DocketNumber: C.A. No. 91-0237
Judges: <underline>HURST, J.</underline>
Filed Date: 1/12/1996
Status: Precedential
Modified Date: 7/6/2016
The Emonds bought the property in 1984 for the purpose of building a single-family home. Tr.. at 21-22. A small structure, approximately fifteen by thirty feet, stood on the property when the Emonds purchased the land. Tr. at 22. They subsequently removed that structure. Tr. at 23.
Ryan's engineering firm determined that wetlands existed on the property. On November 1, 1988 a formal application to alter those wetlands was filed with the DEM. On March 13, 1990, that application was denied. Ryan then filed a request for hearing with the Department's Administrative Adjudication Division. The Division held hearings on August 6, 7, 8 and 9, receiving evidence through testimony and public comment.
The parties stipulated to the following seven issues to be resolved by the hearing officer:
1) Whether the subject wetland is a "valuable" wetland pursuant to the definition provided in Section 7.06(b) of the Rules and Regulations.1
2) Whether the proposed alterations will result in loss, encroachment, and permanent alteration of wetland wildlife habitat associated with the subject wetland area.
3) Whether the proposed alterations will reduce the value of "valuable" recreational environment.
4) Whether the proposed alterations will reduce and negatively impact the aesthetic and natural character of the undeveloped wetland and adjacent areas which serve as a buffer zone.
5) Whether the proposed alterations will cause undesirable destruction of freshwater wetlands pursuant to Section 5.03(c) (2) and (c) (7) of the Rules and Regulations.
6) Whether the proposed alterations will reduce the ability of the wetland to moderate the damaging effects of flood flows.
7) Whether the proposed alterations are inconsistent with the policies, intents, and purposes of the Act and the Rules and Regulations.
The Emonds offered three witnesses at the hearing. David Emond testified briefly concerning his date of purchase of the property and his intended use. Mr. Emond stated that he intended to construct a single family dwelling on the property when he purchased the land in 1984.
Gerald Narkiewicz, a civil engineer registered in Rhode Island and Massachusetts, next testified for the Emonds. Mr. Narkiewicz, while not the original engineer on the project, had studied the property and performed a variety of calculations concerning the project. He testified that the total increased runoff for the site would be approximately .02 cubic feet per second, not a significant amount in his opinion.
Four citizens appeared under public comment and stated their opinion of the proposed alteration. Michael Smith argued that the application should have been granted in light of the fact that the DEM had previously granted applications in this area. Tr. at 6164. The next three citizens all voiced their disapproval of the proposed alteration, stating that further disturbance would worsen the existing drainage problems in the area. Tr. at 88-103.
The Emonds next presented the testimony of Kevin Fetzer, a biological consultant who was qualified as an expert. Tr. at 122. Mr. Fetzer's testimony was extensive, covering almost one hundred and fifty transcript pages. He stated his conclusions with respect to the property at issue, often disputing the conclusions reached by the DEM. Mr. Fetzer concluded that the proposed alterations' negative impact on the wildlife and vegetation on the property would not be significant. Tr. at 213. Mr. Fetzer also testified at length concerning the similarities between the subject property and the neighboring property, owned by Louie and Elise Geddes. Tr. at 185-203.
The DEM then began presenting its witnesses, offering first the testimony of Carl Ruggieri, a senior Natural Resources Specialist employed by the Department. In addition to responding to Mr. Fetzer's contentions concerning the proposed use, Mr. Ruggieri testified as to the specific detrimental impact that the proposed construction would have in the wetlands. He disputed Mr. Fetzer's conclusions on several issues, including the negative impact that the proposed use would have on the wildlife specifies and vegetation at the site.
The DEM next offered the testimony of Dean Albro, the Deputy Chief of the Groundwater and Freshwater Wetlands Division of the Department. Mr. Albro was qualified as an expert in wetland ecology, wildlife habitat, and environmental impact assessment. Mr. Albro testified that denial of the application was proper given the threatened loss of wildlife habitat and the negative effect on the land's ability to handle flood flows. Tr. at 390.
