Lincoln Trail Grain Growers Association v. Meade County Fiscal Court

CourtCourt of Appeals of Kentucky
DecidedAugust 5, 2021
Docket2020 CA 000892
StatusUnknown

This text of Lincoln Trail Grain Growers Association v. Meade County Fiscal Court (Lincoln Trail Grain Growers Association v. Meade County Fiscal Court) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lincoln Trail Grain Growers Association v. Meade County Fiscal Court, (Ky. Ct. App. 2021).

Opinion

RENDERED: AUGUST 6, 2021; 10:00 A.M. TO BE PUBLISHED

Commonwealth of Kentucky Court of Appeals

NO. 2020-CA-0892-MR

LINCOLN TRAIL GRAIN GROWERS ASSOCIATION, INC.; NICHOLAS HARDESTY; DON BEWLEY; EDELEN FARMS, LLC; RYAN HAGER; BEN SHEERAN; AND DAVID PADGETT APPELLANTS

APPEAL FROM MEADE CIRCUIT COURT v. HONORABLE BRUCE T. BUTLER, JUDGE ACTION NO. 20-CI-00001

MEADE COUNTY FISCAL COURT; CITY OF BRANDENBURG; MEADE COUNTY RIVERPORT AUTHORITY; MEADE COUNTY-BRANDENBURG INDUSTRIAL DEVELOPMENT AUTHORITY; BILL CORUM; BRYAN CLAYCOMB; CONSOLIDATED GRAIN & BARGE CO.; GREENLAND ACQUISITION COMPANY, INC.; AND NUCOR CORPORATION APPELLEES

OPINION VACATING AND REMANDING

** ** ** ** ** BEFORE: CLAYTON, CHIEF JUDGE; DIXON AND MAZE, JUDGES.

MAZE, JUDGE: Lincoln Trail Grain Growers Association, Inc. and individual

members (collectively Lincoln Trail), along with Nicholas Hardesty and Don

Bewley, appeal from an order of the Meade Circuit Court dismissing their claims

alleging violations of the Open Meetings Act. The trial court dismissed their

complaint, concluding that none of the appellants had established constitutional

standing to bring the claims. We conclude that all of the appellants have alleged

personal injuries fairly traceable to the defendants’ allegedly unlawful conduct and

likely to be redressed by the requested relief. Therefore, the trial court erred by

dismissing the complaint for lack of standing. Hence, we vacate the order

dismissing and remand for additional proceedings on the merits of those claims.

For purposes of this appeal, the following facts are relevant: The

Meade County Riverport Authority (the Riverport Authority) is a public board

established under KRS1 65.510, et seq. The Meade County-Brandenburg Industrial

Development Authority (the Industrial Authority) is a public board established

pursuant to KRS 154.50-301, et seq. The Meade County Fiscal Court (Fiscal

Court) serves as the legislative body for Meade County and is established pursuant

to Kentucky Constitution, Section 144 and KRS 67.040, et seq.

1 Kentucky Revised Statutes.

-2- In 2003, the Riverport Authority leased 50 acres (the Riverport

Property) along the Ohio River in Brandenburg, Kentucky. In 2010, the Industrial

Authority purchased a 550-acre tract from Arch Chemical, Inc., which included the

Riverport Property leased by the Riverport Authority. An amended ground lease

established the Industrial Authority as the lessor of the Riverport Property, and the

Riverport Authority as the lessee.

Shortly thereafter, the Riverport Authority entered into a lease with

Consolidated Grain & Barge Co. (CGB). Under the agreement, CGB agreed to

construct and operate a grain elevator on a 15-acre portion of the Riverport

Property. The lease provided for a ten-year term from completion of the grain

elevator. In late 2014, the grain elevator was completed and opened for business.

Beginning in early 2019, the Fiscal Court and the Industrial Authority

engaged in negotiations with Nucor Corporation (Nucor) to build a steel mill on

the Riverport Property. As part of these negotiations, Greenland Acquisition

Company, Inc. (Greenland) entered into an option to purchase most of the former

Arch Chemical property from the Industrial Authority. Nucor took the position

that the operation of its steel mill would be incompatible with the continued

operation of the grain elevator. By September 2019, Nucor, CGB, the Fiscal

Court, and the Industrial Authority drafted a lease termination agreement. The

agreement required Nucor to pay CGB the sum of $12,000,000 in exchange for

-3- termination of its lease agreement and cessation of operation of the grain elevator

by March 31, 2020.

However, the termination agreement required the approval of the

Riverport Authority, which was a party to the lease with CGB. The Fiscal Court

held a special meeting on October 1, 2019. The agenda for the meeting included

the general item, “Riverport,” with no other detail about the action to be taken.

During the meeting, the Fiscal Court voted to replace two members of the

Riverport Authority, Nicholas Hardesty and Don Bewley, on the stated grounds

that their terms had expired. The Fiscal Court appointed two new members, Bill

Corum and Bryan Claycomb, to those positions on the Riverport Authority.2

Immediately following the Fiscal Court meeting, the Riverport

Authority, including the two newly-appointed members, met and voted to approve

the lease termination agreement. On December 13, 2019, the lease termination

agreement was formally executed by all parties, namely: the Riverport Authority,

the Industrial Authority, the Fiscal Court, CGB, and Greenland on behalf of Nucor.

On June 1, 2020, Lincoln Trail filed this action on behalf of grain

farmers in Meade County who were affected by the closure of the grain elevator.

Edelen Farms, LLC, Ryan Hager, Ben Sheeran, and David Padget are members of

2 The minutes of the specially-called meeting of the Fiscal Court reflect that the only Riverport item discussed was the appointment of the two new members to the Riverport Authority.

-4- Lincoln Trail. Lincoln Trail and its members alleged that the votes by the Fiscal

Court and the Riverport Authority were conducted in violation of the Open

Meetings Act, KRS 61.800 et. seq., and that the vote of the Riverport Authority

was conducted without a quorum of proper members. Finally, Lincoln Trail

alleges that the Riverport Property is held in trust for the public and that the Meade

County defendants lacked legal authority to sell the property. Consequently,

Lincoln Trail sought declaratory relief holding the lease termination agreement

void, and injunctive relief preventing CGB from ceasing operation of the grain

elevator.

Hardesty and Bewley joined the action through an amended

complaint, which challenged their removal from the Riverport Authority. In

addition to the Open Meetings Act violations, Hardesty and Bewley allege that

their prior terms had automatically renewed and that they were not subject to

replacement by the Fiscal Court. In the alternative, Hardesty and Bewley allege

the terms of the other members of the Riverport Authority had also expired but

those members were not replaced. Hardesty and Bewley allege that the Fiscal

Court arbitrarily removed them from the Riverport Authority based on their stated

opposition to the lease termination agreement. Hardesty and Bewley sought

declaratory relief setting aside their removal and replacement as members of the

Riverport Authority.

-5- In lieu of an answer, the Meade County defendants and Nucor filed a

motion to dismiss pursuant to CR3 12.02. They argued that Lincoln Trail and its

members lack constitutional standing to assert the claims. Following briefing and

arguments of counsel, the trial court granted the motion. The court concluded that

none of the plaintiffs, including Hardesty and Bewley, had asserted any concrete

interest in the subject matter of the actions by the Fiscal Court or the Riverport

Authority.

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