PUD's eminent domain ruling upheld

State Supreme Court agrees with PUD

OLYMPIA (AP) — As lawmakers consider a measure requiring property owners to be directly notified when their land is about to be condemned, a sharply divided state Supreme Court has upheld an eminent domain action against a real-estate investment and development company.

The court's 5-4 decision Thursday affirmed the Grant County Public Utility District gave proper notice for an eminent domain action against North American Foreign Trade Zone Industries, LLC.

The ruling comes as lawmakers are considering a measure to require local governments and public agencies to send certified letters to the affected parties when they are about to take property through eminent domain. It would also require publication of a notice of the decision-making meeting in the largest area newspaper. The bill passed the Senate Judiciary Committee and could come up for a full Senate vote today.

"Really what the case is, it's mirroring the public debate right now over the rights of property owners," said Frank Siderius, attorney for North American. "Our state Legislature is going to have to address this issue."

The utility's spokesman, Gary Garnant, said he could not comment on the ruling because of ongoing litigation.

The case before the high court was prompted by a lease agreement the utility had with North American in 2001 for 20 acres in Grant County. The land was to contain 20 diesel generators the PUD acquired because of concerns during an energy shortage about meeting the power needs of its customers.

There was no purchase option in the agreement, and after negotiations for purchase fell through, the utility moved forward with condemnation proceedings for 10 acres of the property. In setting up the meeting to discuss condemnation, the official notice sent to the public only referred to "Condemnation of Certain Real Property."

According to the ruling, the utility's executive secretary faxed the agenda for the meeting to local newspapers and radio stations, posted the agenda outside the commission's meeting room and sent copies to the commissioners and to district employees and people who requested it.

Siderius said he wasn't aware of any newspaper publishing the agenda, and said his clients were not aware of the meeting.

After the resolution passed, the utility filed a condemnation petition, at which point North American was served with a copy. The company moved to dismiss the petition, arguing adequate public notice was not provided.

But at a second hearing in December 2003, the first resolution was ratified.

"The constitutionally limited eminent domain power and important due process safeguards of our constitution are again disregarded," Justice Jim Johnson wrote in dissent. "The constitutional right to own property and the public right to notice of governmental action loses again."

Some lawmakers said Thursday's ruling showed that the court would continue to rule against landowners.

House Majority Leader Lynn Kessler, D-Hoquiam and sponsor of a companion bill in the House, agreed.

"It goes against at least the spirit of how we ought to go about eminent domain," she said. "It's more important now than ever to get this bill passed."