Islanders' lawsuit filed, PUD says wrong court

Islanders' lawsuit filed, PUD says wrong court

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By Ted Escobar

Chronicle editor

CRESCENT BAR -  Visiting Crescent Bar on May 7, North Park resident Doug Caton sat down at his place for an update on the matter of lease extensions beyond the year 2012.

Caton, who was chosen as a spokesman for the entire island population last season, noted six residents-two from North Park, two from South Park, two from Crescent Bar Condos-filed a breech of contract lawsuit against the Grant County Public Utility District in federal court in Spokane late last year.

The six claimants and leaseholder attorneys are seeking a ruling that leaves the six in their homes at least until 2023 and, hopefully 2052. That would set a precedent that could be applied to the rest of the leaseholders, Caton said.

As expected, the PUD is fighting the action, Caton said. The PUD's first move was to file a motion with Judge Quackenbush to declare that the suit was filed in the wrong court. Quackenbush is expected to rule on June 3.

Caton said the PUD claims the case should be in a court of appeals. He added that if Quackenbush sides with the PUD, then the six plaintiffs will file again in an appeals court.

"We will do whatever we can do to keep the properties," Caton said.

Whether the PUD is correct or not, Caton said, the PUD's action is really a delaying tactic. He believes the PUD will do whatever it can to run the legal bill up for the claimants and run out their clock.

"They've got all the money," he said. 

According to Caton, six people were chosen to file the action in an effort to reduce cost and work. He referred to them as a sample of a population of 415 parties.

"Trying to litigate that many is a challenge," he said.

According to Caton, the lawsuit is based on provable promises the PUD made to the leaseholders. One is for an extension to 2023. It was signed by the PUD and is recorded in Grant County, Caton said.

"It was subject to FERC (Federal Energy Regulatory Commission) approval, which they never went after," he said.

The second promise extended leases to 2052, Caton said. It was made when the PUD was trying to stave off a takeover of the Wanapum and Priest Rapids Dams by the Yakama Nation and solicited the support of the lease holders. It also is provable, he said.

Caton expects the PUD to fight litigation and the lease holders to fight with them. But he said the lease holders are still hoping for a negotiated resolution. 

Caton said the lease holders stand by promises they made last year to pay about $1 million a year for the land. That would enable the PUD to make changes on the island that would be inviting to the public.

"I want to be clear we still want to negotiate a win-win situation," he said.