258 P.3d 712
Wyo.2011Background
- Rageths irrigate 559.75 acres in Big Horn County under an 8 cfs adjudicated right from Bitter Creek conveyed through the Sidon Canal, outside District boundaries and not District members.
- District owns Sidon Canal and Bitter Creek diversion; District has adjudicated rights from the Shoshone River plus Bitter Creek and operates the Sidon Canal for its members.
- Rageths and District negotiated a delivery fee after Rageths purchased the land; prior agreements had expired.
- A stipulation (filed April 28, 2010) fixed Rageths’ perpetual right to convey water through the Sidon Canal but reserved ownership of the facilities and left fee terms for future court order.
- District billed Rageths $7,560 in 2008 and $11,200 in 2009 for delivery of Rageths’ 8 cfs; Rageths paid under protest and sought declaratory relief and reimbursement.
- The district court granted summary judgment in favor of District on the fee and reimbursement claims; Rageths appealed (Nos. S-10-0141 and S-10-0184) and the appeals were consolidated.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| What is a reasonable future delivery fee for a non-member with a perpetual conveying right? | Rageths: apply the 4.26% ratio to operation/maintenance expenses and exclude non-related costs; require equitable apportionment. | District: use per-acre District-wide assessments as the basis for the fee; no separate expense segregation required. | Genuine issues of material fact; fee to be determined by equitable apportionment after evidence at trial. |
Key Cases Cited
- Freeman v. Sorchych, 245 P.3d 927 (Ariz. App. 2011) (equitable contribution for shared improvements)
- Gunnison-Fayette Canal Co. v. Roberts, 364 P.2d 103 (Utah 1961) (expense sharing not strictly based on ditch usage; equitable apportionment considerations)