Broughton, Inc. v. City and County of Butte Silver Bow

CourtDistrict Court, D. Montana
DecidedMarch 12, 2026
Docket2:25-cv-00065
StatusUnknown

This text of Broughton, Inc. v. City and County of Butte Silver Bow (Broughton, Inc. v. City and County of Butte Silver Bow) is published on Counsel Stack Legal Research, covering District Court, D. Montana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Broughton, Inc. v. City and County of Butte Silver Bow, (D. Mont. 2026).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MONTANA BUTTE DIVISION

BROUGHTON, INC.

Plaintiffs, CV-25-65-BU-BMM

v. ORDER ON MOTION FOR CITY AND COUNTY OF BUTTE SUMMARY JUDGMENT SILVER BOW,

Defendants.

INTRODUCTION Defendant City and County of Butte Silver Bow (“BSB”) moves for summary judgment against Broughton, Inc. (“Broughton”). (Doc. 14.) Broughton opposes the motion. (Doc. 18.) The Court held a hearing on February 2, 2026. (Doc. 24.) BACKGROUND Plaintiff Broughton, a Montana Corporation, owns the business of “Grommit LLC DBA Starrbuds.” Glenn and Jill Broughton own Broughton. Broughton applied for a business license for Starrbuds, a proposed retail cannabis dispensary, located at 301 South Arizona Avenue, Butte, Montana. (Doc. 16 ¶ 1.) BSB’s Planning Department and Building Code & Enforcement Office initially reviews all applications to ensure compliance with building codes, zoning codes, and state law. (Id. ¶ 3.). Rusty Christensen, BSB Building Official, contacted Jill Broughton in April of 2025 to do a walkthrough and inspection of the building. (Id. ¶ 7.) Christensen informed Jill Broughton on April 23, 2025, that the Building

Department had approved Broughton’s business application as the building complied with all applicable building codes. (Id. ¶ 8.) Christensen’s email read as follows: “Hello, your business license for Grommit LLC DBA Starrbuds is approved

and ready to issue. The Butte Silver Bow Building Department has inspected and approves of this location (301 S Arizona).” (Doc. 18 at 3.) Butte School District Superintendent, Judy Jonart, and Butte High School Principal, John Metz, contacted BSB Chief Executive, J.P. Gallagher, in April of

2025 regarding concerns about Broughton’s proposed location of its retail cannabis dispensary. (Doc. 16 ¶ 10.) Both the superintendent and principal expressed concerns about the close proximately of the new retail cannabis shop to Butte High School.

(Id.) J.P Gallagher informed Planning Director, Julia Crain, about the concerns. (Id. ¶ 11.) Crain analyzed Broughton’s proposed retail cannabis locations proximately to the Butte High School entrances. (Id.) The entrances analyzed by Crain included an

entrance to a Butte High School building that holds vocational classes, particularly the welding classroom. (Id. ¶ 13.) The welding classroom has an entrance into the Butte High School building located on Arizona Street. (Id.) The entrances to the

welding classroom and Broughton’s proposed retail cannabis dispensary were both located on Arizona Street. (Id.) Crain found the entrance to the welding classroom of Butte High School to be approximately 475 feet from Broughton’s proposed retail

cannabis dispensary of Starrbuds. (Id.) Crain, acting in her capacity as the zoning official for BSB’s Planning Department, determined that Broughton’s new proposed retail cannabis location was

not permitted for a BSB business license due to its proximity to a school. (Id. ¶¶ 12- 14.) BSB interpreted Mont. Code Ann. § 16-12-207(3)(a)(iii), to prohibit cannabis dispensaries located on the same street and within 500 feet of a school. (Id.) The entrance to Broughton’s proposed cannabis dispensary fell within 500 feet of an

entrance into Butte High School on Arizona Street (Id.) Crain informed Broughton’s representative, Chad Shepard, on April 28, 2025, that BSB’s Planning Department could not approve Broughton’s business license at the proposed property. (Id. ¶ 15.)

Crain also sent an email to Glenn Broughton on May 7, 2025, explaining BSB Planning Department’s basis for the denial of the application and provided a zoning appeal form. (Id. ¶ 16.) Broughton appealed. (Id. ¶ 17.) Crain, Gallagher, BSB County Attorney

Matthew Enrooth, Glenn Broughton, and Chad Shepard met on May 27, 2025, to discuss Broughton’s business license application and location concerns. (Id. ¶ 18.) The parties disagreed with the interpretation of Mont. Code Ann. § 16-12-207, and

whether Broughton’s proposed retail cannabis dispensary location complied with Montana law. BSB received a letter from Broughton’s counsel on May 28, 2025, requesting a business license or notice of refusal by June 9, 2025. Broughton’s

counsel stated in the letter that “[t]here appears to be a difference in opinion on how to interpret M.C.A. § 16-12-207.” (Doc. 16 ¶ 19.) BSB’s County Attorney, Enrooth, agreed with Crain’s interpretation that the location of Broughton’s proposed

cannabis shop being on the same street as an entrance to Butte High School and within 500 feet of the school prohibited BSB from approving Broughton’s business license. Montana law relating to the location of a retail cannabis dispensary requires

that the “[t]he [D]epartment [of Revenue] shall deny a marijuana license if the applicant’s proposed licensed premises” are “within 500 feet of and on the same street as a building used exclusively as a . . . school.” Mont. Code Ann. § 16-12-

207(3)(a)(iii). “The distance must be measured in a straight line from the center of the nearest entrance of the . . . school to the nearest entrance of the licensee’s premises.” Id. Enrooth contacted the Montana Department of Revenue Cannabis Control

Division following the May 27, 2025, meeting to obtain additional information on the interpretation of Mont. Code Ann. § 16-12-207. (Doc. 16 ¶ 20.) Enrooth particularly sought clarification on the distance restriction from schools. (Id.) The

Cannabis Control Division provided BSB clarification on the distance restriction for cannabis dispensaries. BSB approved Broughton’s business license on June 9, 2025. (Doc. 16 ¶ 21.) BSB’s Treasurer’s Office issued Broughton the business license the

following day on June 10, 2025, after it was determined to be in compliance with all the BSB ordinance requirements. (Id. ¶ 22.) Broughton filed a complaint against BSB on June 20, 2025. Broughton alleges

the following claims against BSB: (1) violations of 42 U.S.C. § 1983, Fifth Amendment taking; (2) violations of 42 U.S.C. § 1983, Fourteenth Amendment; and (3) negligence. (Doc. 1.) LEGAL STANDARD

A court may grant summary judgment when the movant demonstrates that there exists “no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed. R. Civ. P. 56(a). Material facts are those

which may affect the outcome of the case. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248 (1986). A genuine dispute of material fact requires sufficient evidence for a reasonable jury to return a verdict for the nonmoving party. Id. at 248.

DISCUSSION BSB argues that, as a matter of law, BSB did not violate Broughton’s constitutional rights or breach a duty owed to Broughton. (Doc. 15 at 1.) The Court will address in turn Broughton’s Fifth Amendment takings claim, Fourteenth Amendment claims, and negligence claim.

I. Broughton’s Fifth Amendment Regulatory Taking Claim The Fifth Amendment “Takings Clause” prohibits the taking of “private property . . . for public use, without just compensation.” U.S. Cont. Amend. V.

Broughton must establish the following requirements to succeed on its takings claim: (1) Broughton possessed a constitutionally protected property interest in the business license; and (2) that the property interest has been taken under the color of state law, without just compensation. Sierra Med. Servs. Alliance v. Kent, 883 F.3d

1216, 1223 (9th Cir.

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