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Cenergy-Glenmore Wind Farm 1, LLC v. Town of Glenmore
769 F.3d 485
7th Cir.
2014
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Background

  • CEnergy sought to develop a Glenmore wind farm after acquiring Prelude’s assets in Dec 2010; Glenmore granted a CUP but delayed building-permit decisions amid strong local opposition.
  • Prelude learned in Sept 2010 it needed a building permit for seven turbines; the Town Board refused to accept permit applications without more information.
  • CEnergy informed the Board in Dec 2010 that permits had to be approved by Mar 1, 2011 for the WPS power-purchase agreement to take effect; WPS later backed out.
  • Dec 2010–Mar 2011: Board delayed action, amid threats to officials and public opposition; CEnergy submitted information and CEnergy sales viability framing.
  • March 7, 2011: Board granted permits, then rescinded; later reversals still left permits not issued; WPS contract became unviable due to permit-delay; CEnergy sued claiming substantive due process and failure to deal in good faith.
  • District court dismissed CEnergy’s substantive due process claim and declined supplemental state-law claim; CEnergy appealed, asserting a property-rights and due-process theory under state land-use law.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether CEnergy states a substantive due process claim. CEnergy asserts Board delay was arbitrary and an egregious abuse of authority. Glenmore argues delay was rational—public opposition justifies timing; no state-remedy failure claimed. No; delay not arbitrary in the constitutional sense; claim fails.
Whether CEnergy failed to pursue state-law remedies required to support a due-process claim. CEnergy did not obtain mandamus or use zoning-ordinance process. State remedies were available and must be pursued; federal claims barred without them. No substantive due process claim given requirement to pursue state remedies.
Whether CEnergy had a cognizable property interest in the permits. CEnergy contends vested rights in CUP and permits. Building-permit decision could be discretionary; no guaranteed right. Court need not decide; independent grounds defeat claim.
Whether River Park-style approach directs that CEnergy sue in state court for land-use remedy. Labels aside, state-law remedy should be pursued. Courts defer to state processes; federal review limited. Yes; CEnergy should have pursued state remedies; federal action barred.

Key Cases Cited

  • River Park, Inc. v. City of Highland Park, 23 F.3d 164 (7th Cir. 1994) (state and local land-use decisions deserve deference; resort to state court favored)
  • Centres, Inc. v. Town of Brookfield, 148 F.3d 699 (7th Cir. 1998) (labels don’t matter; repair to state court for land-use disputes)
  • Polenz v. Parrott, 883 F.2d 551 (7th Cir. 1989) (state remedies required to support due-process challenge)
Read the full case

Case Details

Case Name: Cenergy-Glenmore Wind Farm 1, LLC v. Town of Glenmore
Court Name: Court of Appeals for the Seventh Circuit
Date Published: Aug 7, 2014
Citation: 769 F.3d 485
Docket Number: 13-2633
Court Abbreviation: 7th Cir.