IN THE SUPERIOR COURT OF THE STATE OF
WASHINGTON IN AND FOR KING COUNTY
STATE OF WASHINGTON,
Plaintiff,
v.
AMERICAN TOBACCO CO., INC., et al.,
Defendants.
No. 96-2-15056-8 SEA
ORDER ON DEFENDANTS' JOINT MOTION TO DISMISS
I.
ANTITRUST CLAIM
(THIRD CAUSE OF ACTION)
A. Damages Under RCW 19.86.090
The State has alleged that defendants conspired to restrain the trade
of tobacco products in violation of the Consumer Protection Act ("CPA"),
RCW 19.86.030. The State asserts that the conspiracy prevented the development,
manufacture, and sale of safer tobacco products, leaving consumers to choose
among unsafe tobacco products, and that such restraint on competition caused
an increase in the State's healthcare costs. On their face, these allegations
meet the requirements of RCW 19.86.090: "Whenever the state of Washington
is injured by reason of a violation of RCW 19.86.030…, it may sue therefore
in the superior court to recover the actual damages sustained by it and
to recover the costs of the suit including a reasonable attorney's fee."
To successfully resist defendants' CR 12(b)(6) motion, the CPA requires
only that the State allege (1) a "violation of RCW 19.86.030,"
(2) an injury that is causally connected to the violation, and (3) resulting
"actual damages." RCW 19.86.090. Defendants maintain that, despite
the seemingly broad language of RCW 19.86.090, the damages asserted by
the State are not recoverable under the CPA.
1. Choice of Remedies
Defendants argue that the State's claim is simply a product liability
claim wrapped in antitrust language, and that the State's damages, if any,
resulted from its citizens' tobacco-related personal injuries, rather than
from any lack of competition or conspiracy to restrain trade. However,
the fact that the State may have a number of remedies available to it,
including subrogation, does not defeat a claim under the CPA. MacCormack
v. Robins Constr., 11 Wn.App. 80, 82 (1974) (remedies under CPA are
in addition to any other available remedy).
2. "Antitrust Injury" and "Direct Purchaser Rule"
Defendants further argue that the State has failed to allege that it
suffered an antitrust injury. The first paragraph of RCW 19.86.090, which
authorizes private actions under the CPA, requires private plaintiffs to
show an injury to "business or property." Such "business
or property" language has been held to restrict compensable injuries
under the CPA. Washington State Physicians Ins. & Exch. Ass'n v.
Fisons Corp., 122 Wn.2d 299, 318 (1993) (citing Reiter v. Sonotone
Corp., 442 U.S. 330, 339 (1979)). The broader language of the second
paragraph of RCW 19.86.090 authorizes damage actions by the State where
the State is "injured," without any restriction as to the type
of injury. This broader language appears to recognize that the State, with
its wide-ranging responsibilities for the health and welfare of its citizens,
may incur substantial damages as a result of anti-competitive activity
even though the State is not actively engaged in the sphere of business
in which an antitrust violation occurred.
Section 4 of the Clayton Act, 15 U.S.C. § 15, contains language
that is similar to that authorizing private causes of action under the
CPA -- both statutes require injury to "business or property."
Limitations on the type of injuries that are compensable under the Clayton
Act have been judicially constructed to restrict the broad statutory language
of Section 4. In Associated General Contractors of Calif., Inc. v. California
State Council of Carpenters, 459 U.S. 519 (1983), the Court noted that
Section 4 "is broad enough to encompass every harm that can be attributed
directly or indirectly to the consequences of an antitrust violation"
(Id., at 529), but concluded that Congress could not have actually
meant to prohibit every agreement that restrains trade, since the essence
of every contract is an agreement to exercise restraint (Id., at
531-32).
To avoid an unreasonable, and presumably unintended, result, the federal
courts have construed the requirement of injury to "business or property"
to mean "antitrust injury." A variety of tests have evolved to
help the courts determine whether a plaintiff has alleged such an injury.
Was the injury direct enough to be recoverable? Illinois Brick Co. v.
Illinois, 431 U.S. 720, rehearing denied, 434 U.S. 881 (1977).
Was the injury of the type or character which the legislature intended
to remedy through enactment of the Act? Brunswick Corp. v. Pueblo Bowl-O-Mat,
Inc., 429 U.S. 477, 489 (1977). Was the injury to a business or property
within the target area of the alleged conspiracy? In re Multidistrict
Vehicle Air Pollution, M.D.L. 31, 481 F.2d 122, 128 (9th
Cir.), cert. denied, 414 U.S. 1045 (1973). Was the injury proximately
caused by the violation, or was it too far removed in the chain of causation?
