KRISTI K. DuBOSE, District Judge.
This matter is before the Court on the United States' Rule 50(b) Renewed Motion for judgment as a matter of law, or alternatively, Rule 59 Motion for New Trial (Doc. 100), Smith's Response (Doc. 101), and the United States' Reply (Doc. 105).
The United States moves for a judgment as a matter of law with regard to Smith's liability for Dam C and Dam D. (Hamilton conceded Clean Water Act ("CWA") liability for Dam E prior to the Phase I trial and the jury found him liable for Dam A and Dam B.) Specifically, the United States contends that Smith failed to present evidence to support a jury finding that he complied with the relevant mandatory Best Management Practices (BMPs) to avail himself of the "forest road" exemption to the Section 404 CWA permit requirement. Additionally, the United States asserts that even assuming Dam C and Dam D satisfy the "forest road" exemption, these dams were "recaptured" such that the permit requirement still applies, and no reasonable jury could have found otherwise.
In the alternative, the United States requests a new trial due to the legal insufficiency of the evidence supporting Smith's affirmative defense, the Court's adverse rulings on the United States' motions in limine, the Court's failure to give limiting instructions as to Smith's beaver evidence, the Court's failure to give instructions for the jury to fairly evaluate recapture, and improper comments/argument made by Smith's counsel.
Rule 50(b) provides for renewed Rule 50(a) motions for judgment as a matter of law, as follows:
A jury verdict "must be left intact if there is evidence from which the decision maker ... reasonably could have resolved the matter the way it did."
When evaluating a 50(b) motion "it is not the function of the Court to make credibility or factual determinations ... if there are conflicting inferences that can be drawn from that evidence, it is not the Court's role to pick the better one."
The United States contends that, with regard to Dam C and Dam D, Smith failed to present evidence to support a jury determination that he had carried his burden of proof to establish the "forest road" exemption by showing compliance with: 1) the third BMP (roads be designed to "prevent" the restriction of "expected flood flows"); 2) the sixth BMP (roads "shall not disrupt" the "movement" of "aquatic life" inhabiting the water body; 3) the first BMP (roads be held to the minimum number); and 4) the seventh BMP (roads "shall not disrupt" the "movement" of "aquatic life" in a water body). Additionally, the United States contends for Dam D, that no reasonable jury could find that Smith satisfied the fourth BMP (forest roads shall be properly stabilized/maintained" to prevent erosion) due to the evidence that longstanding and unabated erosion occurred and continues to occur on the steep slopes of Dam D.
Additionally, the United States contends that assuming Dam C and Dam D satisfy the "forest road" exemption, Smith failed to carry his burden of proof to support a jury determination that these dams were not "recaptured," such that the Section 404 permit requirement still applies. According to the United States, the evidence demonstrated that Dam C and Dam D each had significant impacts at the site, including: 1) altering the flow and circulation of Dennis Creek and its adjacent wetlands, 2) reducing the reach of Dennis Creek and its adjacent wetlands, destroying hundreds of linear feet of stream and many acres of protected wetlands, and 3) changing the use of those waters to such an extent that substantial segments of Dennis Creek no longer exist within a bed and bank and there is no longer a forested wetland with trees and abundant wetland vegetation along the banks of the stream.
The first BMP requires that forest roads be held to the minimum feasible number, width and total length, consistent with the purpose of the specific silvicultural operations and local topographical and climatic conditions. The United States asserts that Dam C fails to satisfy this BMP because there was no evidence at trial that this dam is a minimum feasible width: the United States' witness Mr. Sitton testified it is 103 feet; Smith's expert Dr. Vittor estimated the width at 80 feet and the height to be at least 10 feet; and the United States' expert Dr. Kruczynski testified that the width was necessitated by the dam's excessive height (as a wider base for stability was required). The United States' expert also testified that forest roads are typically at grade and very narrow. According to the United States, Smith failed to present any evidence that he could not have built a lower and narrower crossing or that such would have prevented him from forestry operations. Moreover, the United States contends that Dam C also violates the requirement that forest roads be held to the minimum feasible number because evidence at trial established that any forestry purpose that might be served by Dam C, could be met by Dam D, rendering Dam C unnecessary.
In contrast, Smith relies on his forestry expert Mr. Morgan who explained that Dam C's width, and total length are consistent with and necessary for Smith's forestry operations as well as the existing topographic and climatic conditions. Additionally, as to the number of roads, Mr. Malone, explained that Smith is unable to effectively accomplish his forestry operations on his property with Dam C alone.
