Wade Clark Mulcahy LLP

SpaceX received an embarrassing reminder last Thursday to ensure they own property before undertaking major projects. Cards Against Humanity, a company known for their irreverent party game and national pranks, filed a lawsuit against SpaceX for trespass on land they have owned in Texas since 2017. Cards Against Humanity purchased the land adjoining the border between the United States and Mexico in 2017 as part of a protest against then-President Donald Trump’s planned border wall. Since that time, CAH reports, the land has been kept in pristine condition, maintained with regular mowing, fencing and “no trespassing” signs.

That was, of course, until Elon Musk’s SpaceX moved in next door and began using the CAH acreage as worksite. Per CAH’s public statement, SpaceX  “completely f***ed that land with gravel, tractors, and space garbage.” From the lawsuit:

“The site was cleared of vegetation, and the soil was compacted with gravel or other substance to allow SpaceX and its contractors to run and park its vehicles all over the Property. Generators were brought in to run equipment and lights while work was being performed before and after daylight. An enormous mound of gravel was unloaded onto the Property; the gravel is being stored and used for the construction of buildings by SpaceX’s contractors along the road. Large pieces of construction equipment and numerous construction-related vehicles are utilized and stored on the Property continuously. And, of course, workers are present performing construction work and staging materials and vehicles for work to be performed on other tracts. In short, SpaceX has treated the Property as its own for at least six (6) months without regard for CAH’s property rights nor the safety of anyone entering what has become a worksite that is presumably governed by OSHA safety requirements.” (Emphasis in original)

After being alerted to the trespass, SpaceX reportedly gave CAH a “lowball offer for less than half” of the lands value, with a 12-hour window to accept. CAH politely declined, and filed suit against SpaceX.

Per the lawsuit, SpaceX never asked permission to conduct these activities and has continued to use the plot as a staging ground for construction projects to this day. As a result of this trespass, CAH claims that it has been deprived of the property’s full use.  Additionally CAH states that the work has irrevocably damaged its reputation, tying their land to Elon Musk by association and preventing CAH from fulfilling its promise to backers that the land would be protected from “racist billionaires and their dumb vanity projects.” CAH accordingly has sued SpaceX for Trespass Nuisance, Unjust Enrichment,  and Tortious Interference to the tune of $15 million. CAH promises to distribute the proceeds among the original backers as an apology for allowing SpaceX to damage the land. This lawsuit, while sensationalized by the nature of the litigants, can serve as an important reminder to anyone engaging in a construction project – check to make sure you have all the permits before beginning work. Lastly, knowing CAH's brand, motion papers could contain some interesting verbiage going forward.