427 P.3d 1018
Mont.2018Background
- Carlyle Infrastructure Partners (Carlyle) owned Mountain Water Company’s water system and was defendant/condemnee in a longstanding eminent-domain dispute with the City of Missoula; this litigation produced several prior Montana Supreme Court decisions (Mountain Water I–V).
- Carlyle sold its interest in the water system to Liberty Utilities on December 17, 2015.
- Carlyle submitted a first fee claim through January 31, 2016; the district court awarded reduced fees (Fee Order I), which this Court reviewed in Mountain Water V.
- Carlyle and Mountain Water filed second fee claims for expenses incurred after January 31, 2016; Mountain Water’s claim was denied as reserved rights were lost in a settlement, but Carlyle’s second claim (covering post-sale time) was partially awarded by the district court (Fee Order II).
- On appeal, the Montana Supreme Court considered whether Carlyle could recover attorney fees for work performed after it had sold the condemned property and thus was no longer an owner or condemnee.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Carlyle may recover post-sale litigation expenses | Carlyle: entitled to fees incurred after Jan 31, 2016, despite sale, and challenges statutory caps | City: Carlyle lacked ownership/condemnee status after Dec 17, 2015, so not entitled to fees | Court: Carlyle not entitled to recover any fees for expenses incurred after it sold the property; district court award reversed |
Key Cases Cited
- Missoula v. Mountain Water Co., 228 Mont. 404 (Mont. 1987) (earlier decision addressing acquisition issues)
- Missoula v. Mountain Water Co., 236 Mont. 442 (Mont. 1989) (further litigation history on acquisition)
- Missoula v. Mountain Water Co., 384 Mont. 193 (Mont. 2016) (Mountain Water III; later condemnation litigation developments)
- Missoula v. Mountain Water Co., 391 Mont. 288 (Mont. 2018) (Mountain Water IV; part of the series of appeals)
- Missoula v. Mountain Water Co., 391 Mont. 422 (Mont. 2018) (Mountain Water V; reviewed Fee Order I and issues regarding fee reductions and statutory caps)