Phillips v. United States Army Corps of Engineers

District Court, D. Utah·Decided August 24, 2022·No. 2:21-cv-00355·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF UTAH

CENTRAL DIVISION

MERLIN SCOTT PHILLIPS, et al., MEMORANDUM DECISION AND ORDER ON MOTIONS TO DISMISS Plaintiffs, v.

UNITED STATES ARMY CORPS OF Case No. 2:21-cv-00355-TS-DBP ENGINEERS, et al., District Judge Ted Stewart Defendants. Magistrate Judge Dustin B. Pead

This matter is before the Court on Defendants’ Motions to Dismiss the Second Amended Complaint and Plaintiffs’ Motion for Judicial Notice. The Court will grant Defendants’ Motions and deny Plaintiffs’ Motion for the reasons discussed below. I. BACKGROUND1 Plaintiffs Merlin Scott Phillips and Vickie Phillips own Plaintiff S&V Phillips Development, LLC, which owns two adjacent parcels of real property located in Payson, Utah (the “property”).2 In June 2019, Plaintiffs retained a private wetland expert, Kagel Environmental, LLC (“KE”), to study and prepare a report regarding wetland delineation on the property in preparation for development.3 KE concluded that there were 0.03 acres of “possibly regulated areas” under the Clean Water Act (the “CWA”), but that they were likely “isolated”

1 The following facts are taken from Plaintiffs’ Second Amended Complaint and presumed true for purposes of this motion. 2 Docket No. 68 ¶¶ 16–17. 3 Id. ¶ 34. with “no continuous surface hydrologic connections” between the property and waters of the United States (“WOTUS”).4 To confirm this report, Plaintiffs requested an approved jurisdictional determination (“AJD”) for the properties at issue from the Corps.5 KE and Plaintiffs provided the Corps with the finalized report including maps depicting the property and aquatic resources within the area.6

In September 2019, Defendant Matthew Wilson, a Corps engineer for the Sacramento District, conducted an onsite inspection of the property.7 Defendants Wilson and the Corps Sacramento District subsequently issued a letter stating they were unable to complete review of the AJD request because of incomplete information due to “potential unauthorized activities” on the property.8 At the same time, the Corps issued a letter notifying Plaintiffs that they had opened an investigation into potential unauthorized fill activities under § 404 of the CWA.9

In April 2020, after discussions with Defendants, KE and Plaintiffs submitted an addendum report.10 KE and Plaintiffs asserted that these materials scientifically refuted the evidence supporting the Corps’ investigation.11 In July 2020, the Corps issued an AJD which found the site contained 2.3 acres of impacted palustrine emergent wetland considered WOTUS based on their adjacency to Beer Creek, a relatively permanent tributary, and Utah Lake, a

4 Id. ¶ 35. 5 Id. ¶ 36. 6 Id. ¶ 38. 7 Id. ¶¶ 42–43. 8 Id. ¶¶ 44–45; Docket No. 8-2 at 16–17. 9 Docket No. 68 ¶¶ 46–47; Docket No. 8-2 at 19–20. 10 Docket No. 68 ¶¶ 49–67. 11 Id. at ¶ 68. traditional navigable water.12 The AJD included a finding that the waters were impacted by unauthorized fill activities between July 2017 and September 2018.13

In October 2020, Plaintiffs filed a request for reconsideration, which included a new soil expert report and assessment from KE concluding that there were only 0.08 acres of wetlands on the property, and the wetlands were isolated from WOTUS.14 On February 12, 2021, the Corps issued a no-change final AJD.15 Again, the AJD included a determination that WOTUS were present on the property, which were impacted by unauthorized fill activities.16 To appeal the final AJD, the Corps required Plaintiffs to submit an after-the-fact permit application for the unauthorized activities and sign a statute of limitations tolling agreement, as contemplated by the Corps’ regulations.17 Plaintiffs chose not to appeal and filed this suit

instead, bringing constitutional, Administrative Procedure Act (“APA”), separation of powers, federalism, and Bivens claims. Now before the Court are Defendants’ Motions to Dismiss.18

