A judge has issued an order in the Star Plunge case that has both sides claiming a victory, even as the popular water park attraction in Hot Springs State Park remains closed due to a legal dispute over how the state chose a new operator for its amenities at the park.
In a split ruling, Laramie County District Judge Michael J. McGrady on Monday affirmed Wyoming State Parks and Cultural Resources’ contention that an injunction forbidding the state agency from executing a contract with Wyoming Hot Springs, owned by Alaska’s former U.S. Senator Mark Begich, was too draconian.
The injunction stopped the state from proceeding with any work on Star Plunge and also other amenities in Hot Springs State Park.
The judge stopped short of agreeing, however, with the state’s contention that Star Plunge’s owner, C&W Enterprises, owned by Roland Luehne, had no case and that its lawsuit should simply be dismissed.
“The court will not speculate how this matter could turn out,” McGrady wrote in his opinion. “The problem that makes this possible injury particular and irreparable is that without an injunction preserving the status quo of the assets, there would be no assets from which to value. Instead, C&W would be required to expend resources for the destruction of what value remains.”
But, the judge added, C&W does not own nor have any contractual rights or interest in other areas of the park.
Claims that it could be harmed are speculative at best, the judge said. And speculative harms do not trigger injunctions. It takes harm that is both real and imminent to keep an injunction in play.
Plausibility Of The Case
An injunction also typically requires a judge to give the merits of the case a preliminary look and find that a win is at least plausible under existing law.
C&W has alleged that when the state requested proposals for a new operator to take over its amenities at Hot Springs State Park, its rules required it to include a provision outlining the minimum compensation for Star Plunge, because it was an existing amenity owned by an existing operator.
The lack of that provision invalidates the state’s entire request for proposals, C&W says, in addition to it being contrary to law.
Wyoming’s Concession Rules do have a chapter devoted to rebidding an existing concession, McGrady noted, and those rules do include a requirement to spell out a minimum figure for compensation to the incumbent for both its existing business and any improvements.
“C&W contends that the RFP was subject to Chapter 10 because it encompassed the Star Plunge, a long-standing concession, and that the defendants violated the Concession Rules — and thus Wyoming law — by omitting any compensation requirement,” McGrady said. “Based on the present record the court finds that C&W has made the required showing of probable success on at least this central issue.”
The judge didn’t analyze any other claims, because at this stage, that one issue is sufficient for determining whether the case can proceed.
The judge did issue a few cautionary notes, however.
While neither party disputes that the RFP didn’t include a provision spelling out compensation to the Star Plunge’s owner, the court’s decision is going to turn on whether that omission was lawful because the RFP constituted an entirely new concession, which would lie outside the Chapter 10 rules, or unlawful because it included an existing concession.
“C&W’s interpretation of Chapter 10 — that it was designed to prevent the uncompensated displacement of incumbent concessionaires — is a reasonable and plausible reading of the regulatory scheme,” McGrady continued. “That interpretation is reinforced by prior agency practice, including the 2020 RFP for Star Plunge, which expressly included a compensation requirement for the existing concessionaire.”
Compensation Might Not Be What’s Expected
McGrady also had a few other cautionary notes in his opinion, though. First would be reading any sort of “victory” into his preliminary — and incomplete — analysis.
“When a court rules on a motion for a preliminary injunction, its consideration of the likelihood of success is not a final decision on the case itself,” he wrote.
Its purpose is to determine whether there’s enough substance to the claims to proceed with a case at all, not to decide the matter.
The judge also suggested that even if C&W wins the case, that might not mean it is owed anything.
“C&W filed this action asking the court to declare whether in fact it had a right to have that (compensation) calculation included as a part of the RFP process,” the judge wrote. “However, just because money damages could be calculated does not mean money is available or certain.”
In fact, the judge went on to say he doubts C&W is entitled to the relief it wants, which it has stated in its lawsuit exceeds $1 million.
“C&W is unlikely to be entitled to relief that would have the court dictating how the defendants go about exercising their discretion to redo the RFP process,” the judge added.
Harming The Community
McGrady’s ruling overall means that Wyoming Hot Springs LLC, which won the bid to expand and improve all of the park’s amenities, may go ahead with anything that doesn’t directly affect the Star Plunge.
That sounded like a win to Wyoming State Parks District Manager Brooks Jordan.
“The decision supports our efforts to resume redevelopment and improvements to the park for the benefit of the public,” he told Cowboy State Daily on Tuesday afternoon.
For the other side, the ruling does suggest that C&W’s lawsuit has some merit — but the compensation may not turn out to be what Luehne is hoping for.
In reaction to the ruling, Luehne told Cowboy State Daily Tuesday afternoon that he still contends there is no valid reason to keep the Star Plunge closed during the lawsuit, and that it’s “devastating” to Thermopolis.
“An estimated 50,000 visitors per year will no longer come, erasing $9.25 million in direct annual spending and tens of millions more in broader economic impact for local businesses, workers, and public services,” Luehne said. “The decision harms far more than a building. It cuts off access to mineral waters long relied upon by families, seniors, visitors, and Native nations for whom these waters are sacred — without just cause and without justification.”
Indefinite Limbo
Other park amenities, including Hellie’s TePee Pools and the Hot Springs State Park Bath House, do remain open, something Jordan and other Hot Springs County community members have been quick to point out.
Luehne added that his family has kept the Star Plunge in good condition, and could “reopen tomorrow” if given the go-ahead.
This is another of the seemingly insurmountable impasses that can’t be resolved to get Star Plunge opened again while the lawsuit proceeds.
Jordan has told Cowboy State Daily that the state will allow a third-party, approved by the state, to operate the park for Luehne during the dispute.
But Luehne has told Cowboy State Daily the only operator they will accept is Wyoming Hot Springs, LLC — and that is unacceptable to him.
The ruling also means Star Plunge will remain closed until the court case is finally resolved, leaving the park in an indefinite impasse. The situation has prompted many letters from the community to Cowboy State Daily, publicly calling for both parties to resolve the situation in a way that doesn’t harm the community’s tourism.
Renée Jean can be reached at renee@cowboystatedaily.com.
