# Petition for Writ of Certiorari — Star Northwest, Inc. v. City of Kenmore, Washington (No. 08-1247)

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Petition for Writ of Certiorari
- **Published:** January 1, 2009

## Text

Supreme Court, U.S.
FILED

ioe
f a
\i? Tins 081247 APRT - 2009

OFFICE OF THE CLERK
IN THE

Supreme Court of the United States

STAR NORTHWEST, INC., a Washington corporation d/b/a
Kenmore Lanes and 11'" Frame Restaurant & Lounge,
Petitioner,
Vv.

CITY OF KENMORE, a Washington municipal corporation,
and KENMORE CITY COUNCIL, the legislative body
of the City of Kenmore,

Respondents.

ON PETITION FOR A WRIT OF CERTIORARI TO THE
UNITED STATES Court OF APPEALS
FOR THE NINTH CIRCUIT

PETITION FOR A WRIT OF CERTIORARI

Patt J. DayTon
Counsel of Record

LESLIE C. CLARK

SHORT CRESSMAN & BuRGESS PLLC
999 Third Avenue, Suite 3000
Seattle, WA 98104
(206) 682-3333

Counsel for Petitioner

i
QUESTION PRESENTED

Star Northwest, Inc. d/b/a Kenmore Lanes and 11"
Frame Restaurant & Lounge (“Kenmore Lanes”)
operates a bowling alley, restaurant and card room in
Kenmore, King County, Washington that has done
business in Kenmore for more than 30 years. Its card
room, the sole card room in Kenmore, has been
continually licensed by the State of Washington since
1974. In December 2005, the Kenmore City Council
adopted an ordinance banning the operation of social
card rooms in the City of Kenmore. The ordinance did
not grant Kenmore Lanes any amortization period in
which it might recoup its capital investments by
permitting its operation as a nonconforming use.
Instead, it provided that the ordinance would become
effective in 10 days. The record below indicates that
without the revenues from the card rooim, the entire
business is not profitable and would be forced to close.
The district court and Ninth Circuit have rejected
Kenmore Lanes’ Fourteenth Amendment based
substantive due process challenge to the ordinance. The
question presented is

Whether the United States Court of Appeals for the
Ninth Circuit erred in concluding that the Kenmore,
Washington ordinance satisfied Fourteenth Amendment
substantive due process requirements, in direct conflict
with the Washington Supreme Court’s opinion that the
Fourteenth Amendment requires that when local
governments “terminate nonconforming uses . . . they
are constitutionally required to provide a reasonable
amortization period.” Rhod-A-Zalea v. Snohomish
County, 1386 Wash. 2d 1, 10, 959 P2d 1024, 1029 (1998)
(citation omitted).

ii

PARTIES TO THE PROCEEDING
AND RULE 29.6 STATEMENT

The caption contains the names of all parties to the
proceeding below.

Star Northwest, Inc., d/b/a Kenmore Lanes and 11"
Frame Restaurant & Lounge, a Washington corporation,
has no parent, and no publicly held company owns 10%
or more of the corporation’s stock.

iil

TABLE OF CONTENTS

Page
QUESTION PRESENTED .................. 1
PARTIES TO THE PROCEEDING AND
RULE 29.6 STATEMENT ............0... ii
py OS hey i 9 ili
TABLE OF APPENDICES .................. Vv
TABLE OF CITED AUTHORITIES ......... vi
Co ee re ]
CONSTITUTIONAL PROVISION INVOLVED
STATEMENT OF THE CASE ............... 2

OO

eesnoeoeseeeeeveeeeeeveeeveveeeweeeeeeeeereeeeeeeeeet ee @ @

I. The Washington Supreme Court Has
Held that a Business Owner Has a Federal
Substantive Due Process Right to an
Amortization Period on Termination of a
Legal Nonconforming Use, and Its
Conclusion Is Consistent with Decisions
eR go ae 9

iv

Contents

Page

II. The Ninth Circuit Did Not Square Its
Federal Substantive Due Process
Analysis with the Decisions of the
Washington Supreme Court or Those of
Go Is Si ease neue keeecenes 16

III. The Ninth Circuit’s Rejection of Kenmore
Lanes’ Fourteenth Amendment Substantive
Due Process Clause Conflicts with this
Court’s Jurisprudence. ................ 18

en EE oe es cea ewe Fane Kes 24

TABLE OF APPENDICES

Appendix A — Amendment And Order Of The
United States Court Of Appeals For The Ninth
Circuit Denying Petition For Rehearing Filed
I ov i bsg ke v6 0 RRO SS AOR RE

Appendix B — Memorandum Of The United
States Court Of Appeals For The Ninth
Circuit Filed May 26, 2006 oo ccccisccccnces

Appendix C — Corrected Order On Motion For
Summary Judgment Of The United States
District Court For The Western District Of
Washington At Seattle Dated August 10, 2006

eoses@¢@oaeveeec eae Ceezpeoespeaeee see OQ@aetceaeeeeoe*ae taeewene 6 6666 66

Appendix D — City Of Kenmore, Washington
Ordinance Adopted December 19, 2005 .....

Page

vi

TABLE OF CITED AUTHORITIES

Page

Cases
Agins v. City of Tiburon,

447 U.S. 255 (1980) ...... Pe ee re 19
Armendanz v. Penman,

70 foe tek Coen UF, 1096) 2... ccc ccc cece 18
Austin v. Older,

283 Mich. 667, 278 N.W. 727 (1988) ......... 11
Bateson v. Geisse,

S57 F.2a 1300 (9th Cir. 1988) .............5. 22
City of Akron v. Chapman,

160 Ohio St. 382, 52 Ohio Op. 242,

fog SAL oe. ll
City of Seattle v. Martin,

54 Wash. 2d 541, 342 P2d 602 (1959) ........ 13
City of University Place v. McGuire,

144 Wash. 2d 640, 30 P3d 453 (2001) ........ 13
Commonwealth v. Hashem,

526 Pa. 199, 589 A.2d 1378 (1991) ........... 10

County of Sacramento v. Lewis,

ge Eg ee 19, 20, 21

vil

Cited Authorities
Page
Crown Point Dev., Inc. v. City of Sun Valley,
506 F.3d 851 (9th Cir. 2007) ................ 18
Del Monte Dunes at Monterey, Ltd.
v. City of Monterey,
920 F.2d 1496 (9th Cir, 1990) ..........0000- 21-22
Dent v. West Virginia,
SO Sees AE 5.5 64 ona bee ee eeea aes 19, 21
Dock Watch Hollow Quarry Pit, Inc.
v. Township of Warren,
142 N.J. Super. 103, 361 A.2d 12 (1976) ..... 14
Ebel v. City of Corona,
767 F.2d 635 (Oth Cir. 1985) .........ccccee, 1]
Goldblatt v. Town of Hempstead,
OW ads PAD hoa 6 ok on win sae kde seas 14

Grant v. Mayor and City Council of Baltimore,
212 Md. 301, 129 A.2d 363 (1957) .......... 11, 14

Griswold v. Connecticut,
Pe Bee Oe CR nv cee hese coer es evcties 21

Harris v. Mayor and City Council of Baltimore,
35 Md. App. 572, 371 A.2d 706 (1977) ....... 15

Hoffman v. Kinealy,
S89 S.W2d 745 (Mo. 1965) ........cccceees 1]

Vili

Cited Authorities
Page

Incorporated Village of Brookville

v. Paulgene Realty Corp.,

24 Misc. 2d 790, 200 N.Y.S.2d 126 (1960) .... 14
League to Save Lake Tahoe v. Crystal Enters.,

685 F.:2d 1142 (9th Cir. 1982) ............5.%. 11
Lee & Eastes v. Pub. Serv. Comm’n,

52 Wash. 2d 701, 328 P2d 700 (1958) ........ 12
Lingle v. Chevron U.S.A. Inc.,

644 U:S. 528 (2005) ..........4.. 16, 17, 18, 19, 20
Lucas v. S.C. Coastal Council,

Cte SE CEE) csc vecvcesnencers 12, 22, 23
Matter of Toys “R” Us. v. Silva,

89 N.Y.2d 411, 654 N.Y.S2d 100,

676 N.E. 2d 862, 865 (1996) ................ 15
Memphis Light, Gas & Water Div. v. Craft,

NE sie 10s beak be kx 23
Miller & Son Paving, Inc.

v. Wrightstown Township,

42 Pa. Commw. 458, 401 A.2d 392 (1979) ..... 14

N. Pacifica LLC v. City of Pacific,
626 F.3d 478 (9th Cir. 2008) ........ccccees 18-19

Ix

Cited Authorities
Page
Northend Cinema, Inc. v. City of Seattle,
90 Wash. 2d 709, 585 P2d 1153 (1978) ....... 1]
People v. Miller,
304 N.Y. 105, 106 N.E.2d 34 (1952) ......... 14

Rhod-A-Zalea v. Snohomish County,
136 Wash. 2d 1, 10, 959 P2d 1024 (1998) ... passam

Shanks v. Dressel,
540 F.3d 1082 (9th Cir. 2008) ............... 20

State ex. rel. Miller v. Cain,
40 Wash. 2d 216, 242 P2d 505 (1952) .... 11, 12,18

State ex rel. Ogden v. Bellevue,
45 Wash. 2d 492, 275 P2d 899 (1954) ........ 12

State v. Thomasson,
378 P2d 441 (Wash. 1963)............ 7, 11, 12, 2

Town of Castle Rock, Colorado v. Gonzales,
oGU.S. 748 GDG) 33 Sa. ss - Esorewnnas 22, 23

Township of Orion v. Weber,
83 Mich. App. 712, 269 N.W.2d 275 (1978) ... 14

Watanabe v. City of Phoenix,
140 Ariz. 575, 683 P2d 1177
Chris. C2. App. SRR) oss... bis. ate ie oe 14

Cited Authorities

Page

Wolff v. McDonnell,

CS Ct 7! ) 19
Wolverine Sign Works

v. City of Bloomfield Hills,

279 Mich. 205, 271 N.W. 823 (1987) ......... 14
Constitutional Provisions
Fourteenth Amendment to the

United States Constitution .............. passim
Statutes
MEAD gn icecectecdenaccccsecess l
Rules
Supreme Court Rule 10(a) ................... 9
a wea dks secu a ane ewes 6, 7
Other Authorities

1 Kenneth H. Young, Anderson’s American Law
of Zoning, § 6.04 at 489 (4th ed. 1995) ...... 10

4A Norman Williams Jr., American Land
Planning Law, at 225 (rev. vol. 1986) ...... 10, 11

SA McQuillin, Municipal Corporations, § 25.90
UE MED cick cae civcs cs suiseieecs 10

]

Petitioner Star Northwest, Inc. d/b/a Kenmore
Lanes and 11" Frame Restaurant & Lounge (“Kenmore
Lanes”) respectfully submits this Petition for a Writ of
Certiorari to review the judgment of the United States
Court of Appeals for the Ninth Circuit.

OPINIONS BELOW

The Ninth Circuit issued a Memorandum decision
on May 28, 2008. Appendix (hereinafter “App.”), infra,
8a-12a. On Appellant’s Petition for Panel Rehearing, on
January 7, 2009, the panel issued an order amending
its May 28, 2008 Memorandum. App., infra, la-2a.
Neither the Memorandum nor the Order is published.
The judgment of the district court (App., infra, 13a-
23a) is not published. The jurisdiction of this Court is
invoked under 28 U.S.C. § 1254(1).

CONSTITUTIONAL PROVISION INVOLVED

The Fourteenth Amendment to the United States
Constitution provides in relevant part:

{[NJor shall any State deprive ahy person of
life, liberty, or property, without due process
of law.

