Mineral County v. Walker River Irrigation Dist. ( 2018 )


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  •                               NOT FOR PUBLICATION
    UNITED STATES COURT OF APPEALS
    FILED
    FOR THE NINTH CIRCUIT
    MAY 22 2018
    MOLLY C. DWYER, CLERK
    U.S. COURT OF APPEALS
    MONO COUNTY, County Counsel,                     No.   15-16342
    Plaintiff-Appellee,              D.C. No.
    3:73-cv-00128-RCJ-WGC
    MINERAL COUNTY,
    Intervenor-Plaintiff-            MEMORANDUM*
    Appellant,
    WALKER LAKE WORKING GROUP,
    Defendant-Appellant,
    and
    UNITED STATES OF AMERICA,
    Plaintiff,
    WALKER RIVER PAIUTE TRIBE,
    Intervenor-Plaintiff,
    v.
    WALKER RIVER IRRIGATION
    DISTRICT; NEVADA DEPARTMENT
    OF WILDLIFE; FENILI FAMILY
    *
    This disposition is not appropriate for publication and is not precedent
    except as provided by Ninth Circuit Rule 36-3.
    TRUST, c/o Peter Fenili and Veronica
    Fenili, Trustees; SIX N RANCH, INC., c/o
    Richard and Cynthia Nuti; MICHAEL
    NUTI; NANCY NUTI; RALPH E. NUTI;
    MARY E. NUTI; LAWRENCE M. NUTI;
    LESLIE NUTI; MICA FARMS, LLC, c/o
    Mike Faretto; JOHN AND LURA
    WEAVER FAMILY TRUST, c/o Lura
    Weaver, Trustee; SMITH VALLEY
    GARAGE, INC., c/o Dan Smith and
    Shawna Smith; DONALD GIORGI;
    LORIE MCMAHON; MERLE
    MCMAHON; CENTENNIAL
    LIVESTOCK; LYON COUNTY;
    ANNETT’S MONO VILLAGE; F.I.M.
    CORPORATION; R.N. FULSTONE
    COMPANY; JAMES T. FOUSEKIS,
    Trustee; CHRIS H. GANSBERG, Jr.;
    FAYE E. GANSBERG; TODD
    GANSBERG; HUNEWILL LAND &
    LIVESTOCK CO., INC.; DAVID
    SCEIRINE; PAMELA HAAS; VIRGINIA
    LAKE MUTUAL WATER COMPANY,
    Defendants-Appellees.
    Appeal from the United States District Court
    for the District of Nevada
    Robert Clive Jones, District Judge, Presiding
    Argued and Submitted August 30, 2017
    Pasadena, California
    Before: TASHIMA, FISHER and BYBEE, Circuit Judges.
    2
    Mineral County appeals the dismissal of its claim that Nevada’s public trust
    doctrine requires the modification of the 1936 Walker River Decree to ensure
    minimum water flows reach Walker Lake. In this memorandum, we address only
    the issue of standing. We reserve judgment on the remaining issues raised in this
    appeal pending certification to the Nevada Supreme Court.1 We have jurisdiction
    under 28 U.S.C. § 1291. We review standing de novo, see Bernhardt v. County of
    Los Angeles, 
    279 F.3d 862
    , 867 (9th Cir. 2002), and we hold the district court erred
    in dismissing for lack of standing.
    1. The district court erred by concluding Mineral County lacked standing
    because it sought relief solely on behalf of the general public as parens patriae.
    Mineral County did not seek relief solely on behalf of the general public. Mineral
    County also asserted a public trust claim on its own behalf, and Mineral County
    may sue to vindicate its own interests. See United States v. City of Pittsburg, 
    661 F.2d 783
    , 787 (9th Cir. 1981) (explaining that political subdivisions “may ‘sue to
    vindicate . . . their own proprietary interests’” (quoting In re Multidistrict Vehicle
    Air Pollution M.D.L. No. 31, 
    481 F.2d 122
    , 131 (9th Cir. 1973))).
    1
    Concurrent with this memorandum, we file an order certifying a question
    to the Nevada Supreme Court. Mineral County’s public trust claim for the
    reallocation of the waters of Walker River and the Takings Clause claims under
    both federal and Nevada law are held in abeyance pending the result of
    certification.
    3
    2. Mineral County meets each requirement for Article III standing: “injury,
    causation, and redressability.” City of Oakland v. Lynch, 
    798 F.3d 1159
    , 1163 (9th
    Cir. 2015). To satisfy these elements, Mineral County
    must demonstrate that “(1) it has suffered an ‘injury in fact’
    that is (a) concrete and particularized and (b) actual or
    imminent, not conjectural or hypothetical; (2) the injury is
    fairly traceable to the challenged action . . . ; and (3) it is
    likely, as opposed to merely speculative, that the injury will
    be redressed by a favorable decision.”
