268 P.3d 1131
Ariz. Ct. App.2011Background
- Freeport operates a copper mine in Graham County and plans a sulfur transload facility about 20 miles away.
- Facility will store, heat, and transfer molten sulfur to trucks for transport to the mine to produce sulfuric acid.
- Langley owns property adjacent to the proposed transload site.
- Freeport and Langley sue for declaratory relief under A.R.S. § 11-812; Langley also asserts nuisance and invasion claims.
- Trial court held the transload facility exempt from zoning and granted summary judgment on Langley’s remaining claims.
- Arizona Court of Appeals vacates and remands to dismiss after holding exhaustion of administrative remedies required before judicial review.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the mining exemption applies to the transload site under § 11-812(A)(2) | Langley contends exemption does not apply to Freeport's use. | Freeport argues the mining exemption applies to the land use. | Exemption applies; zoning requirements exempted. |
| Whether administrative exhaustion is required before suit | Langley asserts exhaustion doctrine required administrative remedies. | Freeport argues remedies were (or could be) exhausted. | Exhaustion required; case remanded for administrative proceedings. |
| Whether Langley’s nuisance and invasion claims may proceed without exhaustion | Langley asserts ongoing nuisance/invasion claims independent of administrative process. | Exhaustion bars these claims until remedies pursued. | Claims vacated pending exhaustion; return to status quo ante. |
| Whether Langley has standing to defend the declaratory action | Langley argues it has standing to defend. | Standing adjudication unnecessary if exhaustion controls. | Court declines to rule on standing. |
Key Cases Cited
- Minor v. Cochise Cnty., 125 Ariz. 170 (Ariz. 1980) (board of adjustment authority requires exhaustion when authorized by statute)
- Original Apartment Movers, Inc. v. Waddell, 179 Ariz. 419 (App. 1993) (administrative review governs when statute provides procedure)
- Sw. Soil Remediation, Inc. v. City of Tucson, 201 Ariz. 438 (App. 2001) (exhaustion applicable where administrative remedy exists)
- St. Mary's Hosp. & Health Ctr. v. State, 150 Ariz. 8 (App. 1986) (when claims are intertwined with exhaustion-requiring claims, proceed administratively)