Cottonwood Environmental Law Center v. CH SP Acquisition

District Court, D. Montana·Decided February 13, 2024·No. 2:23-cv-00028·Unknown

Opinion

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

COTTONWOOD ENVIRONMENTAL

LAW CENTER, CV-23-28-BU-BMM

Plaintiff,

ORDER v.

CH SP ACQUISITION LLC d/b/a SPANISH PEAKS MOUNTAIN CLUB; LONE MOUNTAIN LAND COMPANY, LLC, Defendants.

INTRODUCTION Plaintiff Cottonwood Environmental Law Center (“Cottonwood”) filed an interim motion for a preliminary injunction pending appeal on December 22, 2023. (Doc. 70.) Defendants CH SP Acquisition LLC d/b/a Spanish Peaks Mountain Club (“Spanish Peaks”) and Lone Mountain Land Company, LLC (“LMLC”) (collectively “Defendants”) oppose this motion. (Doc. 76.) Defendants pray additionally that the Court prohibit Cottonwood from filing any future motions for an injunction or temporary restraining order seeking to enjoin irrigation without prior leave of the Court. (Id. at 1.) The Court conducted a motions hearing on February 5, 2024. (Doc. 81.) FACTUAL BACKGROUND The facts remain the same as the facts in the Court’s previous orders. (See

Doc. 67 at 2); (Doc. 63 at 2-3.) Cottonwood asserts that Spanish Peaks discharges nitrogen pollution into the West Fork of the Gallatin River and its tributaries, and that this discharge causes and contributes to algae blooms in those waters.

Cottonwood claims that Spanish Peaks discharges treated wastewater using sprinklers and snowmakers situated on or around ski runs. Cottonwood further alleges that Defendants flush the Spanish Peaks golf course irrigation system once per year using pipes located on the Spanish Peaks golf course.

Cottonwood prays that the Court enjoin Defendants from the following actions: “1) spraying treated wastewater from their industrial snowguns; 2) blowing out treated wastewater from their irrigation pipes into a tributary of the West Fork

[of the Gallatin River] at the end of the golf season; and 3) connecting any sewer within Spanish Peaks Mountain Resort to the Big Sky Water and Sewer District while the Ninth Circuit considers the appeal in this case.” (Doc. 71 at 3.) Cottonwood prays further that the Court enjoin Defendants from spraying treated sewage toward

any stream and on any slope greater than 25 degrees until the Ninth Circuit decides Cottonwood’s appeal. (Doc. 80 at 10.) Defendants oppose Cottonwood’s motion for an injunction pending appeal. (Doc. 76.) Defendants pray additionally that the Court restrict Cottonwood’s ability to file future motions for an injunction or a temporary restraining order in this case. (Id. at 7-10.)

LEGAL BACKGROUND The Court previously granted Defendants’ motion for summary judgment (Doc. 67) and Defendants’ motion to stay discovery. (Doc. 63.) The Court

determined that the terms of the consent decree in Cottonwood Environmental Law Center, et al., v. Yellowstone Mountain Club, LLC, No. 2:21-cv-00093-BMM-JTJ (D. Mont.) (“Cottonwood I”) barred Cottonwood’s Clean Water Act (“CWA”) claim in this action. (Doc. 67 at 11.) The Court noted further that Cottonwood conceded

its Montana public nuisance claims in this action. (Id.) Cottonwood filed a notice of appeal on December 21, 2023. (Doc. 69.) LEGAL STANDARD

Fed. R. Civ. P. 62(d) permits a district court to grant an injunction while an appeal is pending from an interlocutory order or final judgment. “The standard for evaluating an injunction pending appeal is similar to that employed by district courts in deciding whether to grant a preliminary injunction.” Feldman v. Arizona Sec'y of

State's Off., 843 F.3d 366, 367 (9th Cir. 2016). “A plaintiff seeking a preliminary injunction must establish that he is likely to succeed on the merits, that he is likely to suffer irreparable harm in the absence of preliminary relief, that the balance of equities tips in his favor, and that an injunction is in the public interest.” Winter v. Natural Res. Def. Council, 555 U.S. 7, 20 (2008).

The Ninth Circuit also employs a “sliding scale” approach under which a preliminary injunction may be granted “when a plaintiff demonstrates that serious questions going to the merits were raised and the balance of hardships tips sharply

in the plaintiff’s favor.” All. for the Wild Rockies v. Cottrell, 632 F.3d 1127, 1134 (9th Cir. 2011). The sliding scale approach requires additionally that a plaintiff satisfy all the other Winter factors. Id. A preliminary injunction proves to be an “extraordinary remedy that may only be awarded upon a clear showing that the

plaintiff is entitled to such relief.” Winter, 555 U.S. at 22. The All Writs Act, 28 U.S.C. § 1651(a), grants district courts the inherent authority to regulate the activities of abusive litigants by imposing pre-filing

restrictions. Ringgold-Lockhart v. County of Los Angeles, 761 F.3d 1057, 1061 (9th Cir. 2014). The Court recognizes that restricting access to the courts proves to be a serious matter, as “[t]he right of access to the courts is a fundamental right protected by the Constitution.” Id. (quoting Delew v. Wagner, 143 F.3d 1219, 1222 (9th

Cir.1998)). Courts in the District of Montana have noted that pre-filing restrictions represent an extreme remedy that is rarely appropriate. See Kelly v. Boone Karlberg P.C., No. CV 22-174-M-DLC-KLD, 2023 WL 4704441, at *2 (D. Mont. July 24, 2023), report and recommendation adopted sub nom. Kelly v. Boone Karlberg P.C., No. CV 22-174-M-DLC, 2023 WL 7211711 (D. Mont. Nov. 2, 2023).

DISCUSSION The Court will discuss first Cottonwood’s motion for an injunction pending appeal. The Court will then consider Defendants’ prayer for the Court to enter a pre-

filing order restricting Cottonwood’s ability to file motions for a preliminary injunction or motions for a temporary restraining order. I. Cottonwood’s motion for an injunction pending appeal. Cottonwood asserts that it has met its burden under either the Winter factors

or under the sliding-scale approach. (Doc. 71 at 2.) The Court disagrees. Cottonwood has failed to demonstrate that it is likely to prevail on the merits as required by Winter. 555 U.S. at 20. Cottonwood also has failed to raise serious questions going

to the merits of the case and failed to demonstrate that the balance of hardships tip sharply in its favor. All. for the Wild Rockies, 632 F.3d at 1134. The Court determines that Cottonwood has failed to present sufficient evidence that the terms of the Cottonwood I consent order do not bar its CWA claim.

Cottonwood argues that the Cottonwood I consent order does not bar its challenge to Spanish Peaks’s alleged spraying of treated wastewater through snowguns and sprinklers and blowing out the pipe system at the Spanish Peaks golf

course. (Doc. 71 at 3-4.) The Court recognizes that the Cottonwood I consent order provides in pertinent part that the “Order effectuates a full and complete settlement and release of all the claims against Defendant in Plaintiffs’ Amended Complaint

(Doc. 20) and sixty- day notice letter (Doc. 41-1).” Cottonwood I (Doc. 68 at 2.) The Cottonwood I consent order also covers “all other claims known and unknown that could be asserted under the Clean Water Act . . . based on the factual allegations

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