Hairston v. Pacific-10 Conference, 893 F. Supp. 1485, 1491 (W.D.
Wash. 1994).
The Washington courts have so far had no opportunity to determine whether
the "antitrust injury" and/or "direct purchaser" tests
are applicable to a claim brought under the section of the CPA authorizing
damage actions by the Sate whenever it is "injured." The two
Washington cases cited by the parties regarding restraint of trade under
RCW 19.86.030, Consolidated Dairy Prod. Co. v. Bar-T Ranch Dairy, Inc.,
97 Wn.2d.167 (1982) and Blewett v. Abbott Laboratories, 1995 WL
798948 (King County Superior Court, October 4, 1995), both involved private
plaintiffs whose claims were subject to the "business or property"
limitation.
In the absence of controlling state authority, defendants urge the court
to adopt the reasoning of the federal cases, directing the court to RCW
19.86.920: "in construing [the CPA], the courts [are to] be guided
by final decisions of the federal courts and final orders of the federal
trade commission interpreting the various federal statutes dealing with
the same or similar matters…." Washington courts, however, are not
conclusively bound by federal antitrust precedents. State v. Ralph Williams'
North West Chrysler Plymouth, Inc., 82 Wn.2d 265, 271 (1973). While
RCW 19.86.920 provides an existing and extensive body of interpretive law
to be applied to the CPA and instructs that the state courts should be
guided by the interpretations of the federal statutes after which the CPA
was patterned (State v. Burlison, 38 Wn.App. 487, 490, review
denied, 103 Wn.2d 1002 (1984)), "[I]n the final analysis, the
interpretation of [the Act] is left to the state courts." State
v. Reader's Digest Ass'n. Inc., 81 Wn.2d 259, 275 (1972), appeal
dismissed, 411 U.S. 945 (1973). Where the language of the federal and
state statutes are different, the interpretations may be different. See
State v. Black, 100 Wn.2d 793, 802-03 (1984); Servais v. Port of
Bellingham, 72 Wn.App. 183, 192-93 (1993), aff'd, 127 Wn.2d
820 (1995).
As noted above, the language of the CPA applicable to the present case
is not the same as the language of Section 4 of the Clayton Act. The phrase
"business or property" in Section 4 has been interpreted to limit
the types of injuries recoverable under that Act; the broader term "injury"
in RCW 19.86.090, paragraph 2, has not yet been interpreted. Further, the
federal judiciary's concern that a liberal interpretation of the Clayton
Act would prevent or impinge on the normal conduct of business is satisfied
by the application of RCW 19.86.920, a provision which has no corollary
in the federal act. RCW 19.86.920 states that it is "the intent of
the legislature that this act shall not be construed to prohibit acts or
practices which are reasonable in relation to the development and preservation
of business…." In an action brought under the CPA, therefore, the
statute itself prohibits its application where the defendant's conduct
is a reasonable business practice. Defendants have not made such a showing.
Where the State has adequately pled a cause of action under RCW 19.86.090
that would not contravene the intentions set forth in RCW 19.86.920, no
justification appears to exist for dismissing the claim. In sum, blind
adherence to federal precedent is inappropriate.
3. Statutory Interpretation
In construing the language authorizing State damage actions under the
CPA, the court turns to basic principles of statutory interpretation. Statutory
construction and reference to legislative history are unnecessary where
the language of the statute is unambiguous. State v. McCraw, 127
Wn.2d 281, 288 (1995). "The court should assume that the legislature
means exactly what it says. Plain words do not require construction."
Snohomish v. Joslin, 9 wn.App. 495, 498 (1973). The Washington legislature
stated, in straightforward terms, that whenever the State is injured by
a conspiracy in restraint of trade, it may sue to recover its actual damages
under the CPA. Whatever the policy reasons for restricting recovery by
private plaintiffs, the second paragraph of RCW 19.86.090 is clear. The
court is not persuaded that the limitations of Section 4 of the Clayton
Act and the first paragraph of RCW 19.86.090, should be imposed upon the
State's claim.
Even if the provision authorizing actions by the State when it is "injured"
were ambiguous, the statutory purpose of the CPA supports the validity
of the State's claim. RCW 19.86.920 states, "The legislature hereby
declares that the purpose of this act is to complement the body of federal
[antitrust] law…in order to protect the public and foster fair and honest
competition" and instructs the courts to provide a liberal construction
to the Act's provisions. In furtherance of this objective, the legislature
provided a separate, broadened, authorization for State damage actions.