2
STATEMENT OF THE CASE

Kenmore Lanes is a community-oriented business
featuring a bowling alley, restaurant, bar, and card room
in Kenmore, King County, Washington (the “City”). It is
the City’s largest private employer with approximately
220 full-time and part-time employees. Kenmore Lanes’
bowling alley has been in continuous operation at the
same location since 1958. Its 11° Frame card room has
been operating continuously under license from the
Washington State Gambling Commission at that location
since approximately 1974. No other card rooms operate
in the City.

Prior to acting to ban social card rooms, the City
was apparently not concerned with any impact of
gambling at Kenmore Lanes. It did not undertake any
investigation of the impact of card room operations in
the community. Nor were council members aware of any
evidence that card rooms had been the source of unusual
criminal activity in Kenmore or that they caused injury
to surrounding communities.

To the contrary, there is widespread community
acceptance of gambling in Kenmore, King County and
the state of Washington. State-authorized gambling
activities are ubiquitous in Kenmore, a city of more
than 18,000, and other King County communities.
Washington Lottery tickets and pull tabs are sold
throughout the City and across King County. Charitable
poker games in which participants take half the pot are
sponsored by local grocery stores. Card rooms operate
at 48 locations in King County.

3

In 2005, the City Council held hearings on the
question of whether it.would adopt a ban on social card
room operations in the City of Kenmore. The City
Council knew that banning card rooms would cause
financial injury to the owner of Kenmore Lanes, but did
not investigate whether closing the card room would
force closure of the bowling alley and the restaurant. It
did not investigate how many employees worked at
Kenmore Lanes and how many would lose their jobs if
card rooms were banned.

The City Council did know that it had the option of
banning all card rooms, but delaying the effective date.
Based on an email from the City Manager and a
statement by the City Attorney at a public meeting, the
City Council knew that the City Attorney had opined
that “the council could adopt a ban on card rooms
effective at a future date.” That strategy would, in effect,
give Kenmore Lanes an amortization period in which to
recoup the value of the business that would be lost. The
City Council did not do that.

At a December 19, 2005, Kenmore City Council
meeting, the City circulated a draft ordinance to ban
gambling. As circulated, the draft ordinance would have
allowed Kenmore Lanes to remain in business through
2006. The last sentence of Section 1 of the ordinance
stated this result as follows:

Nothing in this ordinance shall be construed
to prohibit the continued operation of any
licensed social card game during the
remainder of the current term of any license
issued by the State Gambling Commission for
any such social card game.

4

The then-current term of Kenmore Lanes’ card
room license ran through December 31, 2006. Thus, as
recommended to the Kenmore City Council, the draft
ordinance gave Kenmore Lanes (and the employees) 2
year’s notice of the intended closing.

After closing the public hearing on the draft
ordinance to ban gambling at the December 19, 2005
meeting, one of the council members moved to delete
the last sentence of Section 1, intentionally denying
Kenmore Lanes its right to operate for the duration of
its current license. The motion passed and modified
Section 1 of the ordinance as follows:

Pursuant to RCW 9.46.295, “social card
games,” as that term is defined in RCW
9.46.0282 as now in effect or may subsequently
be amended, are prohibited within the City of
Kenmore. Social card games shall not be
permitted, maintained or operated as a
commercial stimulant for the operation of any
business primarily engaged in the selling of
food or drink for consumption on the
premises, nor for any other reason or under
any other circumstances. Nothing in this
ordinance shall be construed to otherwise
change the scope of any current license issued
by the State Gambling Commission. Nethitge
in-this-ordinance-shatt be construed to

5

The City Attorney stated that the ordinance, as
amended, could be interpreted to mean that the City
Council’s action violated state law which prohibits cities
from changing the scope of an issued license, and
suggested further analysis. With little discussion, the
City Council adopted Ordinance No. 05-0237, as
amended (the “Ordinance”). App., onfra, 24a-31a.

The record is devoid of any explanation of the
reasons the City Council took to ban all card rooms
because the Ordinance states no purpose and the City
objected to deposition testimony from council members
about their decision-making process. The Ordinance
provides no relief and no amortization period for
Kenmore Lanes’ existing, licensed card room. The
Ordinance was scheduled to become effective on
December 29, 2005, 10 days after the December 19"
meeting. App., infra, 30a, 31a.

The profits from the card room subsidize Kenmore
Lanes’ bowling alley, the restaurant, the employee
benefits, and all of Kenmore Lanes’ community and
charitable activities. If the card room must close, then
the entire business will close. Relocation of Kenmore
Lanes’ card room, restaurant, and bowling alley to a
different location would cost more than the business is
worth. There are no viable locations in King County for
a new card room. Even if a location could be found, the
costs of moving the business and the delay in rebuilding
goodwill make relocation impracticable. This means that
if the Ordinance is enforced, Kenmore Lanes will close,
and Kenmore Lanes will lose the entire value of its
investment, calculated at $4,936,000, as of December 31,
2005.

6

Before the Ordinance became effective, Kenmore
Lanes filed suit against the City of Kenmore and
Kenmore City Council (collectively the “City”) in the
United States District Court for the Western District
of Washington seeking injunctive relief and damages,
and alleging, in part, that the Ordinance violated its
Fourteenth Amendment right to substantive due
process and entitled Kenmore Lanes to relief under
42 U.S.C. § 1983. On December 28, 2005, the district
court granted Kenmore Lanes’ motion for temporary
restraining order. In March 2006, the temporary
restraining order was ccntinued as a preliminary
injunction pending trial pursuant to stipulation of the
parties.

On August 10, 2006, the district court granted
summary judgment dismissing Kenmore Lanes’ federal
claims. App., infra, 13a-23a. It reasoned that Kenmore
Lanes did not have a property right supporting a
Fourteenth Amendment claim because state licensed
gambling is “vice”-like and has no constitutional
protection, and Kenmore Lanes had no “vested right”
to operate a card room based on a Washington
Administrative Code provision, WAC 230-04-175.
App., znfra, 17a.

Kenmore Lanes timely appealed and asked the
United States Court of Appeals for the Ninth Circuit to
issue a Stay preventing enforcement of the Ordinance
during the appeal. On September 28, 2006, the Ninth
Circuit granted the motion for stay. Based on that stay,
Kenmore Lanes and its card room remains open to this
day.

7

In a May 28, 2008 Memorandum (App., infra, 3a-
12a), the Ninth Circuit affirmed the district court’s
ruling, but with somewhat different reasoning. The
Ninth Circuit accepted for the purpose of analysis
that Kenmore Lanes’ card room “qualifies as a
nonconforming use within the meaning of [Kenmore]
Municipal Code § 18.20.1860.” App., infra, 5a. It also
recognized that “Washington courts have recognized a
federal] constitutional right, under the Fourteenth
Amendment substantive due process guarantee, to a
reasonable amortization period for nonconforming uses
terminated by state or local regulation. See State v.
Thomasson, 378 P2d 441, 443 (Wash. 1963); Rhod-A-
Zalea v. Snohomish County, 959 P2d at 1029.” App.,
infra, 6a. The Ninth Circuit rejected Kenmore Lanes’
federal substantive due process claim, however,
reasoning that “[tjhose nonconforming uses that are not
vested rights under Washington law, however, are not
entitled to the benefit of an amortization period” and
“luJnder Washington law, a gambling license cannot
create a vested right.” App., infra, 6a-7a. The Ninth
Circuit said nothing about the district court’s “vice”-
like exception to constitutional rights.

The Ninth Circuit’s conclusion that under
Washington law a gambling license cannot create a
vested right was anchored in WAC 230-04-175, which
provided that “the issuance of any license by [the state
gambling] commission shall not be construed as granting
a vested right in any of the privileges so conferred.”
This was error because WAC 230-04-175 had been
repealed in January 2008, prior to the Ninth Circuit
decision, and could not undermine Kenmore Lanes’ claim
to a property right. Kenmore Lanes explained this to

8

the Ninth Circuit in a timely motion for panel rehearing,
filed June 9, 2008.

In an order issued on January 7, 2009 (App., infra,
la-2a), the Ninth Circuit panel amended its prior
Memorandum, deleting its entire analysis of Kenmore
Lanes’ federal substantive due process claim and
reliance on the repealed WAC provision in Section 2 of
its Memorandum and substituted a new Section 2. App.,
infra, 2a. In its revised analysis, the Ninth Circuit
ignored the Fourteenth Amendment substantive
due process right to an amortization period for
nonconforming uses terminated by state or local
regulation recognized by the Washington Supreme
Court that it had noted in the May 28, 2008,
Memorandum and stated merely that Kenmore Lanes
had failed to meet the “exceedingly high burden of
proving that a challenged land use regulation fails to
advance a legitimate government purpose.” App., infra,
2a. The Ninth Circuit did not attempt to reconcile its
conclusion with the Washington Supreme Court opinions
that it had cited in its earlier Memorandum.

REASONS FOR GRANTING THE PETITION

The Ninth Circuit has differed, without explanation,
from clear contrary decisions from the Washington
Supreme Court, applying federal substantive due
process principles to property rights recognized under
Washington state law and requiring that legal
nonconforming uses may not be terminated without
allowing an adequate amortization period. The
Washington Supreme Court decisions are not outliers
on this question. Many state appellate courts have

reached the same conclusion under either substantive
due process or takings principles. The split between the
Ninth Circuit and the state courts presents the
important question whether governments are free to
ban legal nonconforming uses without any amortization
period to allow the business owner to recoup its
investment or mitigate its loss. Thus, this Court’s Rule
10(a) is satisfied, and a Writ of Certiorari should issue.

I.

9

The Washington Supreme Court Has Held that a
Business Owner Has a Federal Substantive Due
Process Right to an Amortization Period on
Termination of a Legal Nonconforming Use, and
Its Conclusion Is Consistent with Decisions of
Many Other States.

The Ninth Circuit’s May 28, 2008 Memorandum,

accurately summarized applicable Washington law:

It is well established under Washington law
that the City may regulate a non-conforming
use with “subsequently enacted reasonable
police power regulations.” Rhod-A-Zalea &
35", Inc. v. Snohomish County, 959 P.2d
1024,1029 (Wash. 1998). The City is not
required to allow a nonconforming use to exist
indefinitely because “local governments have
the authority to preserve, regulate and even,
within constitutional limitations, terminate
nonconforming uses.” * * *

2. Washington courts have recognized a
federal constitutional right, under the
Fourteenth Amendment’s’ substantive

10

due process guarantee, to a reasonable
amortization period for nonconforming uses
terminated by state or local regulation. See
State v. Thomasson, 378 P2d 441, 443 (Wash.
1963); Rhod-A-Zalea, 959 P2d at 1029.

App., infra, 6a. This substantive due process analysis
is anchored in the Washington Supreme Court’s state
law-based judgment that termination of a legal existing
use impairs a property interest.

When zoning laws were first enacted in the United
States in the early Twentieth Century, states wrestled
with how existing uses should be treated that did not
comply with uses allowed in the new zoning
designations.' There was a widespread belief that such
nonconforming uses could not be terminated unless after
a period of abandonment.” Over time, states continued
to struggle with the issue because a nonconforming use’s
“grandfathered” status often created a local monopoly
power which discouraged the business from ceasing
operations.® While some states still forbade the forced
termination of a legal business,* eventually many states

1. 4A Norman Williams Jr., American Land Planning Law,
at 225 (rev. vol. 1986) (the issue of nonconforming uses has been
“one of the most important questions in American planning
law”).

