MODERNWEST LONGMONT, LLC v. FEDERAL AVIATION ADMINISTRATION

Holding: The court dismissed the petition for review for lack of standing because the petitioner failed to show redressability and failed to argue standing in its opening brief.
Vote: Panel Decision
Practical effect: Property developers cannot challenge FAA guidance letters in the D.C. Circuit unless they provide substantial evidence that removing the letters will likely cause a local government to approve a development that was otherwise denied for independent reasons.

The United States Court of Appeals for the District of Columbia Circuit dismissed a property developer's petition for review of Federal Aviation Administration letters. The court held that the developer lacked standing because it failed to prove that vacating the letters would likely cause the city to approve its housing project.

Background

ModernWest Longmont, LLC sought to build mixed-use housing under the approach paths of the City of Longmont’s public airport. The City effectively denied the proposal after receiving letters from the Federal Aviation Administration warning that the development violated federal grant assurances. ModernWest petitioned the court to vacate the FAA letters, arguing they caused the City’s rejection.

The court’s reasoning

The court found that ModernWest failed to satisfy the burden of showing that a favorable decision would redress its injury. The record contained no evidence that the City would approve the project if the FAA letters were withdrawn, as the City relied on independent local codes and public safety concerns. Additionally, the developer failed to comply with the requirement to argue and furnish evidence of standing in its opening brief.

ModernWest offer[s] nothing but speculation to substantiate [its] claim that a favorable decision from this court will redress [its] injuries by altering [the City’s] independent decision[]

Nat’l Wrestling Coaches Ass’n v. Dep’t of Educ., 366 F.3d 930, 937 (D.C. Cir. 2004)

What it means going forward

Property developers cannot challenge FAA guidance letters in the D.C. Circuit unless they provide substantial evidence that removing the letters will likely cause a local government to approve a development that was otherwise denied for independent reasons.

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