Thompson v. Bd. of Cty. Com'rs of Sublette

• Decision Date: 08 November 2001
• Docket Number: No. 99-328.,99-328.
• Citation: 2001 WY 108,34 P.3d 278
• Parties: Stuart THOMPSON and Mary Thompson, Appellants (Defendants), v. BOARD OF COUNTY COMMISSIONERS OF THE COUNTY OF SUBLETTE, Appellee (Plaintiff).
• Court: Wyoming Supreme Court

34 P.3d 278

2001 WY 108

Stuart THOMPSON and Mary Thompson, Appellants (Defendants), v. BOARD OF COUNTY COMMISSIONERS OF THE COUNTY OF SUBLETTE, Appellee (Plaintiff).

No. 99-328.

Supreme Court of Wyoming.

November 8, 2001.

Gerald R. Mason of Mason & Graham, P.C., Pinedale, WY, Representing Appellants. Argument by Mr. Mason.

Dale Aronson, Sublette County Attorney, Pinedale, WY, Representing Appellee. Argument by Mr. Aronson.

Before LEHMAN, C.J., and GOLDEN, HILL, and KITE, JJ.

LEHMAN, Chief Justice.

[¶ 1] This is an appeal from a district court order enjoining the Thompsons from using their land for activities associated with a log home business and a ski enterprise on the ground that those activities violated Sublette County zoning regulations. We affirm the district court order.

ISSUES

[¶ 2] The parties raise the following issues:

I. Whether the trial court erred in finding that the appellants failed to establish estoppel as a defense.

II. Whether the trial court erred in finding that the appellants failed to establish laches as a defense.

III. Whether the trial court erred in finding that activities of appellants relating to White Pine are not authorized within an agricultural district (A 1) zone.

FACTS

[¶ 3] The Thompsons own a parcel of land located in Sublette County which is zoned A 1 agricultural. Pursuant to the county zoning regulations, the authorized uses of the land relevant to this case include general agricultural uses and outdoor recreation facilities for hunting, fishing, horseback riding, hiking, or winter sports uses incidental to the principal agricultural use.

[¶ 4] The Thompsons use the land in part for ranching. Beginning in 1991 and, they allege, in reliance on statements made to them by the county zoning administrator and a former county commissioner, the Thompsons began remodeling and new construction of buildings on the property for use in connection with two businesses in which they were involved, Logcrafters, a log home building venture, and White Pine, a ski area. Although the main activities of both businesses take place off the premises, the Thompson property was used for storage, maintenance of equipment, administrative offices, and design work in connection with the businesses.

[¶ 5] Over the years, neighbors periodically complained about the increase in local traffic, dust, noise, use of heavy equipment, and decline in property value which allegedly resulted from the activities on the Thompson property. Finally, in September of 1998, the Board of County Commissioners of Sublette County filed a complaint for injunctive relief in district court alleging that the activities on the Thompson property associated with Logcrafters and White Pine violated county zoning regulations. After a bench trial on August 23, 1999, the court held that the activities were not authorized within an agricultural zone and entered an order granting a permanent injunction. The Thompsons timely appealed from the district court's order.

STANDARD OF REVIEW

[¶ 6] Laches is a form of equitable estoppel. Goshen Irr. Dist. v. State Bd. of Control, 926 P.2d 943, 949 (Wyo.1996); Squaw Mountain Cattle Co. v. Bowen, 804 P.2d 1292, 1297 (Wyo.1991). These claims, therefore, are subject to the same standard of review.

[¶ 7] Whether laches or, by analogy, equitable estoppel is available as a defense is a question addressed to the sound discretion of the district court. Moncrief v. Sohio Petroleum Co., 775 P.2d 1021, 1025 (Wyo.1989). Our review of the Thompsons' first two claims, therefore, must focus upon whether or not the trial court abused its discretion in finding that equitable estoppel and laches were not defenses to the county commissioners' claim for injunctive relief. Id. Under the abuse of discretion standard, we determine whether the trial court could reasonably conclude as it did and whether any part of its ruling was arbitrary or capricious. Vaughn v. State, 962 P.2d 149, 152 (Wyo.1998).

[¶ 8] The Thompsons' third claim, that the district court erred in finding that the White Pine activities are not authorized in an agricultural district (A 1) zone, involves an application of the law to the facts.