In the present case, the State has alleged a conspiracy to preclude the
development of and competition in certain safer tobacco product lines,
thereby limiting the choices available to Washington consumers of tobacco
products and causing economic damages to the State. Permitting the State
to challenge defendants' actions and recover its actual damages under the
CPA, especially where the violations are alleged to be continuing, would
presumably "foster fair and honest competition" among defendants
and promote the public interest by encouraging defendants to offer all
available tobacco products.
The legislative history cited by defendants does not alter this conclusion.
It appears that in 1991, and again in 1993, the legislature considered
amending the CPA to provide that both direct and indirect injuries would
be compensable. The supporters of the amendment, including the Attorney
General's office, argued that such an amendment would limit whatever precedential
effect Illinois Brick, supra, might have in the state courts.
However, no legislative history has been presented regarding the intent
of the legislature in enacting the second paragraph of RCW 19.86.090. The
fact that two proposals to amend the CPA were not enacted does not establish
that the legislature originally intended to exclude indirect injuries from
coverage. The most that can be said is that, in failing to act in 1991
and 1993, the legislature contemplated no departure from any prior interpretation
of the CPA. See State v. Bostrum, 127 Wn.2d 580, 587-88 (1995).
As noted above, however, Washington courts have not yet had an opportunity
to apply RCW 19.86.090 to a damage claim by the State, so such prior interpretation
is not available.
Determining the intent of the legislature is difficult enough when the
legislature has affirmatively acted. Attempting to draw clear conclusions
from the legislature's refusal to act would be pure speculation. The 1991
and 1993 bills may have been rejected for any number of reasons, including:
(1) the legislature may have believed that only those persons who purchase
directly from a CPA violator should have a claim and may have assumed that
Washington courts would find Illinois Brick applicable to actions
brought by the State; (2) the legislature may have decided to await judicial
construction of the CPA before considering an amendment to the statute;
(3) the legislature as a whole may never have considered the proposals
on their merits; or (4) the legislature may have believed that indirect
and direct injuries to the State were already covered by the unmodified
use of the word "injured." The Court will not speculate regarding
the motivation of the legislature in declining in 1991 and 1993 to add
"direct and indirect" to RCW 19.86.090.
Finally, the inclusion of the phrase "directly or indirectly"
in RCW 19.86.010(2), while not compelling, suggests that the legislature
intended that indirect injuries be remedied by the CPA. RCW 19.86.010(2)
defines "trade" and "commerce" to "include the
sale of assets or services, and any commerce directly or indirectly affecting
the people of the state of Washington." Where the only impact of antitrust
activity in Washington is indirect (e.g., where all sales of widgets
in Washington are transacted through an out-of-state distributor who is
forced to buy from out-of-state manufacturers engaged in a monopolistic
conspiracy), the CPA defines such activity as a violation of the Act, as
defendants acknowledge. See Reply Brief, pp. 10-11.
If both individual consumers and the State are precluded from bringing
actions for indirect injuries, the statute specifically defines a harm
for which it provides no remedy. It is more reasonable to assume that the
legislature intended to define indirect injuries as a violation of the
CPA and then authorized the State, but not private parties, to bring a
damage action whenever it was indirectly injured. At the very least, the
reference to indirect injuries in RCW 19.86.010(2), even if there is no
relationship between violations defined and remedies granted, suggests
that the legislature was aware that some antitrust injuries are more direct
than others, and yet decided not to restrict the type of injuries for which
the State could recover.
4. Policy Considerations of Illinois Brick
Even assuming that, despite the language of RCW 19.86.090, paragraph
2, the court were prepared to dismiss all claims that contravene the policies
set forth in Illinois Brick, the State's claim would be permitted
to go forward. In Illinois Brick, the Supreme Court expressed two
primary concerns: (1) whether permitting the claim would make allocation
of damages too complex and unwieldy, thereby increasing the risk of duplicative
recoveries; and (2) whether permitting the claim would dilute the economic
incentive for other, more directly injured, plaintiffs to bring their own
claims.
