HUNT, J.
¶ 1 Tiger Oil Corporation (New Tiger)
¶ 2 We affirm the superior court's April 2, 2010 orders striking the exhibit from New Tiger's counsel's declaration and affirming Ecology's final management review decision. We affirm most of the superior court's April
¶ 3 In the late 1970s, Tiger Oil Company (Old Tiger) purchased a Yakima tract (the Tiger Parcel) to operate a gasoline service station and convenience store. Located on this parcel were four underground storage tanks, each capable of holding several thousand gallons of gasoline. Old Tiger had installed new pipes and fittings on these underground tanks. In 1981, high levels of gasoline vapors in and around a nearby storm drain line caused an explosion that injured City of Yakima workers.
¶ 4 In September 1982, Old Tiger excavated soil from Tiger Parcel's southeast corner and discovered gasoline contamination. Testing revealed a leak in the new piping that Old Tiger had installed a few years earlier. In response, Ecology ordered Old Tiger "to recover floating [gasoline] product in groundwater at the Site[
¶ 5 In early 1983, Old Tiger's liability insurer, Federated Service Insurance Company (Federated Service),
¶ 6 In 1987, Old Tiger began exploring the possibility of selling its assets, including the Tiger Parcel and the gas station and service store located on it. Seattle First National Bank (Seafirst), Old Tiger's financial adviser, sent to Charles David Conley, President of Goodman Oil Company, a letter about a potential sale and a confidential memorandum describing the history and nature of Old Tiger's business, its assets, and its financial information. This memorandum also stated that gasoline leaking and contamination "was discovered" in the past but that Old Tiger did not "expect any further legal action" and that "[a]ll suits [had] been settled satisfactorily."
¶ 7 When Conley told Seafirst "that [Old Tiger] had had a problem with underground storage tanks,"
¶ 8 New Tiger was incorporated on August 13, 1987, and Conley soon became New Tiger's president and sole shareholder. CP at 1296. On October 1, New Tiger purchased Old Tiger's assets, including the Tiger Parcel, for $1,100,000. In the purchase and sale agreement, Old Tiger warranted "that there [was] no suit, action, legal, administrative or other proceeding pending or threatened against or affecting" Old Tiger. CP at 2428. The agreement also contained indemnity clauses, in which Old Tiger and its owners guaranteed to "defend and hold [New Tiger] harmless of any and all claims ... based solely on any alleged occurrence, contract, undertaking, or conduct occurring prior to the time of closing." CP at 2432.
¶ 9 In May and June 1988, Mercy Development Company, LLC
¶ 10 In late March 1989, Ecology held a meeting with various parties, but not New Tiger, which Ecology did not notify about "the discovery of free product or of the meeting." CP at 375. In June, Ecology identified New Tiger as a "potentially liable person" under the MTCA, which had become effective just three months earlier. CP at 1088. The following year, on March 29, 1990, Ecology ordered New Tiger (1) to submit to Ecology a work plan, a compliance schedule, and a final "Remedial Investigation/Feasibility Study" detailing the new remediation efforts that New Tiger would undertake; and (2) to reimburse Ecology for its earlier Site remediation expenses. CP at 20. Ecology later amended this enforcement order to include Old Tiger, Federated Service, and Mercy as potentially liable persons.
¶ 11 In August 1990, New Tiger sued Old Tiger, Old Tiger's individual former owners, Federated Insurance, Seafirst, and other parties "to determine ... the parties' obligations with respect to the alleged contamination at the [Site], including the parties' obligations to investigate and remediate the alleged contamination." CP at 742-43. New Tiger alleged that Old Tiger had committed, among other things, fraud, negligent misrepresentation, and breach of contract. Around this time, New Tiger also employed an environmental remediation company to submit proposals to Ecology for remediation activities.
¶ 12 On September 27, 1994, Ecology ordered New Tiger, Old Tiger, Federated Service, and Mercy "to perform an Interim Action to recover free phase gasoline product and prevent infiltration of gasoline products." CP at 21. Between 1995 and 1996, an environmental remediation company that Federated Service hired installed a soil vapor extraction system (Interim SVE System)
¶ 13 In early April 1997, New Tiger settled its lawsuit with Old Tiger, Federated Service, and the other parties. Federated Service agreed to pay New Tiger $1,100,000 and another $1,625,000 in a trust account, to which New Tiger would be entitled after Ecology provided New Tiger with a "No Further Action determination."
¶ 14 Following the settlement, New Tiger "took over the remediation," including the Interim SVE System's operation. CP at 4665. Throughout 1998, New Tiger continued to submit remediation studies and cleanup proposals to Ecology. One of the proposals, which Ecology accepted, defined "the Site" as:
CP at 32. In May 2001, New Tiger ceased operating the gas station at the Tiger Parcel.
