Opinion ID: 217719
Heading Depth: 2
Heading Rank: 2

Heading: Preclusive Effect of the Wyoming District Court's March 12, 2009 Order

Text: `The preclusive effect of a state court judgment in a subsequent federal lawsuit generally is determined by the full faith and credit statute,' 28 U.S.C. § 1738, which `directs a federal court to refer to the preclusion law of the State in which judgment was rendered.' Brady v. UBS Fin. Servs., Inc., 538 F.3d 1319, 1327 (10th Cir.2008) (quoting Marrese v. Am. Acad. of Orthopaedic Surgeons, 470 U.S. 373, 380, 105 S.Ct. 1327, 84 L.Ed.2d 274 (1985)). It is well established that judicial affirmance of an administrative determination is entitled to preclusive effect. Kremer, 456 U.S. at 480 n. 21, 102 S.Ct. 1883 (citations omitted); see also Goodman v. Voss, 248 P.3d 1120, 1127 (Wyo. 2011) (affording preclusive effect to judicial affirmance of administrative decision). There is no requirement that judicial review [of an administrative determination] must proceed de novo if it is to be preclusive. Kremer, 456 U.S. at 481 n. 21, 102 S.Ct. 1883. In deciding whether the Wyoming district court's affirmance of the Council's 2007 Order precludes the current suit, we must determine whether the decision would be entitled to preclusive effect under Wyoming law and whether it satisfied the minimum standards of due process. Id. at 481-82, 102 S.Ct. 1883; Wilder, 854 F.2d at 616 (citing Kremer, 456 U.S. at 481, 102 S.Ct. 1883) (applying common law preclusion to citizen suit under CAA). Due process . . . only requires that a party have a full and fair opportunity to litigate its case. Crocog Co. v. Reeves, 992 F.2d 267, 270 (10th Cir.1993) (citing Kremer, 456 U.S. at 482-83 & n. 24, 102 S.Ct. 1883). Under Wyoming law, [c]ollateral estoppel and res judicata are analogous, but not synonymous. Erwin v. Wyo., Dep't of Family Servs., 237 P.3d 409, 412 (Wyo.2010) (quotation marks and citation omitted). Both doctrines incorporate a universal legal principle of common-law jurisprudence to the effect that a right, question or fact distinctly put in issue and directly determined by a court of competent jurisdiction . . . cannot be disputed in a subsequent suit between the same parties or their privies. Id. (quotation marks and citation omitted). Res judicata bars the relitigation of previously litigated claims or causes of action, while collateral estoppel bars relitigation of previously litigated issues. Id. (citations omitted). We apply the doctrine of collateral estoppel here because the state court decided only one of the two issues presented to this court. Courts should consider the following factors to determine whether collateral estoppel applies under Wyoming law: (1) whether the issue decided in the prior adjudication was identical with the issue presented in the present action; (2) whether the prior adjudication resulted in a judgment on the merits; (3) whether the party against whom collateral estoppel is asserted was a party or in privity with a party to the prior adjudication; and (4) whether the party against whom collateral estoppel is asserted had a full and fair opportunity to litigate the issue in the prior proceeding. Brockman v. Wyo. Dep't of Family Servs., 342 F.3d 1159, 1166 (10th Cir.2003) (quoting Kahrs v. Bd. of Trs. for Platte Cnty. Sch. Dist. No. 1, 901 P.2d 404, 406 (Wyo. 1995)). The Wyoming district court's May 12, 2009 Order precludes the issue of whether Two Elk engaged in continuous construction of the Power Plant, as the four requirements of collateral estoppel under Wyoming law and the minimum requirements of due process are met. First, the issuewhether Two Elk engaged in continuous construction of the Power Plantwas identical. In state court, Sierra Club argued that none of the facts described in the settlement agreement support [the Council's] Order approving DEQ's determination that [Two Elk] engaged in a continuous program of physical on-site construction of [the Power Plant] between 2005 and 2007. Aplt.App. at 147. It makes the same argument here. The second and third elements are met because the court issued a judgment on the merits, and Sierra Club was a party to the proceeding. Finally, Sierra Club had a full and fair opportunity to litigate the issue before the court. A hearing was held on June 23, 2008 in which all parties were represented. Id. at 144. Although the arguments dealt primarily with the appropriateness of the Council as a partySierra Club initially named the Council as a respondentboth Two Elk and Sierra Club submitted briefs regarding the pertinent issues, and the court concluded that no further argument would be of assistance in determining the matter. Id. The court reviewed the entire record in making its ultimate decision. Id. In its order, the court explained that [a]s always, an agency's conclusions of law are reviewed de novo, and are afforded no deference. The legal conclusions will be affirmed only if they are in accordance with the law. Id. at 150 (citing Dale v. S & S Builders, LLC, 188 P.3d 554, 561-62 (Wyo.2008)). [2] The court then addressed whether Two Elk's actions constituted construction, defined under WAQSR Chapter 6 § 4(a) as any physical change or change in the method of operation (including fabrication, erection, installation, demolition, or modification of an emissions unit) which would result in a change in emissions. Id. at 159. The definition of construction is the same under federal regulations. See 40 C.F.R. § 52.21(b)(8). After reviewing the record, the court concluded that Two Elk's activities met the definition; thus construction had not ceased for a period of twenty-four months or longer. Aplt.App. at 160. Because Sierra Club had a full and fair opportunity to litigate the issue of whether Two Elk engaged in continuous construction, the minimum standards of due process were met. See Crocog Co., 992 F.2d at 270. Sierra Club's argument that preclusion is not appropriate because the Wyoming court reviewed only a closed record that Sierra Club never had the opportunity to develop is without merit. Aplt. Reply Br. at 32. Sierra Club did not attempt to intervene in the proceedings until after the Council issued its 2007 Order. Aplt.App. at 147. Indeed, during the federal district court's hearing on Two Elk's motion to dismiss, counsel for Sierra Club admitted that Sierra Club did not intervene at an earlier stage because it believed DEQ would adequately prosecute the matter. Id. at 338-39. Specifically, counsel stated that the hope was that the state would enforce this issue of the permit becoming invalid. And as far as the Sierra Club could tell, that was happening until we got word of the settlement agreement between Two Elk and DEQ in 2007, about a week before that was approved by council. Id. Further, Sierra Club never appeared at the Council hearing on November 28, 2007 to contest the Stipulated Settlement Agreement between Two Elk and DEQ, despite a week's notice that the Council would be holding a hearing on the settlement. See Aplt. Br. at 55. As the state court observed, [t]hroughout the administrative process, [Sierra Club] remained mute and chose to speculate on the outcome of the dispute. When the dispute was concluded and [Sierra Club] determined that misfortune had come their way, they then chose to voice their displeasure. This conduct is contrary to the Wyoming supported policies of settlement and finality and will not be condoned. Aplt.App. at 158. The fact that [Sierra Club] failed to avail [itself] of the full procedures provided by state law does not constitute a sign of their inadequacy. Kremer, 456 U.S. at 485, 102 S.Ct. 1883 (citations omitted). Accordingly, the Wyoming district court's March 12, 2009 Order affirming the Council's 2007 Order precludes the issue of whether Two Elk engaged in continuous construction. We now address whether the Council's 2005 Order precludes the issue of whether Two Elk timely commenced construction on the Power Plant.