Gypsum Resources LLC v. Clark County

CourtDistrict Court, D. Nevada
DecidedJanuary 23, 2023
Docket2:19-cv-00850
StatusUnknown

This text of Gypsum Resources LLC v. Clark County (Gypsum Resources LLC v. Clark County) is published on Counsel Stack Legal Research, covering District Court, D. Nevada primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gypsum Resources LLC v. Clark County, (D. Nev. 2023).

Opinion

1 UNITED STATES DISTRICT COURT

2 DISTRICT OF NEVADA 3

4 GYPSUM RESOURCES, LLC, a Nevada ) limited liability company, ) 5 ) Case No.: 2:19-cv-00850-GMN-EJY 6 Plaintiff, ) vs. ) ORDER 7 ) CLARK COUNTY, et al., ) 8 ) Defendants. ) 9 ) 10 CLARK COUNTY, et al., ) ) 11 Counter-Claimants, ) vs. ) 12 ) 13 GYPSUM RESOURCES, LLC, a Nevada ) limited liability company, ) 14 ) Counter-Defendant. ) 15 16 17 Pending before the Court is Plaintiff and Counter-Defendant Gypsum Resources, LLC’s 18 (“Gypsum’s”) Partial Motion for Summary Judgment, (ECF No. 38). Defendants and Counter- 19 Claimants Clark County and Clark County Board of Commissioners (collectively, “Clark 20 County”) filed a Response, (ECF Nos. 39, 40, 41), to which Gypsum filed a Reply,1 (ECF No. 21 50). 22 23 24 1 Gypsum also filed a Notice of Objections to the Evidence Offered in Clark County’s Opposition to Gypsum’s Motion for Partial Summary Judgment, (ECF No. 51), and a Notice of Objections to the Evidence Offered in the 25 Statement of Undisputed Facts in Support of Clark County’s Opposition to Gypsum’s Motion for Partial Summary Judgment, (ECF No. 52). The Court considers Gypsum’s objections but finds that they do not impact the Court’s determination of Gypsum’s Motion for Partial Summary Judgment for the reasons set forth below. 1 Further pending before the Court is Gypsum’s Motion for Status Conference to Set Trial 2 and Deadlines, (ECF No. 53). Clark County filed a Response, (ECF No. 57), to which Gypsum 3 filed a Reply, (ECF No. 58). 4 Further pending before the Court is Clark County’s unopposed Motion for Leave to File 5 Excess Pages, (ECF No. 47). 6 For the reasons discussed below, the Court DENIES in part Gypsum’s Motion for Partial 7 Summary Judgment, DENIES Gypsum’s Motion for Status Conference to Set Trial and 8 Deadlines, 2 and GRANTS Clark County’s Motion for Leave to File Excess Pages.3 9 I. BACKGROUND 10 Gypsum is a Nevada limited liability company and owner of approximately 2,400 acres 11 of real property encompassing Blue Diamond Hill and the Hardie Gypsum Mine located in 12 Clark County, Nevada (the “Gypsum Property”). (Am. Compl. ¶ 1, ECF No. 9). The Clark 13 County Board of Commissioners (“CCBD”) is the governing board authorized to conduct 14 business, adopt laws, and adjudicate land use matters on behalf of Clark County. (Id. ¶ 2). 15 A. History of the Gypsum Property 16 In 1990, the United States Congress established the Red Rock Canyon National 17 Conservation Area (“RRCNCA”), thereby designating approximately 200,000 acres of land as 18 a conservation area to be administered by the Bureau of Land Management. (Id. ¶ 5). Several 19 years later, the Nevada Legislature enacted the Red Rock Canyon Conservation Area act, 20 21 22 2 Gypsum petitions the Court to convene a status conference to set a trial date and related trial deadlines because “there is going to be a trial, as the pending motions for summary judgment do not dispose of all claims.” (Mot. 23 Status Conference 2:15–16, ECF No. 53). This may be true, but the Court’s determination on Gypsum’s Motion for Partial Summary Judgment and Clark County’s separate Motion for Summary Judgment, (ECF No. 35), 24 necessarily shapes what issues will be litigated at trial. Therefore, the Court finds that any status conference to set a trial date and related trial deadlines is premature prior to the Court’s determination on the pending motions 25 for summary judgment and partial summary judgment. 3 The Court grants Clark County’s Motion for Leave to file Excess Pages given that Gypsum does not oppose the Motion. 1 restricting land use for property surrounding the RRCNCA. (Id. ¶ 6). Clark County 2 subsequently established the Red Rock Design Overlay District, further restricting how land 3 surrounding the RRCNCA could be used and developed. (Id. ¶ 7). 