CITY AND COUNTY OF DENVER v. SHERIFF ET AL.
No. 14,448
Supreme Court of Colorado
October 23, 1939
December 4, 1939
96 P. (2d) 836
The judgment is reversed and the case remanded for further proceedings not inconsistent with this opinion.
MR. CHIEF JUSTICE HILLIARD and MR. JUSTICE FRANCIS E. BOUCK concur.
Mr. FRANK DELANEY, Messrs. MOYNIHAN-HUGHES, Messrs. TUPPER, SMITH & HOLMES, for defendants in error.
Mr. ERSKINE R. MYER, Mr. HAROLD B. NEWROCK, amici curiae.
En Banc.
MR. JUSTICE OTTO BOCK delivered the opinion of the court.
THIS controversy relates solely to those portions of a general water adjudication decree affecting the alleged water rights of plaintiff in error, hereinafter referred to as the city.
March 1, 1918, the city acquired from the Denver Union Water Company, a water system which had for many years prior thereto served it and others as a private public utility. At that time the water sources of the
The present population served by the city‘s water system is approximately 350,000. It has been a constant and serious problem for the municipality to obtain sufficient and adequate water to supply its citizens and the area contiguous to the city which it is under legal obligation to serve. The water sources, with the exception of the projects involved in the instant case, have, as previously stated, been the South Platte river and its tributaries. The water flow in this river is extremely variable. The stream and the yield from the water rights of the city originating therefrom is far from uniform. Moreover, the population of the city and in the areas contiguous thereto is showing a healthy growth. In 1918, when Denver acquired its water system, the population was between 150,000 and 200,000. The population served by the system at this time is approximately 350,000. The city has not been unmindful of its obligation to seek further water sources for its growing needs. As early as 1914 its Public Utilities Commission made investigation through employed engineers. After the city acquired the Denver Union Water Company, and in 1921, it caused a location survey to be made for projects of Western Slope water, and particularly the Fraser river and Williams Fork diversion projects, these latter being involved in the instant case, and which the trial court decreed as of July 4, 1921, as the appropriation
The decree here involved is in three separate parts, the first relating to the Fraser river diversion project, the second to the Williams Fork diversion project, and the third to the Williams Fork reservoir. In view of the questions presented by the assignments of error, we deem it unnecessary to describe in detail these three projects, and we refer to them collectively as the Western Slope waters. As related to the Fraser river diver-
First, that the trial court, in giving the city its priorities from the Western Slope streams, made such priorities subject to unlawful and burdensome restrictive conditions; and, second, that the trial court denied the city any priorities whatever for general irrigation purposes.
In each of the three divisions of the decree we find the paragraph of which the city complains, as follows:
“Any waters decreed herein, whether decreed therefor to be for direct flow or for storage, and whether the said decree be absolute or conditional, be diverted, taken and used as supplemental to the decreed water rights now belonging to claimant, which said decrees are from the waters of the natural streams of the State of Colorado and that the said claimant be required to satisfy its needs for waters from said existing decrees owned by it before it shall be held to require or need waters herein decreed or shall be entitled to take the same. That the waters herein decreed shall be held by the said claimant as a water supply supplemental to its present supply of water available under water decrees which the said claimant now holds and to be used only to the extent necessary to fill the needs and requirements of the claimant for municipal purposes, after it has made full and economical use of the waters available to it under water decrees now owned by it.”
It will be noted that the restrictions relate to “water decrees now owned by it,” being the Eastern Slope water rights, and “any waters decreed herein” being the Western Slope water rights.
We shall first discuss these restrictive conditions to the decrees of the city as they relate to its Eastern Slope water rights. These appropriations are all based upon unconditional and absolute decrees. That they take on the attribute of property rights cannot be questioned. Counsel for defendants in error do not question this. This carries with it the right, under certain circumstances, to lease, sell and convey title. Fort Lyon Canal Co. v. Rocky Ford Co., 79 Colo. 511, 515, 246 Pac. 781;
In Strickler v. Colorado Springs, supra, we said (p. 70): “The authorities seem to concur in the conclusion that the priority to the use of water is a property right. To limit its transfer as contended by appellee would in many instances destroy much of its value. It may happen that the soil for which the original appropriation was made has been washed away and lost to the owner, as the result of a freshet or otherwise. To say under such circumstances that he could not sell the water-right to be used upon other land would be to deprive him of all benefits from such right. We grant that the water itself is the property of the public; its use, however, is subject to appropriation, and in this case it is conceded that the owner has the paramount right to such use. In our opinion this right may be transferred by sale so long as the rights of others, as in this case, are not injuriously affected thereby. If the priority to the use of water for agricultural purposes is a right of property, then the right to sell it is as essential and sacred as the right to possess and use. Blackstone says: ‘The third absolute right inherent in every Englishman is that of property, which consists in the free use, enjoyment and disposal of all his acquisitions without any control or diminution save only by the laws of the land.‘”
In Wyatt v. Larimer & Weld Irr. Co., supra, the court uses the following language as related to property rights (p. 497): “When thus appropriated the party appropriating was regarded as having a proprietary interest, -a right of property in, and the title to the water appro-
The trial court‘s purpose in these restrictive conditions is disclosed in the record, wherein it is stated: “In making this right a supplemental right to the rights already owned by Denver, we are guarding against the City of Denver going into the business of selling water or disposing of a part or all of her present water rights and substituting the water acquired or to be acquired in this proceeding for her present water supply.”
