Kiely Construction, L.L.C. v. City of Red Lodge Ex Rel. Red Lodge City CouncilKiely Construction, L.L.C. v. City of Red Lodge Ex Rel. Red Lodge City Council
Lead Opinion
delivered the Opinion of the Court.
¶1 This appeal arises from decisions by the Red Lodge City Council and rulings by the Twenty-Second Judicial District Court concerning an application for a subdivision, its conditioned approval, and ultimate denial, as well as from special and advisory jury verdicts. We affirm in part and reverse in part.
¶2 After receiving a preliminary plat application for a proposed subdivision from Kiely Construction (Kiely), the Carbon County Planning Board recommended approval of the proposed subdivision, subject to eighteen conditions, to the City of Red Lodge (Red Lodge). Red Lodge received the application in the Summer of 1996, but failed to act upon it within sixty days. Kiely obtained a Writ of Mandamus in August of 1997, compelling Red Lodge to act upon the application, and Red Lodge conditionally approved Kieiys application, subject to twenty-six conditions. On October 14, 1997, Kiely filed a complaint, alleging that Red Lodge failed to act within the mandatory sixty-day time frame, that imposition of some conditions were an abuse of discretion, and that its due process rights were violated.
¶3 Following mediation in the Fall of 1998, the parties negotiated a subdivision improvements agreement, which Red Lodge conditionally accepted, but Kiely then rejected. On March 20, 1999, the District Court entered partial summary judgment, ordering Red Lodge to review and “approve, conditionally approve or deny,” Kiely’s application within thirty days. Following a public hearing, Red Lodge City Council unanimously denied Kiely’s application without written findings. Kiely then filed an amended complaint, alleging constitutional violations and requesting damages and approval of its application. Prior to trial, the District Court entered partial summary judgment, dismissing Kiely’s claims against the individually named defendants.
¶4 At trial, Kiely sought damages for the alleged arbitrary or capricious denial of its application. The jury’s special verdict awarded Kiely $292,170.00 in damages for Red Lodge’s arbitrary and capricious actions pursuant to state law, and also found for Kiely on its constitutional claims under
1. Whether the District Court erred in submitting Kiely’s
2. Whether the District Court erred in awarding Kiely attorney’s fees pursuant to
3. Whether the District Court abused its discretion when instructing the jury on Kiely’s state law claims;
4. What relief Kiely is entitled to under its state law claims;
5. Whether the District Court erred in dismissing the individual defendants by order of summary judgment;
6. Whether the District Court abused its discretion regarding admission of evidence; and
7. Whether the District Court erred by not modifying the damage award.
FACTUAL AND PROCEDURAL BACKGROUND
¶6 In the Spring of 1996, Kiely initiated the approval process for its proposed subdivision, referred to as Kiely Island at Rock Creek, and located within the City of Red Lodge, Carbon County, Montana. On May 16, 1996, Kiely submitted a preliminary subdivision plat application to the Carbon County Planning Board, because at the time, Red Lodge did not have a city planning board in place. Following a public hearing on June 18, 1996, the County Planning Board recommended approval of the proposed subdivision to the City of Red Lodge, subject to eighteen conditions. The recommendation was transmitted to the Red Lodge City Council (City Council) on July 2, 1996. Although
¶7 On August 26,1997, upon Kiely’s request, the Thirteenth Judicial District Court
¶8 On October 14,1997, Kiely commenced this action appealing the twenty-six final conditions adopted by Red Lodge on September 10, 1997. Kiely brought the action under §§ 76-3-625(1) and (2), MCA, and
¶9 In a motion for partial summary judgment filed on August 18, 1998, Kiely requested the District Court deem its preliminary plat application approved, subject to the original eighteen conditions recommended by the County Planning Board, because Red Lodge failed to act within the mandatory sixty days.