¶ 15 On March 13, 2002, Ecology issued a cleanup action plan and enforcement order, which required New Tiger, Old Tiger, Federated Service, and Mercy (1) to remove the underground storage tanks at the Tiger Parcel, (2) to remove and to dispose of gasoline-contaminated soils at the Tiger Parcel, and (3) to install and to operate a SVE system.
¶ 16 In an April 2, 2002 letter, New Tiger, Old Tiger, and Federated Service advised Ecology that they had "sufficient cause for refusing to comply with [the March 13, 2002 enforcement order]" "and accompanying Final Cleanup Action Plan." CP at 4533. They argued that the enforcement order and the cleanup action plan's requirements were "arbitrary and capricious actions by the Department of Ecology" for several reasons, including but not limited to, the following:
CP at 4533.
¶ 17 On June 6, 2002, Ecology filed a lawsuit asking the superior court to order New Tiger, Old Tiger, Federated Service, and Mercy
¶ 18 In its answer, New Tiger raised several affirmative defenses, including that the MTCA, "on its face and as applied to New Tiger with respect to the Site," violates "the due process and ex post facto clauses of the constitutions of the United States and the State of Washington" and "the takings clause of the Washington constitution." CP at 90. New Tiger also (1) raised common law defenses, including laches and estoppel; (2) contended that [Ecology's] own "claims against New Tiger [were] barred by [Ecology's] own gross negligence with respect to the Site"; (3) asserted that it was not liable under the MTCA's third-party contractual defense; and (4) claimed that Ecology's "actions and decisions with respect to the Site were arbitrary and capricious." CP at 90-91.
¶ 19 On August 15, 2003, the superior court entered a consent decree between Ecology and Mercy (Mercy consent decree). Ecology determined that any remediation contribution from Mercy would be "insignificant in amount and toxicity and that settlement with Mercy was both practicable and in the public interest." CP at 225.
¶ 20 The Mercy consent decree required Mercy to extend the Interim SVE System "in two directions." CP at 714. This work would form "the Mercy Property SVE System," which would be composed of the Interim SVE System, an "SVE Extension to the north," an "SVE Extension to the southeast[,] and any connecting piping."
¶ 21 But if Mercy failed to excavate and to remove the contaminated soil at the Site within 30 months after installing the Mercy SVE Extensions, then Mercy's responsibility to operate and to maintain the system would terminate 30 months after installation of the Mercy SVE Extensions. The Mercy consent decree further provided that, once either the 30-month post-excavation period or the 30-month post-installation period lapsed, Ecology must decide whether "further operation of the Mercy Property SVE System [is] necessary"; if so, then "such operation may be conducted by Ecology ... or by another person." CP at 717.
¶ 22 Ecology moved for partial summary judgment to establish New Tiger's, Old Tiger's, and Federated Insurance's liability under the MTCA. Ecology also moved for partial summary judgment dismissal of New
¶ 23 In a letter opinion dated April 20, 2004, the superior court granted, in large part, Ecology's partial summary judgment motions. CP at 2956-57. The superior court dismissed New Tiger's third-party contractual defense, finding that New Tiger had a "contractual relationship" with Old Tiger. CP at 2956. The superior court also dismissed New Tiger's affirmative defenses of laches, estoppel, negligence, and comparative fault, ruling that "these defenses are not provided for in MTCA and [are] inconsistent with [the] MTCA." CP at 2956. New Tiger did not challenge the rulings in the superior court's April 20 letter opinion. On May 14, the superior court issued a partial summary judgment order, which embodied its April 20 letter opinion dismissing the affirmative defenses listed above and, in addition, concluded that New Tiger and Old Tiger were liable under the MTCA. New Tiger did not challenge this May 14 order. In a different letter opinion dated May 18, the superior court dismissed New Tiger's constitutional affirmative defenses and wrote, "This Court finds that as of this date, New Tiger is unwilling to complete the cleanup of the [Site]." CP at 3132. New Tiger did not dispute this May 18 letter opinion.
¶ 24 Subsequently, Federated Service and Ecology signed a letter stipulating to dismissal of Federated Service, which the superior court dismissed from Ecology's MTCA lawsuit without prejudice. On May 24, the superior court issued a summary judgment order, which embodied its May 18 letter opinion rejecting New Tiger's constitutional affirmative defenses. New Tiger did not challenge this May 24 summary judgment order.
¶ 25 On October 29, 2004, Ecology and New Tiger entered into a consent decree,
CP at 3501. The cleanup action plan also provided, "Because the [cleanup action plan] is agreed upon by Ecology and [New] Tiger, no disproportionate cost analysis is required." CP at 3514.