2. See 1 Kenneth H. Young, Anderson’s American Law of
Zoning, § 6.04 at 489 (4th ed. 1995).
3. 8A MeQuillin, Municipal Corporations, § 25.90 at 73 (3d
ed. 2003).
4. See,e.g., Commonwealth v. Hashem, 526 Pa. 199, 589 A.2d
1378 (1991) (amortization of a pre-existing use is per se
(Cont'd)

11

came to a compromise position: nonconforming uses
could not be immediately abolished but could be
terminated after a phasing out, or “amortization”
period.® Washington, like many states, grounds this right
to a pre-cessation amortization period in the Fourteenth
Amendment.°

There is no federal law of zoning so federal courts
must look to state law. League to Save Lake Tahoe v.
Crystal Enters., 685 F.2d 1142, 1144 (9th Cir. 1982); see
also Ebel v. City of Corona, 767 F.2d 635, 639 (9th Cir.
1985) (applying balancing test from Northend Cinema,
Inc., v. City of Seattle, 90 Wash. 2d 709, 585 P2d 1158,
1159-60 (1978)). They also look to state law to “define
and determine the range of interests that qualify for

(Cont'd)

confiscatory); Hoffman v. Kinealy, 389 S.W.2d 745 (Mo. 1965)
(six-year amortization period was unconstitutional as a taking
of private property for public use without just compensation);
City of Akron v. Chapman, 160 Ohio St. 382, 52 Ohio Op. 242, 116
N.E.2d 697 (1953) (an ordinance allowing a city to remove a
legal nonconforming use even after a “reasonable” time was
unconstitutional).

5. 4A Norman Williams Jr., American Land Planning Law,
at 225 (rev. vol. 1986); see also League to Save Lake Tahoe v.
Crystal Enters., 685 F.2d 1142, 1146 (Yth Cir. 1982).

6. See, e.g., State v. Thomasson, 61 Wash. 2d 425, 428, 378
P2d 441, 443 (1963) (due process grounds); State ex. rel. Miller
v. Cain, 40 Wash. 2d 216, 218, 242 P2d 505, 506 (1952); Compare,
Austin v. Older, 283 Mich. 667, 278 N.W. 727, 730 (1938). And see
Grant v. Mayor and City Council of Baltimore, 212 Md.
301, 308, 129 A.2d 363 (1957) (“{I]t is unreasonable and
unconstitutional for a zoning law to require immediate cessation
of nonconforming uses otherwise lawful”) (surveying cases).

12

protection as property” under the Fifth and Fourteenth
Amendments. Lucas v. S.C. Coastal Council, 505 U.S.
1003, 1030 (1992). The Washington Supreme Court has
consistently held that property owners have rights to
continue to operate a legitimate business despite a
change in zoning. State v. Thomasson, 61 Wash. 2d 425,
428, 378 P2d 441, 443 (1963); State ex rel. Ogden v.
Bellevue, 45 Wash. 2d 492, 495, 275 P2d 899, 901-02
(1954); State ex rel. Miller v. Cain, 40 Wash. 2d 216, 218,
242 P2d 505, 506 (1952). This is consistent with the
Washington courts’ recognition that a business like
Kenmore Lanes’ card room is a valuable property
interest:

Property is a word of very broad meaning and
when used without qualification may reasonably
be construed to include obligations, rights and
other intangibles as well as physical things. And
property is a term of broad significance,
embracing everything that has exchangeable
value, and every interest or estate which the
law regards of sufficient value for judicial
recognition. The right to operate a lawful
business is a property right.

Lee & Hastes v. Pub. Serv. Comm’n, 52 Wash. 2d 701,
704, 328 P2d 700, 702 (1958) (internal citations omitted)
(emphasis added).

Applying this property right, Washington allows a
nonconforming use to be terminated, but it cannot be
constitutionally done without providing for a reasonable
amortization period. Rhod-A-Zalea, 959 P2d at 1029
(“Loeal governments, of course, can terminate

13

nonconforming uses but they are constitutionally
required to provide a reasonable amortization period”).
Moreover, this right is not balanced against the goals of
government regulation. It will be allowed to continue
even though the use is considered to be “detrimental to
important public interests.” Jd. at 1027. The harm from
depriving a property owner of his business outweighs
the public interest in immediately abolishing the
nonconforming use. /d. (noting that although a
nonconforming use may be detrimental to the public
health, safety, morals, or welfare, it cannot be
immediately ceased without infringing on the property
owner’s constitutionally-protected rights); see also City
of University Place v. McGuire, 144 Wash. 2d 640, 648-
49, 30 P3d 453, 457 (2001); City of Seattle v. Martin, 54
Wash. 2d 541, 544, 342 P2d 602, 603-04 (1959); Miller,
242 P2d at 508 (a nonconforming gasoline service station
use was allowed to continue indefinitely where the harm
to the property owner in losing the business outweighed
the public’s interest in terminating the use).

Neither the City of Kenmore, nor the district court
nor the Ninth Circuit has attempted to argue that the
Washington Supreme Court incorrectly applied federal
constitutional law to termination of a legal
nonconforming use. To the contrary, decisions of other
states are consistent with Washington's explication of
federal constitutional law.

The Washington cases, themselves, cited extensively
this Court and to decisions of other states. In concluding
that nonconforming uses were subject to later-enacted
regulations enacted for the health, safetv and welfare
of the community, the Washington Supreme Court in

14

Rhod-A-Zalea cited Goldblatt v. Town of Hempstead,
369 U.S. 590 (1962); Miller & Son Paving, Inc. v.
Wrightstown Township, 42 Pa. Commw. 458, 401 A.2d
392 (1979); Watanabe v. City of Phoenix, 140 Ariz. 575,
683 P2d 1177 (Ariz. Ct. App. 1984); and Dock Watch
Hollow Quarry Pit, Inc. v. Township of Warren, 142
N.J. Super. 103, 361 A.2d 12 (1976). 959 P2d at 1029.
And, its conclusion that an ordinance immediately
terminating a nonconforming use is invalid cited to
Township of Orion v. Weber, 83 Mich. App. 712, 269
N.W.2d 275 (1978), and Incorporated Village of
Brookville v. Paulgene Realty Corp., 24 Misc. 2d 790,
200 N.Y.S.2d 126 (1960). 7d.

In Township of Orion, the court surveyed decisions
of the Michigan Supreme Court, e.g. Wolverine Sign
Works v. City of Bloomfield Hills, 279 Mich. 205, 271
N.W. 828 (1937), holding that immediate termination of
existing legal uses is arbitrary and illegal, and
invalidated new restrictions on an existing sand and
gravel operation as confiscatory. 269 N.W.2d at 280.

In Paulgene Realty, the court surveyed prior
decisions of the New York courts holding that a legal
nonconforming use may not be subsequently terminated,
e.g. People v. Miller, 304 N.Y. 105, 107, 106 N.E.2d 34
(1952), and refused to apply subsequently adopted police
power-based regulations to a legal existing use. 24 Misc.
2d at 795, 795.

Other states have reached the same conclusion. In
Grant v. Mayor and City Council of Baltimore, the
Maryland Court of Appeals surveyed cases analyzing

15

the constitutional implications of termination of a legal
nonconforming use and concluded:

It soon was and still generally is held that it is
unreasonable and unconstitutional for a
zoning law to require immediate cessation of
nonconforming uses otherwise lawful. Anne
Arundel County v. Snyder, 186 Md. 342, 346;
Amereihn v. Kotras, 194 Md. 591, 601 and
cases cited; Jones v. City of Los Angeles (Cal.),
295 P 14; Standard Oil Co. v. City of Bowling
Green (KY.), 50 S.W. 2d 960; Des Jardin v.
Town of Greenfield (Wis.), 53 N.W. 2d 784.

212 Md. at 308.’ See also Matter of Toys “R” Us. v. Silva,
89 N.Y.2d 411, 416, 654 N.Y.S2d 100, 108, 676 N.E. 2d
862, 865 (1996) (nonconforming uses cannot be
summarily terminated “{d]ue to constitutional and
fairness concerns regarding the undue financial
hardship that immediate elimination of nonconforming
uses would cause to property owners”).

7. Grant has been followed and reaffirmed in multiple
Maryland decisions. Harris v. Mayor and City Council of
Baltimore, 35 Md. App. 572, 578, 371 A.2d 706 (1977).

16

II. The Ninth Circuit Did Not Square Its Federal
Substantive Due Process Analysis with the
Decisions of the Washington Supreme Court or
Those of Other States.

After recognizing the Washington Supreme Court’s
articulation of the federal substantive due process right
to an amortization period in its May 28, 2008
Memorandum, the Ninth Circuit switched course in its
January 7, 2009 order on petition for rehearing to delete
its discussion of the Washington cases and substitute
citations to federal decisions—cases that pre-dated its
May 28, 2008 Memorandum. App., infra, 2a.

The Ninth Circuit now cited Lingle v. Chevron
U.S.A. Inc., 544 U.S. 528, 542 (2005), for the proposition
that “[a]} plaintiff challenging land use regulation under
a federal substantive due process theory must
demonstrate that the regulation ‘fails to serve any
legitimate governmental objective’ rendering it
‘arbitrary or irrational.’” App., infra, 2a. The Ninth
Circuit did not explain why Kenmore Lanes’ challenge
did not meet that standard; it may be reasonably
inferred that the City’s unstated, but apparent, purpose
of ending card room operations was regarded as serving
a legitimate government objective.

The panel’s reading of Lingle is plainly inconsistent
with the Washington Supreme Court decisions
describing a federal substantive due process right to
an amortization period on termination of a legal
nonconforming use and similar decisions in other states.
The Washington Supreme Court was satisfied that
regardless of the legitimacy of the local government's

17

purpose, termination of a legal nonconforming use
triggered a constitutional right to a reasonable
amortization period. The Court explained that
nonconforming uses are subject to subsequently enacted
reasonable police power regulations and such
regulations will only be invalidated when they
immediately terminate the use. This is because “a
nonconforming use has a ‘vested’ or ‘protected’ right
to continue without being subject to immediate
termination.” Rhod-A-Zalea, 959 P2d at 1027. Thus, the
Washington Supreme Court held that an ordinance
immediately terminating a legal nonconforming was a
substantive due process violation regardless of the
reasonableness of the City’s purpose.

Kenmore Lanes will explain below that the Ninth
Circuit’s reading of Lingle is incorrect, and the
substantive due process standard is satisfied here
because arbitrariness or irrationality of government
action can be proved through the rejection of an
amortization period, not merely the apparent goal of the
government action. For the purposes of judging whether
a Writ of Certiorari should issue, however, the split
between the Ninth Cireuit and the Washington Supreme
Court is clear.

18

III. The Ninth Circuit’s Rejection of Kenmore Lanes’
Fourteenth Amendment Substantive Due
Process Clause Conflicts with this Court’s
Jurisprudence.

In Lingle, this Court clarified the dividing line
between Fifth Amendment takings clause claims and
Fourteenth Amendment substantive due process claims,
explaining that a takings clause challenge “presupposes
that the government has acted in pursuit of a valid public
purpose,” whereas a substantive due process claim
seeking invalidation of an allegedly arbitrary regulation
is “logically prior and distinct from the question whether
a regulation effects a taking.” Lingle, 544 U.S. at 543.
The Court explained that “[n]o amount of compensation
can authorize” an arbitrary government action. /d.
See also id. at 548 (“today’s decision does not foreclose
the possibility that a regulation might be so arbitrary
or irrational as to violate due process”) (Kennedy, J.,
concurring).

