Hobble Diamond Ranch, LLC v. State Ex Rel. Montana Department of Transportation

2012 MT 10, 268 P.3d 31, 363 Mont. 310, 2012 Mont. LEXIS 10
CourtMontana Supreme Court
DecidedJanuary 17, 2012
DocketDA 11-0201
StatusPublished
Cited by5 cases

This text of 2012 MT 10 (Hobble Diamond Ranch, LLC v. State Ex Rel. Montana Department of Transportation) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hobble Diamond Ranch, LLC v. State Ex Rel. Montana Department of Transportation, 2012 MT 10, 268 P.3d 31, 363 Mont. 310, 2012 Mont. LEXIS 10 (Mo. 2012).

Opinions

JUSTICE COTTER

delivered the Opinion of the Court.

¶1 Hobble Diamond Ranch, LLC, Robert and Susan Burch, and James Lowe, collectively referred to as the Neighbors unless otherwise specified, appeal from the Findings of Fact, Conclusions of Law, and Order of the First Judicial District Court of Lewis and Clark County, Montana, affirming the Montana Department of Transportation’s (DOT) decision to issue billboard sign permits under the Montana Outdoor Advertising Act (MOAA). The Neighbors seek removal of two billboards, arguing that the billboards are not in compliance with MOAA, DOT’s granting of the permits was unlawful, and the billboards are a public nuisance. We affirm.

ISSUES

¶2 The Neighbors raise six issues on appeal. We briefly address each issue; however, a restatement of the dispositive issue is:

¶3 Whether the District Court erred in upholding DOT’s finding that an entire 270-acre parcel of land was being used for a “commercial or industrial activity,” thereby justifying the issuance of two outdoor advertising permits under MOAA.

FACTUAL AND PROCEDURAL BACKGROUND

¶4 In 1998, Herbert and Christopher Bue (Bues) purchased an unzoned 270-acre parcel of land along Interstate 90 in Sweet Grass County, Montana. That year they began operating C & H Construction on the property, doing primarily earth moving and excavation work. In 1999 they began gravel production on the property, later built a 3,200 square foot building for the business, and utilized connections to two power utilities.

¶5 Robert and Susan Burch (Burches) purchased the Hobble Diamond Ranch in 1998. The Ranch is north of the Bues’ property and separated from it by Interstate 90, the frontage road, the railroad, and the Yellowstone River. The Burches own approximately 27,000 acres of Hobble Diamond Ranch grazing land and approximately 500 acres of other grazing land. They reside on the property for approximately [312]*312three months each year. James Lowe owns approximately 250 acres north of the Bues’ property, which is also separated by Interstate 90, the frontage road, and the railroad.

¶6 In 2000, the Bues had their property east of the gravel pit drilled for gravel samples, which indicated 1.5 million cubic yards of gravel. The following year, the Bues contracted with Riverside Construction, which obtained an initial open-cut mining permit from the Montana Department of Environmental Quality (DEQ); the permit was then transferred to the Bues. Later, DEQ approved two permit modifications, allowing C & H Construction to expand its gravel mining in 2002 and extending the reclamation deadline to October 2016. The gravel mining operation began on 12.6 acres and expanded to 23.9 acres. The Bues intend to continue to expand the gravel mining operation.

¶7 Lamar Outdoor Advertising Corporation (Lamar) discussed with the Bues the possibility of placing billboards on their property. Lamar submitted two permit applications to DOT on October 13,2006, for two outdoor advertising billboards to be placed on the Bues’ property along Interstate 90 near milepost 384. Though the application forms stated ‘THIS FORM MUST BE COMPLETED IN FULL” and ‘THIS DRAWING MUST BE COMPLETED IN FULL,’’the applications were incomplete and missing required information. Some of the missing information was later filled in by DOT, though certain information, such as the distance between the qualifying activity and the proposed sign location, was never added to the applications. The applications were never returned to Lamar for completion.

¶8 On November 1, 2006, Allen Hagadone, DOT’s Compliance Specialist of the Outdoor Advertising Control section (OAC) of MOAA, did a site inspection of the Bue property, and noted that the sign locations were not staked and that their locations were too far from the gravel pit area. Under §75-15-103(14), MCA, the unzoned commercial or industrial area where signs may be located must be along the highway and within 600 feet of a commercial or industrial activity. Accordingly, Hagadone called and told Lamar that the location did not qualify for a permit because it was “to [sic] far from the qualifier or the gravel pit.” A few days later Hagadone met with Lamar at the site and showed Lamar where the billboards could legally be placed.

¶9 Hagadone and DOT’s Outdoor Advertising Coordinator, Patrick Hurley, met with Lamar and Herbert Bue on site on December 5,2006. After measurements were taken and a sketch was made, Hurley determined that C & H Construction’s industrial or commercial [313]*313activities involved the entire 270 acres, including both the construction business and the mining operation. After consulting with Hurley, Hagadone agreed and determined that because the permit applications were for the entire 270 acres, and the entire 270 acres was deemed to include industrial or commercial activities, it was not necessary to measure 600 feet from any particular feature. On December 7, 2006, DOT granted the permits to Lamar for the locations where the billboards are currently located.

¶10 In April and May 2007, Lamar placed two billboards on the Bues’ property at a total cost of approximately $75,000. The face of each billboard is 720 square feet, the billboards are 500 feet apart from each other, and the closest sign is 2,380 feet from the actual gravel pit. The billboards are lit for several hours every evening until 11:30 p.m. In early 2008, Lamar constructed shields around the lights to reduce brightness in response to complaints from the Neighbors that the lights interfered with the natural evening light and night stars. Hurley made another site visit on December 16,2008, and confirmed the signs conformed to DOT’s requirements.

¶11 Lamar has a lease with the Bues for keeping the billboards on the Bues’ property for $1,500 per year for five years and $1,750 per year for an additional five years, for a total lease term of ten years. It would cost Lamar approximately $20,000 to remove or relocate each billboard.

¶12 The Neighbors filed a complaint against DOT on July 14, 2008, and an amended complaint on May 18, 2009, for removal of the billboards. Among other things, the Neighbors alleged that: (1) DOT’s decision to issue permits for the billboards was arbitrary, capricious, unsupported by evidence, and in violation of MOAA and its implementing regulations; (2) the billboards constituted a public and private nuisance; and (3) DOT violated the Neighbors’ right of public participation. The District Court dismissed the public participation claim and this decision is not challenged on appeal.

¶13 The parties engaged in discovery. The Neighbors complained that DOT officials introduced evidence during discovery that was outside of the material included in the administrative record at the time the permits were approved. Following the conclusion of discovery, a non-jury trial was conducted on October 12 and 13, 2010. On March 8, 2011, the District Court affirmed DOT’s decision. In its Findings of Fact, Conclusions of Law, and Order, the court found that the billboards complied with MOAA and that the Neighbors failed to establish that DOT acted arbitrarily, capriciously, or in violation of the [314]*314law when it issued the two billboard permits. The court also concluded that the Neighbors failed to prove their nuisance claim.

¶14 The Neighbors appeal.

STANDARD OF REVIEW

¶15 Our review of a district court’s conclusions of law is plenary. Kiely Constr. L.L.C. v.

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Bluebook (online)
2012 MT 10, 268 P.3d 31, 363 Mont. 310, 2012 Mont. LEXIS 10, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hobble-diamond-ranch-llc-v-state-ex-rel-montana-department-of-mont-2012.