In part, the express purpose is to prevent any sale, lease or alienation of the Eastern Slope water. This would operate to prevent the city from leasing Eastern Slope water to farmers, which, under certain circumstances, we have said it had a right to do. Denver v. Brown, 56 Colo. 216, 233, 138 Pac. 44. If the city, for some legitimate reason, desired to abandon or sell any of its Eastern Slope water, it would, by so doing, and under these restrictions, jeopardize its water rights on the Western Slope. The furnishing of an adequate supply of water to 350,000 people requires managerial judgment and involves an ever-changing problem. To so freeze and straight-jacket the city‘s Eastern Slope water rights, by the restrictions involved here, would be an arbitrary invasion of vested property rights of the city. Comstock v. Larimer & Weld Res. Co., supra.
It seems that counsel for defendants in error do not fully comprehend the issues presented in this case. Throughout their brief they consider the problems involved as though they relate to an appropriation of water to a body of agricultural land. We agree with them that “The people are vitally interested in the future developments of the state.” Most of the cases they cite concern controversies relating to priorities. No such
The validity of the restrictions as applied to the city‘s Eastern Slope decrees also is challenged from a procedural standpoint. Only courts in which unconditional decrees to Eastern Slope water rights of the city have been originally adjudicated have jurisdiction to construe or modify such decrees. Weiland v. Reorganized Catlin Co., 61 Colo. 125, 156 Pac. 596; Farmers Ditch & Res. Co. v. Boyd Lake Res. & Irr. Co., 66 Colo. 29, 178 Pac. 561; Bijou Irr. Co. v. Lower Latham Ditch Co., 67 Colo. 356, 184 Pac. 292; Hazard v. Reservoir Co., 87 Colo. 364, 287 Pac. 854. The restrictions, as they affect the Eastern Slope water rights, are, therefore, invalid. That it was the intention and purpose of the trial court to restrict these decrees cannot be questioned. Courts may not do indirectly that which they are without power
Concerning these restrictions as applied to the 335 cubic feet of Western Slope water awarded the city as an absolute appropriation, such restrictions are a novelty in a water adjudication decree. True, no one has a property right in, or the right to sell or lease, water which has not first been legally appropriated. The system operated by the city embraces reservoirs of considerable magnitude. Much of the appropriated water when it reaches these reservoirs located on the Eastern Slope, cannot be returned to the public stream from which it was diverted. This statement also applies to water stored in the city‘s water system. The possession of the water is different in character from that which is used solely for agricultural purposes.
We do not here controvert the general rule recited by counsel for defendants in error as announced in Ft. Lyon Canal Co. v. Chew, 33 Colo. 392, 81 Pac. 37, as follows: “The general rule is that when an appropriator has no present need of water for irrigating his lands, he must not divert it from the natural stream, but it is his duty to let it flow in the natural channel to be enjoyed by other appropriators as their numerical priorities entitle them. If a senior appropriator who has not such need for his own land may disregard the usual rule and pass over one or more appropriators who are junior to him and confer upon other appropriators, who are junior to those ignored, his senior rights, it is his duty to show the facts that justify the departure.”
