Federal Jury Rejects Cottonwood's Latest Lawsuit Against Yellowstone Club

The Cottonwood Environmental Law Center of Bozeman lost another legal decision Thursday in its long-standing battle against Big Sky entities when a federal jury ruled unanimously in favor of the Yellowstone Club against Cottonwood's claim that it was discharging pollutants into navigable waters.

The jury found that the Yellowstone Club did not "discharge a pollutant to navigable waters from a point source," as charged in Cottonwood's July 2023 filing. The verdict, delivered after a trial that began February 3, brings to a close the environmental group's third Clean Water Act lawsuit against the ultra-exclusive private ski resort — and marks its third consecutive defeat in federal court.

Cottonwood had sued in 2023, arguing the Yellowstone Club was "impairing the water quality of the Gallatin River and its tributaries" with its irrigation practices. Specifically, the environmental group claimed the club was using golf course sprinklers to over-irrigate with treated wastewater, causing nitrogen pollution to reach the South Fork and West Fork of the Gallatin River.

Cottonwood argued the club "over irrigates its golf course such that nitrogen pollution reaches the South Fork/West Fork of the Gallatin River," and that "the Gallatin River and its tributaries, including the South Fork/West Fork of the Gallatin River and Second Yellow Mule Creek have suffered from severe algae blooms for the last five years as a result of Defendant's golf course management practices."

The case had attracted attention in part due to its unusual origins. John Meyer, Cottonwood's Executive Director, was arrested for trespassing in 2023 after hiking up the Gallatin River with a contractor to collect water samples from Yellowstone Club property. The criminal case was ultimately dismissed, and water samples collected during that excursion — which showed elevated nitrogen levels downstream of the club's golf course — became evidence in the lawsuit.

The Yellowstone Club maintained throughout the proceedings that its practices are not only legal but environmentally responsible. A pre-trial court filing stated that the club uses "highly-treated" reclaimed wastewater to irrigate its golf course and a nearby 36-acre reforestation area, with all operations approved by the Montana Department of Environmental Quality after extensive scientific review.

"Use of recycled water for irrigation is a conservation-focused approach designed to protect water quality and quantity, prevent impacts on surface waters, and responsibly reuse water in a semi-arid region," the club stated in a release. "Many Montana municipalities directly discharge their treated wastewater into nearby rivers, but Big Sky has never done so, instead focusing on reuse practices."

The club emphasized that it does not hold — and does not need — a Clean Water Act discharge permit because its reclaimed wastewater does not reach surface waters directly or indirectly, as the jury ultimately agreed.

The verdict represents the latest in a remarkable string of legal setbacks for Cottonwood. Since 2021, courts have made no fewer than two dozen rulings against Cottonwood related to Big Sky. The organization's only victory came in 2022, when it reached a Clean Water Act settlement with Spanish Peaks resort. Beyond that singular success, Cottonwood has seen case after case dismissed, often with harsh words from the bench.

In July 2025, U.S. District Court Chief Judge Brian Morris sanctioned the group in a separate matter, describing its fraud claims as baseless and pursued recklessly. Other lawsuits against the Big Sky County Water and Sewer District and Boyne USA, parent company of Big Sky Resort, have similarly failed to gain traction.

The cumulative cost of defending against Cottonwood's legal campaigns has been substantial. Local officials note that Big Sky Community Water and Sewer District ratepayers have borne significant legal expenses, which the district says have added approximately $1,000 to water bills. The Yellowstone Club has invested millions defending its practices in court while simultaneously pointing to its $50 million Water Resource Recovery Facility and $13 million in water-recycling efforts — investments that have earned support from American Rivers, Greater Yellowstone Coalition, Trout Unlimited, and the Gallatin River Task Force.

Despite the unanimous jury verdict, Cottonwood Executive Director John Meyer struck a defiant tone. "Cottonwood's three Clean Water Act lawsuits are now in the Ninth Circuit and we're going to work to expose the truth about how certain entities in Big Sky have polluted our water and cheated in court to continue unnecessary luxury development," Meyer said in an email. "Cottonwood may have lost on paper, but we undoubtedly won for the river."

The Yellowstone Club, for its part, expressed hope that the legal battles might finally be behind the community. "With a series of Cottonwood legal efforts having been rejected, the Big Sky community hopes focus can return to shared priorities, including environmental stewardship and conservation investments," the club's release stated.

Whether that hope becomes reality will depend on what unfolds in the Ninth Circuit Court of Appeals — and whether Cottonwood's appetite for litigation has finally been exhausted.