The Court’s observation in Lingle that arbitrary or
irrational regulations may be invalidated as violative of
the Fourteenth Amendment due process clause led
panels of the Ninth Circuit to resurrect substantive due
process claims for property deprivations. “Lingle pulls
the rug out from under [the Ninth Circuit’s] rationale
for totally precluding substantive due process claims
based on arbitrary or unreasonable conduct ... and
indicates that a claim of arbitrary action is not [a claim
precluded by the Fifth Amendment takings clause].”
Crown Point Dev., Inc. v. City of Sun Valley, 506 F.3d
851, 855 (9th Cir. 2007) (limiting Armendariz v. Penman,
75 F.3d 1311 (9th Cir. 1996)). See also N. Pacifica LLC

19

v. City of Pacific, 526 F.3d 478, 484 (9th Cir. 2008) (“In
recent years, substantive due process law in the context
of land-use regulation has taken a winding path”) (citing
Lingle, 544 U.S. at 542) (other citations omitted).

In explaining that the Agins “substantially
advance[s] legitimate state interests” standard is not
relevant to a Fifth Amendment taking, Lingle, 544 U.S.
at 531-32 (citing Agins v. City of Tiburon, 447 U.S. 255
(1980)), the Court commented that the “substantially
advances” test has “some logic in the context of a due
process challenge.” /d. at 542. In this reference to
substantive due process considerations, the Court did
not purport to set forth, or to alter, the applicable test
in a substantive due process challenge. See id.

Nevertheless, the Ninth Circuit apparently read this
language to state a standard that government action
will satisfy substantive due process standards if the
government has a reasonable goal, no matter how
arbitrarily it acts in furtherance of that goal. This gives
short shrift to the Court’s substantive due process cases
and the state cases giving constitutional protection to
termination of nonconforming uses.

This Court has “emphasized time and again that ‘the
touchstone of due process is protection of the individual
against arbitrary action of government.’” County of
Sacramento v. Lewis, 523 U.S. 833, 845 (1998) (cited by
Lingle, 544 U.S. at 542). See also Wolff v. McDonnell,
418 U.S. 539, 558 (1974) (“The touchstone of due process
is protection of the individual against arbitrary action
of government, Dent v. West Virginia, 129 U.S. 114, 123
(1889)”). In the substantive context of the due process

20

clause, protection against arbitrary government action
means that government power must not be exercised
“without any reasonable justification in the service of a
legitimate governmental objective.” Lewis, 523 U.S. at
846 (citation omitted).

The Ninth Circuit’s decision below failed to analyze
whether the City had a reasonable justification for the
immediate impact of the Ordinance on Kenmore Lanes.
After appropriately quoting Lingle for the proposition
that a government act is invalid if it “fails to serve any
legitimate governmental objective,” App., 77/fra, 2a, the
Ninth Circuit made no attempt to apply that standard
to assess whether the City had a legitimate government
objective for a regulation that would close Kenmore
Lanes’ business immediately, without any opportunity
to recoup its investment.

Rather than offering any analysis, the Ninth Circuit
cited a second decision, this one from the Ninth Circuit;
Shanks v. Dressel, 540 F-3d 1082, 1028 (9th Cir. 2008)
(challenging the issuance of a building permit within a
historic district). App., 7rfra, 2a. The Ninth Circuit did
not acknowledge that the challenge in Shanks concerned
an executive action not a legislative one. 540 F.3d at 1088
(“When executive action like a discrete permitting
decision is at issue, only ‘egregious official conduct can
be said to be arbitrary in the constitutional sense’”).°

8. The Lewis Court explained that the analysis of whether
an act is arbitrary differs for legislative actions as opposed to
executive actions:

While due process protection in the substantive
sense limits what the government may do in both
(Cont'd

21

In contrast to the necessary showiug of “conscience
shocking” behavior that must be proved for an executive
action to have violated substantive due process
guarantees, Lewis, 523 U.S. at 846, a claim that a
legislative action violated due process may be proved
by a showing that the action complained of has caused
an arbitrary or irrational impact. Cf Dent, 129 U.S. at
121-22, 128 (declaring more than 100 years ago that the
right to follow any lawful calling, business, or profession
“cannot be arbitrarily taken from [persons], any more
than their real or personal property can be thus taken”
and only finding no substantive due process violation
because the legislation at issue set vital minimum skill
thresholds for the practice of medicine). See also
Griswold v. Connecticut, 381 U.S. 479, 485 (1965)
(legislation banning birth control measures had an
unreasonable impact on marital privacy rights).

Likewise, the Ninth Circuit has, on other occasions,
recognized that an unjustified denial of a right is an
unreasonable impact subject to invalidation. See, e.g.,
Del Monte Dunes at Monterey, Ltd. v. City of Monterey,

(Cont'd)

its legislative ...and its executive capacities ...
criteria to identify what is fatally arbitrary differ
depending on whether it is legislation or « :necific
act of a governmental officer that is at iss.

Lewis, 523 U.S. at 846 (emphasis added) (internal citations
omitted). Lewis, itself, concerned executive action, not
legislative. Lewis described the long-standing and extremely
high standard for invalidating executive action under the due
process clause: “[F Jor half a century now we have spoken of the
cognizable level of executive abuse of power as that which shocks
the conscience.” Id. (emphasis added).

22

920 F.2d 1496, 1508 (9th Cir. 1990) (reversing summary
judgment in favor of defendant city when the city council
had “abruptly changed course and rejected [a land use
permit application], giving only broad conclusory
reasons”); See also Bateson v. Geisse, 857 F.2d 1300, 1303
(9th Cir. 1988) (refusal to issue building permits afforded
applicant no “process, let alone ‘due’ process,”
amounting to a substantive due process violation).

The Fourteenth Amendment does not itself create
rights that are protected from unreasonable impacts of
legislative action. Town of Castle Rock, Colorado
v. Gonzales, 545 U.S. 748, 756 (2005). Rather,
“entitlements are created and their dimensions are
defined by existing rules or understandings that stem
from an independent source such as state law.” Jd.
(citations omitted). See also Lucas, 505 U.S. at 1030
(same) (citations omitted). The question of whether a
state law-created property interest creates a claim of
entitlement protected by the due process clause “begins
with a determination of what it is that state law
provides.” Castle Rock, 545 U.S. at 757 (declining to
defer to the Tenth Circuit’s construction of state law
because that court “did not draw upon a deep well of
State-specific expertise”). As explained above,
Washington has long-recognized a property right in the
operation of a business, subject to protection under the
Fourteenth Amendment from termination without a
reasonable amortization period. Rhod-A-Zalea, 959 P2d
at 1029; Thomasson, 378 P3d at 443. The Ninth Circuit
accepted that nonconforming uses constitute
protectable property interests in Washington but failed
to explain its departure from Washington’s
interpretation that the Fourteenth Amendment
protected such rights from summary termination.

23

Where state law has established a clear right, as
Washington has here, this Court has considered
summary termination of that right to constitute a due
process violation. See, e.g., Memphis Light, Gas & Water
Div. v. Craft, 486 U.S. 1, 11-12 (1978) (cited in Castle
Rock, 545 U.S. at 757 (water customers who had a state
law-created right to water service which could only be
terminated for cause asserted a “legitimate claim for
entitlement’ within the protection of the Due Process
Clause”). In such circumstances, summary deprivation
of the right is arbitrary regardless of the reason. Here,
the Ninth Circuit’s withdrawal of the portion of its May
28, 2008 Memorandum “look[ing] to state law to ‘define
and determine the range of interests that qualify for
protection as property’” (App. infra, 7a (citing Lucas,
505 U.S. at 1030)), meant that its substituted conclusion
that Kenmore Lanes had not met an “exceedingly high
burden” was offered without any analysis of the
underlying right at issue or of the application of
Fourteenth Amendment protections to that right. The
record is devoid of any rational reason for summarily
terminating Kenmore Lanes, and there is ample
evidence that the City Council’s decision to make its ban
effective in 10 days was arbitrary and irrational.

This Court’s resuscitation of the Fourteenth
Amendment’s due process clause as a means of
challenging land use regulations signaled the Court’s
interest in clarifying the constitutional challenges
available in land use regulation contexts. Having
reopened the due process door, this Court should grant
certiorari to consider the Ninth Circuit’s unreasoned
rejection of Kenmore Lanes’ Fourteenth Amendment
amortization period claim which is in conflict with
decisions of the Washington Supreme Court.

24

CONCLUSION

For the reasons stated above a Writ of Certiorari
should issue.

Respectfully submitted,

Pau. J. Dayton

Counsel of Record

LESLIE C, CLARK

SHorT CRESSMAN & BurGEss PLLC
999 Third Avenue, Suite 3000
Seattle, WA 98104

(206) 682-3333

Counsel for Petitioner

APPENDIX

la

APPENDIX A — AMENDMENT AND ORDER OF

THE UNITED STATES COURT OF APPEALS FOR

THE NINTH CIRCUIT DENYING PETITION FOR
REHEARING FILED JANUARY 7, 2009

UNITED STATES COURT OF APPEALS
FOR THE NINTH CIRCUIT

No. 06-35801

STAR NORTHWEST INC., a Washington
corporation doing business as Kenmore Lanes
and 11th Frame Casino,

Plaintiff-Appellant,

Vz

CITY OF KENMORE, a Washington
municipal corporation; et al.,

Defendants-Appellees.

No. 06-36029

STAR NORTHWEST INC., a Washington
corporation doing business as Kenmore Lanes
and 11th Frame Casino,

Plaintiff-Appellant,
V.

City of Kenmore, a Washington
municipal corporation; et al.,

Defendants-Appellees.

2a

Appendix A
ORDER

Before: B. FLETCHER, PAEZ and N.R. SMITH, Circuit
Judges.

The memorandum filed on May 28, 2008 is amended
as follows: On pages 4 through 5, delete Section 2 and
replace it with the following paragraph:

2. Kenmore Lanes argues that the City violated
its Fourteenth Amendment right to substantive
due process by failing to provide a reasonable
amortization period for nonconforming uses
banned by Ordinance. We disagree. A plaintiff
challenging land use regulation under a federal
substantive due process theory must
demonstrate that the regulation “fails to serve
any legitimate governmental objective,”
rendering it “arbitrary or irrational.” Lingle v.
Chevron U.S.A. Inc., 544 U.S. 528, 542 (2005);
see also Shanks v.. Dressel, 540 F.3d 1082, 1088
(9th Cir.2008) (“T]he ‘irreducible minimum’ of
a substantive due process claim challenging land
use action is failure to advance any legitimate
government purpose.” (citation omitted)).
Kenmore Lanes has not met this “exceedingly
high burden” here, and dismissal of this claim

was therefore proper. See Shanks, 540 F.3d at
L088.

With the above amendment, the panel has voted to
deny the petition for rehearing. The petition for panel
rehearing is therefore DENIED. No further petitions for
rehearing shall be filed.

3a

APPENDIX B — MEMORANDUM OF THE UNITED
STATES COURT OF APPEALS FOR THE NINTH
CIRCUIT FILED MAY 28, 2008

UNITED STATES COURT OF APPEALS
FOR THE NINTH CIRCUIT

No. 06-35801

STAR NORTHWEST INC., a Washington
corporation doing business as Kenmore Lanes
and 11th Frame Casino,

Plaintiff-Appellant

V.

CITY OF KENMORE, a Washington municipal
corporation; KENMORE CITY COUNCIL, the
legislative body of the City of Kenmore,

Defendants-Appellees

No. 06-36029

STAR NORTHWEST INC., a Washington
corporation doing business as Kenmore Lanes
and 11th Frame Casino,
Plaintiff-Appellant,
v.
CITY OF KENMORE, a Washington municipal

corporation; KENMORE CITY COUNCIL, the
legislative body of the City of Kenmore,

Defendants-Appellees

4a
Appendix B
MEMORANDUM*

Argued and Submitted March 10, 2008
Seattle, WA

Before: B. FLETCHER, PAEZ, N.R. SMITH, Circuit
Judges.

