ABC Sand and Rock Company Incorporated v. Maricopa, County of

CourtDistrict Court, D. Arizona
DecidedApril 1, 2024
Docket2:21-cv-01875
StatusUnknown

This text of ABC Sand and Rock Company Incorporated v. Maricopa, County of (ABC Sand and Rock Company Incorporated v. Maricopa, County of) is published on Counsel Stack Legal Research, covering District Court, D. Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
ABC Sand and Rock Company Incorporated v. Maricopa, County of, (D. Ariz. 2024).

Opinion

1 WO 2 3 4 5 6 IN THE UNITED STATES DISTRICT COURT 7 FOR THE DISTRICT OF ARIZONA

9 ABC Sand and Rock Company, Inc.; and No. CV-21-01875-PHX-DGC David Waltemath, 10 ORDER Plaintiffs, 11 v. 12 Maricopa County; Flood Control District of 13 Maricopa County; William Wiley; Ed Raleigh; Anthony Beuche; Michael Fulton; 14 Scott Vogel; and Jane Doe Spouses,

15 Defendants. 16 17 18 Plaintiff ABC Sand and Rock Company (“ABC”) moves for a new trial or an 19 amended judgment. Doc. 60. The Court will deny the motion.1 20 I. Background. 21 This case is the latest in a longstanding dispute between ABC and the Flood Control 22 District of Maricopa County (the “District”). ABC operates a sand and gravel mine in the 23 floodplain at the confluence of the New and the Agua Fria Rivers in Maricopa County, 24 Arizona. The District regulates and issues five-year permits for mining operations in 25 floodplains. See A.R.S. §§ 48-3609(B)(1), 48-3613(A); Floodplain Regulations for 26 Maricopa County §§ 401-04. 27 1 ABC’s owner, David Waltemath, passed away in September 2023. ABC has filed 28 a notice dismissing Mr. Waltemath as a plaintiff and explaining that this action does not abate and will proceed with the remaining parties. Doc. 72 (citing Fed. R. Civ. P. 25(a)(2)). 1 ABC mined under permits issued by the District from 1985 to 2011. ABC applied 2 to renew its permit in 2011. Disputes over this renewal and subsequent developments led 3 to extensive litigation between the parties for the last decade. See Doc. 56 at 2 (discussing 4 history of litigation between the parties); ABC Sand & Rock Co., Inc. v. Maricopa Cnty., 5 No. CV-17-01094-PHX-DGC, 2021 WL 3491947, at *1-8 (D. Ariz. Aug. 9, 2021) (same). 6 Despite this ongoing litigation, ABC submitted a proposed plan of development to 7 the District and applied for a new permit in 2015. Doc. 44 ¶¶ 3, 14. ABC’s previous permit 8 allowed it to mine to a depth of 10 feet in the floodplain and up to 40 feet in the floodplain 9 fringe, but the 2015 application sought authorization to mine to a depth of 60 feet. Id.; 10 Doc. 46-3 at 3. ABC’s engineer, Pedro Calza, completed the plan of development in July 11 2017. Docs. 44 ¶ 3, 44-2. The District approved the plan and issued ABC a new permit in 12 August 2017 (the “Permit”). Docs. 44 ¶ 24, 44-14. 13 Arizona law requires flood control districts to regulate floodplains, which are areas 14 in a watercourse that may be covered by water from a 100-year flood. See A.R.S. § 15 48-3601(6); A Tumbling-T Ranches v. Flood Control Dist. of Maricopa Cnty., 217 P.3d 16 1220, 1238 (Ariz. Ct. App. 2009). Because of concern that a 100-year flood of the New 17 River could enter ABC’s mining pit with a flow rate of 39,000 cubic feet per second (“cfs”), 18 the Permit stipulated that ABC must stabilize the site, and established time limits for ABC 19 to do so. Docs. 22 ¶¶ 40-41, 44-14 at 4-6. The stabilization includes excavation of the site 20 and installation of armor on various slopes and berms. Id. 21 The 39,000 cfs flow rate underlying the Permit’s stabilization requirements was 22 based on a New River hydrology study conducted by the United States Army Corps of 23 Engineers in 1982. Docs. 44 ¶¶ 9-10, 44-6. The Federal Emergency Management Agency 24 (“FEMA”) adopted that flow rate for purposes of its flood insurance rate map. Doc. 44 25 ¶ 11. For Maricopa County residents to remain eligible for flood insurance under FEMA’s 26 national flood insurance program, the District must regulate floodplains in accordance with 27 FEMA-established flow rates. Id. ¶ 4. 