¶10 The parties commenced mediation in the Fall of 1998. Following negotiations on September 14, 1998, the parties entered into a subdivision improvements agreement (SLA), which Red Lodge conditionally accepted
¶11 On March 20, 1999, the District Court entered partial summary judgment, finding that as a matter of law, Red Lodge violated
¶12 Following a public hearing on April 15, 1999, the City Council unanimously denied Kiely’s preliminary plat application. However, it failed to provide Kiely with either written findings as required by
¶13 In May of2000, Red Lodge filed a motion for summary judgment, alleging the acts by Red Lodge and the City Council were legislative acts, thus qualifying Red Lodge and the City Council for statutory immunity under
¶14 On July 3, 2000, the District Court entered an order, denying Kiely’s motion for partial summary judgment and denying summary judgment as to Red Lodge. However, the court granted summary judgment as to the individually named members of the City Council, pursuant to
¶15 Prior to trial, the court and the parties agreed that Kiely’s appeal from Red Lodge’s denial of its application, under
¶16 Following the trial, the jury found Red Lodge acted arbitrarily or capriciously and awarded Kiely $292,170.00 in damages pursuant to
¶17 Following the verdict, Kiely petitioned the court for attorney's fees and costs pursuant to
¶18 On August 25, 2000, the District Court held a hearing to determine if Kiely was entitled to attorney’s fees and whether Kiely was entitled to relief under
¶19 Red Lodge appeals the jury instructions and special verdict form, several of the court’s evidentiary rulings, the court’s remedy requiring Red Lodge to approve the application subject to the eighteen conditions, the calculation of damages, and the attorney’s fees award. Kiely cross-appeals the District Court’s entry of two partial summary judgments, one of which allegedly eliminated conditional approval of Kiely’s application, and the other which dismissed the individual City Council members.
STANDARDS OF REVIEW
¶20 This Opinion addresses multiple and diverse issues, and therefore, each standard of review will be set forth immediately preceding discussion of the issue at hand.
DISCUSSION
Issue 1
¶21 Did the District Court err in submitting Kiely’s
¶22 Kiely brought claims against Red Lodge under
¶23 In order to state a viable
¶24 While the Due Process Clause provides protection for certain property or liberty interests, property interests themselves are not created by the Constitution; “they are created and their dimensions are defined by existing rules or understandings that stem from an independent source, such as state law.” Roth,
¶25 Whether one has a protected property interest is determined as a matter of law. See Doran v. Houle (9th Cir. 1983),
¶26 Kiely claimed two sources for its “protected property interests,” asserting that (a) a governing body may not unreasonably restrict Kiely’s right to use its property, relying on
¶27 When a plaintiff looks to state law to provide a basis for a property interest, “[a] reasonable expectation of entitlement is determined largely by the language of the statute and the extent to which the entitlement is couched in mandatory terms.” Wedges,
¶28 The Fourth Circuit has concluded that any significant discretion conferred upon a local agency defeats a claim of entitlement. Gardner,
¶29 “When analyzing whether a plaintiff presents a legitimate claim of entitlement, we focus on the degree of discretion given the decisionmaker and not on the probability of the decision’s favorable outcome.” Jacobs, Visconsi & Jacobs v. City of Lawrence (10th Cir. 1991),
¶30 Applying these principles, we must determine what, if any, property interest Kiely might have possessed to sustain its § 1983 claims. The two statutes Kiely relied on for this right were §§ 76-3-608(5)(a) and 76-3-611(1), MCA.
¶31 Does
¶32
(1) The basis for the governing body’s decision to approve, conditionally approve, or disapprove a subdivision is whether the preliminary plat, applicable environmental assessment, public hearing, planning board recommendations, or additional information demonstrates that development of the subdivision meets the requirements of this chapter. ...
(2) The governing body shall issue written findings of fact that weigh the criteria in subsection (3), as applicable.
(4) The governing body may require the subdivider to design the subdivision to reasonably minimize potentially significant adverse impacts identified through the review required under subsection (3). The governing body shall issue written findings to justify the reasonable mitigation required under this subsection (4).
(5) (a) In reviewing a subdivision under subsection (3) and when requiring mitigation under subsection (4), a governing body may not unreasonably restrict a landowner’s ability to develop land, but it is recognized that in some instances the unmitigated impacts of a proposed development may be unacceptable and will preclude approval of the plat.
... [Emphasis added.]
¶33 Subsection (5)(a), upon which Kiely relied for its vested property right, directs the government to not act “unreasonably.” Such a broad and subjective standard implicitly vests a substantial level of discretion in the governing body. See Jacobson v. Hannifin (9th Cir. 1980),
¶34 No provision of
¶35 Does Montana’s Subdivision and Platting Act, specifically §§ 76-3-610 and 76-3-611, MCA, establish a constitutionally protected property interest?
¶36 The remaining statutory provisions relied on by Kiely for its claimed protected property interest provide:
76-3-610. Effect of approval of preliminary plat
(1) Upon approving or conditionally approving a preliminary plat, the governing body shall provide the subdivider with adated and signed statement of approval. This approval shall be in force for not more than 3 calendar years or less than 1 calendar year. At the end of this period the governing body may, at the request of the subdivider, extend its approval for no more than 1 calendar year, except that the governing body may extend its approval for a period of more than 1 year if that approval period is included as a specific condition of a written agreement between the governing body and the subdivider, according to 76-3-507.
(2) After the preliminary plat is approved, the governing body and its subdivisions may not impose any additional conditions as a prerequisite to final plat approval providing said approval is obtained within the original or extended approval period as provided in subsection (l).2 [Emphasis added.]
