AMS Salt Industries, Inc. v. Magnesium Corp. of America

942 P.2d 315, 320 Utah Adv. Rep. 3, 1997 Utah LEXIS 52, 1997 WL 342879
CourtUtah Supreme Court
DecidedJune 24, 1997
Docket950451
StatusPublished
Cited by29 cases

This text of 942 P.2d 315 (AMS Salt Industries, Inc. v. Magnesium Corp. of America) is published on Counsel Stack Legal Research, covering Utah Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
AMS Salt Industries, Inc. v. Magnesium Corp. of America, 942 P.2d 315, 320 Utah Adv. Rep. 3, 1997 Utah LEXIS 52, 1997 WL 342879 (Utah 1997).

Opinion

RUSSON, Justice:

AMS Salt Industries, Inc., formerly known as American Salt Company (“AMS”), appeals from a summary judgment entered against it in the Third Judicial District Court of Salt Lake County. We affirm.

BACKGROUND

AMS operated a salt-production business along the shores of the Great Salt Lake in Tooele County. As part of that business, AMS would pump water from the Lake into ponds where the water would then evaporate to the point where the salt could be extracted, a process known as solar evaporation. Magnesium Corporation of America, formerly known as AMAX Magnesium Corporation (“Mag Corp”), also operated a business along the shores of the Lake, several miles to the north of AMS. From its solar evaporation ponds, Mag Corp extracted brine which was used primarily to manufacture industrial chemicals such as magnesium and chlorine, but also was used to produce salt in direct competition with AMS.

AMS and Mag Corp each employed a system of dikes to keep the water and brine that was pumped into the solar evaporation ponds from escaping back into the Lake. As part of these dike systems, both AMS and Mag Corp had perimeter dikes that separated the actual Lake from their ponds.

Beginning in the early 1980s, Utah began receiving unusually high amounts of precipitation. Several years of deep snow followed by warm spring temperatures continually raised the level of the Lake. By June 1986, the Lake had reached an elevation of 4,211.85 feet, its highest recorded level. While the Lake was rising, AMS and Mag Corp were forced to strengthen and raise their perimeter dikes to keep the rising waters from flooding their ponds and other facilities. Pri- or to 1986, AMS expanded its operations and constructed solar evaporation ponds to the west of the county road that ran due south from the southernmost tip of Stansbury Island to Interstate 80 (the “West Ponds”). *318 Thus, when the waters of the Lake began to rise, Mag Corp’s perimeter dike to the north not only protected Mag Corp’s ponds, but also was all that stood between the Lake and AMS’s West Ponds, several miles to the south.

On June 7, 1986, a severe storm arose. High winds created large waves that pounded against and eventually breached Mag Corp’s perimeter dike. When AMS was informed of the breach, it began efforts to raise the level of and strengthen the county road in an effort to save its ponds east of the county road. Over the course of the next two days, the Lake refilled its natural bed, destroying all of Mag Corp’s internal dikes as well as AMS’s internal dikes west of the county road. Thus, all of Mag Corp’s ponds were lost, as were AMS’s West Ponds. AMS’s efforts to build up the county road, however, were successful, and the Lake’s progress was halted before it could inundate AMS’s ponds east of the county road.

In January 1990, AMS filed suit against Mag Corp for damages incurred, including claimed lost profits, as a result of the destruction of AMS’s West Ponds. AMS asserted that Mag Corp was negligent in the design, construction, and maintenance of Mag Corp’s perimeter dike. Additionally, AMS asserted other theories of recovery including breach of contract, strict liability, trespass, and nuisance.

Judge Pat B. Brian was originally assigned to the case. At the outset of the matter, Judge Brian informed counsel for AMS that he was a neighbor of one of Mag Corp’s attorneys, but AMS’s counsel indicated that he had no objection to Judge Brian’s participation in the proceedings. On April 19, 1993, Mag Corp moved for summary judgment. In its motion, Mag Corp argued that it owed AMS no legal duty with respect to the perimeter dike and therefore could not be found negligent. After hearing arguments, Judge Brian, in October 1993, granted the motion with respect to all claims except AMS’s negligence claim, holding that an issue of fact could exist with respect to whether Mag Corp owed AMS some kind of duty.

Shortly after the partial summary judgment, Judge Brian recused himself from any further participation in the matter, and an order to that effect was filed on November 4, 1993. Following two more years of discovery, Mag Corp again moved for summary judgment, arguing that AMS had not presented any evidence that could establish any legal duty owed by Mag Corp to AMS. On July 10, 1995, Judge Rokich held a hearing on Mag Corp’s motion. At that time, Judge Rokich determined to hold a subsequent hearing for the limited purpose of determining whether AMS’s reliance on Mag Corp’s dike was sufficiently reasonable to create a duty on the part of Mag Corp. The second hearing was held on July 21, 1995. At the conclusion of that hearing, Judge Rokich granted Mag Corp’s motion for summary judgment. In his order, Judge Rokich stated that there were “no material issues of fact in dispute and Mag Corp [was] entitled to judgment as a matter of law.”

On appeal to this court, AMS argues that Judge Rokich violated the “Law of the Case” doctrine in granting Mag Corp’s summary judgment motion after it had previously been denied by Judge Brian. AMS further argues that the trial court’s July 21, 1995, evidentia-ry hearing was improper because its scope was incorrectly limited to the issue of reliance and because in the context of a summary judgment motion, the court was resolving factual issues which should have been presented to a jury. Finally, AMS argues that the trial court erred in granting Mag Corp’s motion for summary judgment because the trial court incorrectly concluded that Mag Corp owed AMS no duty of care relating to the design, construction, and maintenance of Mag Corp’s perimeter dike.

Mag Corp responds that Judge Rokich did not violate the “Law of the Case” doctrine because the second motion for summary judgment was presented in a different light than the first. Further, Mag Corp asserts that the July 21, 1995, hearing was proper because the trial court was not resolving issues of fact but rather determining whether AMS could present any evidence of a material issue of fact relating to the duty question. Finally, Mag Corp argues that the trial court was correct in granting the summary judgment motion because AMS had failed to raise *319 a material issue of fact as to whether Mag Corp owed AMS a legal duty.

STANDARD OF REVIEW

We will affirm a trial court’s grant of summary judgment only if there is no genuine issue of material fact and the moving party is entitled to judgment as a matter of law. Utah R. Civ. P. 56(c); Andreini v. Hultgren, 860 P.2d 916, 918 (Utah 1993). On appeal from a summary judgment, we resolve only legal issues and review the trial court’s conclusions of law for correctness. Ferree v. State, 784 P.2d 149, 151 (Utah 1989).

ANALYSIS

A. Law of the Case Doctrine

AMS argues that Judge Rokich violated the law of the case doctrine by granting Mag Corp’s second summary judgment motion after Judge Brian had denied its first motion. We disagree. The law of the case doctrine has been applied in various situations. One branch of the doctrine stands for the general rule that “one district court judge cannot overrule another district court judge of equal authority.”

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Bluebook (online)
942 P.2d 315, 320 Utah Adv. Rep. 3, 1997 Utah LEXIS 52, 1997 WL 342879, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ams-salt-industries-inc-v-magnesium-corp-of-america-utah-1997.