Vichy Springs Resort, Inc. v. City of Ukiah

Background

Vichy Springs Resort, Inc. alleged that the City of Ukiah owns and operates a shooting range next to the resort’s property. According to the complaint, city police officers have used live ammunition, including lead bullets, at the range for at least 30 years, firing toward the resort’s property. The resort alleged that bullets reached and remained on its land, toxic dust migrated there, and the risk of shooting activity caused it to restrict guests, employees, and contractors from using portions of the property.

The resort asserted five claims: (1) a takings claim under 42 U.S.C. § 1983 based on loss of use; (2) a § 1983 substantive due process claim based on loss of use; (3) a direct Fifth Amendment takings claim; (4) a § 1983 substantive due process claim based on property damage; and (5) an inverse-condemnation claim for property damage under the United States and California Constitutions. The City moved to dismiss, strike allegations, and require a more definite statement. The resort conceded that the Ukiah City Council should be dismissed as duplicative of the City.

Rulings on the Motion to Dismiss

The court held that, under Ninth Circuit precedent, takings claims must be brought under § 1983 rather than directly under the Fifth Amendment. It therefore dismissed the Fifth Amendment portions of the third and fifth claims without leave to amend. The court did not dismiss those claims to the extent they were based on the California Constitution.

The court dismissed the second and fourth substantive due process claims with leave to amend. It explained that substantive due process requires allegations showing government conduct that is extremely arbitrary and irrational—conduct that shocks the conscience or lacks a legitimate governmental objective. The allegations that the shooting range restricted property use, caused toxic dust to migrate, and left lead bullets on the property did not meet that standard as pleaded.

The court dismissed the first claim, which alleged a § 1983 taking based on loss of use, because the complaint showed that the alleged taking had become permanent more than two years before the lawsuit was filed. The court concluded that the City’s continued operation of the range did not restart the limitations period. It dismissed the claim with leave to amend because the resort might be able to allege facts showing that the claim was not time-barred.

The court denied dismissal of the § 1983 property-damage takings claim as time-barred. The complaint alleged that bullets had landed on the property within the last two years and that toxic dust had reached the property in fall 2022. The court concluded that the claim was not untimely on the face of the complaint.

The court nevertheless dismissed the property-damage allegations based on the toxic cloud, with leave to amend, because the complaint did not plausibly allege that the dust caused actual damage or explain why it was toxic. The court did not dismiss the property-damage allegations based on bullets remaining on and contaminating the property. At this stage, the court found those allegations sufficient to show an injury for purposes of the claims.

Other Motions and Disposition

The court dismissed the Ukiah City Council without leave to amend. It denied the City’s motion to strike because the City had not shown that the challenged allegations had no possible bearing on the litigation or were redundant, immaterial, impertinent, or scandalous. The court also denied the motion for a more definite statement, finding that the complaint gave the City fair notice of the alleged injuries and that additional details could be obtained through discovery.

Accordingly, the City’s motion to dismiss was granted in part and denied in part. The case was otherwise stayed to allow settlement efforts, and the parties were referred to Magistrate Judge Illman for a settlement conference. The order states that the case would return for a case-management conference on June 25, 2025, to address whether the stay should be lifted.