76-3-611. Review of final plat
(1) The governing body shall examine each final subdivision plat and shall approve the plat only if:
(a) it conforms to the conditions of approval set forth on the preliminary plat and to the terms of this chapter and regulations adopted pursuant to this chapter; and
(b) the county treasurer has certified that all real property taxes and special assessments assessed and levied on the land to be subdivided have been paid.
.... [Emphasis added.]
¶37 Red Lodge had the discretionary power to reject/accept the recommendations of the County Planning Board, as the jurisdiction for ultimate approval of the proposed subdivision rested with Red Lodge. “When the proposed subdivision lies within the boundaries of an incorporated city or town, the preliminary plat must be submitted to and approved by the city or town governing body.”
¶38 Significantly, although Kiely argues it is entitled to final plat approval, Kiely never submitted a final plat for approval. Kiely received a conditioned approval on September 10, 1997 (with twenty-six conditions), and then following the court’s order on summary judgment, Kiely’s preliminary plat application was denied entirely on April 15, 1999. At no time did Red Lodge consider a final plat application from Kiely.
¶39 The county/city local subdivision regulations require that to obtain final approval, a final plat must be submitted to the subdivision administrator before the expiration of the preliminary plat approval period. See 1995 Subdivision Regulations, § II-C-1, Final Plat Submittal. Moreover,
¶40 Under
¶41 According to
The governing body shall examine each final subdivision plat and shall approve the plat only if: (a) it conforms to the conditions of approval set forth on the preliminary plat and to the terms of this chapter and regulations adopted pursuant to this chapter; and (b) the county treasurer has certified that all real property taxes ... have been paid.” [Emphasis added.]
Although
¶42 In the situation here, Kiely did not fulfill all the conditions of preliminary approval. Kiely admits in its opening brief that: “Kiely was prepared to meet a majority of conditions,” and then asserts: “[u]pon meeting the valid conditions, Kiely had a vested right to final plat approval,” citing
¶43 Kiely relies on Bateson v. Geisse (9th Cir. 1988),
¶44 Kiely’s reliance on Bateson is misplaced. There, the plaintiff had met all the requirements necessary for the city to issue him a building permit, whereas in the instant case, Kiely had not met the conditions for final approval (i.e., had yet to apply for final approval and had not met all the conditions from the preliminary plat approval in September of 1997). Furthermore, the regulations at issue in Bateson did not allow the city to review a building permit issuance, whereas here, the City Council was specifically required to review and approve preliminary and final plat applications.
¶45 Thus, we conclude Kiely did not have a protected property interest at the preliminary approval stage of his plat application process. Arguably, Kiely could have established a property interest upon application for final approval, if it either met all twenty-six conditions or, once it was established which of the twenty-six conditions were based on the 1997 Development Code, that it had met those remaining lawful conditions, and paid the necessary taxes.
¶46 The problem is that the record before us does not clearly establish which of the twenty-six conditions Kiely complied with and which it did not. Nor does the record even establish compliance with the original eighteen conditions. Although in briefs to the District Court on pre-trial motions, Kiely questioned the legality of some of the twenty-six conditions, the record before us does not clearly demonstrate which conditions were “unlawful,” or impossible to satisfy according
¶47 For Kiely to establish a legitimate entitlement to, or protected property interest in, final approval of its preliminary application, it would have had to either demonstrate it complied with all the conditions imposed upon its preliminary plat, or at a minimum, that it had met all the “lawful” conditions. However, Kiely never reached this point in the application process, and therefore could not present evidence demonstrating the level of compliance required to establish a protected property interest in his plat application. In the absence of a demonstrated protected property interest, Kiely’s § 1983 claims cannot stand. Accordingly, we conclude the District Court erred in submitting Kiely’s § 1983 claims to the jury, and we vacate that portion of the jury’s special verdict and decision of the court which premised Red Lodge’s liability on
Issue 2
¶48 In light of our dismissal of its
¶49 Pursuant to
In any action or proceeding to enforce a provision of sections 1981,1981a, 1982,1983,1985, and 1986 of this title,... the court, in its discretion, may allow the prevailing party, other than the United States, a reasonable attorney’s fee as part of the costs, except that in any action brought against a judicial officer for an act or omission taken in such officer’s judicial capacity such officer shall not be held hable for any costs, including attorney’s fees, unless such action was clearly in excess of such officer’s jurisdiction.
