Harris v. Henry Miller Reclamation District No. 2131

CourtDistrict Court, E.D. California
DecidedJanuary 24, 2022
Docket1:21-cv-00882
StatusUnknown

This text of Harris v. Henry Miller Reclamation District No. 2131 (Harris v. Henry Miller Reclamation District No. 2131) is published on Counsel Stack Legal Research, covering District Court, E.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Harris v. Henry Miller Reclamation District No. 2131, (E.D. Cal. 2022).

Opinion

1 2 3 4 UNITED STATES DISTRICT COURT 5 EASTERN DISTRICT OF CALIFORNIA 6 F. RUSSELL HARRIS, et al., CASE NO. 1:21-cv-00882-AWI-EPG 7

8 Plaintiffs, ORDER GRANTING MOTION TO

DISMISS 9 v.

10 HENRY MILLER RECLAMATION DISTRICT NO. 2131, et al., 11 12 Defendants. (Doc. No. 15)

14 15 Plaintiffs F. Russell Harris (“Harris”) and Harris Farms, LP (“Harris Farms”) contend that 16 the San Luis Canal Company (“SLCC”), Henry Miller Reclamation District No. 2131 (“HMRD”) 17 and persons controlling those entities (together with SLCC and HMRD, “Defendants”) violated 18 the Due Process Clause and the Equal Protection Clause of the Fourteenth Amendment by 19 blocking a water reuse plan. They also seek judicial declarations and writs of mandate clearing the 20 way for implementation of the plan. Defendants move to dismiss the Complaint and to strike a 21 prayer for punitive damages as to HMRD. For the reasons set forth below, the motion to dismiss 22 will be granted and the motion to strike will be denied as moot. 23 BACKGROUND 24 Defendant SLCC is a private mutual water company established in 1913 that owns water 25 rights on behalf of its shareholders and that is charged with ensuring delivery of water to its 26 shareholders in Merced County and Fresno County. Doc. No. 1 at 3:23-25.1 SLCC is governed by 27

