DO NOT CITE. SEE GR 14.1(a).
Court of Appeals Division I
State of Washington
Opinion Information Sheet
Docket Number: |
66401-8 |
Title of Case: |
Seattle-tacoma Internat'l. Taxi Assn., App. vs. Port Of Seattle, Et Al., Resps. |
File Date: |
06/11/2012 |
SOURCE OF APPEAL
----------------
Appeal from King County Superior Court |
Docket No: | 10-2-05263-1 |
Judgment or order under review |
Date filed: | 11/17/2010 |
Judge signing: | Honorable Steven C Gonzalez |
JUDGES
------
Authored by | C. Kenneth Grosse |
Concurring: | J. Robert Leach |
| Stephen J. Dwyer |
COUNSEL OF RECORD
-----------------
Counsel for Appellant(s) |
| Michael Alan Goldfarb |
| Kelley, Goldfarb, Gill, Huck Roth, PLLC |
| 700 5th Ave Ste 6100 |
| Seattle, WA, 98104-5061 |
|
| Christopher Michael Huck |
| Kelley, Donion, Gill, Huck & Goldfarb |
| 701 5th Ave Ste 6800 |
| Seattle, WA, 98104-7066 |
Counsel for Respondent(s) |
| Paul J. Lawrence |
| Pacifica Law Group LLP |
| 1191 2nd Ave Ste 2100 |
| Seattle, WA, 98101-2945 |
|
| Gregory J Wong |
| Pacifica Law Group LLP |
| 1191 2nd Ave Ste 2100 |
| Seattle, WA, 98101-2945 |
|
| Kymberly Kathryn Evanson |
| Pacifica Law Group LLP |
| 1191 2nd Ave Ste 2100 |
| Seattle, WA, 98101-2945 |
|
| Ronald Edward Beard |
| Lane Powell PC |
| 1420 5th Ave Ste 4100 |
| Seattle, WA, 98101-2338 |
|
| Matthew Ryan King |
| Law Offices of Matthew R King PLLC |
| 1420 5th Ave Ste 2200 |
| Seattle, WA, 98101-1346 |
|
| Scott Friedman |
| Attorney at Law |
| 2033 6th Ave Ste 800 |
| Seattle, WA, 98121-2567 |
|
| Liam Aneurin Mccann |
| Law Offices of Liam A McCann |
| 9805 Ne 116th St # 7198 |
| Kirkland, WA, 98034-4245 |
IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON
SEATTLE-TACOMA INTERNATIONAL )
TAXI ASSOCIATION, a Washington ) No. 66401-8-I
nonprofit association, )
) DIVISION ONE
Appellant, )
) UNPUBLISHED OPINION
v. )
)
PORT OF SEATTLE, a municipal )
corporation; AIRPORT JOINT VENTURE )
RESPONSE PARTNERSHIP, LLC, )
an unincorporated entity; CHECKER CAB )
OF SEATAC CORPORATION, a )
Washington corporation; PUGET SOUND )
DISPATCH, LLC, dba Yellow Taxi )
Association, a Washington limited liability )
company; and RAINIER DISPATCH, LLC, )
a Washington limited liability company, ) FILED: June 11, 2012
)
Respondents. )
Grosse, J. -- Disbursement of the proceeds of a supersedeas bond
obtained pending an appeal of an adverse judgment is appropriate when the
judgment is affirmed on appeal and evidence supports the damages awarded to
the party in whose favor the judgment originally lay. Here, the Port of Seattle
submitted sufficient proof of the damages it suffered as a result of the two-month
delay in implementing an exclusive contract for the airport taxi concession.
FACTS
Seattle-Tacoma International Taxi Association (STITA) brought suit
against the Port of Seattle (Port) and other taxi companies for declaratory and
injunctive relief, contending the request for proposal (RFP) under which the Port
No. 66401-8-I / 2
awarded the contract was illegal.1 STITA sought an injunction to prevent the
Port from entering into a five-year contract with Puget Sound Dispatch (Yellow
Cab) to provide on-demand taxi service at the airport. STITA had previously
been the Port's on-demand taxi service provider, but lost the contract after a
competitive public bidding process.