4 In 2003, Gypsum acquired the Gypsum Property with the intention of developing the 5 Gypsum Property as a master-planned residential community. (Id. ¶ 8). At the time of the 6 purchase, the Gypsum Property was zoned “RU,” designating that one home could be built 7 every two acres throughout the property. (Id. ¶ 10). Gypsum intended to submit a zoning 8 variance request to the CCBD to develop its residential community, but before it could do so 9 the Nevada legislature enacted SB 358, a bill which precluded Gypsum from seeking a zoning 10 variance. (Id. ¶¶ 10–16). Coinciding with the enactment of SB 358 was the passage of 11 Ordinance 2914 by Clark County, which expanded the Red Rock Design Overlay District to 12 prohibit land use applications to increase the zoning density for properties within the district. 13 (Id. ¶ 16). 14 B. Preceding Litigation 15 In 2005, Gypsum filed suit in this court against the State of Nevada and Clark County, 16 challenging the constitutionality of SB 358 and Ordinance 2914. (Id. ¶¶ 18–20). In 2010, 17 Gypsum and Clark County resolved the litigation by entering into a written Stipulation and 18 Settlement Agreement, (the “Settlement Agreement”). (Id. ¶ 21). The Settlement Agreement 19 required Clark County and CCBD to amend the Clark County Code to allow an exception to 20 the “Red Rock Design Overlay District,” in addition to authorizing Gypsum to submit a Major 21 Project Application for a master-planned residential development with “residential densities 22 higher than those allowed in the holding RU zoning . . . .” (Id. ¶ 22–23). Moreover, the 23 Settlement Agreement instituted several mandatory conditions that any subsequent Major 24 Project Application proposed by Gypsum would have to comply with. Two of these conditions 25 are of note. First, “[t]he parties agree that any Major Project Application that seeks increased 1 density (residential) or intensity (non-residential) must propose a primary access to and from 2 the East.” (Settlement Agreement 54:22–24, Ex. D to MSJ, ECF No. 35-4). This condition 3 would later become a requirement mandating that Gypsum obtain a right-of-way approval from 4 the Bureau of Land Management (“BLM”) to construct a road before any of their Major Project 5 Applications would be approved. (12/05/2018 BCC Agenda at 204, Ex. DD to Clark County 6 MSJ, ECF No. 36-2). Second, and related to the first condition, the Settlement Agreement 7 mandated that any approved primary access “shall not connect to State Route 159.” (Settlement 8 Agreement 55:1–3, Ex. D to MSJ). 9 The Settlement Agreement further provided that Clark County and CCBD would process 10 Gypsum’s subsequent Major Project Application in “good faith.” (Id. ¶ 24). Specifically, the 11 Settlement Agreement stated that, “[t]he County agrees that it will process the Major Project 12 Application under the Major Projects in good faith. Gypsum understands that the County, by 13 this Agreement, cannot and is not committing to approval of any particular Major Project 14 and/or any particular densities or uses.” (Settlement Agreement 54:17–20, Ex. D to MSJ). 15 As relevant here, Gypsum contends that Clark County subsequently engaged in a pattern 16 of obstruction and delay after entering into the Settlement Agreement to prevent Gypsum from 17 developing the Gypsum Property. (Gypsum Partial Mot. Summ. J. (“MSJ”) 20:11–21, ECF No. 18 38). Gypsum thereby argues that Clark County violated the provision of the Settlement 19 Agreement which guaranteed that Clark County would process Gypsum’s Major Project 20 Application(s) in “good faith.” (Id.) 21 II. LEGAL STANDARD 22 The Federal Rules of Civil Procedure provide for summary adjudication when the 23 pleadings, depositions, answers to interrogatories, and admissions on file, together with the 24 affidavits, if any, show that “there is no genuine dispute as to any material fact and the movant 25 is entitled to judgment as a matter of law.” Fed. R. Civ. P.

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Gypsum Resources LLC v. Clark County, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gypsum-resources-llc-v-clark-county-nvd-2023.