The Tavern, LLC, and SALL, LLC v. The Town of Alpine, Wyoming, and Nelson Engineering, a Wyoming Corporation, 395 P.3d 167

Background

The Tavern, LLC and SALL, LLC (Appellants) own an RV campground and tavern in Alpine, WY; their properties use septic systems and were not connected to Alpine’s municipal sewer.
Alpine, relying on Nelson Engineering, built a new wastewater treatment facility financed largely by State loans (roughly $3.8–4.1 million) and enacted ordinances assessing hookup/usage fees and requiring decommissioning of older septic systems.
Appellants sued (CV-2009-176) seeking: (1) declaratory judgment that Alpine’s loans exceeded constitutional/statutory debt limits; (2) injunctive relief to prevent forced hookups/decommissioning; (3) mandamus/de-annexation relief; and (4) inverse condemnation.
After Alpine’s counsel warned Appellants they would be reported to DEQ if suit continued, a Nelson engineer reported Appellants to DEQ, prompting Appellants to file a second suit (CV-2011-132) alleging abuse of process, civil extortion, and civil conspiracy against Alpine and Nelson; cases were consolidated.
The district court dismissed all claims against Alpine under Rule 12(b)(6) (finding lack of standing for declaratory relief, failure to plead irreparable harm for injunction, mandamus inapplicable, inverse condemnation insufficient, and tort claims barred by the Wyoming Governmental Claims Act) and granted Nelson summary judgment on the tort claims. Appellants appealed.

Issues

Issue	Plaintiff's Argument	Defendant's Argument	Held
Standing for declaratory judgment: may Appellants challenge Alpine’s loans as exceeding debt limits?	Appellants: ordinances, fees, and forced septic decommissioning will cause perceptible economic harm and property-value loss—sufficient to establish standing.	Alpine: Appellants lack concrete, redressable injury tied to the loan decisions; claim is speculative.	Reversed: Appellants pled a tangible, redressable interest under Brimmer; standing exists to pursue declaratory relief.
Injunctive relief to stop enforcement of hookup/assessment/decommissioning ordinances	Appellants: alleged irreparable harm (business nonviability, large decommissioning costs) and no adequate remedy at law.	Alpine: statutory authority to construct/operate sewer and charge rates; complaint fails to show irreparable harm.	Reversed: allegations legally sufficient to survive 12(b)(6); dismissal was improper.
Inverse condemnation claim	Appellants: (argued briefly) municipal actions amount to a taking.	Alpine: complaint fails to meet statutory and factual requirements for inverse condemnation.	Affirmed: Appellants failed to present cogent appellate argument; dismissal affirmed.
Tort claims (abuse of process, civil extortion, conspiracy) against Alpine and Nelson	Appellants: Alpine and Nelson maliciously used DEQ reporting and other acts to coerce compliance.	Alpine: tort claims barred by Wyoming Governmental Claims Act (WGCA). Nelson: summary judgment—no genuine factual dispute; conduct lawful reporting.	Mixed: Against Alpine—affirmed (WGCA bars claims); Against Nelson—affirmed (abuse of process fails as matter of law because reporting to DEQ is not a "legal process" misuse; conspiracy not argued on appeal).

Key Cases Cited

Elworthy v. First Tennessee Bank, 391 P.3d 1113 (Wyo. 2017) (standard for reviewing Rule 12(b)(6) dismissal de novo)
Carnahan v. Lewis, 273 P.3d 1065 (Wyo. 2012) (Brimmer test applied to declaratory judgment standing)
Brimmer v. Thomson, 521 P.2d 574 (Wyo. 1974) (formulation of declaratory-judgment justiciability factors)
Coulter v. City of Rawlins, 662 P.2d 888 (Wyo. 1983) (municipal authority to charge sewer rates and purposes of such rates)
Cosner v. Ridinger, 882 P.2d 1243 (Wyo. 1994) (elements of abuse of legal process)
Bosler v. Shuck, 714 P.2d 1231 (Wyo. 1986) (abuse of process as perversion of court power)
Thornock v. PacifiCorp, 379 P.3d 175 (Wyo. 2016) (summary-judgment standard and appellate review)