The trial court denied the restraining order on the ground that STITA had
waived any right to challenge the validity of the RFP when it submitted a
proposal. STITA filed an emergency motion for a stay, which a commissioner of
this court granted on February 22, 2010. On March 29, 2010, the commissioner
imposed a supersedeas bond on STITA in the amount of $144,000.00. In setting
the amount of the bond, the commissioner reviewed the briefing submitted by the
parties and assessed a potential loss of $4,800.00 per day as reasonable for a
period of 30 days. The matter was set to be heard on April 27, 2010.
This court issued an unpublished opinion upholding the trial court's ruling
denying STITA's preliminary injunction.2 This court lifted the stay 30 days
following the filing of the opinion on June 7, 2010, unless STITA filed a petition
for review in which case the stay would extend until the petition was rejected or
further order of the Supreme Court. On July 6, 2010, STITA filed a cross-
petition for review, which was denied by the Supreme Court on August 5, 2010.3
This court issued a mandate on September 24, 2010.
1 STITA filed its suit on January 29, 2010.
2 Seattle-Tacoma Int'l Taxi Ass'n v. Port of Seattle (STITA 1), noted at 156 Wn.
App. 1025, 2010 WL 2283621.
3 Seattle-Tacoma Int'l Taxi Ass'n v. Port of Seattle, 169 Wn.2d 1016, 236 P.3d
895 (2010).
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No. 66401-8-I / 3
Meanwhile, in July 2010, the Port extended STITA's contract which had
been scheduled to expire on August 31, 2010. Yellow Cab did not begin its
service until November 1, 2010, two months after the parties had originally
envisioned the start date.
The court granted the Port's motion to disburse the bond on October 1,
2010. Once the bond was disbursed, the Port made a "notice of presentation"
for judgment to be entered on October 5, 2010. STITA opposed the proposed
judgment and filed a motion for reconsideration of the trial court's decision to
disburse the bond.
The trial court entered judgment for the Port on October 12, 2010, and
denied STITA's motion for reconsideration on November 17, 2010. STITA timely
appeals.
ANALYSIS
Under RAP 8.1(d)(2), "[u]pon the filing of a supersedeas bond . . .
enforcement of a trial court decision against a party furnishing the bond . . . is
stayed." A trial court's decision to grant an injunction and decision regarding the
terms of the injunction are reviewed for an abuse of discretion.4 Similarly, the
amount of bond is reviewed for an abuse of discretion.5 It is therefore
appropriate to apply an abuse of discretion standard to our review of the trial
court's order disbursing those proceeds.6
4 Kucera v. State, Dep't of Transp., 140 Wn.2d 200, 209, 995 P.2d 63 (2000).
5 Jensen v. Torr, 44 Wn. App. 207, 212, 721 P.2d 992 (1986) (trial court's denial
of a request to raise a bond's amount is reviewed for an abuse of discretion).
6 Contempt sanctions are reviewed for abuse of discretion. See State v. Berty,
136 Wn. App. 74, 83, 147 P.3d 1004 (2006) (fines and sanctions imposed for
3
No. 66401-8-I / 4
The purpose of a supersedeas bond is to supersede judgment against a
party. Here, the trial court denied STITA's motion for injunctive relief. STITA
posted the bond pursuant to a ruling from a commissioner. The bond had the
effect of delaying the dismissal of STITA's claim, while at the same time
protecting the Port from any damages it might suffer as a result of its inability to
sign the contract in a timely fashion.7
STITA argues that the Port was not entitled to the proceeds of the bond
because the Port failed to show actual damages. But this is not true. Because
of the litigation, the Port extended its contract with STITA an additional two
months -- September and October 2010. Although the Supreme Court denied
review in August 2010, Yellow Cab needed additional time to ramp up its fleet to
take over the taxi cab concession from STITA. Under the Yellow Cab
agreement, the Port was entitled to a minimum annual guarantee of
$3,670,778.00, which was payable in equal monthly installments. Thus, had
Yellow Cab started its contract on time, the Port would have received a minimum
of $611,796.33 from Yellow Cab for those two months. The contract provided for
additional monies to be paid to the Port in the event the 13% percentage fee was
greater than the minimum annual guaranty paid to the Port. Thus, the monthly
installment payments were the absolute minimum the Port was guaranteed.