28 1 In early 2017, ABC requested that a new hydrology study be made of the New River 2 and submitted to FEMA. In response, the District commissioned Cardno Engineering 3 Corporation to conduct the study and prepare a report. Docs. 46 ¶¶ 33-35, 46-37. The 4 Cardno report was completed in September 2018 and concluded that the 100-year flow rate 5 for the New River is 34,200 cfs, a rate at which the Permit’s stabilization requirements 6 would not change. Docs. 44 ¶ 25, 46 ¶ 45-48, 46-37 at 38. The District submitted the 7 Cardno report to FEMA, which has tentatively approved the 34,200 cfs flow rate for use in 8 its flood insurance rate maps. Doc. 43 at 10 n.4.2 9 ABC asserts that the Permit is based on outdated flow rate data for the New River 10 and that the District has refused to review a report prepared by ABC’s own consulting 11 hydrologist, Patricia Dillon, in March 2021. Doc. 22 ¶¶ 58, 66. Dillon analyzed data from 12 streamflow gages and opined that the flow rate for any 100-year flood would be no higher 13 than 18,950 cfs. Doc. 46-42. ABC claims that complying with the Permit’s stabilization 14 demands has cost ABC more than $6 million, and that the stabilization requirements are 15 not necessary under Dillon’s lower flow rate. Docs. 22 ¶ 45, 45 at 3, 60 at 2. 16 ABC sued under 42 U.S.C. § 1983, alleging violations of the Fifth Amendment’s 17 Takings Clause (count one) and Due Process Clause (count two). Defendants moved to 18 dismiss the original complaint (Doc. 1), arguing that it failed to state a plausible claim for 19 relief and was barred by the statute of limitations and claim preclusion. Doc. 13. The 20 Court granted the motion with respect to the individual Defendants, but denied it in all 21 other respects. Doc. 18. ABC then filed an amended complaint. Doc. 22. 22 In count one, ABC asserts a “monetary exaction” takings claim under Koontz v. St. 23 Johns River Water Management District, 570 U.S. 595 (2013). Id. ¶¶ 102-15. Koontz 24 explained that “the government may choose whether and how a permit applicant is required 25 to mitigate the impacts of a proposed development, but it may not leverage its legitimate 26 interest in mitigation to pursue governmental ends that lack an essential nexus and rough 27 proportionality to those impacts.” 570 U.S. at 606 (citing Nollan v. Cal. Coastal Comm’n,

28 2 An engineering firm hired by ABC confirmed that the Cardno report’s calculations are correct based on the information provided by the District. Doc. 46 ¶ 50. 1 483 U.S. 825, 837 (1987); Dolan v. City of Tigard, 512 U.S. 374, 391 (1994)). ABC claims 2 that the money it was required to spend on stabilizing the mining site “bear[s] no relation 3 to the public interest of keeping a non-existent and completely theoretical flood, even a 4 100-year flood, at bay[,]” and is not “proportionate to the District’s stated goal of 5 preventing a flood[.]” Doc. 22 ¶¶ 110-11. 6 ABC alleges in count two that the Permit’s stabilization requirements violate ABC’s 7 due process rights. Id. ¶¶ 118-23. The “irreducible minimum” of a “due process claim 8 challenging land use action is failure to advance any legitimate governmental purpose.” 9 Shanks v. Dressel, 540 F.3d 1082, 1088 (9th Cir. 2008). According to ABC, “[t]he 10 District’s restrictions on ABC do not rationally advance a legitimate governmental interest 11 and are arbitrary.” Doc. 22 ¶ 121. 12 Defendants moved for summary judgment on each claim. Doc. 43. The Court heard 13 oral argument and granted the motion. Docs. 54, 56.

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