¶ 26 The cleanup action plan also specified "[c]leanup [s]tandards,"
CP at 3504. These Interim SVE System's deficiencies caused the cleanup action plan to require that (1) New Tiger dig two trenches on the Tiger Parcel "to determine the existence and amount of [the] free [gasoline] product"
CP at 3507-08 (emphasis added).
¶ 27 The cleanup action plan also provided for monitored natural attenuation when the following four conditions were satisfied:
CP at 3508 (citing WAC 173-340-370(7)(a)-(d)).
¶ 28 Under the cleanup action plan, Ecology would consider the Site "clean" when the soil and groundwater Method A cleanup levels had "been met for eight consecutive quarters, or two years of monitoring at all conditional points of compliance," commencing on "completion of the active remedial measures," such as the underground storage tank and gasoline-contaminated soil removals and New Tiger SVE Extensions installation. CP at 3511-12. Ecology would also issue a "No Further Action" determination when New Tiger met the cleanup action plan requirements and when the groundwater Method A cleanup levels had been met for two years in the conditional points of compliance. CP at 3512. "A [No Further Action] determination is not the equivalent of a clean site determination." CP at 3512.
¶ 29 The New Tiger consent decree further provided:
CP at 3487-88.
¶ 30 The New Tiger consent decree also had a multi-step dispute resolution process. First, if New Tiger objected to Ecology's decisions, Ecology's and New Tiger's "project coordinators [would] then confer in an effort to resolve the dispute." CP at 3474. Second, if the project coordinators could not resolve the dispute, New Tiger could request, and Ecology's "Toxics Cleanup Program Manager" would issue, a written "final management review" decision; this decision would be "Ecology's final decision on the disputed matter." CP at 3474-75. If New Tiger found Ecology's final management review decision "unacceptable," New Tiger could advance to the third step by either (1) "request[ing], in writing ... formal mediation in an attempt to resolve the dispute"; or (2) if New Tiger chose not to request mediation, "submit[ing] the dispute to the Court for resolution," in which case "the Court [would] review the action or decision of Ecology on the basis of whether such action ... was arbitrary and capricious and render a decision based on such standard of review."
¶ 31 Between December 13 and 16, 2004, New Tiger removed four underground gasoline storage tanks from the Tiger Parcel. Between December 20 and 22, New Tiger dug two trenches and installed SVE piping on the Tiger Parcel. In a January 19, 2005 letter, Ecology acknowledged that New Tiger had taken several positive steps at the Site, including underground storage tank removal, SVE pipe installation, and removal of at least 650 cubic yards of soil.
¶ 32 A year later, in January 2006, Ecology advised New Tiger that it was failing to meet several consent decree requirements, including completing installation and commencing operation of the New Tiger SVE Extensions.
¶ 33 In a September 28, 2006 letter to New Tiger's environmental remediation company, the Yakima Regional Clean Air Authority wrote that "installation and operation of the Soil Vapor Extraction (SVE) system shall employ Best Available Control Technology (BACT) [to] control air pollution emissions." CP at 4590. Ecology later advised New Tiger, "In accordance with ... Section XXIII.(B) [of the New Tiger consent decree], Ecology hereby informs [New Tiger] that
¶ 34 During 2007 and 2008, New Tiger and Ecology attempted to resolve their disputes about New Tiger's consent decree obligations. CP at 3758, 3771. Ecology subsequently issued its "final position" on September 23, 2008.
¶ 35 On October 23, New Tiger "request[ed] final management review of all outstanding disputes between [New Tiger], Ecology and Mercy" under the consent decree's dispute resolution process. CP at 4234. New Tiger asserted that it had
CP at 4238. New Tiger also estimated that it would cost between $50,000 to $100,000 to operate the New Tiger SVE Extension for a six-month period.
¶ 36 On November 21, Ecology issued its final management review decision, explaining that (1) the cleanup action plan did not permit New Tiger to leave contaminated soil at the Site; (2) because free gasoline product was still present, Ecology refused to permit monitored natural attenuation; (3) the Site contained gasoline in the soil and groundwater above the "allowed levels" and, therefore, "the Site cannot be considered to pose `no threat to human health and the environment'";
¶ 37 On December 24, New Tiger asked Ecology "whether mediation would be beneficial in resolving the disputed issues." CP at 3738. On February 11, 2009, Ecology replied that it was "not interested ... since mediation would merely provide a venue in which modification of New Tiger's requirements under the Consent Decree would be sought by [New Tiger]." CP at 3738. While the parties were engaging the dispute resolution process, New Tiger was not operating the New Tiger SVE Extensions or the Interim SVE System.
