State v. Black Hills Power, Inc., a South Dakota corporation
354 P.3d 83
Wyo.2015Background
- A wildfire (Oil Creek Fire) near Newcastle, WY in 2012 burned ~61,000 acres and threatened ~9,857 acres of State-owned land; the State incurred ~$5,213,000 in suppression costs paid from the State Emergency Fire Suppression Account.
- Weston County requested State assistance under Wyo. Stat. §§ 36-1-401 to -404; the State Forester approved payment from the emergency account.
- Private landowners sued Black Hills Power (BHP) in federal court alleging BHP negligently caused the fire; the State intervened and sought recovery of suppression costs and damages to State property.
- BHP moved to dismiss the State’s claim for suppression-cost recovery, arguing Wyoming common law does not permit a governmental entity to recoup public-service costs absent statutory authorization.
- The Wyoming Supreme Court certified three questions: (1) whether the State can recover suppression/emergency costs from a negligent party generally; (2) whether recovery is allowed when State lands were among those protected; and (3) if so, whether recovery is limited (e.g., prorated by acres).
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| 1. May the State generally recover fire suppression/emergency service costs from a negligent party? | State contends it may recover costs it paid from the emergency account. | BHP argues no common‑law recovery exists; legislative authorization is required. | No — Wyoming adopts the free public services doctrine; absent statute, government may not generally recover such costs. |
| 2. Is there an exception when the State’s own lands were among those protected? | State argues exception applies when government incurs expenses to protect its own property. | BHP disputes that State designation of lands creates an automatic right to recovery and may argue obligations to the county required fighting the fire regardless. | Yes — exception recognized: government may recover reasonable expenditures made to protect its own property. |
| 3. If recovery for State‑land protection is allowed, is recovery limited as a matter of law (e.g., prorated by acreage)? | State seeks full recovery of costs attributable to protecting State lands. | BHP seeks limitation or apportionment (e.g., pro rata) and contests allocation and whether State actually incurred costs specifically to protect State property. | No fixed legal limitation; extent and apportionment are factual issues for the trier of fact. |
Key Cases Cited
- City of Flagstaff v. Atchison, Topeka & Santa Fe Ry. Co., 719 F.2d 322 (9th Cir. 1983) (articulates free public services doctrine barring recovery of public‑service costs absent statute)
- District of Columbia v. Air Florida, Inc., 750 F.2d 1077 (D.C. Cir. 1984) (refuses judicial reallocation of tax‑supported emergency costs; leaves policy to legislature)
- United States v. Denver & Rio Grande W. R.R. Co., 547 F.2d 1101 (10th Cir. 1977) (recognizes government can recover expenses to protect its own property)
- Chesapeake & Ohio Ry. Co. v. United States, 139 F.2d 632 (4th Cir. 1944) (expenditure to save property is recoverable as damages)
- City of Chicago v. Beretta U.S.A. Corp., 821 N.E.2d 1099 (Ill. 2004) (discusses municipal cost‑recovery rule)
- County of Erie v. Colgan Air, Inc., 711 F.3d 147 (2d Cir. 2013) (applies free public services reasoning to reject municipal recovery of emergency costs)