Based on 2009 figures, STITA's anticipated revenue would have resulted in
contempt are reviewed for abuse of discretion); Moreman v. Butcher, 126 Wn.2d
36, 40, 891 P.2d 725 (1995) (absent an abuse of discretion, an appellate court
will not disturb a trial court's contempt order).
7 Lampson Universal Rigging, Inc. v. Washington Pub. Power Supply Sys., 105
Wn.2d 376, 378-79, 715 P.2d 1131 (1986).
4
No. 66401-8-I / 5
payments to the Port of only $205,737.24, thus resulting in a loss of
$406,059.09.8
STITA's argument that the Port could have reduced its damages had it
immediately signed the contract with Yellow Cab is without merit. STITA argues
that the Port knew in August that the Supreme Court refused review and then it
could have required Yellow Cab to start servicing the airport in September as
originally planned under the RFP. However, this ignores one of the primary
reasons the Port issued the RFP so early in the process -- to enable the winning
bidder ample time (nine months) to ramp up its fleet to the Port's requirements.
The Port had envisioned a nine-month leeway and in fact, because of STITAs
litigation, was only able to grant a two-month leeway to Yellow Cab. STITA's
position is also weakened by the September 1, 2003 exclusive concession
agreement signed by the Port and STITA before the Supreme Court's denial of
the petition for review, which extended STITA's contract for a fixed two-month
period.
The trial court's disbursement of the bond proceeds is adequately
supported by the record. The damages are readily apparent and exceed the
proceeds of the bond. The trial court did not abuse its discretion.
STITA also argues that the trial court erred in not consolidating this matter
with Rainier Dispatch, LLC's (Rainier) action and/or in not staying this matter
until that action against the Port was resolved. This court reviews the denial of a
8 The 2010 figures for STITA were not available at the time the motion was filed,
but in fact would have shown a figure lower than the $205,737.24, and thus, the
Port's loss of revenue would be even greater had those 2010 figures applied.
5
No. 66401-8-I / 6
motion to consolidate for an abuse of discretion.9 STITA asserts that the issue
in Rainier was whether or not the Port's contract with Yellow Cab was ultra vires.
If it is found to be ultra vires, STITA contends that there can be no damages
because one cannot profit from a void contract. This argument, however,
ignores the fact that the issue in this matter had come to a full and complete
resolution with the Supreme Court's denial of the petition for review and our
mandate to the trial court.
STITA waived its claim against the illegality of the RFP by submitting a
proposal. In its unpublished opinion, this court noted that the basis of the trial
court's refusal to issue the injunction was the waiver issue.1 This court held that
the trial court did not abuse its discretion in denying the injunction. STITA now
argues that the underlying issues (which were waived) are somehow resurrected
if the court will permit it to amend its complaint or consolidate with another
action. The trial court did not abuse its discretion in denying the motion to
consolidate.
Lastly, STITA argues that the trial court erred in dismissing the complaint
because of the Port's use of a "notice of presentation" to dismiss the judgment.
The trial court entered the order pursuant to CR 54. CR 54(e) provides:
Preparation of Order or Judgment. The attorney of record for the
prevailing party shall prepare and present a proposed form of order or
judgment not later than 15 days after the entry of the verdict or decision,
or at any other time as the court may direct. Where the prevailing party is
represented by an attorney of record, no order or judgment may be
entered for the prevailing party unless presented or approved by the
9 Washington Citizen Action v. Office of Ins. Comm'r, 94 Wn. App. 64, 72, 971
P.2d 527 (1999).
1 STITA 1, 2010 WL 2283621, at *8.
6
No. 66401-8-I / 7
attorney of record. If both the prevailing party and his attorney of record
fail to prepare and present the form of order or judgment within the
prescribed time, any other party may do so, without the approval of the
attorney of record of the prevailing party upon notice of presentation as
provided in subsection (f)(2).
Subsection (f)(2) provides that opposing counsel be "given 5 days' notice
of presentation." This the Port did. STITA had notice of the presentation of the
dismissal judgment; it was afforded the opportunity to submit replies and
objections to the judgment, which it did. Furthermore, this judgment was entered
pursuant to a mandate from this court directing that the matter be dismissed in
accordance with the opinion issued in STITA 1.
Affirmed.
WE CONCUR:
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