Opinion ID: 3053418
Heading Depth: 3
Heading Rank: 2

Heading: Defendants’ Motion to Dismiss and Challenged

Text: Extraneous Documents Defendants moved to dismiss the first amended complaint under Rule 12(b)(6), arguing that Lazy Y failed to state an Equal Protection claim and that they enjoyed qualified immunity from the claims for damages. In support of the motion, Defendants submitted the June 2005 memo from Behrens to Lazy Y, which included various IDL documents related to grazing plan requirements. Defendants also submitted ten other exhibits: (1) minutes and transcripts of the February 2006, August 2006, and September 2006 Land Board meetings (six total documents); (2) IDL memoranda submitted at each of the three meetings (three total documents); and (3) an August 3, 2006, letter from Lazy Y to Wiggins. Magistrate Judge Williams, acting as the district court with the consent of the parties, considered (1) the June 2005 memo from Behrens to Lazy Y, (2) the August 2006 IDL memorandum, and (3) the August 2006 letter from Lazy Y to Wiggins. The relevant portions of these documents are referenced above. On motion by Lazy Y, the district court struck Defendants’ other exhibits. The exhibits related to the February 2006 meeting indicate that Wiggins told the Land Board that the IDL’s failure to circulate Lazy Y’s proposals was an administrative error. They also reflected Board members accepting Wiggins’s explanation and agreeing that new auctions were a fair solution. The stricken August 2006 meeting transcripts reflect Defendant Bacon, then the IDL assistant director, telling the LAZY Y RANCH LTD v. BEHRENS 13795 Land Board that the lands at issue lacked internal fences and would be difficult to graze as separate units. Bacon also told the Land Board that the second highest bidders leased or owned the adjacent properties — arrangements that ostensibly avoided the need for fencing. Superintendent Howard said she believed that Lazy Y’s offer of compensation to cover increased administrative costs should not be considered because it was “beyond the . . . expectations at the time of auction.” Controller Johnson said he agreed and questioned whether even $30,000 would cover the costs of fencing off the grazing lands. Governor Risch said he agreed with Johnson. The Board voted unanimously to deny the leases. To the same effect are the stricken materials concerning the September 2006 Land Board meeting, where the Board awarded the seventh lease to the second highest bidder. The IDL recommended rejecting Lazy Y’s bid because of increased administrative costs, which it represented were approximately $14,000 over ten years. After counsel for Lazy Y offered to reimburse IDL up to $25,000 or provide appropriate fencing, the Board expressed concern that this would be inadequate, and voted unanimously to grant the leases to the second highest bidders. Although the district court struck most of Defendants’ exhibits, it ruled that even considering all of them, Defendants’ motion to dismiss lacked merit. The motion was therefore denied. Defendants timely appealed.