Arrow-right Camera
The Spokesman-Review Newspaper
Spokane, Washington  Est. May 19, 1883

Spokane County to pay Spokane Valley $110K in roundabout dispute

Spokane County will pay Spokane Valley $110,000 to settle a lawsuit stemming from a controversial roundabout.

County commissioners unanimously approved the settlement Tuesday without discussion. It dismisses all claims made in a lawsuit filed by Spokane Valley in March. The city said Spokane County should be on the hook for the legal costs incurred fighting a lawsuit from Jon and Mary Gibson, who own an apartment complex at the intersection of Wilbur Road and Montgomery Drive.

The Gibsons sued Spokane Valley, saying the roundabout – built in 2008 at a cost of $3.1 million – led to a decrease in their property value and prevented tenants from making a left turn into their apartments off Montgomery Drive headed east. They received a $170,000 quote to build a new entrance to the complex on Wilbur, a cost much greater than what was estimated by city planners, according to court documents.

Spokane Valley eventually settled that dispute, after the case made it all the way to the Washington Court of Appeals. The reported payment to the Gibsons was $40,000, finalized last year.

The city sued Spokane County in March, alleging it was their engineering staff that negotiated the original right-of-way agreement with the Gibsons. The county entered into an agreement with Spokane Valley in 2003 to assist in construction of the roundabout – just a few months after the city incorporated – that included a provision stating the county would cover litigation costs.

The county and the city disagreed about how much coverage should be provided, prompting the lawsuit, said Steve Bartel, the county’s risk manager.

“At the end of the day, the question became, did either side or both sides want to spend a whole bunch of money going through the discovery process?” Bartel said.

Cary Driskell, attorney for Spokane Valley, said the settlement is less than what was originally sought but represented an effort to compromise.

“It’s fair to say it represents a reasonable resolution between the parties,” Driskell said. “It’s a good thing.”

The case had been scheduled to go to trial in March. Both sides planned to call dozens of witnesses, according to court filings. Bartel said that would have added to the growing legal costs for both governments.

“We saw this as throwing good money at bad money,” Bartel said. He noted that the Gibsons did not name Spokane County in their civil lawsuit against Spokane Valley.

Jon Gibson said in an interview last year he did not hold Spokane County accountable for the damage caused by the roundabout.

The settlement will be paid out of Spokane County’s risk pool.