It will be noted that we there referred to “need of water for irrigating his lands.” Our problem here relates to the need of water for municipal purposes. This difference has received legislative recognition in the enactment of
This section does not attempt to change the status of any individual who has applied water to a beneficial use, nor does it attempt to grant a right to any water held by others. It does recognize certain practical problems related to municipal water systems, as related to beneficial use. The term “beneficial use” is not defined in the Constitution. What is beneficial use, after all, is a question of fact and depends upon the circumstances in each case. What chapter 172, supra, recognizes is that cities having a population of 200,000 and over may, for reasons already stated, have not only the right to appropriate a sufficient volume of water for immediate use, but by prudent management to acquire by appropriation an adequate supply for a reasonable time in the future. What such a reasonable time would be is not presented on this review. That such water must first be applied to a beneficial use by the city before it has any property right in it is not disputed. All we now say is that the factors which enter into a determination of a beneficial use here, which is based upon a normal need, are more flexible than those relating to the use of water on agricultural land. The construction of a great distribution system necessarily involves a large financial investment. That such investment may be entitled to a return derived from a leasing of water not necessary to the city for immediate use, has heretofore received our implied approval. Colorado Springs v. Colorado City, supra.
The city relies on the case of Denver v. Brown, supra. It is said that relying thereon and on chapter 172, supra, it has made an investment of a large amount of money. Referring to that case, counsel for defendants in error say in their brief: “* * * in no subsequent Colorado case has this case been relied upon as authority for the point at issue herein.” We know of no subsequent case, and none is cited, where this point was
That we carefully, deliberately and without haste considered the issues in Denver v. Brown, supra, cannot be questioned. The litigation occupied the attention of this
Referring to the validity of the limitations in the contracts in issue in that case, and to the leasing of the city‘s water, we said (pp. 232, 233): “At the time the city was exacting these contracts it was the beneficial owner of the ditch and had been for something like 18 years. Its use of water as a contract consumer was continuous each year from the time it first began to apply water to the irrigation of shade trees on the streets of the city. When it became the beneficial owner of the ditch this use was continued without interruption, except that some time in the nineties the volume it used was to some extent decreased. It intended, however, to resume the full use later. As stated, the contracts under consideration were executed subject to the needs and requirements of the city as a user. As to consumers entitled to water from the ditch by virtue of prior user, we think these conditions were invalid in so far as they related to the volume which such consumers were entitled to have turned out to them, for the reason that to this extent their rights had attached, and they could not be deprived of them unless they voluntarily consented. As to any excess water for which these consumers contracted by contracts containing these limitations, or as to those whose rights were initiated under these contracts, the limitations imposed must be treated as a lease of the water, the right to the use of which the city had theretofore acquired and, therefore, to this extent are valid. We are also of the opinion that the use of water under these contracts by consumers, bound by the limitations imposed, preserved the status of the city the same as though it had utilized the water covered by these contracts for its own needs. In other words, by these contracts it leased its rights to the water which it had acquired as a consumer above that necessary for its present needs, and hence preserved them to all in-
It will be noted that the leased water applied to such as “the right to the use of which the city had theretofore acquired.” That is all that the city can rightfully claim here. No double use is involved. After the water had been applied beneficially by the city, as the court found relative to the 335 cubic feet, it became the property of the city of Denver, and any such water for which there may at any given time in the future be no immediate need, may be temporarily leased by the city, in accordance with chapter 172, supra. The restriction of such use as is attempted by the decree here under consideration is invalid and an invasion of vested rights.
In People ex rel. v. District Court, supra, in a resumé of what we held in Denver v. Brown, supra, we said (p. 513): “As to the excess water, which term will be comprehended by those familiar with the litigation, we held the limitations imposed by the city upon the users of this water, were, in effect, a lease of the amount not necessary for the city‘s present needs, and preserve the water privilege in the city, the same as though it had continued in the use.”
We find that other western states concerned with similar problems are in harmony with this view. Pocatello v. Murray, 206 Fed. 72, 80; Holt v. Cheyenne, 22 Wyo. 212, 137 Pac. 876, 880; Butler & Thompson Co. v. Ashland, 109 Ore. 683, 22 Pac. 346, 347.
We come now to the second question-a denial by the trial court to the city of any priorities to the Western Slope waters for general irrigation purposes. The decrees provide that the water “is being and will be used for all municipal uses, including domestic use, fire protection, street sprinkling, watering of parks, lawns and grounds, mechanical uses and every other
Our constitutional provisions concerning the waters of natural streams designate four uses.