¶50 Although the power to award attorney’s fees under
¶51 In a case where the plaintiff prevailed on his state law claims (assault, battery, and negligence) against arresting officers who allegedly used unnecessary force, but had his
¶52 In response to the assertion that the “de minimis” $1.00 award on its
¶53 Because we have vacated Kiely’s
Issue 3
¶54 Did the District Court abuse its discretion when instructing the jury on Kiely’s state law claims?
¶55 Red Lodge challenges the trial court’s special verdict form and several of the jury instructions. Although a portion of the special verdict form and some of the jury instructions questioned by Red Lodge involve Kiely’s
¶56 Red Lodge contends that the special verdict form essentially directed the jury to find for Kiely in this case, arguing that the interrogatories were unduly confusing and presented the issues of fact in a biased manner.
¶57 The use of a special verdict form is left to the discretion of the trial court. Rule 49(a), M.R.Civ.P. A district court’s decision to use a special verdict form is reviewed for an abuse of discretion. Barthule v. Karman (1994),
(1) whether, when read as a whole and in conjunction with the general charge, the interrogatories adequately presented the contested issues to the jury;
(2) whether the submission of the issues to the jury was fair; and
(3) whether the ultimate questions of fact were clearly submitted to the jury.
Baldauf, ¶ 49 (citation omitted).
¶58 With respect to Kiely’s state law claims, the special verdict form instructed the jury to check either “yes” or “no” to the following interrogatories:
1. Did the City of Red Lodge, acting through the Red Lodge City Council (the “City”), act arbitrarily or capriciously when it did not, within the required 60 day period, approve, approve with conditions or deny the Application for Preliminary Plat Approval for the “Island at Rock Creek” Subdivision (the “Application”) that was filed with the Carbon County Planning Board (“Planning Board”) on May 28,1996, by Kiely Construction, L.L.C. and which was forwarded by the Planning Board to the City on July 2,1996, with a recommendation by the Planning Board to approve the Application subject to 18 conditions?
2. Did the City act arbitrarily or capriciously when, on September 10,1997, using the wrong regulations, it approved the Application subject to 26 conditions, a number of which were unlawful and void?
3. Did the City act arbitrarily or capriciously when, on January 12, 1999, it unanimously voted to approve a Subdivision Improvements Agreement subject to seven additional conditions?
4. Did the City act arbitrarily or capriciously when, on April 15,1999, it unanimously voted to deny the Application and failed to issue written findings explaining the denial?
¶59 We conclude that Kiely’s state law claims were adequately presented to the jury. Kiely alleged four distinct instances in which Red Lodge’s final action or decision (or delay in making a decision) was “arbitrary or capricious.” In order to recover upon its state law claims under
¶60 The interrogatories incorporated facts gleaned from prior District Court rulings and unrefuted evidence presented at the trial. We conclude that the special verdict form presented the issues fairly and also submitted the ultimate questions of fact clearly. Accordingly, we conclude the special verdict form was not confusing, nor did it present the plaintiffs theories in a biased manner. We therefore hold the District Court did not abuse its discretion in using this form.
¶61 Red Lodge also claims the District Court abused its discretion when it gave certain instructions to the jury, arguing that several of the instructions pertaining to Kiely’s state law claims were either duplicative or unduly emphasized Kiely’s theories in the case.
¶62 A district court has discretion regarding the instructions it gives or refuses to give to a jury and we will not reverse a district court on the basis of its instructions absent an abuse of discretion. McAlpine v. Rhone Poulenc Ag. Co.,
¶63 After considering the instructions in their entirety and in connection with the evidence introduced at trial, we conclude that Red Lodge failed to demonstrate it was prejudiced by the jury instructions, or that any of the instructions were duplicative. Rather, the trial court’s jury instructions on Kiely’s state law claims properly stated the applicable law of the case. We therefore conclude the District Court did not abuse its discretion in instructing the jury.
Issue 4
¶64 What relief is Kiely entitled, to under its state law claims?
¶65 In addition to its
¶66 In addition to its action for damages pursuant to
¶67 Following the trial, and after considering the jury’s advisory verdict, the District Court entered its Findings of Fact, Conclusions of Law and Order, pursuant to subsection (2) of76-3-625, MCA. The court
¶68 Red Lodge contends this order was an unconstitutional violation of the doctrine of separation of powers, arguing that under the Montana Subdivision and Platting Act, the governing body (city, town, county) had “the sole discretion to approve, conditionally approve or deny a proposed application.” Kiely counters that the Act does not limit, the District Court’s statutory powers on appeal, and that the court properly determined that Red Lodge acted arbitrarily, capriciously, and unlawfully. Also related to this issue is Kiely’s contention on cross-appeal that the District Court’s partial summary judgment on March 20,1999, effectively abrogated the prior conditional approval of Kiely’s preliminary plat.