¶ 38 On April 10, 2009, Ecology filed a motion for order to show cause why "[New Tiger] should not be cited for contempt" and why "the Consent Decree between Ecology, [New Tiger], and Federated [Service] and the Cleanup Action Plan, should not be specifically enforced according to their terms." CP at 3644-45. New Tiger objected, arguing that Ecology's motion to show cause was
¶ 39 On April 30, New Tiger filed a "motion for dispute resolution," seeking superior court review of Ecology's final management review decision, based on the New Tiger consent decree dispute resolution process.
¶ 40 At a June 3 hearing, the superior court explained that it interpreted New Tiger's "motion for dispute resolution" as a request for mediation under the consent decree. Verbatim Report of Proceedings (VRP) (June 3, 2009) at 58. On June 19, the superior court denied Ecology's contempt motion, denied in part and granted in part New Tiger's dispute resolution motion and ordered New Tiger and Ecology into mediation on the following issues: (1) whether the consent decree required New Tiger to operate the New Tiger SVE Extension; and (2) if so, whether New Tiger "must use [Best Available Control Technology] on the SVE system" and whether New Tiger "must ... allow the owner of the neighboring property[
¶ 41 Apparently, New Tiger and Ecology held an unsuccessful mediation session on August 5. In rejecting New Tiger's settlement counter-offer, Ecology also responded in a September 9, 2009 letter, "[I]t is clear that the SVE system will not be able to effectively address contamination at the Site.... Similar to [the opinion of a geologist that New Tiger hired to evaluate the Site], it is Ecology's position that the SVE system cannot effectively remove free product from the Site." CP at 5194.
¶ 42 On September 15, 2009, New Tiger again sought superior court review of Ecology's final management review decision, this time, in a motion for "summary judgment." CP at 5015. New Tiger asked the superior court (1) to excuse New Tiger from operating the New Tiger SVE Extension, to permit New Tiger to use monitored natural attenuation, and to order Ecology to issue a "No Further Action" determination; (2) to order that New Tiger "need not allow its neighbors to connect to or use the SVE system free of charge" and "need not use [Best Available Control Technology] on the system" if the superior court required New Tiger to operate the New Tiger SVE Extension; and (3) to release New Tiger from its consent decree. CP at 5016.
¶ 43 On November 10, Ecology filed another show cause motion, seeking a contempt order against New Tiger and relief similar to its April 10 request. Ecology also moved to strike from New Tiger's counsel's declaration, as inadmissible evidence of settlement negotiation, its September 9, 2009 letter, which stated, "[I]t is Ecology's position that
¶ 44 In a December 11 letter opinion, the superior court denied New Tiger's so-called "summary judgment motion" explaining, "[T]here are a number of disputed facts," including: (1) whether the Site has "acceptably low enough levels of toxins to excuse [New Tiger] from further clean up" at the Site and to allow New Tiger to use monitored natural attenuation; and (2) whether New Tiger must use the New Tiger SVE Extension and, if so, whether the New Tiger SVE Extension must use Best Available Control Technology.
¶ 45 The superior court also found New Tiger in contempt:
CP at 5418-19 (emphasis added). The superior court denied New Tiger's motion for reconsideration and a stay of its contempt order.
¶ 46 On April 2, 2010, the superior court issued three orders relevant here: (1) granting Ecology's motion to strike its September 9, 2009 letter from New Tiger's counsel's declaration, CP at 6128-29; (2) denying New Tiger's so-called "summary judgment motion" and affirming Ecology's final management review decision, CP at 5872; and (3) finding New Tiger in contempt of court
CP at 5917 (emphasis added).
¶ 47 New Tiger filed a notice of appeal from (1) the superior court's 2004 summary judgment orders dismissing New Tiger's affirmative defenses to Ecology's MTCA lawsuit; (2) the superior court's June 9, 2009 order for superior court review of Ecology's final management review decision; (3) the superior court's April 2, 2010 order striking a letter exhibit from New Tiger's counsel's declaration; (4) the superior court's April 2, 2010 orders denying New Tiger's so-called "summary judgment motion"
¶ 48 Our court clerk notified New Tiger, "The decisions appealed from in the above referenced matter include several orders. It is questionable whether the orders are appealable as a matter of right as provided in RAP 2.2(a)." See Spindle. New Tiger responded that, although summary judgment denials normally are not appealable, the superior court's April 2, 2010 summary judgment denial was an exception because there was "no trial forthcoming" and "[i]n that sense, the [April 2, 2010 summary judgment denial order was] more like a verdict than the denial of a CR 56 motion for summary judgment." Appealability Br. of Appellant at 9. New Tiger also argued that the 2004 superior court orders were appealable because (1) "the decisions were not yet ripe for appeal when entered"; (2) "many of the decisions in those orders involved application of competing facts that have changed dramatically in the six years since the orders were entered"; and (3) "Ecology has repeatedly violated the Consent Decree, which prevents it from arguing now that the Decree subsumed all issues decided before entry into [the] Decree." Appealability Br. of Appellant at 10, 11, 13.
