WSPR Enterprise LLC v. Town of Spring Prairie

CourtDistrict Court, E.D. Wisconsin
DecidedMarch 21, 2022
Docket2:20-cv-01421
StatusUnknown

This text of WSPR Enterprise LLC v. Town of Spring Prairie (WSPR Enterprise LLC v. Town of Spring Prairie) is published on Counsel Stack Legal Research, covering District Court, E.D. Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
WSPR Enterprise LLC v. Town of Spring Prairie, (E.D. Wis. 2022).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF WISCONSIN

WSPR ENTERPRISE LLC,

Plaintiff, Case No. 20-CV-1421-JPS v.

TOWN OF SPRING PRAIRIE, TOM ORDER BOLFERT, LYNN LEIN, DON TRIMBERGER, II, and WALWORTH COUNTY,

Defendants.

Plaintiff is a company that owns three parcels of agriculturally zoned land in the Town of Spring Prairie, Wisconsin. In 2019, Plaintiff wished to lease those parcels to its agent, Asphalt Contractors, Inc (“ACI”),1 so that ACI could mine for gravel and set up a washing plant. The only catch: ACI would need to request a change in zoning from agricultural to industrial use. The Town of Spring Prairie (the “Town”) denied the rezoning petition, and this lawsuit followed. Plaintiff initially sued the Town, Walworth County (the “County”), and three supervisors from the Town’s Board of Supervisors, Tom Bolfert (“Bolfert”), Lynn Lein (“Lein”), and Don Trimberger, II (“Trimberger”) (the “Supervisor Defendants”) (collectively, the “Defendants”). The cast of defendants in Plaintiff’s proposed amended complaint includes the Defendants, as well as the Town Board of Supervisors (the “Town Board”),

1The Court will refer to ACI and Plaintiff interchangeably. the County Zoning Agency, and the County Board of Supervisors (the “County Board”). Defendants submitted motions for judgment on the pleadings, (Docket #23, #32), which Plaintiff opposed, (Docket #35, #39), and attempted to address via a motion for leave to file an amended complaint, (Docket #34), which Defendants also opposed. For the reasons explained below, the Court will deny Plaintiff’s motion to amend, grant the earlier motions for judgment on the pleadings, and dismiss the case. The motion to stay discovery pending the outcome of the dispositive motions, (Docket #27), will be denied as moot. 1. LEGAL STANDARD Federal Rule of Civil Procedure 15(a) provides that leave to amend a complaint “shall be freely given when justice so requires.” Fed. R. Civ. P. 15(a). Courts favor granting leave to amend, but they act within their discretion to deny such leave when there is a substantial reason to do so. Select Creations, Inc. v. Paliafito Am., Inc., 830 F. Supp. 1213, 1216 (E.D. Wis. 1993). Such reasons include “undue delay, bad faith or dilatory motive on the part of the movant, repeated failure to cure deficiencies by amendments previously allowed, undue prejudice to the opposing party by virtue of allowance of the amendment,” or futility of the amendment. Foman v. Davis, 371 U.S. 178, 182 (1962); Campania Mgmt. Co. v. Rooks, Pitts & Poust, 290 F.3d 843, 849 (7th Cir. 2002). An amendment is futile when “the proposed amendment fails to cure the deficiencies in the original pleading, or could not survive a second motion to dismiss.” Crestview Vill. Apartments v. U.S. Dep’t of Hous. & Urban Dev., 383 F.3d 552, 558 (7th Cir. 2004). In this way, the “standard is the same standard of legal sufficiency that applies under Rule 12(b)(6).” Gen. Elec. Capital Corp. v. Lease Resolution Corp., 128 F.3d 1074, 1085 (7th Cir. 1997). Federal Rule of Civil Procedure 12(b) provides for dismissal of complaints which, among other things, fail to state a viable claim for relief. Fed. R. Civ. P. 12(b)(6). To state a claim, a complaint must provide “a short and plain statement of the claim showing that the pleader is entitled to relief.” Fed. R. Civ. P. 8(a)(2). In other words, the complaint must give “fair notice of what the. . .claim is and the grounds upon which it rests.” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555 (2007). The posture of this case is somewhat unique. Plaintiff has endeavored to respond to the parties’ Rule 12(c) motions on their merits, and, amidst that briefing, also filed a motion to amend the complaint to cure any pleading deficiencies.2 The parties have briefed their arguments on the motion to amend with reference to their arguments in the motions for judgment on the pleadings. A motion for judgment on the pleadings is “governed by the same standard as a motion to dismiss for failure to state a claim under Rule 12(b)(6).” Adams v. City of Indianapolis, 742 F.3d 720, 727– 28 (7th Cir. 2014) (citations omitted). Because Rule 15 asks courts to consider the futility of an amendment, which uses the same standard as a motion to dismiss or a motion for judgment on the pleadings, the Court will evaluate the amended complaint with reference to the motions for judgment on the pleadings to determine whether, even in its improved form, the complaint manages to state valid claims. See Crestview Vill. Apartments, 383 F.3d at 558

2While the amended complaint includes new defendants, it does not contain any additional causes of action. Most of the additional facts alleged in the amended complaint relate to Lein, who, Plaintiff contends, had a conflict of interest with its gravel pit initiatives. See (Docket #34-1 ¶¶ 23–29, 37, 39–40, 47). This appears to be an attempt to bolster the equal protection and substantive due process claims. (explaining that a court “may deny leave to amend if the proposed amendment fails to cure the deficiencies in the original pleading, or could not survive a second motion to dismiss.”) (citations and quotations omitted). The ultimate decision to grant the motions for judgment on the pleadings and dismiss the federal claims with prejudice reflects the Court’s assessment that Plaintiff has “fail[ed] to demonstrate how the proposed amendment would cure the deficiencies in the prior complaint.” Gonzalez- Koeneke v. West, 791 F.3d 801, 808 (7th Cir. 2015) (upholding a dismissal with prejudice for failure to state a claim). 2. RELEVANT FACTS Plaintiff owns three plots of land in Spring Prairie, Wisconsin that are zoned for agricultural use. In 2019, Plaintiff leased the plots to its agent, ACI, which intended to mine the plots for nonmetallic minerals. The lease acknowledged that ACI would obtain necessary permits and zoning and undertake “all restoration as may be required by law.” (Docket #34-1 at 18). Shortly after executing the lease, ACI sought to rezone the plots for industrial use and obtain a conditional use permit (“CUP”) to allow a nonmetallic mining operation (a “gravel pit”) and a washing plant onsite. ACI’s first effort to rezone one parcel met opposition from the Town, which quickly created a “No-Pit” interest group containing at least forty people. Lein, one of the Town Board Supervisors, helped organize the No- Pit activists. She had an unknown and never defined “business association” with Scott Wilson (“Wilson”), who owned one of the other gravel pits in town. A year earlier, before Lein joined the board, the Town Board had granted Wilson’s request to continue and expand his gravel pit operation. ACI presented its first plans for the gravel pit at a public meeting, where it also fielded questions. The initiative proved unpopular. Eventually, ACI abandoned its plans for the first parcel and sought to rezone a second, smaller parcel instead.

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Bluebook (online)
WSPR Enterprise LLC v. Town of Spring Prairie, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wspr-enterprise-llc-v-town-of-spring-prairie-wied-2022.