Although the damage issues promise to be quite difficult, allowing the
State to seek recovery of costs incurred as a result of defendants' alleged
conspiracy would not raise the specter of complex allocation or duplicative
recoveries. The calculations required to avoid double recovery by the State
and by individual tobacco consumers do not appear to be, in principle,
substantially more complex here than in many tort cases. If a tobacco consumer
were, in a separate case, to seek recovery of medical costs that had been
recovered by the State in the present case, an appropriate jury instruction
would avoid a double recovery. As was the case in Hairston, 893
F. Supp. At 1492, separating the damages the State is seeking from those
of consumers "would not be difficult" and cannot justify abrogating
a cause of action that is otherwise permissible under the statue. Further,
it is not clear that any other potential plaintiff would be able to seek
the damages claimed by the State in the present case.
Similarly, the State's claim would not dilute the economic incentives
supporting direct consumer antitrust suits. First, no reasonable prospect
exists that tobacco product distributors, who may theoretically have suffered
direct antitrust injury, will pursue antitrust claims against their suppliers.
Second, even if the distributors brought such a suit, there is nothing
to suggest that the State's claim for the health-related costs it has incurred
as a result of the alleged conspiracy would dilute whatever economic relief
the distributors might claim. Dismissing the State's claim would create
the prospect of an antitrust wrong without a remedy.
Where, as here, the policies underlying the Supreme Court's decision
in Illinois Brick would not be hindered by allowing the State's
claim to proceed, there is no justification for dismissing a cause of action
that falls squarely within the terms of the authorizing statue.
B. Injunctive Relief Under RCW 19.86.080
RCW 19.86.080 states:
The attorney general may bring an action in the name of the state against
any person to restrain and prevent the doing of any act herein prohibited
or declared to be unlawful; and the prevailing party may, in the discretion
of the court, recover the costs of said action including a reasonable attorney's
fee.
The court may make such additional orders or judgments as may be necessary
to restore to any person in interest any moneys or property, real or personal,
which may have been acquired by means of any act herein prohibited or declared
to be unlawful.
Defendants argue that the State must "show that some Washington
resident on whose behalf the equitable remedy is sought suffered damages
cognizable under the CPA" before a suit may be brought under RCW 19.86.080.
Reply Brief, p.17. However, the language of the injunctive relief provision
is preventative and allows the State to seek to restrain acts prohibited
by the CPA, without regard to injury to any particular individual. (Compare
RCW 19.86.080, which allows preventative actions by the State, with the
provisions authorizing private actions to enjoin "further" violations
in RCW 19.86.090).
The Attorney General's responsibility in bringing [injunctive actions]
is to protect the public from the kinds of business practices which are
prohibited by the statute; it is not to seek redress for private individuals.
Where relief is provided for private individuals by way of restitution,
it is only incidental to and in aid of the relief asked on behalf of the
public.
Seaboard Surety Company v. Ralph Williams' North West Chrysler Plymouth,
Inc., 81 Wn.2d 740, 746 (1973). The ability to seek restitution for
its citizens is merely an "additional remedy" and not a prerequisite
to the State's action for injunctive relief under RCW 19.86.080. Ralph
Williams', 82 Wn.2d at 276. See Reader's Digest, supra
(Attorney General sought injunction of competitive practice which deprived
consumers of time, not business or property).
Implementing the plain language of RCW 19.86.080 is also supported by
policy considerations. Where a person is engaged in unfair competition
or in a conspiracy to restrain trade or commerce, the State should not
be required to wait until its citizens suffer injury before seeking injunctive
relief.
C. Conclusion
Defendants' Joint Motion to Dismiss the State's Third Cause of Action
is denied. Neither the language of the statute nor the policy considerations
of Illinois Brick require dismissal of these claims.
II. ANTITRUST CLAIM (SIXTH CAUSE OF ACTION)
Defendants seek dismissal of the State's claim regarding a combination
in restraint of trade in violation of Article XII, § 22 of the Washington
Constitution. However, defendants' briefs do not discuss this issue. Defendants'
motion is denied.
III. DAMAGES FOR VIOLATIONS OF RCW 19.86.020 (FIRST AND SECOND CAUSES
OF ACTION)
Despite some confusion in the briefs and during oral argument, the State
does not appear to seek damages under RCW 19.86.090 for the unfair competitive
practices alleged in Counts I and II of the Complaint. Rather, the State
seeks restitution, injunctive relief, attorney fees, and costs under RCW
19.86.080, as well as civil penalties under RCW 19.86.140.
Defendants have not challenged the State's claim for penalties, but
they maintain that the State may not seek restitution of its own money
or property under RCW 19.86.080. The court agrees. Restitution is authorized
for any "person," a term defined by the Act as "natural
persons, corporations, trusts, unincorporated associations and partnerships."