12 Id. ¶¶ 71–74; Docket No. 8-3 at 21–22. 13 Docket No. 68 ¶ 74. 14 Id. ¶¶ 76–77, 79. 15 Id. ¶ 91. 16 Id. ¶¶ 96–97; Docket No. 8-3 at 2–3. 17 Docket No. 68 ¶ 103; 33 C.F.R. § 331.11 (“[a]n appeal of an approved JD associated with unauthorized activities will normally not be accepted unless the Corps accepts an after-the-fact permit application,” “[a]ny person who appeals an approved JD associated with an unauthorized activity . . . thereby agrees that the statute of limitations is tolled until one year after the final Corps decision”). 18 Docket Nos. 72, 73. II. LEGAL STANDARD Defendants move to dismiss under Fed. R. Civ. P. 12(b)(1) and 12(b)(6). However, Plaintiffs have withdrawn Count IV, which is the only claim subject to Defendants’ arguments under 12(b)(1). Therefore, the Court need only review the Complaint under Rule 12(b)(6). When evaluating a complaint under Rule 12(b)(6), the court accepts all well-pleaded

factual allegations, as distinguished from conclusory allegations, as true and views them in the light most favorable to the non-moving party.19 The plaintiffs must provide “enough facts to state a claim to relief that is plausible on its face,”20 which requires “more than an unadorned, the-defendant-unlawfully-harmed-me accusation.”21 “A pleading that offers ‘labels and conclusions’ or ‘a formulaic recitation of the elements of a cause of action will not do.’ Nor does a complaint suffice if it tenders ‘naked assertion[s]’ devoid of ‘further factual enhancement.’”22 In considering a motion to dismiss, a district court considers the complaint, any attached exhibits,23 the “documents incorporated into the complaint by reference, and matters of which a

court may take judicial notice.”24 The Court may also consider other documents “referred to in the complaint if the documents are central to the plaintiff’s claim and the parties do not dispute the documents’ authenticity.”25

19 GFF Corp. v. Associated Wholesale Grocers, Inc., 130 F.3d 1381, 1384 (10th Cir. 1997). 20 Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007). 21 Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009). 22 Id. (quoting Twombly, 550 U.S. at 555, 557) (alteration in original). 23 Commonwealth Prop. Advocs., LLC v. Mortg. Elec. Registration Sys., Inc., 680 F.3d 1194, 1201 (10th Cir. 2011). 24 Tellabs, Inc. v. Makor Issues & Rights, Ltd., 551 U.S. 308, 322 (2007). 25 Jacobsen v. Deseret Book Co., 287 F.3d 936, 941 (10th Cir. 2002). III. DISCUSSION A. CONSTITUTIONAL CLAIMS Plaintiffs assert that Defendants’ actions were contrary to their constitutional rights;

namely their Fifth Amendment right to substantive and procedural due process. They also assert that Defendants committed a temporary regulatory taking. The Court will dismiss these claims for the reasons discussed below. 1. Substantive Due Process Plaintiffs assert the Corps violated two protectable property interests: (1) an interest in

Free access — add to your briefcase to read the full text and ask questions with AI

Phillips v. United States Army Corps of Engineers, (D. Utah 2022).

Phillips v. United States Army Corps of Engineers (Phillips v. United States Army Corps of Engineers) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Joint Anti-Fascist Refugee Committee v. McGrath
341 U.S. 123 (Supreme Court, 1951)
Morrissey v. Brewer
408 U.S. 471 (Supreme Court, 1972)
Board of Regents of State Colleges v. Roth
408 U.S. 564 (Supreme Court, 1972)
Withrow v. Larkin
421 U.S. 35 (Supreme Court, 1975)
Mathews v. Eldridge
424 U.S. 319 (Supreme Court, 1976)
Ingraham v. Wright
430 U.S. 651 (Supreme Court, 1977)
Davis v. Passman
442 U.S. 228 (Supreme Court, 1979)
United States v. Salerno
481 U.S. 739 (Supreme Court, 1987)
New York v. United States
505 U.S. 144 (Supreme Court, 1992)
Auer v. Robbins
519 U.S. 452 (Supreme Court, 1997)
Washington v. Glucksberg
521 U.S. 702 (Supreme Court, 1997)
Rapanos v. United States
547 U.S. 715 (Supreme Court, 2006)
Tellabs, Inc. v. Makor Issues & Rights, Ltd.
551 U.S. 308 (Supreme Court, 2007)
Bell Atlantic Corp. v. Twombly
550 U.S. 544 (Supreme Court, 2007)
Ashcroft v. Iqbal
556 U.S. 662 (Supreme Court, 2009)
Hyde Park Co. v. Santa Fe City Council
226 F.3d 1207 (Tenth Circuit, 2000)
Teigen v. Renfrow
511 F.3d 1072 (Tenth Circuit, 2007)
Stein v. Disciplinary Bd. of Supreme Court of NM
520 F.3d 1183 (Tenth Circuit, 2008)
Reedy v. Werholtz
660 F.3d 1270 (Tenth Circuit, 2011)