¶ 49 A commissioner of our court concluded, "[T]he [March 30, 2010][
¶ 50 We first address whether New Tiger's attempted appeal of the superior
¶ 51 New Tiger also attempts to appeal the superior court's June 9, 2009 order denying its September 15, 2008 "motion for dispute resolution," in which New Tiger had asked the superior court to review Ecology's final management review decision. Because New Tiger never appealed this order, it is not properly before us, and we do not consider the merits of New Tiger's argument.
¶ 52 New Tiger next argues that the superior court erred in striking Ecology's September 9, 2009 letter, attached to New Tiger's counsel's declaration as Exhibit 56, rejecting New Tiger's settlement counter-proposal. Because this letter was inadmissible under ER 408 as "[e]vidence of conduct or statements made in compromise negotiations," we hold that the superior court did not err by striking it.
¶ 53 Next, we address the ambiguous nature of New Tiger's September 15, 2009 so-called "summary judgment motion" and the superior court's April 2, 2010 denial of that motion. Despite New Tiger's labeling it a "summary judgment" motion, this motion was actually a motion for dispute resolution under the consent decree, seeking superior court review of Ecology's final management review decision.
¶ 54 Section XIV.(B) of New Tiger's consent decree provided, "If Ecology's final written [management review] decision is unacceptable to New Tiger, New Tiger has the right to submit the dispute to the Court for resolution."
¶ 55 New Tiger's consent decree does not specify a standard of review to guide our review of a superior court decision under the consent decree's dispute resolution provision. But New Tiger's September 15, 2009 motion was an appeal to the superior court of an agency action, namely Ecology's final management review decision; thus, New Tiger's appeal of this superior court decision falls within the Administrative Procedure Act (APA), chapter 34.05 RCW.
¶ 56 Under the APA, we "`sit[ ] in the same position as the superior court,'"
¶ 57 New Tiger contends, however, "The arbitrary and capricious standard applies only to the trial court's review of Ecology actions and decisions. This Court still reviews the trial court's decisions de novo." Br. of Appellant at 12 (emphasis omitted). New Tiger is incorrect. We review the superior court's decision by engaging in the same inquiry as the trial court, which encompasses the same standard of review, namely "arbitrary and capricious." Dep't of Soc. and Health Serv. v. Nix, 162 Wn.App. 902, 913, 256 P.3d 1259 (2011).
¶ 58 The "one who seeks to demonstrate that action is arbitrary and capricious must carry a heavy burden." Pierce County Sheriff v. Civil Serv. Comm'n of Pierce County, 98 Wn.2d 690, 695, 658 P.2d 648 (1983). "Agencies act in an arbitrary or capricious manner when their action is `willful and unreasoning and taken without regard to the attending facts or circumstances.'"
¶ 60 New Tiger argues that, in rendering its final management review decision, Ecology erred in three ways: (1) by refusing to allow New Tiger to conduct monitored natural attenuation at the Site; (2) by not excusing New Tiger from operating the New Tiger SVE Extensions; and (3) by requiring New Tiger to use Best Available Control Technology with all soil vapor extraction technology at the Site. These arguments fail.
¶ 61 We first address Ecology's refusal to allow Tiger Oil to use the monitored natural attenuation method (as opposed to, for example, the soil vapor extraction method) to clean up the remaining gasoline contamination.
¶ 62 The Tiger Oil consent decree cleanup action plan provided for monitored natural attenuation only when the Site satisfied the following four conditions:
CP at 3508 (emphasis added) (citing WAC 173-340-370(7)(a)-(d)). New Tiger contends that the Site satisfied all four prerequisites for monitored natural attenuation. Ecology counters that the Site had not satisfied the first and third prerequisites.
¶ 63 With regard to the first natural attenuation prerequisite, Ecology asserts that the presence of gasoline free-product in monitoring wells at the Site showed that source control had "not been conducted to the maximum extent practicable."
¶ 64 New Tiger argues that the New Tiger SVE Extensions were not "`practicable'" because they were not cost-beneficial. Br. of Appellant at 18. This argument fails because New Tiger essentially waived any future argument about cost-benefit by agreeing in the cleanup action plan that "no disproportionate cost analysis [was] required" for the agreed components of the cleanup action plan, including the New Tiger SVE Extensions. CP at 3514. But even if New Tiger could plausibly advance a cost-benefit definition of "practicable" on appeal, Ecology's interpretation of "practicable" prevails because we accord great deference to an agency's interpretation of its own regulation. Overlake Hosp. Ass'n, 170 Wash.2d at 56, 239 P.3d 1095.