RCW 19.86.010(1). The State and its political subdivisions are not included
in this provision. "Where a statue specifically designates the things
or classes of things upon which it operates, an inference arises in law
that all things or classes of things omitted from it were intentionally
omitted by the legislature under the maxim expressio unius est exclusio
alterius -- specific inclusions exclude implication." Washington
Natural Gas Co. v. Public Utility District No. 1, 77 Wn.2d 94, 98 (1969)
(municipal corporations are exempt from operation of the CPA).
Defendants' motion is granted. The State may not seek damages for a
violation of RCW 19.86.020 under the second paragraph of RCW 19.86.090
and may not seek restitution for its own losses under RCW 19.86.080.
IV. SPECIAL DUTY CLAIM (FOURTH CAUSE OF ACTION)
The State alleges that defendants, through their public statements,
assumed special duties to render direct services for the protection of
public health and to assist others, including the State, who protect public
health. The State further alleges that, as a proximate result of defendants'
breach of these duties, more of its citizens smoked and the State bore,
and continues to bear, increased public health costs. In response, defendants
have argued that the 1954 "Frank Statement to Cigarette Smokers,"
on which the State's claim relies, did not create a duty, that the State's
alleged damages are not recoverable because they are not physical, and
that, if a duty did exist, its breach was not the proximate cause of the
State's alleged damages.
Generally, whether a duty exists is a matter of law. Hanson v. Friend,
118 Wn.2d 476, 479 (1992). For purposes of this ruling, the court will
assume, without deciding, that the "Frank Statement's" acknowledgment
of responsibility for public health and its assurance that specific activities
would be undertaken in that regard created a special duty to the State.
The court will further assume, without deciding, that such duty was breached
by defendants.
The Restatement (Second) of Torts § 323 provides:
One who undertakes, gratuitously or for consideration, to render services
to another which he should recognize as necessary for the protection of
the other's person or things, is subject to liability for physical harm
resulting form his failure to exercise reasonable care to perform his undertaking,
if
(a) his failure to exercise such care increases the risk of such harm,
or
(b) the harm is suffered because of the other's reliance upon the undertaking.
Cited with approval in Herskovits v. Group Health Cooperative of
Puget Sound, 99 Wn.2d 609, 615 (1983) and Panitz v. Orenge,
10 Wn.App 317, 320 (1973).
Restatement (Second) of Torts § 324A provides:
One who undertakes, gratuitously or for consideration, to render services
to another which he should recognize as necessary for the protection of
a third person or his things, is subject to liability to the third person
for physical harm resulting from his failure to exercise reasonable care
to protect his undertaking, if
(a) his failure to exercise reasonable care increases the risk of such
harm, or
(b) he has undertaken to perform a duty owed by the other to the third
person, or
(c) the harm is suffered because of reliance of the other or the third
person upon the undertaking.
Sections 323 and 324A are limited by their terms to liability for "physical
harm" caused by the breach of a special duty. Although § 324A
is not the law of Washington (see Webstad v. Stortini, ___Wn.App.___,
924 P.2d 940 (1996)) and the status of the physical harm requirement of
§ 323 in Washington is unclear, no Washington case has found liability
for violation fo a special duty in the absence of physical harm. See
Herskovits, 99 Wn.2d 609 (personal injury caused by cancer); Brown
v. MacPherson's, Inc., 86 Wn.2d 293 (1975) (loss of life and property
in avalanche); Doyle v. Planned Parenthood of Seattle-King County, Inc.,
31 Wn.App. 126 (1982) (physical injury caused by IUD); PanitzI, 10 Wn.App.
317 (physical injury caused by car accident); Estes v. Hammerstad,
Inc., 8 Wn.App. 22 (1972) (fire loss to home). On balance, the Washington
appellate courts are likely to require physical harm, and this court so
rules.
Even assuming physical harm were not required, no proximate cause exists
between the duties alleged and the damages claimed by the State. The State
has alleged two distinct duties based on the "Frank Statement,"
the first of which runs to the citizens of Washington (a duty to conduct
research to protect their health) and the second of which runs to the State
(a duty to cooperate with those who protect the public health). The State
seeks damages in the form increased public health costs. For purposes of
this ruling, the court will assume that defendants beached both duties
and that the State suffered a compensable injury. Plaintiff's special duty
claim fails, however, because there are no allegations that would support
the conclusion that the State's damages were proximately caused by a breach
of one or both of the asserted duties. See Hartley v. State, 103
Wn.2d 768, 777 (1985) ("Negligence, of course, requires duty is substantial
factor in bringing about the harm, proximate cause is established.)
