Rupp v. City of Pocatello

CourtIdaho Supreme Court
DecidedAugust 19, 2025
Docket51056
StatusPublished

This text of Rupp v. City of Pocatello (Rupp v. City of Pocatello) is published on Counsel Stack Legal Research, covering Idaho Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rupp v. City of Pocatello, (Idaho 2025).

Opinion

IN THE SUPREME COURT OF THE STATE OF IDAHO

Docket No. 51056-2023

HAROLD LAVELLE RUPP, JR., and ) CHRISTINE R. PETERSEN, in their ) capacities as the Trustees of the Harold L. ) Boise, May 2025 Term ) Rupp Sr. Trust, an Idaho trust; and the Veda J. Rupp Revocable Living Trust, an Idaho ) Opinion filed: August 19, 2025 trust, ) ) Melanie Gagnepain, Clerk Plaintiffs-Appellants, ) ) v. ) ) CITY OF POCATELLO, an Idaho ) municipality; MILLENNIAL ) DEVELOPMENT PARTNERS, LLC, a Utah ) limited liability company; PORTNEUF ) DEVELOPMENT, LLC, an Idaho limited ) liability company; PORTNEUF BUILDERS, ) LLC, an Idaho limited liability company; ) KEN PAPE, individually; ARVIL B. ) SWANEY, individually; and BRIAN BLAD, ) individually, ) ) Defendants-Respondents, ) ) and ) ) JOHN or JANE DOES 1-10, ) ) Defendants. ) )

Appeal from the District Court of the Sixth Judicial District of the State of Idaho, Bannock County. Robert C. Naftz, District Judge.

The decision of the district court is affirmed in part and reversed in part, and the judgment is vacated.

Olsen Taggart PLLC, Idaho Falls, for Appellants. Nathan M. Olsen argued.

Hall Angell & Associates, LLP, Idaho Falls, for Respondents City of Pocatello and Brian Blad. Blake G. Hall argued. Beard St. Clair Gaffney PA, Idaho Falls, for Respondents Portneuf Development, LLC, Portneuf Builders, LLC, Ken Pape. John M. Avondet argued.

Beard St. Clair Gaffney PA, Idaho Falls, for Respondents Millennial Development Partners, LLC, and Avril B. Swaney. Patrick J. Davis argued.

ZAHN, Justice. This case concerns a dispute over undeveloped real property and whether the district court properly granted summary judgment in light of the parties’ ongoing discovery disputes. The Harold L. Rupp Sr. Trust and the Veda J. Rupp Revocable Living Trust (collectively “the Trusts”) filed a complaint for declaratory and monetary relief against Respondents, raising claims related to a land development project. Respondents moved for summary judgment. The Trusts filed two motions to continue the proceedings to allow them to complete additional discovery, which the district court denied. The Trusts then filed a late response to the motions for summary judgment, which the district court declined to consider. The district court granted Respondents’ motions for summary judgment, dismissed the case with prejudice, and awarded attorney fees to Respondents. The Trusts appealed. We affirm the district court’s denial of the Trusts’ motions to continue because the Trusts have not demonstrated that the district court abused its discretion. However, we reverse and remand the district court’s grant of summary judgment because the district court failed to analyze the evidence before it and appeared to grant summary judgment as a sanction against the Trusts. I. FACTUAL AND PROCEDURAL BACKGROUND The Trusts own approximately 930 acres of agricultural land located east of the Northgate Interchange off I-15, near the cities of Pocatello and Chubbuck. In 2016, the Idaho Transportation Department embarked on a project to construct the Northgate Interchange. In 2017, the Trusts entered into a Purchase and Sales Agreement (“PSA”) with Millennial Development Partners, LLC, a real estate development company, to sell a 150-foot-wide strip of land to be used for construction of a road named Northgate Parkway, which would connect the forthcoming Northgate Interchange with Olympus Drive in Pocatello. The Trusts assert that the PSA obligated Millennial to construct an intersection on Northgate Parkway to provide vehicle access to the Trusts’ property, as well as water and sewer stubs and a sewer line. The Trusts also allege that Millennial promised

2 the Trusts that their property would have additional access points along the Northgate Parkway, including access to an intersection at Olympus Drive. Millennial, together with Portneuf Development, LLC, entered into a general partnership called Town Center JV (“Town Center”), to construct Northgate Parkway. Millennial also entered into a construction cooperative agreement (“CCA”) with the City of Pocatello (“the City”) and others concerning the design and construction of the Northgate Exchange and Northgate Parkway. The CCA provided that, once construction of Northgate Parkway was complete, the City would accept full control and jurisdiction over Northgate Parkway between the Northgate Exchange and Olympus Drive. The Trusts assert that Town Center entered into a partnership with the City, which it calls “the Northgate Partnership.” The Trusts assert that the Northgate Partnership needed the water rights associated with the Trusts’ property to develop its property, and that it had “a unified purpose of devaluing the Rupp Trust [p]roperty” so it could obtain the property at less than market value and sell it to other developers for a profit. In December 2018, the Trusts signed an annexation agreement with the City of Chubbuck to annex 300 acres of the Trusts’ property into Chubbuck. The Trusts assert that, following this annexation, the Northgate Partnership “executed their plan to achieve their respective aims.” The Trusts contend that Millennial failed to construct the access points and supporting infrastructure promised in the PSA. The Trusts also contend that the Northgate Partnership interfered with the Trusts’ ability to access their property from Northgate Parkway, engaged in efforts to steer prospective purchasers away from the Trusts’ property, and interfered with prospective purchase agreements and offers to purchase the property. In November 2019, after construction of Northgate Parkway was complete, Town Center filed an application with the City concerning the road. Northgate Parkway was constructed as a boulevard style road with ten-foot-wide strips on either side. The application sought to dedicate the roadway to the City, but did not address the ten-foot-wide strips on either side. When the Pocatello City Council considered the application in January 2020, Harold Lavelle Rupp, Jr., trustee for the Trusts, appeared at the meeting and indicated that he was “neutral” on the application. The City subsequently approved the application and accepted the dedication of Northgate Parkway. Town Center later conveyed the ten-foot strips on both sides of the road to Millennial and Portneuf Development. The Trusts contend that Millennial and Portneuf’s

3 ownership of the ten-foot strips blocked the Trusts’ property from having direct access to Northgate Parkway. On February 4, 2022, the Trusts filed a complaint against Millennial and one of its members, Arvil Swaney (collectively “Millennial”); Portneuf Development and Portneuf Builders, LLC, and one of their members, Ken Pape (collectively “Portneuf”); and the City. The Trusts alleged claims against all defendants for (1) breach of contract; (2) intentional interference with prospective economic advantage; and (3) fraud. The Trusts later amended their complaint to add the then-mayor of the City, Brian Blad (referred to collectively with the City of Pocatello as “the City Defendants”) as a party and to add claims for (1) regulatory taking against the City; (2) declaratory judgment against the City; (3) civil conspiracy against all defendants; and (4) Lanham Act violations against Millennial and Portneuf. Millennial, Portneuf, and the City Defendants are collectively referred to as “Respondents.” The claims were based generally on the Trusts’ allegations that Millennial did not construct the agreed upon access points and supporting infrastructure and their allegations that “the Northgate Partnership” interfered with the Trusts’ ability to access their property from Northgate Parkway and dissuaded potential buyers from purchasing the Trusts’ property.

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Rupp v. City of Pocatello, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rupp-v-city-of-pocatello-idaho-2025.