¶69 When we review a district court’s conclusions of law, our standard of review is plenary and we must determine whether the court’s conclusions are correct as a matter of law. Hampton v. Lewis and Clark County,
¶70 First, we cannot conclude that the District Court’s determination that Red Lodge acted arbitrarily, capriciously, and unlawfully in denying Kiely’s preliminary plat application on April 15,1999, was in error. In its Memorandum, the District Court noted that its “conscience was shocked by the City Council’s disregard for the laws of our state.” We conclude the District Court’s Findings of Fact and Conclusions of Law were based on substantial and credible evidence, as well as the advisory verdict from the jury, and therefore conclude the court did not err in determining Red Lodge acted arbitrarily, capriciously, and unlawfully.
¶71
[a] party ... who is aggrieved by a decision of the governing body to approve, conditionally approve, or disapprove a proposed preliminary plat or final subdivision plat may, within 30 days after the decision, appeal to the district court in the county in which the property involved is located. The petition must specify the grounds upon which the appeal is made.
¶72 The legislative history behind
¶73 However, a statutory right of appeal “is not rendered nugatory because the statute does not specifically prescribe rules to guide the district court in trying such an appeal.” Heldenbrand v. Montana St. Bd. of Reg. for P.E. & L.S. (1966),
¶74 Although Heldenbrand dealt with an appeal of an administrative agency decision, in light of our holding in Madison River, where we applied the same standard of review (arbitrary, capricious, or unlawful) to legislative decisions as to those of administrative agencies, we conclude the rationale behind the analysis for fashioning the proper scope of judicial review in Heldenbrand likewise applies in the instant case. As we noted in Heldenbrand,
[t]he relief to be granted, or the disposition to be made of the appeal, must depend on the facts and circumstances of each case as it comes before the district judge. Corrective machinery, by its nature, must be given flexible limits, within of course the constitutional and statutory framework, that adequate and proper dispositions of each case may result.
Heldenbrand,
¶75 We conclude
¶76 We conclude the District Court’s remedy in this case-ordering conditional approval of Kiely’s preliminary plat application subject to the original eighteen conditions recommended by the County Planning Board-was a proper remedy, and an appropriate response to the unique factual situation with which the court was presented. In fashioning this remedy, the court noted that “the evidence was clear that [Kiely] was entitled to the approval,” and recognized that, “[i]n view of the City Council’s disregard of the laws of our state in acting upon [Kiely’s] [preliminary plat] application, there is no reason to expect that it would follow those laws if the court were to ... remand the matter, back to the City Council.” We cannot fault the District Court’s logic.
¶77 Accordingly, we affirm the District Court’s ruling which ordered Red Lodge to (a) vacate its April 15,1999 denial of Kiely’s
Issue 5
¶78 Did the District Court err in dismissing the individual defendants by order of summary judgment on the basis of
¶79 We review appeals from summary judgment rulings de novo. Sleath v. West Mont Home Health Services,
¶80 Kiely argues on cross-appeal that immunity does not attach to the individual defendants (i.e., Red Lodge City Council members) under
¶81 In its July 3, 2000 Memorandum and Order, the District Court declined to determine, under
¶82 First, we reject Red Lodge’s argument that the actions by the City Council were legislative and therefore subject to immunity protection. We conclude the council's acts were administrative, and not legislative, and therefore afford neither Red Lodge nor the council members immunity under
¶83 Although we held in W.D. Construction that the members of a Board of County Commissioners were immune from suit for damages arising from allegations that they failed to require compliance with subdivision regulations prior to a final plat approval, Red Lodge’s reliance on W.D. Construction is misplaced, because that case was decided prior to the amendments to
AN ACT CLARIFYING THAT STATUTORY LEGISLATIVE IMMUNITY EXTENDS ONLY TO LEGISLATIVE BODIES OF GOVERNMENTAL ENTITIES AND ONLY TO LEGISLATIVE ACTIONS TAKEN BY THOSE BODIES; CLARIFYING THAT GOVERNMENTAL ENTITIES ARE NOT IMMUNE UNDER THE LEGISLATIVE IMMUNITY STATUTE FOR NONLEGISLATIVE ACTIONS....
Dagel,
¶84 A legislative act is an action by a legislative body which results in creation of law or declaration of public policy.