28 1 Unless otherwise indicated, page citations to documents on the electronic docket for this case are to the page 1 s even directors elected to one-year terms. Id. ¶ 5. 2 Defendant HMRD is a water reclamation district. Doc. No. 1 ¶ 6. As alleged, HMRD is “a 3 p ublic and governmental agency” overseen by a seven trustees elected to four-year terms. Id. 4 SLCC formed HMRD in 1999 “to deliver the water supplied by [] SLCC to the farmland within 5 SLCC’s district, as well as perform canal maintenance and operate drainage facilities.” Id. ¶ 17. 6 HMRD took “ownership and control of a unique district boundary that included [] the canals, 7 ditches and drains owned by the SLCC,” but “the ownership of water rights and responsibility to 8 provide water to customers remained with SLCC.” Id. ¶¶ 17-18. 9 HMRD and SLCC “have merged so thoroughly over the past two decades that they are 10 nearly indistinguishable.” Id. at 4:1-2. For example, they operate from the same office, share the 11 same website, and have identical controlling boards and the same employees. Id. at 4:2-6. SLCC 12 and HMRD “operate as a single, unified unit, when it benefits them, or as distinct entities to take 13 advantage of the public and private protections respectively afforded to them.” Id. ¶ 19. 14 Defendant John Wiersma is general manager of SLCC and HMRD. Doc. No. 1 ¶ 14. Each 15 of the other individual Defendants (namely, James Nickel, Cannon Michael, David Pruitt, Robert 16 McDonald, Douglas Goodman, David Carlucci and Michael Palazzo) is both an SLCC trustee and 17 an HMRD director.2 Id. ¶¶ 7-13. 18 Harris is a lifelong Central Valley farmer, with a “large, vertically integrated farming 19 operation specializing in almonds,” who “owns, leases, or otherwise operates real property served 20 by [] SLCC and HMRD.” Doc. No. 1 at 4:7-10. Harris is also the general manager of Harris 21 Farms, which is a California limited partnership that owns real property served by SLCC and 22 HMRD.3 Id. ¶¶ 3-4. Harris has managed and farmed almonds on property served by SLCC and 23 HMRD for the past four years. Id. ¶ 21. In February 2021, Harris became a shareholder in SLCC 24 through the purchase of property. Id. 25 Harris presented to the SLCC and HMRD boards a plan to reuse water on his land using 26 his own water collection and distribution system (the “Project”). Doc. No. 1 ¶ 22. To implement 27 2 Wiersma, Nickel, Michael, Pruitt, McDonald, Goodman, Carlucci and Palazzo are referred to collectively herein as 28 the “Individual Defendants.” 1 t he Project, reused water would have to cross under a drain at the intersection of Mint Road and 2 F airfax Road (“Mint/Fairfax”) and under a drain east of Fairfax Road (“San Juan Drain #3”), in 3 a ddition to crossing the Temple-Santa Rita Canal in two locations. Id. ¶ 22. As alleged in the 4 Complaint, “HMRD operates and maintains Mint/Fairfax and San Juan Drain #3 through 5 recorded, non-exclusive easements for its benefit” and “is the fee title owner of the Temple-Santa 6 Rita Canal.” Id. 7 There was no “formal application process for the Project,” but Defendants declined to 8 provide licenses for the ditch and canal crossings required for the Project and “exploited their dual 9 positions with HMRD and SLCC to institute a series of procedural and financial obstacles” to the 10 Project as a result of “personal animus” toward Harris. Doc. No. 1 ¶¶ 27-28, 41, 52, 129.c., 139.c.- 11 d. 12 Based on the foregoing allegations, Harris brings claims under 42 U.S.C. § 1983 against all 13 Defendants for violations of the Due Process Clause and the Equal Protection Clause of the 14 Fourteenth Amendment, as well as state law claims for declaratory relief and writs of mandate 15 involving property rights, the scope of HMRD’s and SLCC’s authority and other issues bearing on 16 implementation of the Project. 17 LEGAL FRAMEWORK 18 Under Federal Rule of Civil Procedure 12(b)(6), a cause of action may be dismissed where 19 a plaintiff fails “to state a claim upon which relief can be granted.” Fed. R. Civ. P. 12(b)(6). 20 Dismissal under Rule 12(b)(6)4 may be based on the lack of a cognizable legal theory or on the 21 absence of sufficient facts alleged under a cognizable legal theory. Conservation Force v. Salazar, 22 646 F.3d 1240, 1242 (9th Cir. 2011); Johnson v. Riverside Healthcare Sys., LP, 534 F.3d 1116, 23 1121–22 (9th Cir. 2008). 24 In reviewing a complaint under Rule 12(b)(6), all well-pleaded allegations of material fact 25 are taken as true and construed in the light most favorable to the non-moving party. Kwan v. 26 SanMedica, Int’l, 854 F.3d 1088, 1096 (9th Cir. 2017). However, complaints that offer no more 27 than “labels and conclusions” or “a formulaic recitation of the elements of a cause of action will 28 1 n ot do.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009); Johnson v. Federal Home Loan Mortg. 2 C orp., 793 F.3d 1005, 1008 (9th Cir. 2015). The Court is “not required to accept as true 3 a llegations that contradict exhibits attached to the Complaint or matters properly subject to judicial 4 notice, or allegations that are merely conclusory, unwarranted deductions of fact, or unreasonable 5 inferences.” Seven Arts Filmed Entm’t, Ltd. v. Content Media Corp. PLC, 733 F.3d 1251, 1254 6 (9th Cir. 2013). To avoid a Rule 12(b)(6) dismissal, “a complaint must contain sufficient factual 7 matter, accepted as true, to state a claim to relief that is plausible on its face.” Iqbal, 556 U.S. at 8 678; Mollett v. Netflix, Inc., 795 F.3d 1062, 1065 (9th Cir. 2015). “A claim has facial plausibility 9 when the plaintiff pleads factual content that allows the court to draw the reasonable inference that 10 the defendant is liable for the misconduct alleged.” Iqbal, 556 U.S. at 678; Somers v. Apple, Inc., 11 729 F.3d 953, 959 (9th Cir. 2013). “Plausibility” is less than probability but “more than a sheer 12 possibility,” and facts that are “merely consistent” with liability fall short of “plausibility.” Iqbal, 13 556 U.S.

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Harris v. Henry Miller Reclamation District No. 2131, Counsel Stack Legal Research, https://law.counselstack.com/opinion/harris-v-henry-miller-reclamation-district-no-2131-caed-2022.