Upon consideration the court finds that based on the evidence, reasonable minds could differ as to whether Smith complied with the first BMP.
The third BMP requires that forest roads that cross streams be bridged, culverted or otherwise designed to prevent the restriction of "expected flood flows" (flows during storm events that are large enough to cause a stream to leave its banks and carry water into the adjacent floodplain). According to the United States, Smith did not carry his burden of presenting evidence that would allow a reasonable jury to find that Dam C meets this requirement as the dam's design restricts expected flood flows.
Smith relies on the testimony of his forestry expert Mr. Morgan who explained that the combination of the existing culvert and spillway would prevent the restriction of expected flood flows.
Upon consideration the court finds that based on the evidence, reasonable minds could differ as to whether Smith complied with the third BMP.
The sixth BMP requires that in designing, constructing and maintaining roads, vegetative disturbance in the waters shall be kept to a minimum. The United States contends that Dam C violates this requirement because its design/size unnecessarily caused the destruction of trees and wetland vegetation in impounded areas. The United States contends that the evidence at trial demonstrated that Dam C destroyed (and disturbed) more than a minimum of trees/wetlands adjacent to Dennis Creek (hundreds of trees and thick wetland vegetation no longer exist).
In response, Smith relies on his biology/ecology expert Dr. Vittor who testified that the disturbance was kept to a minimum. Dr. Vittor based his opinion on the fact that the area behind Dam C was still a wetlands area with some vegetation. Dr. Vittor also relied on the fact that prior to the impoundment, Smith had hand cleared the area of most vegetation and that the beaver impoundments had impacted vegetation. The implication being that the disturbance was minimal because there was very little vegetation to disturb.
Upon consideration the court finds that based on the evidence, reasonable minds could differ as to whether Smith complied with the sixth BMP as to Dam C.
The seventh BMP requires that a road "shall not disrupt" the "migration or other movement" of aquatic life present in the water. The United States points out that even Smith's expert, Dr. Vittor, admitted that after construction of this system of dams, stand pipes and elevated culverts, fish and other aquatic species were no longer able to move upstream in Dennis Creek.
Smith relies on Dr. Vittor testimony that there were no migratory species in Dennis Creek, thus the migration of aquatic life was not disturbed. As to the "or other movement" aspect, Dr. Vittor testified that the pre-existing beaver dams presented the same limitations for movement of aquatic life. Thus, Vittor concluded that Smith's Dam C did not violate this BMP because the disruption to aquatic movement caused by Dam C would be equivalent to the disruption to aquatic movement that was being consistently caused by the beaver dams.
Upon consideration the court finds that based on the evidence, reasonable minds could differ as to whether Smith complied with the seventh BMP as it relates to Dam C.
The United States contends that even if Smith were to satisfy the forest road BMPs, his roads are recaptured thus requiring a permit. Recapture means that despite exemptions existing to the CWA permitting requirement (such as the "forest road" exemption), if dam/road construction and resulting discharges significantly alter the "use" of water
According to the United States, there was no legally sufficient evidentiary basis at trial to support a finding that Dam C did not discernibly alter the flow/circulation of Dennis Creek, as the creek no longer exists as a flowing creek for hundreds of feet behind the dam, and permanently impounding the creek fundamentally altered the stream's essential nature, changing it from a relatively narrow, free-flowing water course into a broad 20 acre lake. Additionally, the United States argues that the undisputed evidence shows a conversion of substantial wetlands areas above Dam C to non-wetland (change in use). The United States also argues that the significantly altered ecosystem constitutes a change in use.
In contrast, relying on Dr. Vittor's testimony, Smith contends that there was sufficient evidence for a reasonable jury to conclude that the "change in use" condition did not apply to Dam C. Specifically, Dr. Vittor testified that the area behind Dam C was still a wetlands area, albeit an emerging wetland and not a forested wetland.
Prior to trial, the parties submitted joint jury instructions that requested that "change of use" as used in the recapture provision be addressed by instructing the jury "converting (or changing) a Section 404 wetland to a non-wetland is a "change of use". This was presumably based on the United States' contention "that the impoundments (except any fringe areas where vegetation breaks the water surface) do not constitute wetlands." (Doc. 65 p. 10) The court gave these preliminary instructions.