On December 7, 1990, the Hearing Officer issued a decision denying the Emond's application. The decision provided an extensive review of the evidence received at the hearing. In addition, the decision contained detailed findings of fact and conclusions of law. Each of the seven issues stipulated to prior to the hearing was resolved in favor of the DEM. The Director of the DEM adopted the hearing officer's decision on December 26, 1990. On January 11, 1991, the Emonds filed the instant appeal.
(g) The court shall not substitute its judgment for that of the agency as to the weight of the evidence on questions of fact. The court may affirm the decision of the agency or remand the case for further proceedings, or it may reverse or modify the decision if substantial rights of the appellant have been prejudiced because the administrative findings, inferences, conclusions, or decisions are:
(1) In violation of constitutional or statutory provisions; (2) In excess of the statutory authority of the agency; (3) Made upon unlawful procedure; (4) Affected by other error or law; (5) Clearly erroneous in view of the reliable, probative, and substantial evidence on the whole record; or (6) Arbitrary or capricious or characterized by abuse of discretion or clearly unwarranted exercise of discretion.
This section precludes a reviewing court from substituting its judgment for that of the agency in regard to the credibility of witnesses or the weight of evidence concerning questions of fact. Costa v. Registry of Motor Vehicles,
This court is vested with the power to reverse or modify agency decisions that are arbitrary and capricious. G.L. §
Appellants' first argument rests on a paragraph quoted from the Rhode Island Regulatory Reporter. The appellants note that this paragraph extols the virtues of precedential authority in the DEM's performance of its designated function. As a result, appellants argue, the decision concerning the Geddes' application is binding on the DEM in reviewing the application involved in the instant case.
A closer reading of the entire authority from which the paragraph is extracted finds appellants' reliance on it to be misplaced. The review reveals that the quoted text concerns the issue of consistency in the DEM interpretation of its rules and regulations. The point of the decision is that the standards applied by the DEM must remain uniform. There is absolutely no support in the cited authority for the proposition that decisions concerning one applicant are binding upon another.
Furthermore, there are a number of factors that the DEM is required to take into account when reviewing applications to alter wetlands. See DEM Rules 5.03 and 7.02-7.06; see also J.M.Mills, Inc v. Murphy,
Appellants also contend that the hearing officer improperly rejected uncontradicted testimony. Appellants cite Hughes v. SacoCasting,
The court notes that the testimony of Mr. Narkiewicz and Mr. Fetzer was contradicted by Mr. Ruggieri and Mr. Albro. Essentially, the Hearing Officer was faced with a "battle of the experts" and he made a credibility-based determination in reaching his final conclusion. Upon review of the record and in light of Environmental Scientific, the court declines to disturb that conclusion. See Lowry v. Faraone,
Appellants' final argument on this first claim of error involves the zoning designation for the property. Appellants essentially contend that denying them permission to alter the wetlands and erect a single-family dwelling constitutes an overriding of the zoning legislation. This argument is without merit.
In relying on the property's zoning designation to argue that the application should have been granted, appellants overlook the fact that zoning and wetlands-related issues involve separate and distinct inquiries. This distinct nature is readily apparent from even a cursory review of the relevant statutes and regulations.Compare G.L. §
In its purest form, the takings clause requires government to pay compensation when it physically takes possession of property under its eminent domain power. Want, Law of Wetlands Regulation, § 10.01 (1995). In the wetlands regulatory context, the government does not take physical possession of the property, but may restrict profitable use of property to such a degree that the owner argues his property has been effectively taken away. Id.
The Lucas Court acknowledged that its holding was limited to the "relatively rare situations" where "no productive or economically beneficial use of loan is permitted." Id. at 2894 (emphasis in original). Similarly, the Annicelli court awarded compensation because it found that "all reasonable or beneficial use of [the] property ha[d] been rendered an impossibility." Id. at 140. Therefore a party must make this showing in order to bring their claim within the ambit of these cases.
