The Tavern, LLC, and SALL, LLC v. The Town of Alpine, Wyoming, and Nelson Engineering, a Wyoming Corporation

2017 WY 56, 395 P.3d 167, 2017 WL 2124030, 2017 Wyo. LEXIS 57
CourtWyoming Supreme Court
DecidedMay 16, 2017
DocketS-16-0185
StatusPublished
Cited by20 cases

This text of 2017 WY 56 (The Tavern, LLC, and SALL, LLC v. The Town of Alpine, Wyoming, and Nelson Engineering, a Wyoming Corporation) is published on Counsel Stack Legal Research, covering Wyoming Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
The Tavern, LLC, and SALL, LLC v. The Town of Alpine, Wyoming, and Nelson Engineering, a Wyoming Corporation, 2017 WY 56, 395 P.3d 167, 2017 WL 2124030, 2017 Wyo. LEXIS 57 (Wyo. 2017).

Opinion

DAVIS, Justice.

[¶1] Appellants The Tavern, LLC and SALL, LLC sued the town of Alpine, asserting several claims stemming from Alpine’s financing and construction of a new sewage treatment facility. Appellants challenged the legality of the indebtedness Alpine incurred for the project, alleging that the loans exceeded the constitutional and statutory debt limitations imposed upon municipalities. They also, asserted that Alpine was inappropriately attempting to coerce them to connect to the new waste facility and to abandon their functional septic systems.

[¶2] A few years later, as the initial case inched on, Appellants filed another action against Alpine and Nelson Engineering. Appellants claimed that Alpine and Nelson committed the torts of abuse of process, civil extortion, and civil conspiracy by making false reports to the Wyoming Department of Environmental Quality that Appellants had violated the agency’s rules and regulations when they upgraded their septic systems.

[¶3] The actions were consolidated, and the parties filed various motions on the respective claims. 1 The district court granted Alpine’s motion to dismiss all claims against the town. It also granted Nelson’s motion for summary judgment on the claims against the engineering firm.

[¶4] Appellants now present a number of issues on appeal. For the reasons set forth below, we reverse in part, affirm in part, and remand.

ISSUES

[¶5] Appellants present many issues, some of which overlap, but we discern the following questions to be distinct and dispositive:

1. Did the district court err in granting Alpine’s motion to dismiss Appellants’ claim for declaratory judgment when it determined they had no standing to *171 seek a declaration that Alpine’s loans for the new sewage 2 treatment facility-exceeded the town’s constitutional and statutory indebtedness limits?
2. Did the district court err in granting Alpine’s motion to dismiss .Appellants’ claim for injunctive relief to stop Alpine from enforcing assessments and exac-tions for the new sewerage system on Appellants?
3. Did the district court err in granting Alpine’s motion to dismiss Appellants’ claim of inverse condemnation?
4. Did the district court err in granting Alpine’s motion to dismiss Appellants’ claims for abuse of process, civil extortion, and civil conspiracy because those claims are barred by the Wyoming Governmental Claims Act?
5. Did the district court err in granting Nelson’s motion for summary judgment on Appellants’ claim for abuse of process?
6. Did the district court err in granting Nelson’s motion for summary judgment on Appellant’s claim for civil conspiracy?

FACTS

[¶6] In 2005, Alpine commissioned Nelson Engineering to conduct a feasibility study to evaluate options to modify the town’s existing sewer and water treatment plant, or in the alternative, to construct a new sewer treatment plant. After studying the situation, Nelson recommended that Alpine build a new sewer plant. Alpine adopted'Nelson’s recommendation and the “Alpine Wastewater Treatment Facilities Improvement Project” began.

[¶7] Alpine passed resolutions authorizing application to the Wyoming State Loan and Investment Board for loans to be used as partial funding for the construction of the new sewage facility. The town then entered into loan agreements and executed promissory notes with the WSLIB, Alpine borrowed roughly $3,843,530 from the State of Wyoming at a 2.5% interest rate for a twenty-year term.

[¶8] Appellants own and operate a recreational vehicle campground and tavern in Alpine. Their operations have not required hookups to Alpine’s sewer system because their property has several septic tanks. The prospect of being required to hook up to the new sewage facility and therefore being obligated to pay associated sewer connection fees and usage rates led them to sue Alpine.

[¶9] In their initial action, CV-2009-176, Appellants brought four- claims, They sought a declaratory judgment that Alpine’s indebtedness for the project was illegal because the loans exceeded the constitutional and statutory debt limitations imposed qpon municipalities. 3 The second claim sought an injunction to prevent Alpine from compelling them to connect to the new waste facility and from forcing them to abandon their functional septic systems. The third claim requested a writ of mandamus and/or injunctive relief requiring Alpine to provide reasoning regarding its denial of a de-annexation petition Appellants had filed. In their fourth' claim, Appellants asserted a taking of their property by inverse condemnation.

[¶10] Sometime after the complaint in CV-2009-176 was filed, Alpine’s attorney 4 sent an email to Appellants’ attorney stating that *172 if they continued with the lawsuit, the town would report them to the DEQ for alleged violations of the agency’s rules and regulations for improvements to Appellants’ septic system. Appellants continued with their case. A few weeks later, an engineer employed by Nelson, Leon Kjellgren, sent a letter alleging that their septic systems violated agency regulations to the DEQ. Mr. Kjellgren stated in his letter that he was acting on behalf of and representing Alpine.

[¶11] Because of Mr. Kjellgren’s letter, the DEQ issued an order requiring Appellants to obtain permits from that agency. Appellants argued, however, that Alpine had already inspected, approved, and issued permits for the improvements to their septic system. Appellants appealed the order to the Wyoming Environmental Quality Council, and while that appeal was pending, the parties reached an agreement that resulted in DEQ issuing a permit for the RV park system.

[¶12] As a result of the episode with the DEQ, Appellants filed a second action, CV-2011-132, against Alpine and Nelson. In that complaint, Appellants asserted three claims: (1) abuse of process; (2) civil extortion; and (3) civil conspiracy. The initial case was stalled while Appellants worked everything out with DEQ, and so when Appellants filed their second action, the cases were consolidated.

[¶13] The parties then filed various motions. Alpine moved to dismiss all the claims against it pursuant to W.R.C.P. 12(b)(6). 5 Nelson moved for summary judgment pursuant to W.R.C.P. 56 on all claims against them in CV-2011-132, in which Alpine joined. Appellants moved for partial summary judgment on the declaratory judgment claim against Alpine, asking the court to declare that the loans it had obtained for the project violated its constitutional and statutory debt limits. The district court provided the parties ample time to fully brief and supplement their arguments, and held a hearing on all motions. Following the hearing, the district court issued three decision letters on the respective motions.

[¶14] The first was filed March 7, 2016 and titled

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Bluebook (online)
2017 WY 56, 395 P.3d 167, 2017 WL 2124030, 2017 Wyo. LEXIS 57, Counsel Stack Legal Research, https://law.counselstack.com/opinion/the-tavern-llc-and-sall-llc-v-the-town-of-alpine-wyoming-and-nelson-wyo-2017.