¶ 65 Furthermore, Tiger Oil does not establish that Ecology acted arbitrarily and capriciously in enforcing its definition of "practicable" where the record shows that Ecology acted in good faith and "there is room for two opinions"
¶ 66 The question on appeal, however, is not identifying the optimal method for New Tiger to remediate free gasoline product. Rather, the question is whether there could be reasonable disagreement about the "practicable" ways to remove the free gasoline product from the Site. See Port of Seattle, 151 Wash.2d at 589, 90 P.3d 659; WAC 173-340-200. According deference to Ecology's decision, we hold that there could be such reasonable disagreement. Thus, even if New Tiger might have removed this free gasoline product through natural processes, such possibility does not establish that Ecology's contrary decision and choice of an alternative remediation method was arbitrary and capricious.
¶ 67 With regard to the third natural attenuation prerequisite, Ecology argues that it properly refused New Tiger's request to remediate using monitored natural attenuation because there was no "evidence that natural biodegradation or chemical degradation [was] occurring and [would] continue to occur at a reasonable rate at the [S]ite." Br. of Resp't at 27-30 (quoting CP at 3508 (quoting WAC 173-340-370(7)(c))). The record supports Ecology's assertion. Although there was some evidence that natural biodegradation had occurred at the Site in 1996,
¶ 68 We next address whether Ecology acted arbitrarily and capriciously in refusing to excuse New Tiger from operating the New Tiger SVE Extensions.
CP at 4237-38. In its final management review decision on November 21, 2008, Ecology rejected this offer, explaining:
CP at 3628.
¶ 69 On appeal, New Tiger proposes several criteria as measures for when it should be allowed to cease operating the New Tiger SVE Extension. But these measures differ from those to which New Tiger and Ecology agreed in the 2004 consent decree and the cleanup action plan. For example, New Tiger now claims that the Site is "not a danger because there is no exposure pathway." Reply Br. of Appellant at 3. But the agreed cleanup action plan does not use the existence of an exposure pathway as a criterion for determining whether New Tiger has satisfied its remediation obligations under the cleanup action plan.
¶ 71 Nevertheless, New Tiger asserts that "the Decree plainly does not require all contamination above Method A levels to be removed from the [S]ite." Reply Br. of Appellant at 5. New Tiger cites three parts of the cleanup action plan in support: (1) The cleanup action plan provides for the eventual use of monitored natural attenuation; (2) the cleanup action plan allows for "`institutional controls'" at "`all areas of the Site where cleanup levels[
¶ 72 "A consent decree has a contractual nature; therefore, contract principles of construction apply." State v. R.J. Reynolds Tobacco Co., 151 Wn.App. 775, 783, 211 P.3d 448, review denied, 168 Wn.2d 1026, 228 P.3d 18 (2009). "The touchstone of contract interpretation is the intention of the parties, which Washington courts attempt to determine by focusing on the objective manifestations of agreement." R.J. Reynolds Tobacco, 151 Wash.App. at 783, 211 P.3d 448. Moreover, we must avoid a "`strained or forced construction'" of the consent decree and cleanup action plan and avoid interpretations "leading to absurd results." Eurick v. Pemco Ins. Co., 108 Wn.2d 338, 341, 738 P.2d 251 (1987) (quoting E-Z Loader Boat Trailers, Inc. v. Travelers Indem. Co., 106 Wn.2d 901, 907, 726 P.2d 439 (1986)). Instead, we give the consent decree and cleanup action plan a "`practical and reasonable'" reading. Eurick, 108 Wash.2d at 341, 738 P.2d 251 (quoting E-Z Loader, 106 Wash.2d at 907, 726 P.2d 439).
¶ 73 New Tiger is correct that the cleanup action plan allows possible use of monitored natural attenuation, which assumes the existence of residual contamination that would be present at the Site even after completion of other cleanup activities, such as soil vapor extraction. Indeed, the cleanup action plan states that the MTCA "allows for natural attenuation when [l]eaving contaminants on-site ... does not pose an unacceptable threat." CP at 3508 (emphasis added). But
¶ 74 Next, New Tiger points out that the cleanup action plan allowed "`institutional controls'"
¶ 75 Lastly, New Tiger contends that it did not need to meet the cleanup standards because the cleanup action plan "provides for leaving contaminated soil under [the New Tiger convenience store] as long as the building remains." Reply Br. of Appellant at 5. But New Tiger does not explain how the cleanup action plan's acknowledgement of the existence of contaminated soil under this specific building-covered part of the Site meant that New Tiger could ignore cleanup standards throughout the rest of the Site. New Tiger also appears to contend that it should be able to ignore the cleanup standards altogether because, for example, according to New Tiger, "The [S]ite has not presented a risk since at least 1994." Br. of Appellant at 16. New Tiger's opinion of the Site's "risk," however, does not control, and it ignores the cleanup action plan's clear commands. Ecology accurately responds that "[t]hese regulatory cleanup levels provide the only legally relevant measure of risk." Br. of Resp't at 23.
