Class Action Ruled Out In Pbia Lawsuit

A lawsuit claiming the formation of a self-taxing business district in downtown Spokane is unconstitutional will not become a class action, a judge ruled Wednesday.

Attorney Stephen Eugster is suing the city, which in June 1995 created the Parking and Business Improvement Area.

The PBIA is managed by the Downtown Spokane Partnership and is funded primarily by tax assessments on the 1,100 property and business owners within its boundaries.

When the lawsuit was filed, many of the PBIA members signed waivers allowing their tax assessments to be collected regardless of the lawsuit’s outcome. However, more than $100,000 - representing assessments paid by members who did not sign waivers - is being held in escrow by the city until the lawsuit is resolved.

In order for the lawsuit to become a class action, said Superior Court Judge Kenneth Kato, numerous plaintiffs need to express an interest in joining the suit. Though many of the rate payers did not sign waivers, that does not indicate their wish to join Eugster in the lawsuit, Kato said.

The next hearing in the case is scheduled for Feb. 26 at 8:30 a.m. Kato will hear Eugster’s motion for partial summary judgment.

, DataTimes