Divided Court Rules that State Law Giving Mobile Home Park Tenants Right of First Refusal to Purchase Their Park is Unconstitutional Taking

Courthouse Journal
Washington State Association of Counties & Washington Association of County Officials
November 9, 2000, Number 29

By a 6-3 margin, the Washington Supreme Court recently ruled (Manufactured Housing Comm. of Wa. v. State (Slip Op., November 9, 2000)) that Chapter 59.23 RCW, the Mobile Home Parks - Resident Ownership Act, violates the state constitutional provision prohibiting the taking of private property for public use. In doing so, the Court, in a groundbreaking opinion authored by Justice Faith Ireland, reversed the Court of Appeals and for the first time interpreted the state takings clause to be more protective of property rights than the Fifth Amendment to the U.S. Constitution. The Court concludes that Chapter 59.23 RCW

"takes from the [mobile home] park owner the right to freely dispose of his or her property and gives to tenants a right of first refusal to acquire the property by blocking the owner's sale to the third party and substituting themselves as buyers. The result is that the Legislature has authorized the taking of private property from the owner for the tenants' private use in violation of the first sentence of article I, section 16. (emphasis added)"

The Court distinguishes between legislative action to further public use, for which eminent domain is allowed, and that which furthers private use -- which is totally prohibited. "This prohibition is not conditioned on payment of compensation," states the Court. "Whether or not a tenant organization might ultimately pay the owner the same price he or she is to receive from a third party buyer is irrelevant." The Court also distinguishes between "public purpose" and "public use." There is a separate concurrence by Justice Sanders. Dissents were filed by Justices Johnson and Talmadge, joined by Justice Smith.