¶85 Although approving or denying plat applications are official duties of the City Council, such actions do not “result in the creation of law or declaration of public policy,” but rather are the execution of the policies as set forth in the Montana Subdivision and Platting Act. We conclude the actions by Red Lodge and its City Council, which gave rise to this action, were administrative acts, and accordingly conclude neither the governmental entity nor any member acting for the entity are immune from suit for the actions alleged in Kiely’s complaint. However, this conclusion is not dispositive of the issue before us. We must now determine if the District Court’s dismissal of the individual council members pursuant to
¶86 The District Court relied on
Recovery against a governmental entity under the provisions of parts 1 through 3 of this chapter constitutes a complete bar to any action or recovery of damages by the claimant, by reason of the same subject matter, against the employee whose negligence or wrongful act, error, or omission or other actionable conduct gave rise to the claim. In any such action against a governmental entity, the employee whose conduct gave rise to the suit is immune from liability by reasons of the same subj ect matter if the governmental entity acknowledges or is bound by a judicial determination that the conduct upon which the claim is brought arises out of the course and scope of the employee’s employment, unless the claim constitutes an exclusion provided in (b) through (d) of subsection (6).
¶87 We have had occasion to interpret and apply this statute. In Story v. City of Bozeman (1993),
¶88 All the counts alleged in Kiely’s complaint and amended complaint turn on actions performed by the individually named defendants, while serving as members of the City Council. The council members’ actions served as the factual basis for Kiely’s claims for damages under
¶89 Kiely argues the individual defendants cannot immunize themselves (i.e., acknowledge their conduct was within the scope of employment) without creating a conflict of interest. However, we conclude the first sentence of
¶90 Although the District Court employed a slightly different analysis of
Issue 6
¶91 Did the District Court abuse its discretion regarding admission of evidence?
¶92 Our standard of review of a district court’s evidentiary rulings is abuse of discretion. Finstad v. W.R. Grace & Co.,
¶93 Red Lodge argues the District Court erred by refusing to admit certain documents and testimony that demonstrated the reasons the City Council denied Kiely’s application (i.e., minutes of April 15,1999 meeting, and certain testimony of council members). Red Lodge also argues the court erred in admitting evidence of settlement negotiations and the resulting SIA, and in excluding evidence that Kiely’s proposed subdivision did not meet the zoning requirements under the 1995 Subdivision Regulations. Finally, Red Lodge contends it was reasonable for it to believe the ruling in Town Pump, Inc. v. Board of Adjustment,
¶94 First, Red Lodge asserts the testimony regarding settlement negotiations and the resulting SIA were inadmissible under Rule 408, M.R.Evid. The District Court held that it was not precluded from admitting evidence of the settlement negotiations because under
¶95 Rule 408, M.R.Evid., is not a complete bar on evidence concerning offers of compromise. Rather, Rule 408, M.R.Evid., excludes only evidence that is being offered to prove liability or the validity of a claim or amount. The rule specifically “does not require exclusion when the evidence is offered for another purpose ....” Rule 408, M.R.Evid. The testimony concerning settlement negotiations and the resulting SIA were not offered to prove liability or the validity of Kiely5s claim, nor to prove the matter had been settled (i.e., to enforce the SIA). Rather, Kiely offered the evidence to demonstrate the arbitrary and capricious nature of the decision of Red
¶96 Second, we conclude the District Court did not abuse its discretion when it excluded the minutes of the April 15, 1999 City Council meeting, as well as testimony from individual council members, as offered by Red Lodge to explain the individual member’s reasons for the denial. The record is clear that Red Lodge violated
¶97 Norwerethe after-the-fact opinions ofindividual council members as to the reasons for the denial relevant. In an analogous situation, courts will not consider post-enactment statements of legislators because they are not part of the legislative history and accordingly, not part of the record. See Slaven v. BP America, Inc. (9th Cir. 1992),
¶98 Third, we conclude the trial court did not abuse its discretion when it excluded evidence concerning zoning requirements. The trial court properly concluded that evidence dealing with zoning was not relevant to the issue of whether Red Lodge acted arbitrarily or capriciously when it acted on Kiely’s preliminary plat applications under the Subdivision and Platting Act.
¶99 Red Lodge also challenges the District Court’s partial summary judgment ruling which concluded that the 1997 Development Code (which presumably addressed zoning issues) could not be applied retroactively. The District Court rejected Red Lodge’s argument that our decision in Town Pump allowed Red Lodge to apply the 1997 Development Code to Kiely’s preliminary plat application. We review a district court’s interpretation of law to determine if it is correct. Steinback, ¶ 11.
¶100 Although Town Pump addressed issues similar to those presented here, this case is readily distinguishable on its facts. Here, an explicit provision of the Subdivision and Platting Act provided that “[r]eview and approval or disapproval of a subdivision ... may occur only under those regulations in effect at the time an application for approval of a preliminary plat... is submitted to the governing body.”
Issue 7
¶101 Did the District Court err by not modifying the damage award?
