875 N.W.2d 515
N.D.2016Background
- Black Gold operates a 322-room temporary workforce housing “man camp” (the Lodge) originally outside Williston; Williston annexed the land in Feb 2013 and required compliance with city codes.
- Williston required an operational fire sprinkler system by Dec 31, 2014; the City granted extensions and repeatedly notified Black Gold.
- The City Commission voted on Jan 13, 2015 to deny further extension and directed the camps to vacate by 2/15/2015; Black Gold sought reconsideration and appeared Feb 24, 2015 but the Commission (3–2) declined to reverse.
- Black Gold completed sprinkler installation and passed inspection in mid-February 2015, then filed suit (declaratory/jurisdictional/due process) and sought a TRO and preliminary injunction to prevent closure and removal of the Lodge.
- The district court initially issued a TRO, then vacated it and denied a preliminary injunction; Black Gold sought review in the ND Supreme Court via supervisory writ, which the Court denied.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether district court’s denial of preliminary injunction was appealable / warranting supervisory relief | Black Gold sought immediate interim relief to prevent closure during litigation | Williston argued order dissolving TRO is appealable but merits should be reviewed in district court; supervisory relief not warranted | Court treated appeal as supervisory petition and declined relief — no abuse of discretion by district court |
| Whether municipal legislative decision (deny permit extension) can be enjoined as arbitrary/capricious | Black Gold: denial was irrational because sprinklers were installed and delay was short | Williston: decision was a legislative zoning choice within city authority; injunction against legislative act is disfavored | Court: decision implicated the wisdom/propriety of a legislative act; statutory appeal/exhaustion is the adequate remedy; injunction inappropriate |
| Whether Due Process required disqualification of Commissioner Cymbaluk for alleged pecuniary interest | Black Gold: Cymbaluk had a financial incentive as a real estate broker, creating bias or appearance of bias | Williston: Cymbaluk swore he had no direct/substantial interest; AG opinion and statute require direct & substantial pecuniary/personal interest to disqualify | Court: plaintiff’s conclusory allegations insufficient; no evidence of direct/substantial interest; no due process violation shown |
| Whether City violated its zoning enforcement procedures (building official sole enforcer; notice and 3-day cure) so as to act beyond authority | Black Gold: City ignored ordinance procedures and usurped building official’s enforcement power | Williston: action was legislative (refusing permit extension), not enforcement of code; city within authority | Court: City’s vote was legislative, not enforcement; Black Gold failed to show City acted beyond its legislative authority |
Key Cases Cited
- Medical Arts Clinic, P.C. v. Franciscan Initiatives, Inc., 531 N.W.2d 289 (N.D. 1995) (injunctive relief against public officials is narrowly limited; exhaustion of administrative remedies important)
- Vorachek v. Citizens State Bank, 461 N.W.2d 580 (N.D. 1990) (preliminary injunctions are extraordinary and require clear showing)
- Eberts v. Billings County Bd. of Comm’rs, 695 N.W.2d 691 (N.D. 2005) (factors and deference in preliminary injunction review)
- Braunagel v. City of Devils Lake, 629 N.W.2d 567 (N.D. 2001) (distinguishing ordinance validity challenges from challenges to a municipality’s legislative decision)
- Olson v. Cass County, 253 N.W.2d 179 (N.D. 1977) (statutory appellate/administrative remedies preclude collateral injunctive attacks on governmental decisions)