Where the determination to be reviewed presents a mixed question of law and fact, i.e., a conclusion reached through application of legal precepts to the historical and narrative events of a particular case, the reviewing court will defer to the agency's findings of basic fact but will correct misapplications of the law to those facts. If the agency has not invoked and applied the correct rule of law, we correct it.

Rodgers v. State, ex rel. Workers' Compensation Div., 939 P.2d 246, 249 (Wyo.1997) (citation omitted).

DISCUSSION

Estoppel

[¶ 9] In their first claim for relief, the Thompsons allege that the board of county commissioners should be estopped from seeking to enjoin the activities on their land because of the actions of its own representatives. Specifically, the Thompsons allege that they purchased the land in question and made the improvements necessary for the operations of Logcrafters in reliance on statements made to them by a former commissioner and the county zoning administrator.

[¶ 10] Prior to purchasing the land at issue here, the Thompsons owned a ten-acre parcel north of Cora in Sublette County where they conducted operations associated with Logcrafters. When they sought a variance from the county to allow them to build a storage facility on the ten-acre parcel, they allege they were told there would be no problem with their operations if they owned a larger parcel of land zoned A 1 closer to town. The Thompsons allege that they purchased the property now at issue in reliance on that assurance. They further allege that, before making the improvements necessary for Logcrafters' operations on the new property, they spoke with the county zoning administrator and received assurances that, because the land was zoned A 1 agricultural, no special permits were necessary. Based on the assurances of the zoning administrator, the Thompsons made improvements costing them $170,000. They claim that they were induced by the assurances of the county officials to believe their operations were permissible, they relied on the assurances to their detriment, and the board of county commissioners should now be estopped from enforcing the zoning regulations.

[¶ 11] We have said that equitable estoppel should not be invoked against a government or public agency functioning in its governmental capacity, except in rare and unusual circumstances, and may not be invoked where it would serve to defeat the effective operation of a policy adopted to protect the public. Sare v. Sheridan County Bd. of County Com'rs, 784 P.2d 593, 595 (Wyo.1989); Big Piney Oil & Gas Co. v. Wyoming Oil & Gas Conservation Com'n, 715 P.2d 557, 560 (Wyo.1986). In order to invoke the doctrine against a government or public agency functioning in its official capacity, there must be a showing of affirmative misconduct. In re General Adjudication of All Rights to Use Water in the Big Horn River System, 753 P.2d 76, 90 (Wyo.1988), cert. granted, 488 U.S. 1040, 109 S.Ct. 863, 102 L.Ed.2d 987, judgment aff'd, 492 U.S. 406, 109 S.Ct. 2994, 106 L.Ed.2d 342 (1989). Affirmative misconduct exists where a person, by his acts, representations, or admissions, intentionally or through culpable negligence induces another to believe that certain facts exist and the other person rightfully relies and acts on such belief and will be prejudiced if the former is permitted to deny the existence of such facts. Id. at 89.

[¶ 12] Equitable estoppel does not apply to governmental or sovereign functions, especially where it would defeat the public interest. Wells v. Bd. of Trustees of Laramie County Sch. Dist. No. 1, 3 P.3d 861, 867 (Wyo.2000); State Highway Com'n v. Sheridan-Johnson Rural Electrification Ass'n, 784 P.2d 588, 592 (Wyo.1989). The state, and likewise the county, may not be estopped for the unauthorized acts or errors of its officers and employees. Wells, 3 P.3d at 867. In Wyoming, the recognized exception to this rule is that a governmental agency may be estopped for the unintentional, misleading statements of its representative when the agency is functioning in a proprietary capacity. Id.

[¶ 13] Here, there is no assertion that the board of county commissioners was functioning in a proprietary capacity, and the recognized exception does not apply. Therefore, absent a showing by the Thompsons of rare and exceptional circumstances justifying the application of equitable estoppel, the claim must fail.

[¶ 14] The Thompsons argue that unusual circumstances do exist justifying the application of equitable estoppel. They claim that county officials induced them to change their position to their detriment by encouraging them in 1991 to purchase a larger parcel of land zoned A 1 and representing that, if they did so, they could continue their log home operations. They claim that county officials further induced them to change their position to their detriment by assuring them that they could build their buildings, make other improvements, and conduct operations on the new parcel without permits. They claim that they relied on the statements of county officials when they invested...