Counsel for defendants in error say in their brief: “There is no question but that irrigation within the municipality is one of the recognized uses to be made of water by the city. This use was set out in the claims
It is, therefore, conceded that in so far as the 335 cubic feet of water per second of time absolutely decreed herein is concerned, it may be used for irrigation purposes within the area served by the Denver Municipal Water System. If it be true that consumers seeking water from the city in the municipal area involved, for any purpose, could obtain it only through the Denver Municipal Water System, then, because of its public utility status, the system would be legally required to serve such consumers. One of the problems in the case before us is whether the water not needed for immediate use, as distinguished from a normal need, under all the circumstances, could be leased temporarily to consumers for agricultural purposes outside of the city area. What the city‘s relations as a water carrier would be if an appropriator from Western Slope streams diverts water for agricultural use outside of the Denver system area is not now before us. No relation of carrier and consumer is involved in this case. In our opinion, there is no basis upon which the trial court could have made a finding of a beneficial use for irrigation outside of the area served by the Denver Municipal Water System. The need of water to satisfy beneficial use, contended for by the city, necessarily must apply to the system area. This, however, as we have heretofore stated, does not prohibit the city from leasing the water not needed for immediate use, under our decision in Denver v. Brown, supra, and chapter 172, supra, subject to the provisos therein. It, therefore, was not error for the trial court to deny the city an appropriation based on beneficial use for irrigation purposes outside of the Denver Municipal Water System area.
MR. JUSTICE BURKE and MR. JUSTICE YOUNG concur in the result.
MR. JUSTICE KNOUS concurs specially.
MR. JUSTICE KNOUS specially concurring.
Substantially, as stated in the opinion of the court, the city of Denver here asserts, first, that in giving the city its priorities from the Western Slope streams the trial court erred in placing in the decrees certain restrictive provisions, which are set out in the opinion, and, second, that the trial court improperly denied the city any priorities whatever for general irrigation purposes. As to the first contention the opinion concludes that the trial court was wrong in inserting the questioned restrictive conditions in the decretal orders but resolved rightly concerning the second contention. In making this disposition the opinion states: “In our opinion, there is no basis upon which the trial court could have made a finding of a beneficial use for irrigation outside of the area served by the Denver Municipal Water System. The need of water to satisfy beneficial use, contended for by the city, necessarily must apply to the system area. This, however, as we have heretofore stated, does not prohibit the city from leasing the water not needed for immediate use, under our decision in Denver v. Brown, supra, and chapter 172, supra, subject to the provisos therein. It, therefore, was not error for the trial court to deny the city an appropriation based on beneficial use for irrigation purposes outside of the Denver municipal water system area.” With the result of this conclusion I agree, but my convictions require that I express my nonconcurrence with
The moment it is settled, as we have determined, that the attempted imposition of the challenged restrictions in the decree legally were unwarranted, the question of the right of the city, and its extent, to lease such water of the priorities herein awarded as may not be needed for its immediate use, in my opinion, becomes moot. In so far as the unwarranted restrictions may have affected any existing general right of the city in this particular, the prohibition automatically is banished by the striking of the questioned provisions from the decree.
It cannot be questioned that in Denver v. Brown, 56 Colo. 216, 138 Pac. 44, where, as Justice Bock in the opinion points out, the city appeared in the dual capacity of a consumer and carrier of water, limitations in agreements between the city and contracting agricultural users under the ditch, subjecting the delivery of water to the latter to the needs and requirements of the city were treated as leases of water and their validity upheld. Nor can it be doubted that
While these acknowledgments of a right to lease under the circumstances disclosed in the Brown case are pertinent here as showing the repugnancy of the denounced restrictions in the decree before us, I cannot believe they warrant the affirmative extension of at least an equivalent right to the priorities herein under consideration, as I believe the opinion of the court does.
I assume no one will contend that the position of the city in the Brown case has entire factual identity with
None of these important considerations were directly involved in the Brown case nor in the case of Colorado Springs v. Colorado City, 42 Colo. 75, 94 Pac. 316, cited by the city as indicative of the power claimed. Even if the power of a municipal appropriator of water to sell or lease a portion of the same to third parties is conceded, its exercise nevertheless must be in harmony with the law controlling our irrigation system.
As I apprehend, the determination of the extent of the exercise of this asserted right must depend upon the circumstances of each given case as it may originate, and not by the pronouncement of a general principle or the extension of a decision arising under one state of facts to another and dissimilar situation.
Experience augurs that in future controversies physical facts, such as the season of the year, the flow of the stream, the uses involved, the need of the junior appropriators and the location of the diversion points, impossible of accurate forecast, will be of paramount and controlling importance. These situations should be met only when they arise and not be hypothetically prejudged.
It may be that the majority opinion contemplates that determination of these questions may be so reserved, but my apprehension that it implies otherwise, leads me to specially express the extent of my concurrence on this feature of the case.
