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News & Info

Protecting Your Development Rights During Litigation

Jay Goldstein
OMB General Counsel, &
Jason Zittel
Law Clerk

A Chelan County developer recently had his appeal dismissed because he failed to obtain necessary approvals during the appeals process.  The County granted a conditional use permit for development on the shores of Lake Chelan. The permit included deadlines for obtaining approval from federal, state, and local agencies.  The permit also cautioned that failure to obtain any of these permits during a two-year period would invalidate the permit.

Not unexpectedly, a group of local residents opposed the project.  In Superior Court, the opponents succeeded in overturning the permit approval.  The developer appealed to Division III of the Washington State Court of Appeals.

About two-and-a-half years later, Div. III dismissed the developer's appeal because the two-year deadline for permit approvals had expired. The developer had incorrectly calculated, said the court - filing the appeal would not automatically extend the deadlines in the County permit. The developer failed to obtain the permit approvals while litigation was pending.

Unfortunately, the developer never received a hearing on whether the Superior Court had erred in overturning the original conditional use permit - the developer lost his right to the permit when the deadlines expired. 

A few lessons can be learned from this situation.  First, never assume that your permit will not expire during litigation.  Although some litigation may automatically extend deadlines, this is not a general rule.  Second, always seek a court order extending your permit deadlines.  Court-ordered extensions are often available.  And finally, where a court order is not available, proceed with the permitting process to ensure that your development rights do not lapse. 

In the court's opinion, this developer could have extended the deadlines simply by filing a motion. Instead, the developer's permit expired while waiting on a decision from the courts. 

Kelly v. County of Chelan,
Wash.App., 185 P.3d 1224
(Div. III 2008).