The appellants have not met this burden. A finding that alternative economic uses exist is implicit in the hearing officer's determination that the subject property constituted a "valuable recreational environment." Compare State v. A. CapuanoBros, Inc.,
The fact that a party fails to succeed under Lucas will not preclude recovery. Where the government regulation does not effect a total loss, the analysis enunciated in Penn CentralTrans. v. New York City,
Appellants first contend that "the economic impact that the regulation will have . . . is astounding." Appellants' Brief at 11. This claim, however, is once again premised on the notion that the property has lost all economic value. It is well settled that "a property owner does not have a vested property right in maximizing the value of his property." Annicelli, 463 A.2d at 140. Numerous cases have rejected the takings argument simply because the property cannot be put to its most profitable use.See Agins, 447 U.S. at 262 (no taking where zoning ordinance permitted different, albeit more limited, use of property);Milardo v. Coastal Resources Management Council,
The ownership of property creates a "bundle of rights" including the right to possession, to exclude others, to use and enjoy, and to dispose of the property. Loretto v. TeleprompterManhattan CATV Corp.,
Appellants next claim that their investment-backed expectations have been "denied" [sic] because the appellants "purchased the property with the expectation of building a single family dwelling." Appellant's Brief at 11. Appellants conclude that because DEM has denied their application to build such a dwelling, their expectations have been "confiscated." Id. Resolution of this issue involves a dual inquiry: first, the threshold question of whether investment-backed expectations existed and then an analysis concerning whether those expectations have been extinguished. Appellants have not hurdled the threshold here.
Investment-backed expectations must be "reasonable." See PennCentral, 438 U.S. at 125. The court in Loveladies Harbor, Inc. v.U.S.,
[i]n legal terms, the owner who bought with knowledge of the restraint could be said to have no reliance interest, or to have assumed the risk of any economic loss. In economic terms, it could be said that the market had already discounted for the restraint, so that a purchaser could not show a loss in his investment attributable to it.
The Loveladies court concluded that the plaintiff's expectations were reasonable because they had purchased the property before the regulatory programs at issue came into effect. Id. at 1179, 1183. The appellants cannot make a similar claim here and as a result their claims on this issue must fail.See Ciampetti v. U.S., 22 Ct. Cl. 310, 321 (1991) (plaintiff's expectations not reasonable where he had knowledge of difficulty involved in obtaining necessary wetlands permits); cf. 767 ThirdAve Associates v. U.S.,
Furthermore, with respect to their possessing such investment-backed expectations, appellants' reliance on Lucas andAnnicelli is misplaced. In Lucas, the state of South Carolina enacted legislation two years after the plaintiff purchased the property in question which effectively barred him from constructing habitable structures on his land. 112 S.Ct. at 2889. The plaintiff in Annicelli purchased the property on May 8, 1975, only to have the town designate the property as a "High Flood Danger" zone there weeks later. 463 A.2d at 135.
Here, appellants purchased the property in question in 1984, well after the DEM was empowered to review applications requesting permission to alter freshwater wetlands. See J.M.Mills, 116 R.I. at 57, 352 A.2d at 663 (Freshwater Wetlands Act passed in 1971). The appellants cannot claim the status of unsuspecting landowners blindsided with confiscatory government action. See Clegg, Reclaiming the Text of the Takings Clause, 46 S.C.L. Rev. 531, 533 (1995) ("if a statute had been enacted prior to acquisition . . . [the] owner cannot claim that [a] right was "taken" from him, since he never had it").
Concerning the character of the governmental action, appellants argue that the granting of the Geddes' application shows that "[t]he government action is arbitrary, capricious and violative of the United States and Rhode Island Constitutions." Appellants' Brief at 11. The proper inquiry under this prong is whether "the alleged regulatory imposition [is] one which seriously interferes with a property right, but which is not otherwise authorized by constitutional or common law." CienegaGardens, 33 Ct. Cl. at 218. Actions which can be characterized as a valid exercise of police power are so authorized and are distinguished from takings requiring compensation under the Fifth Amendment. Id. The authority to regulate the use of fresh water wetlands is an exercise of state police power. See G.L. §
Finally, appellants seek a de novo review of the DEM's findings under G.L. §
Under J.M. Mills, it is clear that appellants may not to seek simultaneous relief under both subsections (a) and (b). As a result their final argument on the takings issue is also without merit.