¶ 76 New Tiger also complains about the soil vapor extraction technology's alleged ineffectiveness and criticizes Ecology's experts' "qualifications and [S]ite knowledge"
¶ 77 Lastly, New Tiger challenges Ecology's final management review decision's requiring New Tiger to use Best Available Control Technology with all soil vapor extraction technology at the [S]ite. New Tiger baldly asserts that the consent decree and the cleanup action plan do not require Best Available Control Technology. New Tiger is incorrect.
¶ 78 In its letter seeking final management review by Ecology, New Tiger wrote, "Absent an agreement [requiring Mercy to pay a portion of costs], it is New Tiger's position that [Best Available Control Technology] is not required because, among other things, it imposes a cost that is disproportionate to any benefit that could be realized from its use." CP at 4238. Ecology responded, "[T]he use of [Best Available Control Technology] is required during any operation of the SVE system at the [Site]." CP at 3629. In its September 15, 2009 dispute resolution motion, New Tiger similarly argued, "If [New] Tiger is required to operate the New Tiger SVE Extension, it need not use [Best Available Control Technology] on the system." CP at 4825. The superior court rejected this argument, affirming Ecology's final management review decision that Best Available Control Technology was required.
¶ 79 The record supports Ecology's and the superior court's decisions. Section XXIII(B) of the consent decree reads:
CP at 3487-88 (emphasis added).
¶ 80 As provided by the consent decree, in a letter dated September 28, 2006, the Yakima Regional Clean Air Authority wrote New Tiger that "installation and operation of the Soil Vapor Extraction ... system shall employ Best Available Control Technology." CP at 4590. And in a letter dated February 28, 2007, Ecology advised New Tiger:
CP at 3912. With Ecology's approval, Yakima Regional Clean Air Authority's command
¶ 81 New Tiger next argues that the superior court abused its discretion in entering the April 16, 2010 Amended Order of Contempt. New Tiger contends that (1) Ecology's contempt motions were procedurally improper because the motions fell outside the consent decree dispute resolution process; (2) the superior court erred by finding New Tiger in contempt for failing to operate the Interim SVE System because New Tiger's consent decree obligations were ambiguous and New Tiger did not intentionally disobey a court order; and (3) the superior court erred by finding New Tiger in contempt for failing to use Best Available Control Technology at the Site.
¶ 82 But we find New Tiger's second argument persuasive: The facts, as presented in the record, do not establish that, by refusing to operate the Interim SVE System on the Site, New Tiger intentionally violated a clear requirement of the New Tiger consent decree. Accordingly, we reverse this part of the superior court's amended contempt order.
¶ 83 We review contempt rulings for abuse of direction. Trummel v. Mitchell, 156 Wn.2d 653, 671-72, 131 P.3d 305 (2006). "An appellate court will uphold a trial court's contempt finding `as long as a proper basis can be found.'" Stella Sales, Inc. v. Johnson, 97 Wn.App. 11, 20, 985 P.2d 391 (quoting State v. Boatman, 104 Wn.2d 44, 46, 700 P.2d 1152 (1985)), review denied, 139 Wn.2d 1012, 994 P.2d 849 (1999). Contempt of court includes any "intentional... [d]isobedience of any lawful ... order ... of the court." RCW 7.21.010(1)(b). If the superior court bases its contempt finding on a court order, "the order must be strictly construed in favor of the contemnor," Stella Sales, 97 Wash.App. at 20, 985 P.2d 391, and "[t]he facts found must constitute a plain violation of the order." Johnston v. Beneficial Mgmt. Corp. of America, 96 Wn.2d 708, 713, 638 P.2d 1201 (1982) (emphasis added).
¶ 84 New Tiger argues that the superior court abused its discretion in its
¶ 85 New Tiger pursued, and exhausted, the consent decree dispute resolution process before Ecology moved for a contempt order on November 10, 2009. Accordingly, the superior court did not abuse its discretion by failing to deny the motion for a contempt order on grounds that Ecology had gone "outside the parties' agreed-upon dispute resolution process." Br. of Appellant at 24.
