Opinion ID: 77688
Heading Depth: 2
Heading Rank: 1

Heading: Balch's Illegal Fill Activity

Text: 3 In 1990, Balch purchased some property in Marathon, Florida, which was located on the Gulf of Mexico in an area known as Florida Bay and included two acres of bay bottom land. Balch decided to develop a commercial dock on the property. In 1994, Balch applied for a joint permit from the Florida Department of Environmental Regulation (DER) and the United States Army Corps of Engineers (USACE) to build the dock. Balch obtained a permit from the USACE, 1 but he had difficulty obtaining the requisite permits from the state DER and other state and local authorities. 4 Balch eventually hired Defendant Johnson, who resided in California, as a consultant to help with the permitting difficulties that Balch had been having. After Defendant Johnson had reviewed Balch's documents, Johnson advised Balch that he had been applying to the wrong agency, and that, because he owned the bay bottom, Balch could do what [he] wanted with it. 5 On November 13, 2001, Balch entered into an agreement with Felix Equities (Felix), a contractor who had surplus dirt, or fill, from an excavation project it was performing in Marathon, to dump its extra fill on Balch's property. According to Balch, Defendant Johnson was aware of this agreement because Balch and Johnson talked all the time . . . . sometimes three or four times a week. Once Felix began delivering the fill, Balch first spread out the fill across his property in order to fill in any holes and level out any dips and bumps on the land. 6 Around the end of December 2001, Balch began pushing the fill into the water and onto his bay bottom. Balch discussed with Defendant Johnson the legality of his actions, and Johnson had a very strong opinion that Balch had the right to do what he wanted with his bay bottom. Balch continued pushing fill into the water through March 2002, during which time he had regular contact with Johnson. 7 On February 20, 2002, Victor Anderson, a regulatory field agent with the USACE, entered onto Balch's property in order to investigate allegations of illegal filling. Anderson met with Bill Reavis, who was Balch's site manager and present at the time. Anderson told Reavis that the filling needed to stop and that Balch needed to call Anderson. Balch called Anderson later that day, and Anderson told Balch that he believed illegal filling was going on at the property and that it needed to stop. Balch told Anderson to contact his consultant, Johnson, and gave him the phone number. Balch also called Defendant Johnson to tell him what had happened and to give him a heads-up that Anderson might be calling, but Anderson never contacted Johnson. 8 Shortly thereafter, Defendant Johnson requested that Balch create a drawing that represented his progress and showed the placement of the fill on the bay bottom and fax it to him. Balch created a drawing of his property with marks indicating what areas already had been filled and what areas were still left to be filled. Balch then faxed this document to Johnson on February 28, 2002, from the fax machine in Balch's office. 2 Balch subsequently made a couple of phone calls to ensure that Johnson received the fax, and approximately two or three days later, discussed the drawings with Johnson in quite a bit of detail, as well as his plans for the dock and for a boat lift on the property. 9 On March 5, 2002, Ivette McGraw, who worked in the enforcement division of the USACE, called Johnson and told him that Balch was putting unauthorized fill into the water and needed to stop. 3 The next day, Johnson spoke with McGraw and informed her that Balch had stopped putting fill in the water. According to Balch, Johnson told him about the call from McGraw, but Johnson never told him to stop the filling or that the filling was illegal. Consequently, Balch continued to put fill in the water because his fill project had not yet been completed. 10 On March 13, 2002, McGraw left a message for Johnson telling him that the unauthorized fill had continued and that Balch had to stop immediately. McGraw also faxed a copy of a cease and desist order that had been issued for Balch. Johnson called Balch and told him that McGraw still was concerned about the unauthorized fill. Johnson wanted to know where Balch was on the project, and Balch informed him that he only had a couple of cement blocks to place and some leveling to finish. Balch continued filling for a few more days after talking with Johnson. Meanwhile, on March 14, 2002, Anderson returned to the property, discovered that the unauthorized fill activity had continued, and issued another cease and desist order to Balch, which was personally served on Balch on March 20, 2002. 11 On March 18, 2002, Oswaldo Romero, Jr., a special agent in the U.S. Environmental Protection Agency (EPA), Criminal Investigation Division, opened an investigation into the unauthorized fill activity occurring on Balch's property. During the course of his investigation, Agent Romero contacted Johnson in an effort to get a firsthand account of what had been going on at Balch's property. However, Johnson told Agent Romero, among other things, that he had not learned about the unauthorized filling until he was contacted by McGraw on March 5, 2002, that he immediately contacted Balch and told him to stop, and that Balch stopped putting fill in the water after Johnson talked with him. When asked whether he had ever told Balch that he was entitled to fill in his property, Johnson stated that he had not done so, again claiming that he did not know about the filling until he was contacted by McGraw. 12 Balch subsequently was indicted for violating the Clean Water Act. Balch eventually pled guilty. Following his sentencing, Balch met with the government and discussed, inter alia, his conversations with Johnson concerning the fill activity. In addition, Balch provided phone records to the government which indicated that Balch (1) called Johnson twice on February 20, 2002, the day of Anderson's inspection; (2) called Johnson once on February 21, 2002, and once on February 26, 2002; (3) sent a fax to Johnson on February 28, 2002, and also called him that day; and (4) called Johnson twice on March 1, 2002, talking with him for over twenty-six minutes total.