Opinion ID: 2571698
Heading Depth: 1
Heading Rank: 7

Heading: Calculation at Time of Annexation

Text: The City argues that because the certificate is cancelled at the time of annexation, the calculation of measurable damages should be based on rates and population counts existing at the time of annexation. DSI, on the other hand, used rates and customer counts existing at the time of trial to prepare its calculations of loss in value. The Court of Appeals found that measurable damages were not necessarily fixed as of the annexation date. Dahl-Smyth, 110 Wash.App. at 35, 38 P.3d 366. Both of DSI's experts admitted that their calculations were based on 1999 customer counts and rates, despite the fact that the annexations occurred at various times between 1982 and 2000. Thus, the calculation of damages for some of the annexations was based on customer counts and rates that existed 17 years after the annexations took place. Former RCW 35A.14.900 provides for the automatic cancellation of the certificate at the time of annexation. RCW 35A.14.900. See also Fed. Way Disposal Co. v. City of Tacoma, 11 Wash.App. 894, 895, 527 P.2d 1387 (1974) (stating that annexation by a city cancels any garbage collection permit issued to a private company). Because cancellation occurs at annexation, the change in the fair market value must also be calculated based on data collected at that time. To do otherwise could result in an inflated measure of damages. As the city services manager testified at trial, annexation tends to increase the population density within the annexed territory because of the availability of city utilities. Thus, allowing damages to be calculated based on 1999 customer counts for annexations that occurred as far back as 1982 could lead to an inflated damage award. [10] This court has previously held that damages to property should be calculated at the time of the injury. [11] In calculating damages for permanent injury to property, `the general rule applicable is the difference between the market value of the property immediately before the damage and its market value immediately thereafter. ' Colella, 72 Wash.2d at 393, 433 P.2d 154 (quoting Harkoff v. Whatcom County, 40 Wash.2d 147, 152, 241 P.2d 932 (1952) (emphasis added)). See also 22 AM.JUR. 2d Damages § 407, at 492 (1988). The damage in this case is the annexation of the hauler's territory by a city, which results in the immediate cancellation of a hauler's certificate. Thus, we hold that the calculation of the difference in fair market value before and after annexation must be based on rates and population counts that exist at the time of annexation.