Plaintiff-Appellant Star Northwest (“Kenmore
Lanes”) operates a bowling alley, restaurant, and card
room in Kenmore, King County, Washington. In No. 06-
35801, Kenmore Lanes appeals the district court’s grant
of summary judgment to Appellees, the City of Kenmore
(the “City”) and the Kenmore City Council (the
“Council”), in Kenmore Lanes’ civil rights action
challenging, on federal and state law grounds, the
constitutionality of a City ordinance that banned the
operation of card rooms within city limits. In No. 06-
36029, Kenmore Lanes appeals from the district court’s
grant of attorneys’ fees in the amount of $180,552 to
the City.

In challenging the district court’s summary
judgment ruling,’ Kenmore Lanes argues that: 1) its card
room, the 11th Frame, is a nonconforming use entitled
to operate indefinitely under Kenmore Municipal Code

* This disposition is not appropriate for publication and is
not precedent except as provided by 9th Cir. R. 36-3.

1. We review de novo a district court's decision to grant a
motion for partial summary judgment. Delta Savings Bank ».
United States, 265 F.3d 1017, 1021 (9th Cir.2001).

Sa

Appendix B

sections 18.20.1860 and 18.75.030; 2) Kenmore Lanes has
a federal constitutional right to an amortization period
upon termination of its nonconforming use; 3) Kenmore
Ordinance 05-0237 (the “Ordinance”) violates Kenmore
Lanes’ substantive due process rights under Washington
Constitution, Article I, section 3; and 4) Kenmore Lanes’
federal Fifth Amendment takings claim is ripe for
adjudication. Finally, Kenmore Lanes argues that 5) the
district court erred in denying its request for discovery
regarding the City Council’s decisionmaking process when
it enacted the Ordinance.? We have jurisdiction pursuant
to 28 U.S.C. § 1291, and we affirm.

1. For purposes of this discussion, we assume, without
deciding, that following adoption of the Ordinance,
Kenmore Lanes’ card room qualifies as a nonconforming
use within the meaning of Municipal Code section
18.20.1860. The City, however, is not required to allow
the card room to operate indefinitely, as Kenmore Lanes
asserts. The text of section 18.75.0380 is permissive; it
states that “[o|nce created pursuant to KMC 18.20.1860,
a nonconformance may be continued in a manner
consistent with the provisions of this chapter.”
KMC § 18.75.030 (emphasis added). It is well established
under Washington law that the City may regulate a non-
conforming use with “subsequently enacted reasonable
police power regulations.” Rhod-A-Zalea & 35th, Inc. v.
Snohomish County, 186 Wash.2d 1, 959 P2d 1024, 1029
(1998). The City is not required to allow a non-

2. We review a district court’s discovery rulings for abuse
of discretion. Blackburn v. United States, 100 F.3d 1426, 1436
(9th Cir.1996); Hall ». Norton, 266 F.3d 969, 977 (9th Cir.2001).

6a

Appendix B

conforming use to exist indefinitely because “local
governments have the authority to preserve, regulate
and even, within constitutional limitations, terminate
nonconforming uses.” /d. at 1028. The district court
correctly granted summary judgment on this issue.

2. Washington courts have recognized a federal
constitutional right, under the Fourteenth Amendment’s
substantive due process guarantee, to a reasonable
amortization period for nonconforming uses terminated
by state or local regulation. See State v. Thomasson, 61
Wash.2d 425, 378 P2d 441, 443 (1963); Rhod-A-Zalea, 959
P2d at 1029. Kenmore Lanes argues that it is entitled to
such an amortization period for the City’s termination of
its card room operations. Those nonconforming uses that
are not vested rights under Washington law, however, are
not entitled to the benefit of an amortization period. See
Rhod-A-Zalea, 959 P2d at 1029. Under Washington law, a
gambling license cannot create a vested right. The
Washington Administrative Code provides that “the
issuance of any license by the [gambling] commission shall
not be construed as granting a vested right in any of the
privileges so conferred.” WAC § 230-04-175. We look to
state law to “define and determine the range of interests
that qualify for protection as property” under the Fifth
and Fourteenth Amendments. Lucas v. S.C. Coastal
Council, 505 U.S. 1003, 1030, 112 S.Ct. 2886, 120 L.Ed.2d
798 (1992). Accordingly, because Kenmore Lanes cannot,
under Washington law, have a vested interest in the
continued operation of its card room gambling business, it
is not constitutionally entitled to an amortization period.

Ta

Appendix B

3. Next, Kenmore Lanes argues that the Ordinance
violates its substantive due process rights under Article
1, section 3 of the Washington Constitution. We
disagree. Washington courts apply a three-pronged test
to determine whether an ordinance violates substantive
due process. Presbytery of Seattle v. King County, 114
Wash.2d 320, 787 P2d 907, 912-13 (1990). Under this test,
we consider whether the ordinance 1) is aimed at
achieving a legitimate public purpose, 2) uses means
that are reasonably necessary to achieve that purpose,
and 3) is unduly oppressive on the person regulated.
Edmonds Shopping Cir. Assoc. v. City of Edmonds, 117
Wash.App. 344, 71 P3d 238, 242 (2003). On this record,
we agree with the district court that each of these
elements weighs against a finding that the Ordinance
violates Kenmore Lanes’ substantive due process rights,
and we conclude that dismissal of this claim was proper.
See id. at 248; Paradise, Inc. v. Pierce County, 124
Wash.App. 759, 102 P3d 173, 181 (2004).

4, Kenmore Lanes next argues that the district court
errer in conciuding that its federal Fifth Amendment
takings claim was not yet ripe for adjudication. We
disagree. A federal takings claim is not ripe until the
claimant has sought, and been denied, compensation
through state procedures for claims of regulatory
takings or inverse condemnation. Williamson County
Reg'l Planning Comm’n v. Hamilton Bank of Johnson
City, 473 U.S. 172, 194-95, 105 S.Ct. 3108, 87 L.Ed.2d
126 (1985). We have previously found Washington’s
mechanism for adjudicating claims of regulatory takings
to be adequate and a necessary prerequisite to a federal

8a

Appendix B

takings claim. Macri v. King County, 126 F.3d 1125, 1129
(9th Cir.1997). Here, it is undisputed that Kenmore
Lanes did not take this step prior to filing the instant
action in federal court.

Neither of the arguments advanced by Kenmore
Lanes persuade us that its takings claim should be
exempted from this requirement. While Washington
courts have yet to address the impact of Lingle v.
Chevron U.S.A., Inc., 544 U.S. 528, 125 S.Ct. 2074, 161
L.Ed.2d 876 (2005), on federal takings analysis, it would
be premature to conclude that the Washington courts
will not, if presented with Kenmore Lanes’ takings
claim, apply the standard adopted by the Supreme Court
in Lingle. Furthermore, the Court has solidly rejected
the argument that the ripeness rule is unfair because a
claimant might be collaterally estopped from litigating
its federal takings claim if it pursues state court
remedies, and we are bound to do the same here. San
Remo Hotel, L.P. v. City and County of San Francisco,
545 U.S. 328, 341-48, 125 S.Ct. 2491, 162 L.Ed.2d 315
(2005).

5. Finally, Kenmore Lanes challenges three discovery
rulings by the district court that limited the scope of
discovery regarding the Council’s decisionmaking
process in adopting the Ordinance because such
discovery was relevant and necessary to its claims. It is
well-settled, however, that inquiries into a legislator’s
deliberative process in reaching a particular legislative
decision are, absent extraordinary circumstances,
prohibited by the “deliberative process” privilege. See

9a

Appendix B

City of Las Vegas v. Foley, 747 F.2d 1294, 1297-98 (9th
Cir.1984). Our review of the record persuades us that
the district court’s discovery rulings were narrowly
tailored to preclude Kenmore Lanes from inquiring into
the individual, subjective motivations of Council
members regarding their purpose in adopting the
Ordinance and did not prohibit any discovery that would
have been relevant to the constitutional claims at issue
in this case. Given the discretionary standard of review
applicable to discovery rulings, we therefore affirm.
Blackburn, 100 F.3d at 1486.

Kenmore Lanes also challenges the district court’s
award of attorneys’ fees and costs to the City.* First,
Kenmore Lanes argues that the district court
erroneously interpreted the mandatory filing deadline
of Federal Rule of Civil Procedure 54(d)(2). Additionally,
Kenmore Lanes argues that the district court
erroneously awarded fees for 1) claims on which the City
did not prevail and 2) work outside the parties’ attorney
fee agreement, including work originating in the Office
of the City Attorney and time spent responding to public
records requests made under the authority of the
Washington Public Disclosure Act. We have jurisdiction
pursuant to 28 U.S.C. § 1291, and we reverse and
reinand.

Kenmore Lanes first argues that the City’s motion
for attorneys’ fees was untimely under Rule 54(d)(2) and,

3. We review for abuse of discretion a district court’s award
of attorneys’ fees, including the amount of the award. Tutor-
Saliba Corp. v. City of Hailey, 452 F.3d 1055, 1059 (9th Cir.2006).

10a

Appendix B

as a result, the district court could not grant the City’s
untimely motion. We are not persuaded. Regardless of
whether the motion was untimely, the district court had
discretion to reach the merits of the late motion. The
district court noted that the motion was filed four days
after the Rule 54 deadline, and that Plaintiff was not
prejudiced by the late filing. A district court has broad
jurisdiction to grant attorneys’ fees and costs. Davis v.
Mason County, 927 F.2d 1478, 1487 (9th Cir.1991). On
this record, we conclude that the district court did not
abuse its discretion in reaching the merits of the City’s
motion for attorneys’ fees and costs.

Kenmore Lanes next argues that the district court
erred in failing to segregate fees relating to claims on
which the City prevailed from fees relating to claims on
which it did not prevail. We agree that a defendant is
not a “prevailing party” with regard to claims dismissed
without prejudice. See Branson v. Nott, 62 F.3d 287, 293
(9th Cir.1995) (“Where a complaint has been dismissed
for lack of subject matter jurisdiction, the defendant
has not prevailed over the plaintiff on any issue central
to the merits of the litigation.” (internal quotation marks
and citation omitted)). W2 therefore conclude that the
district court should not have considered the City the
prevailing party with respect to Kenmore Lanes’ Fifth
Amendment takings claim and its state law gambling
tax revenue claim for purposes of calculating attorneys’
fees and costs. Accordingly, we reverse the district
court’s award of attorneys’ fees and costs as to those
two claims. We remand so that the district court may
determine the amount of reasonable fees due the City

lla

Appendix B

for the claims on which it prevailed. See Chalmers v. City
of Los Angeles, 796 F.2d 1205, 1210 (9th Cir.1986)
(holding that for purposes of claiming a fee award
pursuant to 42 U.S.C. § 1988, “counsel bears the burden
of submitting detailed time records justifying the hours
claimed to have been expended.”).

Finally, Kenmore Lanes argues that the district
court erred by failing to segregate and deny fees for
1) matters originating in the office of the City Attorney
and 2) publie record requests made by Short, Cressman
& Burgess, PLLC. We agree. The district court’s order
granting the City’s motion reflects an award of fees for
time spent by the City’s attorneys on matters
completely unrelated to the litigation between the
parties. Because the City is entitled to recover fees only
for its attorneys’ work on claims on which the City
actually prevailed, Boeing Co. v. Sierracin Corp., 108
Wash.2d 38, 738 P2d 665, 682-83 (1987), it was an abuse
of discretion for the district court to award those
unrelated fees to the City. On remand, the district court
should review the City’s billing records and should not
award fees for time spent on matters unrelated to the
claims on which the City was the prevailing party.

No. 06-35801: AFFIRMED.
No. 06-36029: REVERSED and REMANDED.

In No. 06-85801, Appellees shall recover their costs
on appeal.

