LBLHA, LLC v. Town of Long Beach

28 N.E.3d 1077, 2015 Ind. App. LEXIS 220, 2015 WL 1402777
CourtIndiana Court of Appeals
DecidedMarch 26, 2015
DocketNo. 46A05-1404-PL-146
StatusPublished
Cited by2 cases

This text of 28 N.E.3d 1077 (LBLHA, LLC v. Town of Long Beach) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
LBLHA, LLC v. Town of Long Beach, 28 N.E.3d 1077, 2015 Ind. App. LEXIS 220, 2015 WL 1402777 (Ind. Ct. App. 2015).

Opinion

BROWN, Judge.

[1] LBLHA, LLC, Margaret L. West, and Don H. Gunderson (collectively, the “Lakefront Owners”) appeal orders of the trial court dismissing all counts of their complaint against the Town of Long Beach, Indiana (the “Towm”) and other intervenor defendants, raising several issues. We find dispositive at this stage in the proceedings whether the State of Indiana or appropriate State officials as individuals in their official capacity should have been added or joined as a party or parties to the proceedings prior to the rulings on the Lakefront Owners’ claims. We reverse and remand.

Facts and Procedural History

[2] As of April 27, 2011, a webpage of the Indiana Department of Natural Resources (the “IDNR”) stated that “[t]he dividing line on Lake Michigan and other navigable waterways between public and [1079]*1079private ownership is the ordinary high watermark [ (“OHW”) ],” Appellants’ Appendix at 45. ■ ■ The webpage included two case examples, - the first 'of which stated that “[w]hen Lake Michigan’s water level is ‘above’ the [OHW] the State ‘does not’ own part of the dry beach,” and the second of which stated that, “[w]hen Lake Michigan’s water level is ‘below’-the [OHW] the State ‘does’ own part of the dry beach.” Id. at 46. The second case example showed a diagram specifying the location of the OHW and the actual lake level and indicating “Private” for the area above the OHW and “State Ownership” for the area from the OHW to the actual lake level. Id.

[3] The National Resources Commission (“NRC”) conducted a meeting on November 15, 2011. According to the meeting minutes, IDNR’s chief legal counsel presented information with respect to the shoreline along Lake Michigan. The meeting minutes state:

[Counsel for IDNR] said there has not been a legal determination of what is the upper limit of the bed of Lake Michigan. In 1995, the Lakes Preservation Act established an elevation of 581.5 feet as the ordinary high water mark for Lake Michigan. “Where that falls on the beaches up there changes from season to season as the sand erodes and is put back.” The State of Indiana has historically claimed ownership of what is below the ordinary high water mark; however, research has not produced evidence to support that claim. “All that is out there states that the beds of the navigable waters belong to the states, so what is the bed? Is it just what’s ‘ under water or is it a distance beyond the water’s edge? There is no legal guidance with regard to what we would actually own or hold in trust for the public, which is sort of issue number two here, is what are we, the State,- holding in trust for the public use?”

Id. at 295. Counsel for IDNR explained that the Town has an extensive beach area that did not exist twenty years ago and asked “[d]o we focus on ownership or do we focus on what the State holds in trust for the public use.” Id. at 296. Counsel for IDNR stated “this is an' important issue that has yet to'be settled,” that “[t]he ownership issue has'been litigated extensively in the surrounding ' states,” that “[t]he Ohio Supreme Court issued an opinion favoring the private property owners, as did the States of Michigan, Illinois, and Wisconsin,” and that “[a]s you can imagine there are a lot bf people- used to using those beaches that don’t live there. It will impact their use of -the beach.” Id. Counsel for Long Beach property owners provided an information binder to-members of the NRC which he indicated consisted of plat information and copiesmf source documents, and noted that the language on the IDNR’s website contained the claim of ownership - by the State of Indiana -below the OHW, ¡that the property owners desired for that language to be removed, and that the deeds for his clients “go down to the low water mark.” Id. at 297, Counsel for Long Beach property owners also stated that “Michigan’s public right says for its citizens that its citizens may'traverse its lake shore beneath the ordinary high water mark,” that “Michigan limited its public rights to just traversing only, and stopping.on the beach to fish, sunbathe, or for any other, activity was not allowed,” and that “Ohio found that private property rights run down to the water’s edge.” Id: Counsel further said that “the cases-that have been decided by neighboring State Supreme Courts have not held that the public rights doctrine has trumped anybody’s private deed,” that a resolution passed by the Town “states that it is no longer defending someone’s private prop[1080]*1080erty right below the ordinary high water mark based on the website publication,” and. that all of-the Long Beach lakefront property owners except one signed a petition. Id. The matter of the information posted on IDNR’s website was taken under consideration.

[4] As of October 10, 2012, the. IDNR webpage provided that the OHW “is the line on Lake Micliigan and other navigable waterways used to designate where regulatory jurisdiction lies and in certain instances to determine where public use and ownership begins and/or ends.” Id. at 48. The webpage again included two case examples, the first of which stated that “[w]hen Lake Michigan’s water level is ‘above’ the [OHW], the State does not regulate any of the- dry beach,” and the second of which stated that, “[w]hen Lake Michigan’s water level is ‘below’ the [OHW], the State does .regulate part of the dry beach.” Id. at 49. The second case example showed a diagram specifying the location of the OHW and the actual lake level and indicating “Private” for the area above the OHW and “State Regulatory Jurisdiction” for the area from the OHW to the actual lake level. Id.

[5] The Town enacted, by vote of the Town Council on November 12, 2012, Resolution 12-008 (the “2012 Resolution”)1 which provided in part: , ,

[Indents ‘ throughout original omitted] WHEREAS, the' bed of Lake Michigan adjacent to Long Beach, Indiana, is owned by the State of Indiana; and,
WHEREAS, disputes have arisen relative to the location of boundary lines between private owners and the state of Indiana along the shores of Lake Michigan in Long Beach, Indiana; and,
WHEREAS, these disputes can create issues regarding the enforcement by the Long Beach Police Department of PUBLIC’PROPERTY ORDINANCES; and, WHEREAS, it is desirable that a clear policy be established relative to the enforcement of PUBLIC PROPERTY ORDINANCES on properties adjacent to Lake Michigan in the Town of Long Beach, Indiana, both for the benefit of private property owners, the general public and law enforcement officials; and,
NOW THEREFORE BE IT RESOLVED, by the TOWN COUNCIL of the Town of Long Beach, Indiana, that the following. policy be and is hereby adopted:
1. The [Town] recognizes and accepts [IDNR’s] position as reflected in its publications including, but not limited to, its website, the Ordinary high watermark is the line on Lake Michigan used to designate where the state’s regulatory jurisdiction lies and, in certain instances, to determine where public ownership or use begins and/or ends.
2. That the ordinary high watermark is an élevatión of 581.5 feet, as adopted by the U.S. Army Corps of Engineers, and the Indiana Natural Resources Commission found at 312 IAC l-l-26.
[1081]

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28 N.E.3d 1077, 2015 Ind. App. LEXIS 220, 2015 WL 1402777, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lblha-llc-v-town-of-long-beach-indctapp-2015.