    City of Sausalito v. O’Neill, 
    386 F.3d 1186
    , 1197 (9th Cir. 2004) (quoting Friends
    of the Earth, Inc. v. Laidlaw Envtl. Servs. (TOC), Inc., 
    528 U.S. 167
    , 180-81
    (2000)).
    Injury in fact: Political subdivisions may establish injury in fact by asserting
    harm to their own proprietary interests – particularly economic injury such as the
    loss of tax revenues. See, e.g., City of 
    Oakland, 798 F.3d at 1164
    (“An expected
    loss of tax revenue can constitute a sufficient injury [to a city] for purposes of
    Article III standing.”); City of 
    Sausalito, 386 F.3d at 1197
    , 1199 (holding
    “Sausalito may sue to protect its own ‘proprietary interests’” and that its asserted
    “management, public safety, economic, aesthetic, and natural resource harms” each
    constituted Article III injury); accord City of 
    Pittsburg, 661 F.2d at 787
    .
    4
    Even ignoring the alleged harm to its aesthetic and natural resource interests,
    Mineral County alleged economic harm adequate to establish Article III injury.
    The County’s amended complaint in intervention alleged that “[a]ctivities and
    businesses attributable to the presence and use of Walker Lake represent[]
    approximately 50% of the economy of Mineral County.” It also alleged the “total
    loss of flows from Walker River into Walker Lake has degraded the quality of
    water in Walker Lake substantially,” and that minimum flows into Walker Lake are
    necessary for the “maintenance of the economy of Mineral County.” The County
    also filed an affidavit in connection with its motion to intervene asserting that “loss
    of water in the Lake” has decreased “fishing and other recreational activities,” and
    that much of Mineral County’s tax revenue is tied to these activities. Under City of
    Sausalito and City of Oakland, these harms to Mineral County’s economy establish
    Article III injury. See Lujan v. Defs. of Wildlife, 
    504 U.S. 555
    , 561 (1992)
    (concluding “general factual allegations of injury” are sufficient at the pleading
    stage).
    Causation: These allegations also demonstrate causation because the
    alleged harms are “fairly traceable” to the loss of water in Walker Lake, which is
    caused at least in part by upstream appropriators.2
    2
    Although the parties dispute the cause of Walker Lake’s troubles, it seems
    (continued...)
    5
    Redressability: Finally, Mineral County’s requested relief – flows adequate
    to restore the water level and quality in Walker Lake – would likely redress its
    injuries. As alleged, the harm to fishing, recreational and other activity in Walker
    Lake is directly related to the decline in water level and the accompanying
    degradation in water quality.
    Walker River Irrigation District (WRID) disputes the redressability prong of
    standing, contending that even if the public trust doctrine applies, this court (or the
    Nevada Supreme Court) cannot order the Nevada legislature to amend Nevada’s
    water laws, and the legislature would be unlikely to do so.
    WRID is correct that standing may be denied when “the prospect of remedial
    benefit seems too remote [or] independent constraints foreclose any effective
    remedy.” 13A Charles Alan Wright & Arthur R. Miller, Federal Practice and
    Procedure § 3531.6 & nn.12, 13 (3d ed. 2017) (collecting cases). That is not the
    case here, however. WRID sets out one possible outcome on the public trust issue.
    But it is certainly plausible, under the public trust doctrine, that the court would
    require officials to reserve whatever flows were necessary to uphold the public
    trust as to Walker Lake. No independent constraint would preclude that outcome.
    2
    (...continued)
    clear that upstream appropriations play at least some part, along with declining
    precipitation levels and natural lake recession over time.
    6
    Mineral County, moreover, does not challenge Nevada’s statutory water laws, and
    its requested relief – a modification of the Decree – would not require the
    legislature to act. Thus, Mineral County’s requested remedy is among the
    “remed[ies] that the court [would be] prepared to give.” Id.; see also 
    id. (discussing the
    “risk that standing will be denied because hasty remedial
    determinations made at a preliminary stage do not reflect the full inventiveness that
    could be exhibited after trial”).
    The district court thus erred in holding Mineral County lacked standing to
    bring its public trust claim.
    3. The district court concluded Walker Lake is not within the Walker River
    Basin, a determination Mineral County appeals. Although the question is not
    disputed by the parties in this action, we have contemporaneously decided in
    United States v. United States Board of Water Commissioners, No. 15-16316, that
    Walker Lake is within the Walker River Basin.
    4. The Clerk is advised that this is not a dispositive memorandum. This
    appeal remains pending, but will be administratively closed as explained in our
    concurrently filed Certification Order.
    7