¶102 The standard of review when reviewing an award of damages is whether the trial court abused its discretion. Sletteland, v. Roberts,
¶103 Red Lodge argues that the trial court’s order directing it to approve the preliminary application subject to the eighteen conditions eliminates the basis for much of the damage award, since the damages included amounts for property devaluation, future losses, and for costs associated with the project. Kiely contends the damages are not duplicative nor should they be extinguished upon the conditional approval of its application, arguing that “whether or not the subdivision was approved, Kiely experienced a loss.” On appeal, Kiely asks this Court to affirm both the jury’s damage award and the conditioned approval granted by the District Court.
¶104 During trial, Kiely presented evidence from a certified valuation analyst, who testified to several types of damages suffered by Kiely. He testified that due to the delay in Red Lodge’s decision making, Kiely suffered damages in the form of lost investment value of funds between October 1996 (when County Planning Board first approved Kiely’s application) and the trial. In addition, Kiely asserted that Red Lodge’s delayed decision-making also resulted in devaluation of the property due to a decline in the real estate market between the years of 1996 and 1999. The valuation analyst testified that the lost investment value of funds and devaluation of property damages would have been suffered regardless of the ultimate denial of application. Kiely also presented several receipts for expenditures that included both start-up costs associated with the project and costs stemming from the continued application process with the city. While Kiely claimed $179,000 in such costs, the jury awarded only $15,000. Finally, Kiely also asserted that it suffered “Lost Future Investment Value,” arguing that Red Lodge’s delay in decision-making also caused an additional two-year increase in the development time due to issues with implementing the sewer system. While the valuation analyst agreed that the Lost Future Investment Value may be somewhat affected by what relief Kiely was granted (i.e., conditioned approval), he stated Kiely would still have a loss because the development could have been done earlier if it had been properly approved. Kiely asserted its Lost Future Investment Value to be $116,000; however, the jury awarded the sum of $97,170 for this element of damage.
¶105 Although the District Court did not address the issue of damages modification, we conclude that the testimony and evidence presented at trial support the conclusion that the conditioned approval of Kiely’s application should not eliminate or reduce the jury’s award of damages to Kiely. Moreover, the District Court was fully aware of the potential dilemma presented by Kiely’s request for the two remedies under
¶106 The District Court, having heard all the evidence and the jury’s verdict on damages, was cognitive of the possible overlap between the remedies, and was therefore in the best position to determine if the damages were excessive or duplicative. See Maddux v. Bunch (1990),
¶107 We summarize our holdings as follows:
(1) We dismiss Kiely’s§ 1983 claims and accordingly, vacate its§ 1988 attorney’s fees award;
(2) We affirm the District Court’s instructions to the jury and the special verdict form;
(3) We affirm the District Court’s order which vacated Red Lodge’s denial of Kiely’s preliminary plat application and directed the city to approve Kiely’s preliminary plat application subject to the eighteen original conditions, with the three year approval period commencing as of the date of this Opinion;
(4) We affirm the District Court’s partial summary judgment order dismissing the individual council members from this action;
(5) We affirm the District Court’s evidentiary rulings;
(6) We affirm the District Court’s ruling on summary judgment that Red Lodge was not entitled to retroactively apply the 1997 Development Code; and
(7) We affirm the award of damages.
Kiely now possesses preliminary plat approval, conditioned on the original eighteen provisions recommended by the County Planning Board, and may, if it chooses, proceed to apply for final plat approval according to
¶108 Affirmed in part and reversed in part.
Notes
Although this case originated in the Thirteenth Judicial District, in early 2000, it was transferred to the newly created Twenty-Second Judicial District. See 1999 Mont. Laws Ch. 454, Sec. 1 (Act creating the 22nd Judicial District).
This identical provision also appears in the 1995 Subdivision Regulations. See § II-B-5, Preliminary Plat Approval Period.
Concurrence Opinion
specially concurring.
¶109 I concur with the Court’s dismissal of Kiely’s
¶110 The Court relies on Jacobson v. Hannifin (9th Cir. 1980),
fill Jacobson involved the denial of a gaming license by the Nevada Gaming Commission. The Nevada statute governing the commission granted “full and absolute power and authority to deny any application for any cause deemed reasonable” to the commission.
¶112 Although the Court describes
[A] governing body may not unreasonably restrict a landowner’s ability to develop land, but it is recognized that in some instances the unmitigated impacts of a proposed development may be unacceptable and will preclude approval of the plat.