In No. 06-36029, Appellant shall recover its costs
on appeal.

12a

APPENDIX C — CORRECTED ORDER ON MOTION
FOR SUMMARY JUDGMENT OF THE UNITED
STATES DISTRICT COURT FOR THE WESTERN
DISTRICT OF WASHINGTON AT SEATTLE
DATED AUGUST 10, 2006

UNITED STATES DISTRICT COURT
WESTERN DISTRICT OF WASHINGTON
AT SEATTLE

NO. C05-2133P

STAR NORTHWEST, INC., d/b/a
KENMORE LANES and 11" FRAME CASINO,

Plaintiff(s),
v.

CITY OF KENMORE, et al.,
. Defendant(s).

CORRECTED
ORDER ON MOTION FOR
SUMMARY JUDGMENT

This corrected order of summary judgment seeks
to redress errors in the Court’s original order (Dkt. No.
90) which were brought to light in Plaintiff’s Motion for
Reconsideration (Dkt. No. 96). On August 10, 2006, the
Court held a telephonic conference in which counsel for
all parties (Paul Dayton for Plaintiff, Dan Lossing and
Jayne Freeman for Defendants) participated. Although
Defendants did not respond in writing to Plaintiff’s
Motion for Reconsideration, agreement with Plaintiff’s

l3a

Appendix C

positions on the two issues presented for
reconsideration (first, that Plaintiff’s Sixth Cause of
Action for refund of gambling tax revenues had not been
addressed by the summary judgment motion and
therefore survived the Court’s ruling on that motion;
second, that dismissal of Plaintiff’s takings claim for
non-ripeness should have been without prejudice) was
voiced orally.

Defendants City of Kenmore and Kenmore City
Council sought an order of summary judgment
dismissing Plaintiff’s claims against them for enacting
an ordinance banning the operation of social card rooms
within the Kenmore city limits. Having reviewed the
briefing, exhibits and declarations of both sides and
having heard oral argument on the motion, the Court
found that there were no genuine issues of material fact
and that Defendants were entitled to judgment as a
matter of law. The Court’s corrected order on summary
judgment shall be entered as follows:

The Court PARTIALLY GRANTS Defendants’
motion for summary judgment and DISMISSES all of
Plaintiffs’ claims except Plaintiff’s Sixth Cause of Action
(which was not the subject of Defendants’ motion); the
dismissed claims shall all be dismissed with prejudice
except for Plaintiff’s claim that Defendants’ action
constituted a taking without just compensation, which
claim shall be dismissed without prejudice.

l4a

Appendix C
BACKGROUND

By statute (the Washington Gambling Act), the state
legislature preempted the fields of gambling licensing
and regulation. RCW 9.46 .285. The statutory scheme
invests a limited authority in the state’s counties and
cities as regards gambling:

[A] city ... may absolutely prohibit, but may
not change the scope of license, [ sic ] any and
all of the gambling activities for which the
license was issued. RCW 9.46.295.

On March 10, 2003, the Kenmore City Council (“the
Council”) passed an ordinance, No. 03-167, that banned
card rooms, but permitted Plaintiffs’ operation (the
“11th Frame”) to remain open under a “grandfather”
clause. Def Mtn, Batchelor Decl. at pp. 477-504. In the
wake of the decision in Edmonds Shopping Center
Assoc. v. City of Edmonds, 117 Wn.App. 344 (2003),'
King County Superior Court Judge Lukens ruled that
Defendants could not selectively permit some gambling
establishments and not others, but were required to
either permit or ban all gambling.

On December 19, 2005, the Council passed
Ordinance 05-0237 (“the Ordinance”), prohibiting social

1. “Instituting a schedule to phase out existing gambling
activities is not absolutely prohibiting gambling activities ...
[Differentiating between existing and future uses is more
regulatory in nature, thus violating RCW 9.46.925.” Edmonds,
117 Wn. App. at 352.

15a

Appendix C

card rooms within the City. Batchelor Decl. at pp. 11-18.
The termination of existing operations was to be effective
immediately (at the end of December 2005), with no
grandfathering or amortization period. Plaintiffs filed
this lawsuit, alleging causes of action for regulatory
taking, violations of state and federal substantive due
process and injuries under § 1983. Plaintiffs then filed
for a preliminary injunction to permit them to continue
operations during the pendency of this litigation; on the
eve of the injunction hearing, the parties reached an
agreement and the card room has remained in operation
throughout the course of this action.

DISCUSSION

Plaintiffs attack the Ordinance on three grounds:
(1) the Ordinance results in the card room being
transformed into a “legal nonconforming use” which is
entitled to continue indefinitely or at least be “reasonably
amortized”; (2) the Ordinance works a taking on
Plaintiffs’ enterprise for which they are entitled to
compensation; and (3) the Ordinance is a violation of
state and federal substantive due process. This opinion
will examine each argument in turn.

Nonconforming use

The Kenmore Municipal Code defines a non-
conformance as:

[A]ny use... established in conformance with
the city of Kenmore rules and regulations in

l6a

Appendix C

effect at the time of establishment that no
longer conforms to the range of uses
permitted in the site’s current zone ... due to
changes in the code or its application to the
subject property.

KMC 18.20.1860. Plaintiffs’ card room fits the
qualifications of a “nonconforming use” under this
definition: it was established in the 1970s before the
incorporation of the city (Pitfs Decl. of Evans, Dkt. No.
8) and as late as 2003 was permitted to remain in
operation by virtue of a “grandfather” clause to an
ordinance which otherwise operated to ban card rooms
within the city. Batchelor Decl. at pp. 477-504. It is only
by virtue of the Ordinance in question that it “no longer
conforms to the range of uses permitted in the site’s
current zone...”

The Kenmore development regulations further state
that, “[o]nce created pursuant to KMC 18.20.1860, a
nonconformance may be continued in a manner
consistent with the provisions of this chapter .” KMC
18.75.0380. It is Plaintiffs’ position that these regulations
combine to dictate that the city must permit any
nonconforming use to continue indefinitely.

This is not a supportable contention. First of all, the
language of KMC 18.75.0300 is permissive: “... a
nonconformance may be continued .. .” The language
of the Ordinance clearly speaks to an intention not to
permit card rooms to continue in Kenmore.

17a

Appendix C

Secondly, Plaintiffs’ position is at odds with the
holding of the leading Washington case on
nonconforming uses, Rhod-A-Zalea & 85th, Inc. v.
Snohomish County, 1386 Wash.2d 1 (1988). The
Washington Supreme Court observed that “[cJourts have
consistently recognized that nonconforming uses are
subject to later enacted reasonable police power
regulations.” Jd. At 9 (citations omitted). Clearly, even
if Plaintiffs’ card room constitutes a legal nonconforming
use, Defendant is not constrained from doing anything
but permitting the 11th Frame to remain in operation
indefinitely.

Plaintiffs, however, claim support from Rhod-A-
Zalea’s holding that “[l]ocal governments, of course, can
terminate nonconforming uses but they are
constitutionally required to provide a reasonable
amortization period.” Jd. at 10 (citation omitted).
Plaintiffs claim that the card room, if not entitled to
operate indefinitely, must at least be afforded a
“reasonable” time period during which to amortize their
loss. In response, Defendant cites to Edmonds’ and a
later case (Paradise, Inc. v. Pierce County, 124
Wash.App. 759 (2004)*) for their holdings that the
Washington Gambling Act does not permit the

2. “Instituting a schedule to phase out existing gambling
activities is not absolutely prohibiting gambling . . . it is
regulation.” Edmonds, 117 Wn.App. at 358.

3. “[BJecause the County could not regulate gambling, a
ban on gaming was the only means available to realize the public
purpose of stopping card room gaming.” Paradise, 124
Wash.App. at 775.

18a

Appendix C

municipalities to “regulate” gambling operations by
building in amortization periods or grandfather clauses.

This opinion does not seek to reconcile that
apparent conflict; rather the Court finds that the Rhod-
A-Zalea holding concerning amortization for
nonconforming uses does not apply to gambling
operations like Plaintiffs’. The protection afforded
nonconforming uses springs from the “vested rights”
accorded such uses by virtue of the fact that the uses
were legal when they originated: “The right to continue
a nonconforming use despite a zoning ordinance which
prohibits such a use in the area is sometimes referred
to as a ‘protected’ or ‘vested’ right.” Rhod-A-Zalea, 136
Wash.2d at 6.

But the state has specifically exempted gambling
licenses from the creation of any vested rights. The
Washington Administrative Code states: “[T]he issuance
of any license by the commission shal] not be construed
as granting a vested right in the privileges so
conferred.” WAC 230-04-175. Plaintiffs cannot avail
themselves of the protections traditionally granted
nonconforming uses because they cannot claim a vested
right in the continued operation of their gambling
operation. Defendants are within their statutory and
constitutional authority to exercise their police power
by terminating the gaming use immediately.

19a

Appendix C
Takings

Private property shall not be taken for public use,
without just compensation. U.S. Constitution,
Amendment V. Plaintiffs seek such compensation
pursuant to a regulatory taking, but their claim to this
constitutional protection suffers from two fatal defects.

The first concerns whether Plaintiffs even have a
“private property” interest in their card room operation
which the Constitution will protect. In U.S. and Fed.
Communications Commission v. Edge Broadcasting
Co., 509 U.S. 418 (1993), the Supreme Court stated that
gambling “implicates no constitutionally protected right;
rather, it falls into a category of ‘vice’ activity that could
be, and frequently has been, banned altogether.” Jd. at
426. The Court finds that this holding, combined with
the WAC admonition that the issuance of a gambling
license “shall not be construed as granting a vested right
in the privileges so conferred,” renders Plaintiff unable
to claim a protectable right in the operation of the 11th
Frame card room.

In addition to the absence of a constitutionally
protected right, Plaintiffs brought this claim directly in
federal court. A federal takings claim is not ripe until
the claimant has sought, and been denied, compensation
through state procedures for such claims. Williamson
Co. Reg. Planning Comm’n v. Hamilton Bank of
Johnson City, 473 U.S. 172, 194-95 (1985). Washington’s
mechanism for adjudicating claims of regulatory takings
has been found adequate and a necessary prerequisite

20a

Appendix C

to a federal takings claim. Macri v. King County, 126
F.3d 1125 (9th Cir.1997). Plaintiffs have completely failed
to pursue a regulatory takings claim in state court.

Plaintiffs’ interpose two objections to this
requirement. The first is that the pursuit of such a
determination in state court would be “futile” and
therefore nonperformance should be excused. Plaintiffs
point to the two threshold inquiries that state law
takings claims require (“First, whether the regulation
destroys or derogates a fundamental property
ownership attribute. Second, whether the regulation
seeks less to prevent a harm than to impose a
requirement to provide an affirmative public benefit.”
Pitfs Memo, fn. 21.) and then assert, without authority
or explanation, that “[t]hey cannot be proved here.”
Id. at p. 15. It is not at all apparent to this Court why
this should be the case. In point of fact, the argument
that their right to continue operation of the card room
is a “fundamental property ownership attribute” is one
of the central tenets of Plaintiffs’ position in this lawsuit.
Plaintiffs fail to establish that pursuing adjudication of
their compensation claim through state court would be
a futile and useless act.

Plaintiffs’ second objection to the standard federal
takings claim prerequisite is both theoretical and
unpersuasive. Plaintiffs cite to San Remo Hotel, L.P. v.
City and County of San Francisco, 545 U.S. 3238, 125
S.Ct. 2491 (2005) and quote the San Remo opinion to
suggest that the Supreme Court intended to eliminate
or somehow disavow the Ninth Circuit’s Macm holding

2la

Appendix C

requiring the adjudication of a takings claim through
the state compensation process. The language which
Plaintiffs quote‘ is in fact pre- Williamson language and
is cited in a context which in no way suggests that an
“exhaustion of state remedies” requirement is overly
stringent or unfair.