It is possible that a breach of the duty to Washington's citizens may
have caused certain individuals to take up or continue smoking, thus increasing
the healthcare costs for which the State is responsible, but the State
has not made any factual allegations regarding the actions taken or injuries
suffered by its individual citizens. Without such allegations, there is
no basis for a finding that the defendants' breach of their duty to the
public proximately caused the State's damages.
Similarly, while a breach of the duty to cooperate with the State may
have lulled it into a false sense of security regarding potential health
risks and/or forestalled health-based regulation of the tobacco industry,
the State has failed to allege that its course of conduct in this area
over the last thirty or forty years was influenced by defendants' research
and related disclosures. Without allegations of reliance, any damages attributable
to the State's inaction were not proximately caused by defendants' actions
or inactions.
Thus, the State's special duty claim fails because it has not suffered
physical harm and has not adequately alleged causation. Defendants' motion
is granted. The Fourth Cause of Action is dismissed.
V. UNJUST ENRICHMENT (FIFTH CAUSE OF ACTION)
The State's unjust enrichment claim turns on whether the state's actions
have benefited defendants.
A person confers a benefit upon another if he gives to the other possession
of or some interest in money, land, chattels, or choses in action, performs
services beneficial to or at the request of the other, satisfies a debt
or duty of the other, or in any way adds to the other's security or advantage.
He confers a benefit not only where he adds to the property of another,
but also where he saves the other from expense or loss. The work "benefit,"
therefore, denotes any form of advantage.
Chemical Bank v. Washington Public Power Supply Sys., 102 Wn.2d
874, 910 (1984), cert. denied, 471 U.S. 1065 (1985) (citing comment
b to restatement of restitution § 1 (1937)). The State has not alleged
that it gave the defendants possession of or an interest in goods. To the
extent that the State alleges that it performed any services for or at
the request of the defendants, such as the provision of medical services
that allow smokers to continue to purchase defendants' products, the benefits
of the healthcare payments were enjoyed by the citizens of Washington and
not by the defendants. In such circumstances, the benefits the State alleges
that it conferred on defendants are too indirect and speculative to support
its unjust enrichment claim under Washington case law. See Chemical
Bank, 102 Wn.2d at 910-11.
Thus, the claim of unjust enrichment stands or falls on the State's
theory that the defendants have an underlying obligation or legal duty
to third persons which has been satisfied by the State's efforts. See
Florida Power and Light Co. v. Allis-Chalmers Corp., 752 F. Supp. 434,
438 (S.D. Fla. 1990) (benefit may be conferred where plaintiff satisfies
an obligation or duty of defendant); Restatement of Restitution, §§
112-115 (1937). The State cannot recover under this theory without proving
that defendants had a duty to individual Washington citizens which was
breached, causing damages to such individuals. Because the State makes
no allegations regarding defendants' duties and liabilities to individuals,
the State's unjust enrichment claim is deficient. Further, if the State
is subject to its own statutory duty to make the Medicaid payments at issue
here, some of the damages claimed were incurred as a result of the State's
independent legal obligations and duties, and not because of defendants'
breach of any duty owing to the State. See Lynch v. Deaconess Medical
Center, 113 Wn.2d 162, 166 (1989) (attorney could not recover fees
from ultimate recipient of judgment monies where attorney was obligated
to diligently seek the judgment on behalf of his client).
The State also argues that it may base its unjsut enrichment claim on
defendants' "manifest duty" to pay restitution to the State for
the amounts the State has spent for victims of defendants' enterprise.
"Manifest duty" is based on the Emergency Assistance Doctrine,
restatement of Restitution § 115, a theory of recovery that is not
available where the plaintiff is seeking recovery for harms caused by product
defects. Washington Water Power Co. v. Graybar Elec. Co., 112 Wn.2d
847, 855 (1989) (equitable causes of action under § 115 for harms
caused by product defects, which may included the State's unjust enrichment
claim, are preempted by the Washington product Liability Act). Assuming
§ 115 were applicable, the State's unjust enrichment cause of action
could not survive because § 115 requires that the State have "performed
the duty of another." As was discussed above, the State does not seek
to prove defendants' breach of duty to individual Washington citizens.
The State's manifest duty argument in favor of unjust enrichment, is therefore,
not viable.
Defendants' motion is granted. The Fifth Cause of Action is dismissed.
DATED this 19 day of November, 1996.
George A. Finkle, Judge