¶ 86 New Tiger argues that the superior court abused its discretion in concluding that New Tiger was "in contempt [of Court] for failing to [comply with] the consent decree [by] ceas[ing to] operat[e] the [Interim SVE System]"
¶ 87 The June 8, 2004 cleanup action plan, which was incorporated into New Tiger's October 29, 2004 consent decree, did not, by its plain terms, require New Tiger to operate the Interim SVE System. In Re Humphreys, 79 Wn.App. 596, 599, 903 P.2d 1012 (1995). Instead, the consent decree required New Tiger, if "free product" was present, to "install an SVE system" that was "to be connected to and become part of the vapor extraction system [that was] currently being used in the current interim remediation system." CP at 3508. In other words, although the New Tiger consent decree required New Tiger to install the New Tiger SVE Extensions in the Interim SVE System,
¶ 88 Furthermore, as New Tiger argues, it appears that the Mercy consent decree assigned to Mercy the obligation to operate the Interim SVE System, which further supports New Tiger's argument that it did not intentionally disobey the New Tiger consent decree by failing, or ceasing, to operate the Interim SVE System. The Mercy consent decree required Mercy to operate the Mercy SVE System for (1) 30 months following the completion of excavation operations; or (2) if excavation operations had not finished after 30 months following installation of the Mercy SVE Extensions, then for 30 months after the new Mercy SVE Extensions' installation. The Mercy consent decree defined the Mercy SVE System to include both "the SVE portion of the existing interim treatment system" (the Interim SVE System) and the Mercy SVE Extensions.
¶ 89 In a September 30, 2008 letter, Ecology advised Mercy that "the [30-]month timeframe for installation has not started" and that "Ecology cannot confirm that Mercy has satisfied its obligations under the terms of
¶ 90 Yet only one day later, April 2, 2010,
¶ 91 But it is not for us to resolve these ambiguities on appeal from an order holding New Tiger in contempt for failure to operate the Interim SVE System, despite New Tiger's having operated it for a period of time and then ceasing. Instead, the narrow question before us is whether "[t]he facts ... constitute a plain violation" of the New Tiger consent decree sufficient to support the superior court's holding New Tiger in contempt for failure to operate the Interim SVE System. Johnston, 96 Wash.2d at 713, 638 P.2d 1201 (emphasis added).
¶ 92 We resolve in New Tiger's favor the ambiguities in the New Tiger consent decree, which by its plain language encompassed Mercy and other parties besides New Tiger, and the ambiguities in the Mercy consent decree, about who bore responsibility for operating the Interim SVE System. We hold that the record before us on appeal does not show that New Tiger committed a "plain violation" of the New Tiger consent decree and, therefore, does not support the superior court's finding New Tiger in contempt for failing to operate the Interim SVE System.
¶ 93 As we have already explained, the New Tiger consent decree required New Tiger to use Best Available Control Technology for the soil vapor extraction technology at the Site. A consent decree is a court judgment. Washington Asphalt, 51 Wash.2d at 91, 316 P.2d 126. New Tiger's undisputed failure to use Best Available Control Technology was an intentional disobedience of the consent decree. RCW 7.21.010(1)(b). Accordingly, the superior court did not abuse its discretion by finding New Tiger in contempt for failing to use Best Available Control
¶ 94 We affirm Ecology's final management review decision. We also affirm the superior court's April 2, 2010 order affirming Ecology's final management review decision and the superior court's April 2, 2010 order striking the letter exhibit from New Tiger's counsel's declaration. We affirm in part the superior court's April 16, 2010 amended contempt order, but we reverse that part of this order finding New Tiger in contempt for failing to operate the Interim SVE System.
We concur: ARMSTRONG, P.J., and QUINN-BRINTNALL, J.
New Tiger is correct in that the September 9, 2009 letter is not "evidence of furnishing or offering or promising to furnish ... a valuable consideration in compromising or attempting to compromise a claim which was disputed as to either validity or amount." ER 408. Nevertheless, the September 9, 2009 letter clearly is "[e]vidence of conduct or statements made in compromise negotiations," namely the court-ordered mediation and New Tiger's subsequent "counter-proposal," which Ecology rejected. ER 408; CP at 5194. As Ecology correctly notes, "`Rule 408 bars evidence of settlement negotiations regardless of whether those negotiations actually produce a settlement.'" Br. of Resp't at 25 (quoting 5A Karl B. Tegland, Washington Practice: Evidence Law and Practice § 408.4 at 63 (5th ed. 2007)).
New Tiger is also correct, however, that "[ER 408] also does not require exclusion when the evidence is offered for another purpose." ER 408; see Br. of Appellant at 22-23. But the "other purposes" for which New Tiger offers this evidence and the cases it cites in support do not apply here. The party that drafted the letter, Ecology, was not the party that introduced the letter during the proceedings below. Nor does New Tiger persuade us that the September 9, 2009 letter shows Ecology's "mental state" or that the letter was admissible for "impeachment purposes and rebutting evidence" from Ecology's "Environmental Specialist," Norman Peck. Accordingly, we find no trial court error in striking this letter under any standard of review.
CP at 4969.