You remember that little diner in Longview? The one with the massive portions and the even bigger personality? If you've been following the news in Southwest Washington, you know Stuffy's II hasn't exactly had a quiet few years. While most of the world has moved on from the pandemic era, the legal fallout for this local staple is just reaching its peak.
Basically, the Washington State Court of Appeals just dropped a hammer on Duling Enterprises, the family behind Stuffy's II. They upheld a massive $936,000 fine for violating COVID-19 indoor dining bans back in 2021.
Yeah, you read that right. Nearly a million dollars. For a breakfast spot.
The 52-Day Standoff
To understand how a pancake house ends up owing the government a million bucks, you have to go back to early 2021. At the time, Governor Jay Inslee had shut down indoor dining to curb the virus. Most places did the takeout thing or just closed up shop.
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Stuffy's II didn't.
They stayed open for 52 days in total defiance of the emergency orders. It wasn't just a quiet rebellion, either. Owners Bud and Glenda Duling were very vocal. They argued they had a right to earn a living and keep their 35-some employees paid.
The Washington Department of Labor & Industries (L&I) didn't see it as a heroic stand. They saw it as a "willful serious violation."
Each day they stayed open, the meter was running. The state calculated the fine by starting with a base penalty, then multiplying it by 10 because the violation was considered intentional. Since Stuffy's had fewer than 251 employees, they actually got a "discount" on the base rate, but when you multiply $1,800 by 10 and then by 52 days, you get that eye-watering $936,000 figure.
Why the Court Refused to Budge
The owners tried to fight it, obviously. They took it to the Board of Industrial Insurance Appeals, then to Cowlitz County Superior Court, and finally to the Court of Appeals.
Their main argument? The fine was "grossly disproportional" and violated the Excessive Fines Clause of the state and federal constitutions. They basically said, "Look, we're a small business. This fine is more than the maximum for a gross misdemeanor. Plus, we operated at a loss in 2020. We can't pay this."
But the judges didn't buy it.
Judge Rebecca Glasgow, writing for the three-judge panel in August 2025, pointed out a few things that kinda sink the "we're broke" defense:
- The restaurant got a Paycheck Protection Program (PPP) loan.
- They didn't provide enough evidence of their total assets or savings, just some tax returns showing a loss.
- The court ruled that a fine isn't "excessive" just because a company can't afford it, especially if the violation was egregious.
The court's logic was pretty blunt: by staying open, the restaurant exposed workers and the public to a "potentially deadly disease." In the eyes of the law, that's a high "gravity of offense."
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A Double Whammy of Bad Luck
Honestly, the timing of the court's decision couldn't have been worse. Just days before the ruling came down in August 2025, a fire broke out in the Stuffy's II kitchen.
The building suffered significant smoke and structural damage. So, while the family was trying to figure out how to rebuild their physical restaurant, the state was handing them a million-dollar bill for a fight that started four years ago.
It’s a mess.
Some people in Longview still see them as heroes who stood up for small business rights. Others think they brought it on themselves by ignoring public health rules that everyone else had to follow. Regardless of where you stand, the legal precedent is clear: Washington's L&I has some very sharp teeth when it comes to enforcing emergency proclamations.
What Happens Now?
If you're wondering if the doors are closed for good, it's a "maybe." The family has been posting on social media about their commitment to "coming back stronger," but $936,000 is a lot of omelets.
They had 30 days from the August 2025 ruling to appeal to the Washington State Supreme Court. If they don't—or if the Supreme Court refuses to hear the case—the state will start the collection process.
For other business owners, this case is a massive warning sign. It proves that:
- "Willful" is an expensive word. If the state can prove you knew the rule and broke it anyway, the fines can be multiplied by 10.
- Financial hardship isn't a get-out-of-jail-free card. You have to prove total inability to pay with extreme transparency, and even then, the court might still say the fine stands if the "harm" was great enough.
- Appeals take forever. We are years past the "emergency," but the bills are only now becoming due.
Actionable Insights for Small Business Owners
If you find yourself in a dispute with a state agency like L&I, here is how to actually handle it based on the Stuffy's II outcome:
Keep meticulously clean records.
The court specifically noted that Stuffy's failed to provide enough documentation about their savings and assets. If you're going to claim you can't pay a fine, you need to open the books completely. Partial info usually leads to a loss in court.
Understand the "Multipliers."
In Washington, L&I penalties aren't just flat fees. They are calculated based on the size of your business and the "gravity" of the risk. If you are cited for a "serious" violation, the state has the authority to charge up to $70,000 per day. Knowing the math can help you decide if a legal fight is actually worth the risk.
Address the "Harm" factor.
The Stuffy's II defense tried to argue that "no actual harm" occurred because no one (that they knew of) got sick at the diner. The court rejected this, saying the risk of harm to employees is what matters under worker safety laws. If you're fighting a safety fine, don't just argue that no one got hurt—argue that the risk didn't exist in the first place.
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Whether the Stuffy's II sign ever lights up again on Ocean Beach Highway remains to be seen, but the $936,000 lesson they've learned is one for the history books.