United States v. Canyon Del Buey, LLC

District Court, D. New Mexico·Decided December 28, 2021·No. 2:20-cv-00727·Unknown

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF NEW MEXICO

UNITED STATES OF AMERICA,

Plaintiff,

v. Civ. No. 20-727 GJF/GBW

CANYON DEL BUEY, LLC, et al.,

Defendants.

MEMORANDUM OPINION AND ORDER THIS MATTER is before the Court upon Plaintiff, United States of America’s, “Motion for Summary Judgment and Memorandum in Support” [ECF 22] (“Motion”). The Motion is fully briefed. ECFs 35 (response) & 46 (reply). On October 8, 2021, Defendants, Canyon del Buey, LLC, Craig Thiessen, and Lance Thiessen, filed a “Motion for Leave to File Surreply” [ECF 48] (“Surreply Motion”). The Surreply Motion is also fully briefed. ECFs 49, 50, & 51. The Court heard extensive oral argument on these motions on November 18, 2021. ECF 54 (clerk’s minutes); ECF 55 (transcript). For the reasons stated below, Defendants’ Surreply Motion is DENIED and Plaintiff’s Motion is GRANTED. I. INTRODUCTION The instant legal skirmish is the third act in a legal drama involving the rights and interests in certain National Forest System (“NFS”) lands—denominated as the Canyon del Buey Allotment (the “Allotment”)—located in the Apache National Forest in New Mexico.1 Defendants once held

1 In August 2019, Defendants Lance Thiessen and Canyon del Buey, LLC (the “LLC”) challenged the U.S. Forest Service’s cancellation of their grazing permit under the Administrative Procedure Act (“APA”). Thiessen, et al. v. Irwin, et al., 19cv779 CG/SMV (D.N.M.), ECF 1. In March 2020, the court dismissed that complaint without prejudice for improper service. 2020 WL 1033180, at *1 (D.N.M. Mar. 3, 2020). Defendants Lance Thiessen and the LLC never refiled their APA challenge. In July 2020, however, Lance’s brother, Craig, and the LLC brought suit under the Quiet Title Act (“QTA”), requesting that this Court declare that “‘under the [QTA] … [the LLC] is the surface owner of the [Allotment] by operation of specific legislative grants of Congress.’” Thiessen v. United States, Civ. No. 20-727 GJF/GBW, 2021 WL 1090702, at *4 (D.N.M. Mar. 22, 2021), appeal docketed, No. 21-2053 (10th Cir. May 19, a permit issued by the United States Forest Service (“USFS”) to graze livestock on the Allotment. The USFS cancelled the permit in November 2018, ECF 22-4, for reasons that are no longer contested. ECF 55 at 55:9-16. Plaintiff’s Complaint alleges that, despite the USFS’s cancellation of their permit, Defendants have continued to graze 200-300 head of cattle on the Allotment. Defendants, however, take the position that they do not need USFS authorization to graze

livestock, insisting that they own certain property rights that give them an inherent right to graze livestock on the Allotment. In moving for summary judgment, Plaintiff asks this Court to (1) render a declaratory judgment that Defendants’ use of the Allotment violates federal regulations, (2) eject Defendants and their livestock from the Allotment, (3) award compensatory damages in an amount to be determined later for the harm caused by Defendants’ alleged trespass, and (4) issue a “permanent injunction prohibiting Defendants from placing or allowing unauthorized livestock on NFS lands.” ECF 22 at 13–15. II. DEFENDANTS’ MOTION FOR LEAVE TO FILE SURREPLY

After Plaintiff filed its Reply [ECF 46] and the required notice that briefing of the summary judgment motion was complete [ECF 47], Defendants moved for leave to file a surreply. ECF 48. Defendants urge the Court to permit a surreply because (1) Plaintiff’s Reply included the Second Declaration of Clyde J. King, Regional Surveyor, United States Department of Agriculture, Forest Service, Southwestern Region, which relied on new evidence; (2) Mr. King’s second declaration presented new arguments; and (3) “Plaintiff’s argument in its reply brief misstates Craig Thiessen’s ownership of the water rights in the” Allotment. ECF 48 at 1–2. For its part, Plaintiff

2021). The United States moved to dismiss, asserting that the lawsuit was time-barred under the QTA’s statute of limitations. Thiessen, 2021 WL 1090702, at *6. This Court agreed and dismissed that lawsuit with prejudice, id. at *9, a decision now on appeal before the Tenth Circuit. objects to a surreply, arguing that (1) Defendants have failed to identify any new evidence Mr. King relied on; (2) Mr. King’s second declaration did not make new arguments but instead merely rebutted the arguments made in Defendants’ Response; and (3) Plaintiff’s Reply did not mischaracterize whatever interests Defendant Craig Thiessen has in the Allotment but instead pointed out defects in Defendants’ Response including the failure to establish a genuine issue of

material fact sufficient to preclude summary judgment. ECF 49 at 1–2. “Generally, the nonmoving party should be given opportunity to respond to new material raised for the first time in the movant’s reply.” Green v. New Mexico, 420 F.3d 1189, 1996 (10th Cir. 2005) (citing Beaird v. Seagate Tech., Inc., 145 F.3d 1159, 1164 (10th Cir. 1998)). “Material,” in this context, includes both new evidence and new legal arguments. Id. (citing Doebele v. Sprint/United Mgmt. Co., 342 F.3d 1117, 1139 n. 13 (10th Cir. 2003)). If, however, the Court does not rely on new material in reaching its decision, “‘it does not abuse its discretion by precluding a surreply.’” Id. (quoting Beaird, 145 F.3d at 1164–65). The Court addresses each of Defendants’ arguments in turn.

First, although the Court agrees that new evidence was raised in the reply, a surreply is not warranted here. Plaintiff’s Reply included a warranty deed filed in Catron County, New Mexico, that was not included in its opening brief. See ECF 46-2. For reasons explained infra, however, the Court does “not rely on [such] material in reaching its decision.” Green, 420 F.3d at 1996; see also infra Section VIII. Second, the Court disagrees that Mr. King raised new arguments warranting a surreply. As discussed infra, Defendants argued in their Response that they own certain property interests that allow them to graze livestock on the Allotment without a USFS permit. See ECF 35 at 6–16. In his second declaration, Mr. King merely pointed out defects in the evidence that Defendants propounded in support of their alleged ownership of such property interests. See ECF 46-1. Consequently, the content of Mr. King’s second declaration does not warrant a surreply. See, e.g., Rowley v. APD Detective Kevin Morant, Case No. 10CV1182 WJ/GBW, 2014 WL 12656606, at * 2 (D.N.M. June 27, 2014) (“A reply that simply ‘points out the defects’ in the response does not introduce new material.” (quoting Green, 420 F.3d at 1196–97)).

Third, the Court does not find that Plaintiff’s alleged “misstatements” regarding Defendant Craig Thiessen’s water interests in the Allotment amount to either new evidence or new legal arguments. In fact, Plaintiff simply argued that even assuming that Craig Thiessen owned the water rights on the Allotment, those interests would still not confer upon Defendants the right to graze on the Allotment. ECF 46 at 18–19 (Plaintiff asserting that “ownership of water rights does not negate the requirement that a rancher obtain a grazing permit before allowing cattle to graze on federal lands.”).2 Because Defendants expressly argued that grazing rights are attendant to their alleged water rights, ECF 35 at 10–11, Plaintiff’s arguments to the contrary merely rebutted Defendants’ position and did not raise new legal arguments. Rowley, 2014 WL 12656606, at *2.

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