Brown v. Division of Water Rights of Department of Natural Resources

THORNE, Associate Presiding Judge

(dissenting):

118 I respectfully dissent. Although I do not disagree with the majority's treatment of standing law as it applies to this case, I believe that the district court acted prematurely in determining a lack of standing at the motion to dismiss stage. Plaintiffs' complaint alleges an increased risk of substantial harm to their property as a result of MecIn-tyre's bridge, and in my opinion, that is all that is necessary to survive a motion to dismiss.

119 "'[Sitanding is a jurisdictional requirement that must be satisfied before a court may entertain a controversy between two parties." Jones v. Barlow, 2007 UT 20, ¶ 12, 154 P.3d 808 (alteration in original) (quoting Washington County Water Conservancy Dist. v. Morgan, 2003 UT 58, ¶ 6 n. 2,

82 P.3d 1125). However, even though standing is a prerequisite to a court hearing a matter, that does not always mean that standing can be easily resolved early in the proceedings. Indeed, standing issues may present questions of fact that need to be resolved through the ordinary adversarial process. Cf. Morgan, 2003 UT 58, ¶ 23, 82 P.3d 1125 ("Whether the Conservancy District advanced sufficient evidence to establish that its water rights would be enhanced by any forfeiture of the CPB's rights is a question of fact" (emphasis added)). In this case, both the degree and likelihood of harm alleged by Plaintiffs constitute such questions of fact.

T20 "'When determining whether a trial court properly granted a motion to dismiss, we accept the factual allegations in the complaint as true and consider them, and all reasonable inferences to be drawn from them, in the light most favorable to the non-moving party'" Coroles v. Sabey, 2003 UT App 339, ¶ 2 n. 1, 79 P.3d 974 (quoting Krouse v. Bower, 2001 UT 28, ¶ 2, 20 P.3d 895). Thus, the only question we should be considering on appeal is whether Plaintiffs' complaint alleges sufficient harm to confer standing, not whether that harm actually exists. I believe that the complaint clearly meets this requirement. The complaint alleges that Melntyre's bridge will cause "immediate and irreparable harm," "increase the risk of flooding in the surrounding areas," and "cause significant erosion and damage to the Plaintiffs and other property owners adjacent to the bridge" if that flooding occurs. Taking these allegations as true, there is no doubt in my mind that Plaintiffs have alleged individualized harm sufficient to confer standing in this matter.

*939{21 Of course, Plaintiffs still have to establish their alleged facts in order for the district court to ultimately have jurisdiction to consider their complaint. But, that is a matter for trial, or perhaps summary judgment.1 Cf. Utah Chapter of Sierra Club v. Utah Air Quality Bd., 2006 UT 74, ¶ 28 n. 3, 148 P.3d 960 (describing the procedures employed to determine standing in Morgan, 2003 UT 58, 82 P.3d 1125, including a trial at which both sides were permitted to present expert witnesses). It should not have been resolved against Plaintiffs upon a motion to dismiss. Counsel argued as much at the hearing on Mclntyre's motion:

[Blased on the allegations, Your Honor, at this point, we would respectfully urge that the plaintiffs ought to at least have an opportunity to flush in the facts. ' Mr. Mcluntyre ought to have the opportunity to get an engineering report and to see if there are disputes of the fact. And if so, then have a hearing on that issue. And then, Your Honor, then it would be ripe for this court to determine, are you an aggrieved party, or are you not an aggrieved party?

The procedure suggested by Plaintiffs' counsel would have provided an appropriate method of resolving the standing issue, although the trial court may have appropriately decided to proceed along another path.

{22 Meclntyre's bridge may or may not present the risk of harm alleged by Plaintiffs. However, Plaintiffs did allege that the bridge will increase the risk of significant damage to their property, and that is sufficient, in my opinion, to survive a motion to dismiss for lack of standing. In granting the motion, the district court improperly weighed the degree of risk alleged by Plaintiffs when it should have simply accepted the allegation of increased risk as true.2 In my opinion, this was error by the district court, and I would reverse the dismissal order and remand this matter for further proceedings. According ly, I respectfully dissent from the majority opinion.

. Arguably, the district court converted McIntyre's motion to dismiss into a motion for summary judgment by considering materials outside of the complaint. See, ég, Salmon v. Davis County, 916 P.2d 890, 897 (Utah 1996) (" '[L]a-bels do not control, [and] where the trial court, in effect, properly treats such a Rule 12(b)(6) motion as one for summary judgment but erroneously characterizes its action as a ruling on a motion to dismiss for failure to state a claim, the ruling will be reviewed as if it had been a ruling on a motion for summary judgment.'" (citation omitted)). The majority opinion does not address this aspect of the district court's decision, and I will not either. I do note, however, that if we were to treat this as a summary judgment I would still be inclined to reverse the district court based on Plaintiffs' request to be allowed to "flush in the facts." See, eg., Oakwood Vill. LLC v. Albertsons, Inc., 2004 UT 101, ¶ 12, 104 P.3d 1226 (stating that a motion to dismiss "shall be converted into one for summary judgment if 'matters outside the pleadings are presented to and not excluded by the court' and all parties receive 'reasonable opportunity to present all ma- - terial made pertinent to such a motion by Rule 56." (emphasis added) (quoting Utah R. Civ. P. 12(b))).

. To the extent that Plaintiffs' complaint lacks clarity as to the degree of risk that it is asserting, I believe that it is reasonable to infer that they are alleging a substantial risk sufficient to confer standing in this matter. Plaintiffs are entitled to such reasonable inferences when facing a motion to dismiss. See Coroles v. Sabey, 2003 UT App 339, ¶ 2 n. 1, 79 P.3d 974.