Cenergy-Glenmore Wind Farm 1, LLC v. Town of Glenmore
769 F.3d 485
7th Cir.2014Background
- 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- March 7, 2011: Board granted permits, then rescinded; later reversals still left permits not issued; WPS contract became unviable due to permit-delay; CEnergy sued claiming substantive due process and failure to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)