The proper inquiry concerning equal protection claims is whether similarly situated parties are being treated differently. The threshold requirement, therefore, is that the parties be "similarly situated." Appellants attempt to hurdle this requirement with conclusory allegations. See Appellants' Brief at 27-28. Building on this premise, appellants then cite several cases for the basic concepts of equal protection and then conclude that such protection has been denied in this case.
The appellants have not stated a valid equal protection claim. They have cited no authority, nor has the court located any, recognizing the existence of such a claim in similar circumstances. Cases rejecting the claim, however, are plentiful.See, Strafach v. Durfee,
Recognition of the multitude of distinctions that may exist between sites is implicit in the number of factors that are to be taken into account by the DEM when reviewing applications See DEM Rules 5.03, 7.02-7.06. Furthermore, the legislative grant of power to the DEM to make case-by-case determinations illustrates the general awareness of the multitude of factual distinctions that may exist. J.M. Mills, Inc. v. Murphy,
As concerns a claim of denial of substantive due process, appellants have not alleged either membership in a protected class nor government action that has denied them a fundamental right so as to trigger the application of a strict scrutiny form of analysis. As a result, the DEM's action must only be rationally related to a legitimate government interest. SeeMedical Malpractice Underwriting Ass'n v. Paradis, 756 F. Supp. 669, 675 (D.R.I. 1991) (if regulation does not impact fundamental right, substantive due process satisfied if regulation rationally related to legitimate state interest). As the court has already concluded that the action of the DEM was not arbitrary or capricious, that requirement has been met and therefore appellants' claim is without merit.
There is simply no evidence in the record that the DEM has required the Emonds to open their land to the public.7 The fact that permission to alter the wetlands has been denied does not automatically mean that the public may now use the property. The evidence of record concerned the possible recreational uses which the land may support. The key word is "may," rather than "must."
The cases cited by appellants, including Nollan v. CaliforniaCoastal Com'n,
Golden Gate Corp. v. Town of Narragansett , 116 R.I. 552 ( 1976 )
State v. A. Capuano Bros., Inc. , 120 R.I. 58 ( 1978 )
Loveladies Harbor, Inc. And Loveladies Harbor, Unit D, Inc. ... , 28 F.3d 1171 ( 1994 )
Sartor v. Coastal Resources Management Council , 1988 R.I. LEXIS 60 ( 1988 )
Vito v. Department of Environmental Management , 1991 R.I. LEXIS 56 ( 1991 )
Medical Malpractice Joint Underwriting Ass'n v. Paradis , 756 F. Supp. 669 ( 1991 )
E & J Inc. v. Redevelopment Ag. of Woonsocket , 122 R.I. 288 ( 1979 )
J. M. Mills, Inc. v. Murphy , 116 R.I. 54 ( 1976 )
Ashness v. Tomasetti , 1994 R.I. LEXIS 197 ( 1994 )
Hughes v. Saco Casting Co., Inc. , 1982 R.I. LEXIS 837 ( 1982 )
Cunningham v. Marcello , 106 R.I. 400 ( 1970 )
Birchwood Realty, Inc. v. Grant , 1993 R.I. LEXIS 175 ( 1993 )
Cocchini v. City of Providence , 1984 R.I. LEXIS 574 ( 1984 )
Annicelli v. Town of South Kingstown , 1983 R.I. LEXIS 1010 ( 1983 )
Newport Shipyard, Inc. v. Rhode Island Commission for Human ... , 1984 R.I. LEXIS 632 ( 1984 )
Baytree of Inverrary Realty Partners v. The City of ... , 873 F.2d 1407 ( 1989 )
Strafach v. Durfee , 1993 R.I. LEXIS 277 ( 1993 )
Caswell v. George Sherman Sand & Gravel Co. , 1981 R.I. LEXIS 1021 ( 1981 )
Costa v. Registrar of Motor Vehicles , 1988 R.I. LEXIS 92 ( 1988 )
Jolicoeur Furniture Co., Inc. v. Baldelli , 1995 R.I. LEXIS 27 ( 1995 )