During the course of the trial, it became evident that Smith would be able to put forth admissible evidence that the area was not a "non-wetland". Thereafter, the United States changed tack and wanted the court to expand the jury instruction on "change of use" so that they could argue that an altered ecosystem constituted a change of use. The court ultimately denied that request based primarily on a basic fairness argument, not based on a determination that a change of use could not be an altered ecosystem. Specifically, the parties had defined the issue for trial to be whether the area had changed in use from a wetland to a non-wetland. Smith, who had the burden of proof, was prepared to show that the impoundment was not a "non-wetland". To redefine the disputed issues of fact at the end of trial was not permissible under the court's order that adopted the parties' statement of disputed fact and stated that such "shall constitute the final statement of issues involved in this action". (Doc. 68).
Upon consideration the court finds that reasonable minds could differ as to whether Smith was subject to recapture because there was sufficient evidence that there was not a change of use from a wetland to a non-wetland as it relates to Dam C.
The sixth BMP require that in designing, constructing and maintaining roads, vegetative disturbance in the waters shall be kept to a minimum. The United States contends that Dam D violates this requirement because its design/size unnecessarily caused the destruction of trees and wetland vegetation in impounded areas and under the unnecessarily wide footprint of the dam. The United States also contends that the evidence at trial demonstrated that Dam D destroyed (and disturbed) a heavily vegetated area, ultimately impounding 1,497 linear feet of stream along with forested wetlands. The United States adds that Smith's expert Dr. Vittor agreed that Dam D definitely killed "many many" trees.
In response, Smith relies on Dr. Vittor's testimony that the standard does not stipulate how much vegetation is "minimum," and that because the inundated areas were still wetlands and would become re-vegetated, the vegetation disturbance was minimal. Dr. Vittor further testified that there was no evidence that Smith did not violate this BMP.
The problem for Smith is Dr. Vittor's opinion was not substantiated by any facts. Unlike the impoundment behind Dam C, there was no evidence that most of the vegetation had already been removed by hand or was affected by beaver impoundments, thus supporting a finding of minimal disturbance of existing vegetation. The only evidence as it related to Dam D was that there were a lot of trees and now they are dead. Moreover, the fact that the area could possibly re-vegetate is not relevant to whether the vegetation was minimally disturbed when the road was constructed. Boiled down, Dr. Vittor's testimony is that there was minimum disturbance of vegetation because minimum is not defined and he thinks it was minimum because the trees can possibly grow back at some point.
Upon consideration the court finds that Smith failed to present sufficient evidence to sustain a finding that vegetative disturbance was kept to a minimum during the design, construction and maintenance of Dam D.
The seventh BMP requires that a road crossing "shall not disrupt" the "movement" of aquatic life present in the water body. According to the United States, Smith's Dam D serves as a barrier to upstream movement of fish and other aquatic species.
In response, Smith relies on Dr. Vittor explanation that there were no migratory species in Dennis Creek and so the only applicable prong of this BMP is the "or other movement." BMP. Otherwise, Smith cites to no evidence in support of his contention that the movement of aquatic life was not disturbed.
Upon consideration the court finds that Smith failed to present sufficient evidence to sustain a finding that Dam D did not disturb the movement of aquatic life.
A Rule 59 motion for new trial may be granted on all or some of the issues, and to any party, "after a jury trial, for any reason for which a new trial has heretofore been granted in an action at law in federal court." FED. R. CIV. P. 59(a)(1)(A). A motion for new trial may be granted under Rule 59 in the broad discretion of the trial court if "the verdict is against the clear weight of the evidence or will result in a miscarriage of justice, even though there may be substantial evidence which would prevent the direction of a verdict.... Because it is critical that a judge does not merely substitute his judgment for that of the jury, `new trials should not be granted on evidentiary grounds unless, at a minimum, the verdict is against the great-not merely the greater-weight of the evidence.'"
District courts are entrusted with broad discretion in determining whether a new trial is warranted in a particular case.
In response, Smith asserts that the trial was one of "battling experts" who interpreted the guidelines and applied them to the facts. From this Smith argues that the jury was allowed to consider the credibility of the witnesses and any possible bias when testifying and the jury agreed with Smith's interpretation and application of the guidelines for Dam C. Thus, Smith contends there was sufficient evidence to support the jury's verdict.
In considering the United States's contention in regard to the weight of the evidence presented at trial, "[t]he trial judge's discretion to set aside a jury verdict based on the great weight of the evidence is very narrow" and is limited to "protect[ing] against manifest injustice in the jury's verdict."
