substantially the same, consolidated under the same code compliance case referenced above and citing violation of the same Renton Municipal Code (“RMC”) section, RMC 4-4-130.D.2. In addition, following the issuance of the second notice of violation on July 2, 2024, Code Compliance Inspector Eric Petzold sent an email to Mr. Colt requesting contact. VANDERSTOEP FACT COMPARISON: VanderStoep is readily distinguishable from the instant case. In the insurance-related case, the adjuster claimed that she “never received notice of the lawsuit” (VanderStoep, at 511) and the Guthries also “properly notified American Family [insurance] and followed up on that notice” (VanderStoep, at 512, emphasis added). The court agreed to set aside the noneconomic damages. Here there is no claim that counsel did not receive notice, nor that Mr. Colt followed up despite the multiple notices and email communication noted above. At this point there are no noneconomic damages as the totality of corrective action is a fine. WHITE 4-STEP ANALYSIS: VanderStoep (at 516-517) quotes the standards for setting aside a default judgment as first laid out by the Washington State Supreme Court in White v. Holm, 73 Wn.2d 348, 352, 438 P.2d 581 (1968): . A party moving to vacate a default judgment must be prepared to show: (1) that there is substantial evidence supporting a prima facie defense; (2) that the failure to timely appear and answer was due to mistake, inadvertence, surprise, or excusable neglect; (3) that the defendant acted with due diligence after notice of the default judgment; and (4) that the plaintiff will not suffer a substantial hardship if the default judgment is vacated. Little v. King, 160 Wn.2d 696, 703-04, 161 P.3d 345 (2007). Factors (1) and (2) are "primary" and (3) and (4) are "secondary." (Id. At 704) Morrone (at 1014-15) describes the procedural analysis of setting aside a defauklt judgment as a matter of equity: Hearing Examiner: CODE 24-000261 (REPLY – Untimely Filing) Page 3 of 3 December 6, 2024 We determine whether default should be set aside as a matter of equity. VanderStoep, 200 Wn.App. at 517. Accordingly, when reviewing the trial court's decision to vacate default judgment, we assess whether that decision is just and equitable. Rush v. Blackburn, 190 Wn.App. 945, 956-57, 361 P.3d 217 (2015). "Our primary concern is whether justice is being done." VanderStoep, 200 Wn.App. at 517. What is equitable is determined from the specific facts of each case, and is not a fixed rule. Little, 160 Wn.2d at 703. CONCLUSIONS The fact patterns in Morrone and VanderSloep are readily distinguishable from the current code enforcement appeal. It appears to the City that Ms. Pendleton would have the Hearing Examiner overlook direction from Little, wherein a fact-specific analysis determines what is equitable and instead allow a general assertion of “counsel miscommunication” to provide an unwavering determination of equitable excuse. In this instance, it seems reasonable that three additional formal notices and a direct request for communication over a period of months should not, for the purposes of equity, be conflated with a single notice for a decision to which a party responded within days as occurred in Morrone. Nor should it be conflated with counsel arguably not receiving notice when the represented party then attempted to follow up with counsel. Establishing a precedent wherein a party appearing before the Hearing Examiner can merely assert “counsel miscommunication” without some reasonable bounds would have the effect of the rendering the City’s appellate deadlines virtually unenforceable. This could cause a substantial hardship on the City and development in the jurisdiction, particularly to the extent that both the City and developers rely on enforceable deadlines as final decisions for LUPA-related land use actions. The City urges the Hearing Examiner to dismiss the appeal as untimely.