In actuality, there is language in the San Remo
opinion suggesting the Williamson requirement of
state exhaustion ought to be re-examined but (as
Plaintiffs acknowledge) the language is only found in
the concurring opinion and (as careful reading of the
selection reveals) it is more in the nature of a musing or
a suggestion than a pronouncement with any
precedential value. The fact remains that Willzamson
and Macri are still valid legal authority and this Court
will not accent Plaintiffs’ invitation to ignore them. The
takings claim is not ripe and will accordingly be
dismissed without prejudice.

Both parties provided briefing on whether the action
before this Court satisfies the substantive elements of
a takings claim. On the basis of the finding that Plaintiffs’
takings claim is not yet ripe, this opinion does not reach
the merits of that cause of action.

4. “[A] claim that the application of government
regulations effects a taking of a property interest is not ripe
until the government entity charged with implementing the
regulations has reached a final decision regarding the
application of the regulations to the property at issue.” 125 8.Ct.
at 250

22a

Appendix C

Substantive Due Process

Plaintiffs’ federal and state substantive due process
claims must be analyzed separately. At both the state
and federal levels, a three-part test (with slight
variations) is employed. The test considers:

1. Whether the regulation is aimed at
achieving a legitimate public purpose;

2. Whether it uses means that are “reasonably
necessary” to achieve that purpose (the
federal test asks if the means are “rationally
related” to the purpose); and

3. Whether it is unduly oppressive on the
landowner.

Edmonds, 117 Wash.App. at 364; Pearson v. City of
Grand Blanc, 961 F.2d 1211, 1223 (6th Cir.1992).

The Court declines to reach the issue of whether
Plaintiffs have a supportable federal substantive due
process claim. Defendants cite a line of federal authority
which clearly holds that “the scope of substantive due
process does not extend to areas addressed by other,
more specific provisions of the Constitution.”
Armendariz v. Penman, 75 F.8d 1811, 1326 (9th
Cir.1996); see also Squaw Valley Dev. v. Goldberg, 375
Ii3d 936, 948 (9th Cir.2004); Madison vu. Graham, 316
F.3d 867, 870-71 (Mont.2002) (“Since deciding
Armendariz, this court has consistently held that

23a
Appendix C

substantive due process claims are precluded where the
alleged violation is addressed by the explicit textual
provisions of the Fifth Amendment’s Takings Clause.”).

The Armendariz court notes that the Supreme
Court has been steadily moving away from extending
substantive due process protections to purely economic
interests such as those of Plaintiff’s. 75 F3 at 1318.
Neither in their briefing nor at oral argument have
Plaintiffs responded to this clear federal precedent, and
the Court will assume on that basis that Plaintiffs
concede the validity and impact of the Armendariz
rationale. Plaintiffs’ federal substantive due process
claim will be dismissed.

Plaintiffs fare no better under the state substantive
due process analysis:

1. Legitimate public purpose: Plaintiffs
argue that, since the Council did not explicitly
state a purpose for the Ordinance, this Court
must accept Plaintiffs’ contention that the
purpose was to prohibit the proliferation of
ecard rooms. The language of the Ordinance
belies that argument—the only rational
reading of its wording is that its purpose is to
prohibit all card rooms, not merely halt the
spread of them.’ The Edmonds court found a

5. And the firmly established Edmonds/Paradise
precedent prohibiting municipalities from only banning the
future establishment of card rooms has been discussed at length

supra

24a

Appendix C

legitimate public purpose to that
municipality’s ordinance (a) in the testimony
presented at council meetings (although there
is evidence that there was testimony from
supporters and detractors of social card
rooms, Plaintiffs do not dispute that there was
some sentiment in the community in favor of
banning gambling) and (b) in the “historical
acceptance of the regulation of gambling as a
valid exercise of the police power and the
explicit authorization by the Legislature in
RCW 9.46.295 to permit municipalities to
prohibit gambling absolutely.” 117 Wash.App.
at 365. The Court finds that Defendants’
intention to ban social card rooms represented
a legitimate public purpose.

2. Reasonably necessary: Edmonds and
Paradise make it clear that, in the state of
Washington, under RCW 9.46.295, anything
short of a complete ban would amount to an
impermissible “regulation” of gambling.
Edmonds, at 365; Paradise, at 181. The Court
finds that the Ordinance was reasonably
necessary in order for Defendants to prohibit
gambling as they were authorized to do by the
Legislature.

3. Unduly oppressive: The leading state
case ( Presbytery of Seattle v. King County,
114 Wn.2d 320 (1990)) lists several factors to
consider in weighing oppressiveness:

25a

Appendix C

a. The nature of the harm to be
avoided: As has been discussed fully
supra, gambling has long been
considered an activity which is
legitimately the subject of the
exercise of a municipality’s police
power;

b. The availability and effectiveness
of less drastic protective measures:
Again, as fully explicated above, the
current state of statutory and case law
dictates that the municipality which
wishes to prohibit gambling is
constrained from any “less drastic
protective measures” than a complete
and immediate ban;

ce. The economic loss suffered by the
properly owner: The Court is aware
of Plaintiffs’ claim that the closing of
the card room will doom the associated
enterprises of the bowling alley and
restaurant which also occupy the
property in question. Pltfs Memo, p.
18. However, the Court is mindful of
the fact that Plaintiffs still own a
valuable piece of commercial property
for which many possible profitable
uses remain—the effect of
Defendants’ action has been to
restrict one activity, not to deny

26a

Appendix C

Plaintiffs the opportunity to turn the
property to any profitable use (as
would be the case had the property
been turned to usé as a public park
or wildlife preserve). The Court does
not find that the Defendants’ proper
exercise of its police power for a
legitimate public purpose is
outweighed by the nature of Plaintiffs’
economic loss.

d. The property owner’s ability to
anticipate the regulation: The Court
finds some merit in Plaintiffs’
contention that their lengthy
existence within the community,
coupled with the “grandfather” status
accorded the 11th Frame in the 2003
ordinance and the fact that as
originally written the 2005 ordinance
allowed the card room to live out the
length of its current license (the final
version of the Ordinance eliminated
this provision), may have impaired
their ability to anticipate the
municipality’s action. However, these
considerations must be balanced
against other facts: the existence of
the Washington Gambling Act
empowering municipalities to prohibit
gambling, the 2003 rulings in
Edmonds and Paradise upholding the

2/a
Appendix C

exercise of that power by other
municipalities, and Judge Lukens’
ruling in the wake of Edmonds that
Defendants’ moratorium was an
inappropriate “regulation” of
gambling in violation of RCW 9.46.295.
Additionally, the finite nature of the
gambling license itself—the fact that
Plaintiffs had to face a process of
reapplication and possible denial of
the license annually—constituted
some notice that their continued
existence was never assured. At best
these countervailing factors balance
each other out and, in the grand
weighing-and-balancing scheme of
the test for “undue oppression,” they
cannot be said to tip the scales in
Plaintiffs’ favor.

It is the opinion of this Court that an examination
of all the factors necessary for establishment of a
substantive due process violation under state law yields
the conclusion that Plaintiffs have not, as a matter of
law, succeeded in making their case for this cause of
action. Accordingly, both the federal and state
substantive due process claims will be dismissed on
summary judgment.

28a
Appendix C
CONCLUSION

Finding no genuine issues of disputed material fact,
the Court finds that Defendants are entitled to partial
summary judgment as a matter of law. The card room is
not entitled to the protections accorded legal
nonconforming uses because Plaintiffs have no vested
rights in its gambling license or operation. Plaintiffs’
takings compensation claim is not yet ripe. The federal
courts do not recognize a substantive due process claim
where a party has a more specific unjust takings claim
and Plaintiffs have not satisfied the conditions for a
finding of a substantive due process violation under
state law. This order does not dismiss Plaintiffs’ Sixth
Cause of Action. The remainder of Plaintiffs’ claims are
hereby DISMISSED; the Ninth Cause of Action is
dismissed without prejudice.

The clerk is directed to provide copies of this order
to all counsel of record.

Dated: August 10, 2006

s/ Marsha J. Pechman
Marsha J. Pechman
U.S. District Judge

29a

APPENDIX D— CITY OF KENMORE, WASHINGTON
ORDINANCE ADOPTED DECEMBER 19, 2005

CITY OF KENMORE
WASHINGTON
ORDINANCE NO. 05-0237

AN ORDINANCE OF THE CITY OF
KENMORE, WASHINGTON, PROHIBITING
SOCIAL CARD GAMES WITHIN THE CITY;
AMENDING CHAPTER 18.20 OF THE
KENMORE MUNICIPAL CODE; AMEND-
ING SECTIONS 18.25.040 AND 18.25.070 OF
THE KENMORE MUNICIPAL CODE TO
PROHIBIT SOCIAL CARD GAMES WITHIN
THE CITY; PROVIDING FOR SEVERABIL-
ITY; AND ESTABLISHING AN EFFECTIVE
DATE

WHEREAS, the City of Kenmore has adopted a
Comprehensive Plan in compliance with the Growth
Management Act; and

WHEREAS, gambling activities are not adequately
addressed in the City’s Comprehensive Plan, Interim
Zoning Code or other interim development regulations;
and

WHEREAS, in March of 1999, the City Council
adopted a moratorium on applications for social card game
gambling within the City, and has extended the moratorium
every six months until March 20, 2003; and

WHEREAS, Division 1 of the Court of Appeals issued
its opinion on June 26, 2003, in Edmonds Shopping Center

30a

Appendix D

Assoc., et al. v. City of Edmonds, affirming that cities may
prohibit any or all gambling activities, but calling into
question cities’ ability to exercise zoning or other general
police powers over licensed gambling activities; and

WHEREAS, the Court of Appeals has also ruled that
cities lack the authority under current statutory language
to “grandfather” existing social card games conducted at
premises licensed by the State Gambling Commission or
to amortize the continued existence of any such social card
games; and

WHEREAS, the Legislature has granted clear
authority to the City Council in RCW 9.46.295 to absolutely
prohibit within the City of Kenmore any or all gambling
activities authorized by the Legislature; and

WHEREAS, the City Council had conducted
numerous public meetings and public hearings and has
otherwise received significant public comment regarding
the city’s regulation of legal gambling activities; and

WHEREAS, the City Council desires to adopt an
ordinance prohibiting social card games throughout the
City pursuant to RCW 9.46.295 and the City Council’s
constitutional authority to regulate the public health,
safety, and welfare in a manner consistent with the general
law;

3la

Appendix D

NOW, THEREFORE, THE CITY COUNCIL OF
THE CITY OF KENMORE WASHINGTON, DO
ORDAIN AS FOLLOWS:

Section 1. Social Card Game Prohibited. Pursuant
to RCW 9.46.295, “social card games,” as that term is
defined in RCW 9.46.0282 as now in effect or may
subsequently be amended, are prohibited within the City
of Kenmore. Social card games shall not be permitted,
maintained or operated as a commercial stimulant for the
operation of any business primarily engaged in the selling
of food or drink for consumption on the premises, nor for
any other reason or under any other circumstances.
Nothing in this ordinance shall be construed to otherwise
change the scope of any current license issued by the State
Gambling Commission.

Section 2. Social Card Game Defined. Chapter 18.20
(Technical Terms and Land Use Definitions) of the
Kenmore Municipal Code is amended to add a new
definition to read as follows:

18.20.2782 Social Card Game.

“Social card game” is defined as set forth in
RCW 9.46.0282, as now in effect or as may be
subsequently amended or re-codified.