The Court has independently weighed the evidence favoring the jury verdict against the evidence favoring the United States and has refrained from substituting its own credibility choices and inferences for the reasonable credibility choices and inferences made by the jury. After such review, the court determines that the United States has failed to establish that the jury's verdict was against "the great weight of the evidence" for Dam C.
"Courts do not grant new trials unless it is reasonably clear that prejudicial error has crept into the record or that substantial justice has not been done, and the burden of showing harmful error rests on the party seeking the new trial."
District courts enjoy wide discretion as to the style and wording employed in jury instructions, provided they are correct statements of the law.
During the second day of trial, the United States requested a limiting instruction to the jury that the "beaver" evidence had no relevance to the issue of Smith's BMP compliance:
(Doc. 90 at 151-153 (emphasis added)). The Court denied the request, stating that the United States could argue such in closing. (
The United States asserts that Smith presented trial testimony about beavers in connection with this defense for 2 of the BMPs to try to justify the use of a stand pipe
The court disagrees with the United States' premise that the beaver evidence was irrelevant. The "beaver" evidence was relevant to Dam C to assess the impact of the construction of the dam as it related to disruption of the movement of aquatic species and the disruption of vegetation. Specifically, the pre-dam construction existence of an impoundment (such as the beaver dam) was relevant to the issue of whether the construction of Dam C caused further disruption. Likewise, the pre-construction existence of any impoundment (including that of a beaver) was relevant to the issue of recapture to determine whether the "flow/circulation of waters was impaired" or the "reach of such waters reduced" to assess whether there was a "change in use" from a wetland to a non-wetland.
In sum, a limiting jury instruction in the manner requested by the United States (that beaver evidence is relevant only to the issue of recapture and not to the BMPs) would have been inconsistent with what the evidence and testimony revealed at trial.
As previously explained, at the commencement of trial, the Court preliminarily charged the jury with the instruction requested by the United States for recapture: "[a]ccording to federal regulations, converting (or changing) a Section 404 wetland to a non-wetland is a `change in use' of an area of waters of the United States; and where the proposed discharge will result in significant discernible alterations to flow or circulation, the presumption is that flow or circulation may be impaired by such alteration." Trial was conducted with that instruction as the jury's guide. As indicated to counsel during a chambers' charge conference, amending the jury instruction on the "change in use" at that juncture would have been confusing to the jury and potentially prejudicial to Smith's counsel given the circumstances of this particular case and the stage of litigation.
As to the arguement that that the court allowed Dr. Vittor to testify in contravention of the CWA's definition of wetlands, this simply is not true. The parties agreed that the 1987 Wetlands Delineation Manual guided the definition of "wetlands", the Manual was introduced into evidence and shown to the jury. Each side's experts (Drs. Vittor and Kruzcynski) testified about the Manual and provide their respective interpretations/conclusions, and were then cross-examined by each side. Dr. Vittor's testimony was not contrary to the CWA standard or the 1987 Manual, but rather, only contrary to how the United States wished for wetlands to be defined for the jury.
In contrast, Smith contends that the United States opened the door to address the issue during examination of witnesses — that his counsel only mentioned the claimed penalty on re-direct after the United States had invoked questions about the value of the property (to imply that the entire project was simply an asset enhancement to Smith's financial worth) during trial to confuse and prejudice Smith before the jury. Additionally, as to Smith's counsel's remarks in closing, Smith contends they were not outside the issues of the case or prejudicial to the United States' substantive rights — adding that the United States failed to timely object to same and only did so, tardily, in the present motion for new trial. (Doc. 101 at 15-16). As such, the Court was not allowed an opportunity to rule on the remarks within the context of the argument,
Jury nullification is essentially when counsel encourages jurors to ignore the court's instructions and apply the law at their caprice.
The United States also alleges that the Court instructed counsel to not make objections during opening and closing arguments. (Doc. 100 at 32) The Court has reviewed the trial transcript and notes that it did not instruct counsel that it would prohibit objections in opening and closing statements.
Based on the foregoing, the Court finds that the United States has failed to demonstrate that the jury's verdict as to Dam C was rendered against the great weight of the evidence, that a miscarriage of justice resulted from the jury's verdict, or that this Court's procedural and evidentiary rulings (including its jury instructions, exclusion of evidence, and other rulings) affected the its substantial rights or otherwise caused injustice or prejudice to the United States. Thus, the United States' request for a new trial as to Dam C (Doc. 100) is
Based on the foregoing, it is