¶113 Nonetheless, I do find sufficient discretion within the statute to defeat a claim of entitlement for purposes of a
¶114 The court in Wallace v. Robinson (7th Cir. 1991),
Does this [statutory] language create a “legitimate claim of entitlement”? If not, there is no constitutional liberty or property. [Citations omitted.] A “legitimate claim of entitlement” means more than an abstract desire. It is instead an entitlement contingent on facts, something you hold unless prescribed conditions of its defeasance can be established. [Citations omitted.] Something “securely and durably yours ... as distinct from what you hold subject to so many conditions as to make your interest meager, transitory, or uncertain”. [Citations omitted.] How securely? Your entitlement must be “legally enforceable” [citations omitted]. Or, in the formulation of [Kentucky Department of Corrections v. Thompson (1989),490 U.S. 454 ,109 S.Ct. 1904 ,104 L.Ed.2d 506 ] there must be “ ‘explicitly mandatory language,’ in- connection with the establishment of ‘specified substantive predicates’ to limit discretion.”
Wallace,
¶115 On all other issues, I also concur.
Concurrence Opinion
concurring and dissenting.
¶116 I concur with the majority’s resolution of issues numbered one through six. I dissent from the majority’s resolution of issue seven. I would vacate the damage award and remand to the District Court for further determination of damages in light of the District Court’s decision to order approval of the plaintiffs application pursuant to
¶117 While I agree with the discussion of the damage law set forth in the majority Opinion, I disagree that there was any rational basis on which the jury could determine reasonable damages in this case without knowing the ultimate outcome of the plaintiffs appeal from the City’s denial of its preliminary plat application. In other words, whether the City’s arbitrary and capricious denial was a final decision or was going to be vacated by the District Court would have a substantial impact on the actual damages sustained by the plaintiff. As the following instructions indicate, the jury was led to believe the denial was final.
¶118 In Instruction No. 12, the jury was instructed as follows:
11. On April 15, 1999, the Council held a special meeting and denied the Application for Preliminary Plat Approval. The Council’s denial of the Application for Preliminary Plat Approval constitutes a final action, decision or order.Mont. Code Ann. § 76-3-625 . [Emphasis added.]
¶119 In Instruction No. 13, the jury was again instructed that:
You are instructed that the City of Red Lodge’s September 10, 1997, conditioned approval, January 12, 1999 approval of the Subdivision Improvement Agreement and April 15, 1999 denial are final actions, decisions or orders. [Emphasis added.]
¶120 In Instruction No. 24, the jury was given the following advice regarding damages:
If you find the City acted arbitrarily or capriciously, then you should award Kiely Construction such sum as you believe will reasonably and fairly compensate it for any damages it has sustained, and is reasonably certain to sustain in the future, as a result of the September 10, 1997 conditional approval, the January 12, 1999 approval of the Subdivision Improvements Agreement and/or the April 15, 1999 denial.
The damages must be just and have a reasonable basis in the evidence. The damages need not be mathematically exact, but there must be enough evidence for you to make a reasonable estimate of damages without speculation or guesswork. Recovery cannot be denied for damages simply because they are difficult to determine. [Emphasis added.]
¶121 The jury awarded the following damages:
Nature of Damages Amount
Lost investment value $100,000
Property devaluation 80,000
Costs expended 15,000
Lost future investment 97,170
TOTAL $292,170
¶122 While there may have been an evidentiary basis for awarding some of these damages whether the effects of the City Council’s decisions were permanent or only temporary, there is no way to know whether the jury’s verdict was based on its assumption that the damages were temporary or permanent. Confusion about the meaning of the jury verdict is compounded by Instruction No. 36 in which the jury was instructed that if it found a violation of
¶123 The jury did find for Kiely on its 1983 claim but apparently found that it had not proven actual damages for investment income lost, property devaluation and out-of-pocket expenses. Therefore, it returned a verdict for violation of Kiely’s civil rights in the amount of one dollar. The jury’s failure to find damages for violation of Kiely’s civil rights is totally inconsistent with its earlier determination that he had sustained specific losses for those elements of damage due to the City’s arbitrary and capricious denial of his preliminary plat application.
¶124 After considering all of the circumstances, I would conclude that the jury’s damage verdict was uninformed and necessarily speculative because of the posture of the case when the damage issue was submitted to the jury and the subsequent relief granted to Kiely which necessarily mitigated much of the damage on which the jury’s verdict may have been based.
¶125 There is no way to know from the record whether the District Court took into account the extent to which Kiel/s actual damages were mitigated by its subsequent relief. Following the jury’s award of damages, but prior to the District Court’s judgment granting Kiely conditional approval, the City argued that any remedy granted by the District Court pursuant to
¶126 For these reasons, I concur in part with the majority Opinion but dissent from that part of the Opinion which affirms both the jury’s award of damages and the refusal of the District Court to reduce those damages in light of its affirmative relief granted to the plaintiff pursuant to