Living Lands, LLC v. Ward

CourtDistrict Court, S.D. West Virginia
DecidedMarch 13, 2025
Docket3:24-cv-00356
StatusUnknown

This text of Living Lands, LLC v. Ward (Living Lands, LLC v. Ward) is published on Counsel Stack Legal Research, covering District Court, S.D. West Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Living Lands, LLC v. Ward, (S.D.W. Va. 2025).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF WEST VIRGINIA

HUNTINGTON DIVISION

LIVING LANDS, LLC, a West Virginia Limited Liability Company, D. C. CHAPMAN VENTURES, INC. a West Virginia Business Corporation,

Plaintiffs,

v. CIVIL ACTION NO. 3:24-0356

HAROLD WARD, in his official capacity as the Cabinet Secretary of the West Virginia Department of Environmental Protection, an instrumentality of the State of West Virginia,

Defendants.

MEMORANDUM OPINION & ORDER Pending before the Court is Defendant Harold Ward’s Motion to Dismiss with Prejudice. ECF No. 17. For the following reasons, this Motion is GRANTED. I. Background This case reprises a dispute between Plaintiffs Living Lands, LLC and D.C. Chapman Ventures, Inc. and Defendant Ward, the Cabinet Secretary of the West Virginia Department of Environmental Protection (WVDEP). In this iteration of the case, Plaintiffs allege Defendant is violating the Clean Water Act (CWA) at the “Subject Property.” The Subject Property is a piece of real property located in the Right Fork Spruce Run Watershed in Nicholas County, West Virginia.1 Compl. ECF No. 1, at 1.2 Plaintiff D.C. Chapman Ventures, a West Virginia corporation, purchased the Subject Property in the late 1990s. Id. at 12–13. In 2019, Plaintiff Living Lands purchased an option to

purchase the Subject Property from D.C. Chapman Ventures. Id. at 13. Plaintiff Living Lands is a limited liability corporation with a business model that emphasizes purchasing real estate to repurpose or redevelop. Id. at 12. Plaintiffs’ option contract states, in relevant part, that Living Lands’ right to purchase expires: Two (2) years from the date the Option is executed in the event that Optionee fails to seek and obtain appropriate legal and equitable relief, either from those persons and entities with legal responsibility for the investigation and abatement of any adverse environmental conditions at or affecting the present or future uses of the Property, or any conditions that may present endangerments to the health or the environment at, in the vicinity of, or adversely affecting the Property prior to consummating the purchase of the Property. Option Agreement, Living Lands, LLC et al. v. Cline et al., 3:20-cv-00275, ECF No. 1-1 (S.D. W. Va.) (incorporated by reference, Compl. at 13). The option contract also provides Living Lands with the authority to act in the name of D.C. Chapman Ventures to pursue legal remedies that may benefit the Subject Property. Compl. at 14. Such remedies may be necessary because the Subject Property previously housed coal mining operations for nearly three decades. Id. at 2. After the former operator forfeited the Subject

1 Throughout this opinion, the Court treats all facts pleaded in the Complaint as true. 2 The first page of the Complaint is notated as “0.” Further, the paragraphs within the Complaint are numbered inconsistently. Accordingly, the Court cites only page numbers and cites them as paginated by Plaintiffs. Property, the WVDEP began conducting reclamation activities on the Subject Property. Id. at 2– 3. These reclamation activities triggered Plaintiffs’ suit. The parties are not strangers to this Court. This suit is the second that Plaintiffs have brought against Defendant over reclamation efforts at the Subject Property. In 2020, Plaintiffs

alleged Defendant had committed violations under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), Resource Conservation and Recovery Act (RCRA), and Clean Water Act. Living Lands, LLC et al. v. Cline et al., 3:20-cv-00275 (S.D. W. Va.) (Living Lands I). In Living Lands I, Plaintiffs made allegations relevant to the current case. Plaintiffs previously argued that Defendant violated the CWA by using unlined surface impoundments to hold acid mine drainage (AMD), by collecting AMD-contaminated leachate and surface runoff in unlined ditches, and by discharging AMD into Right Fork Spruce Run. Living Lands, LLC v. Cline, 657 F.Supp.3d 831, 836 (S.D. W. Va. 2023). One of the surface impoundments, Surface Impoundment No. 1, and one of the ditches, Ditch No. 2, are at issue in the current case. After the

close of discovery in Living Lands I, Plaintiffs filed for leave to amend their complaint and then attempted to constructively amend their complaint through briefing. Id. at 837–38, 851. The Court rejected both efforts. Id. This Court then granted summary judgment for Defendant. Id. at 851. Plaintiffs appealed the decision, and the Fourth Circuit affirmed this Court’s opinion. Living Lands, LLC v. Ward, No. 23-1641, 2024 WL 1615011 (4th Cir. 2024). Plaintiffs have now returned before this Court to allege three counts against Defendant. Count I alleges that “the ongoing, unpermitted ‘discharge of pollutants’ from Ditch [No.] 2” at the Subject Property is in violation of CWA §§ 301(a) and 402. Compl. at 32. Count II alleges that “the ongoing, unpermitted discharge of ‘storm water associated with industrial activity’ collected and conveyed directly into navigable waters by unlined Ditch [No.] 2” at the Subject Property is in violation of CWA §§ 301(a) and 402(p). Id. at 35 (emphasis removed). Count III alleges that Defendant has violated the terms and conditions of National Pollutant Discharge Elimination System (NPDES) Permit No. WV1027786. Id. at 37. Count III contends Defendant is violating

this permit: [B]y allowing the ongoing discharge into unlined Surface Impoundment No. 1 at the Subject Property of untreated acid mine drainage collected and conveyed by an underground pipe at the site and its subsequent discharge from that impoundment into the surface waters of an unnamed tributary of Right Fork-Spruce in violation of [CWA] §§ 301(a) and 402[.]

Id. at 37 (emphasis removed). Defendant motioned to dismiss this complaint pursuant to Federal Rule of Civil Procedure 12(b)(6). He contends Plaintiff Living Lands does not have standing, these counts are barred by principles of res judicata, and the counts fail to state a claim under the Clean Water Act. II. Legal Standard To survive a 12(b)(6) motion to dismiss, a complaint must state plausible claims. Bell Atl. Corp. v. Twombly, 550 U.S. 544, 546 (2007). Plaintiffs must set forth “grounds” for an “entitle[ment] to relief” that are more than mere labels, conclusions, or the recitation of the elements of a cause of action. Id. at 555 (citations omitted). A complaint must contain “sufficient factual matter, accepted as true, to state a claim to relief that is plausible on its face.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (internal quotations and citation omitted). When analyzing a motion to dismiss, courts accept the factual allegations in a complaint as true. Id. A court must “draw[] all reasonable factual inferences from those facts [alleged] in the plaintiff’s favor . . . .” Martin v. Duffy, 858 F.3d 239, 248 (4th Cir. 2017) (internal quotations omitted) (quoting Veney v. Wyche, 293 F.3d 726, 730 (4th Cir. 2002) (internal citations omitted)). However, those allegations “must be enough to raise a right to relief above the speculative level . . . .” Twombly, 550 U.S. at 555 (citations omitted). The Fourth Circuit has confirmed courts may resolve res judicata issues at the motion to dismiss stage. See Andrews v. Daw, 201 F.3d 521, 524 n.1 (4th Cir.

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