32a

Appendix D

Section 3. Permitted Uses - Retail Land Uses.
Section 18.25.070(A) (Retail Land Uses) of the Kenmore
Municipal Code is amended at SIC Code 58, the table
for “Eating and Drinking Places,” to read as follows:

18.25.070 Retail land uses.

RESOUCE | RESIDENTIAL COMMBRICALANDUSTRIAL
A U N c R o !
0 * 8 oO & t N
R B ‘ M re] F D
I A G M 1: 1 U
z c N H U o c s
oO u 8 N N F T
N L fe 0 ' A R
E T Fe R T L i
U 8 4 Y A
& t oO 8 L
e rs) re) 6 U
ia 0 U s
M $ i
T 8 i N
{ U N t
A s Eg §
L i s s
N $
i
s
$
_
*
$
SiC# | SPECIFIC A mt @ NH ca RB i) i
LAND 1-4 | 12-48
USB
\ eee . eee eee eee eee eee
P21

38 | Gating and oi tn PiddL Pai P2i ?2i
eee

33a

Appendix D

Section 4. Permitted Uses - Development
Conditions. Section 18.25.070(B) (Retail Land Uses -
Development Conditions) of the Kenmore Municipal
Code is amended to read as follows:

B. Development Conditions.
1. Reserved.

2. Only hardware and garden materials shall be
permitted.

3. a. Limited to products produced on-site.

b. Coveted sales areas shall not exceed a total area
of 500 square feet.

4. No permanent structures or signs.

5. Limited to SIC Industry No. 5331, Variety Stores,
and further limited to a maximum of 2,000 square
feet of gross floor area.

6. Limited to a maximum of 2,000 square feet of
gross floor area.

7. a. The floor area devoted to retail sales shall not
exceed 3,500 square feet.

b. Sixty percent or more of the average annual
gross sales of agricultural products sold through the
store over a five-year period shall be derived from
products grown or produced in the city of Kenmore.
At the time of the initial application, the applicant
shall submit a reasonable projection of the source
of product sales.

34a
Appendix D

c. Sales shall be limited to agricultural produce and
plants.

d. Storage areas for produce may be included ina
farm store structure or in any accessory building.

e. Hours of operation shall be limited to 7:00 a.m.
to 9:00 p.m. during May through September and
7:00 a.m. to 7:00 p.m. during October through April.
Outside lighting is permitted if no off-site glare is
allowed.

8. Excluding retail sale of trucks exceeding one-ton
capacity.

9. Only the sale of new or reconditioned automobile
supplies is permitted.

10. Excluding SIC Industry No. 5813 - Drinking
Places.

11. No outside storage of fuel trucks and
equipment.

12. Excluding vehicle and livestock auctions.
13. Reservea.

14. Notin R-1 and limited to SIC Industry No. 5331
- Variety Stores, limited to a maximum of 5,000

square feet of gross floor area, and subject to KMC
18.30.220.

15. Not permitted in R-| and limited to a maximum
of 5,000 square feet of gross floor area and subject
to KMC 18.30.220.

16. Not permitted in R-1 and excluding SIC
Industry No. 5813 - Drinking Places, and limited to
a maximum of 5,000 square feet of gross floor area
and subject to KMC 18.30.220.

35a

Appendix D

17. Retail sale of livestock is permitted only as
accessory to raising livestock.

18. Limited to the R-1 zone.

19. Limited to the sale of livestock feed, hay and
livestock veterinary supplies with a covered sales
area of not more than 500 square feet. The 500-
square foot limitation does not include areas for
storing livestock, feed, hay or veterinary supplies
or covered parking areas for trucks engaged in
direct sale of these products from the truck.

20. a. Covered sales areas shall not exceed a total
area of 2,000 square feet.

b. Sixty percent or more of the average annual
gross Sales of agricultural products sold through the
store over a five-year period shall be derived from
products grown or produced in the city of Kenmore.
At the time of the initial application, the applicant
shall submit a projection of the source of product
sales.

c. Sales shall be limited to agricultural produce and
plants.

d. Storage areas for produce may be included in a
farm store structure or in any accessory building.

e. Hours of operation shall be limited to 7:00 a.m.
to 9:00 p.m. during May through September and
7:00 a.m. to 7:00 p.m. during October through April.
Outside lighting is permitted if no off-site glare is
allowed.

21. Social card games, as defined by this Title are
prohibited.

36a

Appendix D

Section 5. Permitted Uses - Recreational/cultural
land uses. Section 18.25.040(A) (Recreational/cultural
land uses) of the Kenmore Municipal Code is amended
at SIC Code 7999, the table for “Amusement and
Recreation Services,” to read as follows:

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37a

Appendix D

Section 6. Permitted Uses - Development
Conditions. Kenmore Municipal Code Section
18.25.040(B) (Recreational/cultural land uses -
Development Conditions) is hereby amended to read as
follows:

B. Development Conditions.

1. The following conditions and limitations shall
apply, where appropriate:

a. No stadiums on sites less than 10 acres;

b. Lighting for structures and fields shall be
directed away from residential areas;

c. Structures or service yards shall maintain a
minimum distance of 50 feet from property lines
adjoining residential zones, except for structures in
on-site recreation areas required in KMC 18.35.170
and 18.35.180. Setback requirements for structures
in these on-site required recreation areas shall be
maintained in accordance with KMC 18.30.030;

d. Facilities in the A zones, or in a designated rural
forest focus area, shall be limited to trails and
trailheads and active recreation facilities, including
related accessory uses such as parking and sanitary
facilities. Active recreation facilities shall be limited
to those properties within the agricultural
production district (APD) that are acquired before
designation of the APD, using voter-approved
recreation funds, state funds mandated for
recreation funds or King County board of recreation
funds. Active recreation uses allowed on parcels as

38a

Appendix D

noted in this subsection may be transferred to other
parcels within the same APD. However, active
recreation from lands outside of the APD shall not
be relocated to any parcel within an APD. Where
those facilities are permitted within an APD, the
following deed restrictions shall be applied:

(1) Active recreation uses shall be designed in a
manner that visually screens adjacent agricultural
uses from park users and that restricts physical
trespass onto adjacent agricultural production
district properties;

(2) Buildings associated with recreational uses shall
be limited to restroom facilities, picnic shelters and
storage/maintenance facilities for equipment used
on-site;

(3) No use that permanently compacts, removes,
sterilizes, pollutes or otherwise materially impairs
the future use of the soil for raising agricultural
crops shall be allowed;

(4) Any soil surfaces temporarily disturbed through:
construction activities shall be restored in a manner
consistent with agricultural uses, including
restoration of the original soil horizon sequence, as
soon as practical following the disturbance;

(5) Access to recreational uses shall be designed to
minimize impact on the surrounding agricultural
production district and should be limited to direct
access along district boundaries whenever feasible;
and

39a

Appendix D

(6) Although the recreational use of agricultural
production district properties may be long term, the
use shall be recognized as an interim use of the
production district’s prime agricultural soils. As
such, any acquisition funding or policy restrictions
for the recreational use of the property shall be
viewed as subordinate to the city’s prior
commitment to the preservation of prime
agricultural soils and the viability of local
agricultural production. If the city declares through
action of the city council a critical shortage of
agricultural soils to accommodate an active soil-
dependent agricultural proposal, the city shall
initiate a process to relocate any recreational uses
off the subject property and to make the property
available for re-establishment of agricultural
activities; and

e. Overnight camping is allowed only in an approved
campground.

2. Reserved.
3. Reserved.

4. Limited to recreation facilities subject to the
following conditions and limitations:

a. The bulk and scale shall be compatible with
residential or rural character of the area;

b. For sports clubs, the gross floor area shall not
exceed 10,000 square feet unless the building is on
the same site or adjacent to a site where a public
facility is located or unless the building is a nonprofit
facility located in the urban area; and

40a
Appendix D

c. Use is limited to residents of a specified
residential development or to sports clubs providing
supervised instructional or athletic programs.

5. Limited to day moorage.

6. Adult entertainment businesses shall be
prohibited within 330 feet of any property zoned R
or containing schools, licensed daycare centers,
public parks or trails, community centers, public
libraries or churches. In addition, adult
entertainment businesses shall not be located closer
than 3,000 feet to any other adult entertainment
business. These distances shall be measured from
the property line of the parcel or parcels proposed
to contain the adult entertainment business to the
property line of the parcels zoned R or that contain
the uses identified in this subsection.

7. Clubhouses, maintenance buildings, equipment
storage areas and driving range tees shall be at least
50 feet from residential property lines. Lighting for
practice greens and driving range ball impact areas
Shall be directed away from adjoining residential
zones. Applications shall comply with adopted best
management practices for golf course development.

8. Limited to a golf driving range as an accessory
to golf courses.

9. Reserved.

10. a. Only in an enclosed building, and subject to
the licensing provisions of KMC Title 5;

4la

Appendix D

b. Indoor ranges shall be designed and operated
so as to provide a healthful environment for users
and operators by:

(1) Installing ventilation systems that provide
sufficient clean air in the user’s breathing zone, and

(2) Adopting appropriate procedures and policies
that monitor and control exposure time to airborne
lead for individual users.

11. Only as accessory to a park or in a building listed
on the National Register as an historic site or
designated as a city of Kenmore landmark subject
to Chapter 18.75.KMC.

12. Reserved. Social card games, as defined by this

Title are prohibited.
13. Subject to the following:

a. The park shall abut an existing park on one or
more sides, intervening roads notwithstanding;

b. No bleachers or stadiums are permitted if the
site is less than 10 acres, and no public amusement
devices for hire are permitted;

ec. Any lights provided to illuminate any building or
recreational area shall be so arranged as to reflect
the light away from any premises upon which a
dwelling unit is located; and

d. Al! buildings or structures or service yards on
the site shall maintain a distance not less than 50
feet from any property line and from any public
street.

42a

Appendix D

14. Excluding amusement and recreational uses
classified elsewhere in this chapter.

15. Limited to golf driving ranges and subject to
subsection (B)(7) of this section.

16. Subject to the following conditions:

a. The length of stay per party in campgrounds shall
not exceed 180 days during a 365-day period; and

b. Only for campgrounds that are part of a proposed
or existing city park, which are subject to review
and public hearings through the department of
parks and recreation’s master plan process.

17. Only for stand-alone sports clubs that are not
part of a park.

Section 7. Transmittal. The City Clerk is directed
to transmit a certified copy of this Ordinance to the State
Gambling Commission.

Secticn 8. Severability. Should any section,
paragraph, sentence, clause or phrase of this Ordinance,
or its application to any person or circumstance, be
declared unconstitutional or otherwise invalid for any
reason, or should any portion of this Ordinance be pre-
empted by state or federal law or regulation, such
decision or pre-emption shall not affect the validity of
the remaining portions of this Ordinance or its
application to other persons or circumstances.

43a

Appendix D

Section 9. Effective Date. This Ordinance shall be
published in the official newspaper of the City, and shall
take effect and be in full force five (5) days after the
date of publication.

ADOPTED BY THE CITY COUNCIL AT A
REGULAR MEETING THEREOF ON THE 19" DAY
OF DECEMBER, 2005.

CITY OF KENMORE

s/ Steven Colwell
Steven Colwell, Mayor

ATTEST/AUTHENTICATED:

s/ Lynn Batchelor
Lynn Batchelor, City Clerk

Approved as to form:
s/ Rod P. Kaseguma
Rod P Kaseguma, City Attorney

Filed with the City Clerk: December 13, 2005
Passed by the City Council: December 19, 2005
Ordinance No. 05-0237

Date of Publication: December 23, 2005

Effective Date: December 29, 2005

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40386017_0375%3A1. Public record. Not legal advice.
