Opinion ID: 2353211
Heading Depth: 2
Heading Rank: 1

Heading: Griswold v. Town of Denmark et al.

Text: [¶ 8] Among the many considerations and criteria the Board of Selectmen must review in deciding whether to grant an extraction permit in the Town of Denmark, the ordinance provisions applicable at the time of Nestlé's application required that Nestlé establish: (1) that water is not available naturally in the location to which it will be transported, and (2) that failure to authorize transport of the water would create a substantial hardship to the potential recipient of the water. [1] Denmark, Me., Regulations Governing the Large Scale Pumping or Extraction of Groundwater, Spring Water and/or Water from Aquifers Within the Municipality of Denmark, Maine § V(C)(3), (4) (2004) [hereinafter Regulations Governing Water]. Neither substantial hardship nor available naturally are defined in the Regulations Governing Water, nor are they defined in State statutory provisions regarding the transport of bulk water governing at the time of Nestlé's applications. [2] See 22 M.R.S. §§ 2660 to 2660-A (2006). [¶ 9] The Board of Selectmen concluded that Nestlé, which had the burden before the Board to establish each of the criteria necessary for the grant of its requested permit, see Gensheimer v. Town of Phippsburg, 2005 ME 22, ¶ 18, 868 A.2d 161, 166, met its burden. Griswold contends that the Board of Selectmen's findings as to the two criteria are not supported by sufficient record evidence as a matter of fact and as a matter of law. [3] Because the Superior Court acted in its appellate capacity, we review directly the decision of the Board of Selectmen for abuse of discretion, errors of law, or findings not supported by the substantial evidence in the record. See id. ¶¶ 7, 16, 868 A.2d at 163-64, 166 (quotation marks omitted). Substantial evidence exists when a reasonable mind would rely on that evidence as sufficient support for a conclusion. Id. ¶ 16, 868 A.2d at 166 (quotation marks omitted). We review the factual findings of the Board of Selectmen deferentially, and do not substitute our own judgment for that of the Board. See id. ¶ 17, 868 A.2d at 166. Further, the fact that the record before the Board is inconsistent or could support a different decision does not render the decision wrong; the Board's decision should be vacated only if no competent evidence exists in the record to support it. See id. [¶ 10] The factual evidence Nestlé offered to the Board of Selectmen to support the Board's findings of substantial hardship and natural unavailability consists of the following. In its application to the Board of Selectmen, Nestlé stated, [s]ufficient water is not available naturally in those locations to meet the needs of those facilities and failure to authorize transport of water to those facilities would create a substantial hardship. In its corresponding application to the Department of Health and Human Services, see supra n. 2, a document that was also included in its application to the Board of Selectmen, Nestlé stated: Failure to authorize transport of the water will significantly limit the ability of Poland Spring Bottling Company to meet the natural resource needs of this growing business and its ability to remain competitive in the industry. Remaining competitive in this industry will support the ability of Poland Spring to contribute employment opportunities to the people of the State of Maine. Also, growth experienced by Poland Spring will result in an economic contribution to the State through a variety of tax mechanisms, direct payroll, and use of local subcontractors, and that: [t]he purpose of the proposed development and the associated application for a bulk water transport permit is related to our forecasted need to supplement existing sources to accommodate our projected business growth. We understand the sustainable limitations of existing sources and are developing additional sources to augment those supplies. The bottled water industry has enjoyed significant growth over the last several years [and] we project that this trend will continue in the Northeast region, the principal market for the Poland Spring Brand of spring water. In a further letter to the Board of Selectmen, Nestlé wrote: The existing sources of spring water which Poland Spring has within the State of Maine cannot sustainably produce sufficient water to meet the existing capacity needs of the destination bottling facilities in Poland Spring and Hollis, Maine and in Framingham, Massachusetts. To the extent Poland Spring fails to maintain the availability of water by adding sources such as the source in Denmark, Maine, it will encounter a concomitant decline in market share and substantial hardship to its sustainability as a business. In addition to the substantial hardship encountered by Poland Spring, denial of approval of the proposed site in Denmark would also result in substantial hardship to end consumers. The water currently bottled by these facilities is insufficient to meet the current and projected demand for Poland Spring water. In order to continue to provide the water sought by these consumers, this site is essential. Additional water at our existing spring water sources is not available based on State permit limits. [¶ 11] The application to the Board was prepared by two engineering firms hired by Nestlé, includes the statements of engineers who are knowledgeable experts, and constitutes competent evidence in the record that is sufficient to support the Board's findings. Nestlé also offered evidence as to its position in the bottled water industry in which it is engaged, and the substantial hardship it will suffer if denied access to the water in the Town of Denmark. In short, there is some competent evidence in the record to support the Board of Selectmen's findings of substantial hardship and natural water unavailability, and we do not substitute our judgment for that of the Board in such a factual matter. [¶ 12] Griswold further contends, based on our decision in Centamore v. Department of Human Services, 664 A.2d 369 (Me.1995), that evidence of financial harm in a competitive market, even evidence that is supported by the record, cannot, by itself, constitute substantial hardship as a matter of law. In Centamore, a landowner applied to the Department of Human Services pursuant to State bulk water transport statutes to obtain a permit to transport water from his property to bottlers located in other municipalities. 664 A.2d at 370. The Commissioner of the Department granted the landowner's permit, and neighboring residents appealed to the Superior Court, which affirmed the Department. Id. We concluded that the Commissioner's finding of substantial hardship was not supported by the record because the only evidence of such hardship was the landowner's opinion that buyers of spring water are engaged in a competitive market, and are in need of a guaranteed pure source of water, and would suffer substantial hardship if the water were not available. Id. at 371 (quotation marks omitted). We reasoned that, [a]rgument is not evidence, and that, [t]he mere fact that a competitor in the bottled water market would benefit from having another water source says nothing about any substantial hardship that would result if the source were unavailable. Id. [¶ 13] As the Superior Court aptly noted, however, Nestlé's circumstances are distinguishable from those of the landowner in Centamore. First, the focus of Centamore was more on the benefit that the bottler would receive from obtaining the water, rather than on any hardship that would result from it being unable to obtain the water. There is nothing in the Centamore decision that precludes a state or municipal body from issuing a water transport permit based on the harm a bottler would suffer to its ability to compete in the open market. [¶ 14] Second, in Centamore, the only evidence of hardship to the bottler was an opinion offered by the landowner rather than by the bottler itself, whose hardship was the relevant inquiry for the permit being sought. In contrast, in the present matter, Nestlé presented evidence of the hardship it would suffer itself. The Superior Court noted that the landowner was not competent to testify to the hardship, if any, the commercial bottler would suffer if denied access to his source. By contrast, [Nestlé] is competent to testify on its own behalf regarding the harm it would suffer from a denial of the Extraction Permit. Such statements by Nestlé are more than the arguments that were presented by the landowner in his application; they constitute a company's assessment of its own financial circumstances in the market in which it is actively engaged. They were also opinions that were credited by the Board of Selectmen approving Nestlé's application for an extraction permit. [¶ 15] We affirm the decision of the Town of Denmark Board of Selectmen.