Eldorado Coop Canal Co. v. Ben HogEldorado Coop Canal Co. v. Ben Hog
For Appellee: Stephen R. Brown, Garlington, Lohn & Robinson, PLLP, Missoula (for Lower Teton Joint Objectors).
JUSTICE BAKER delivered the Opinion of the Court.
¶1 Eldorado Coop Canal Company appeals the order of the Ninth Judicial District Court, Teton County, denying its dissatisfied water user complaint. Appellees, the Lower Teton Joint Objectors1 (Joint Objectors), appeared
Whether the District Court erred in denying Eldorado‘s dissatisfied water user complaint.
¶2 We affirm.
PROCEDURAL AND FACTUAL BACKGROUND
¶3 The Water Court currently is in the process of adjudicating the existing water right claims of all appropriators in the Teton River Basin—Basin 41O. As part of that process, the Water Court has issued a temporary preliminary decree for Basin 41O. Various claims subject to the temporary preliminary decree have been at issue in numerous cases before this Court. E.g., Fellows v. Saylor, 2016 MT 45, 382 Mont. 298, 367 P.3d 732 (hereafter Fellows I); Teton Co-Op Canal Co. v. Teton Coop Reservoir Co., 2015 MT 344, 382 Mont. 1, 365 P.3d 442; Teton Coop. Reservoir Co. v. Farmers Coop. Canal Co., 2015 MT 208, 380 Mont. 146, 354 P.3d 579; Skelton Ranch, Inc. v. Pondera County Canal & Reservoir Co., 2014 MT 167, 375 Mont. 327, 328 P.3d 644. Both Eldorado and the Joint Objectors have been involved in a number of these disputes. E.g., In re Eldorado Coop Canal Co., 2016 MT 94, 383 Mont. 205, 369 P.3d 1034 (hereafter Eldorado I); Eldorado Co-Op Canal Co. v. Lower Teton Joint Objectors, 2014 MT 272, 375 Mont. 420, 337 P.3d 74 (hereafter Eldorado II).
¶4 Eldorado is a water supply entity that distributes water to shareholders from the Teton River northwest of Choteau, Montana. Eldorado owns four water rights that were decreed in Perry v. Beattie, Case No. 371 (Mont. 11th Judicial Dist. Ct., March 28, 1908). Eldorado‘s water rights historically have been administered under the terms of the Perry Decree by a water commissioner appointed by the District Court pursuant to
¶5 In November 2014, the Water Court issued an order addressing objections by various parties—including the Joint Objectors—to Eldorado‘s existing water right claims as established under the temporary preliminary decree. The order determined the elements of Eldorado‘s existing water right claims and modified the temporary preliminary decree. The Water Court concluded that Eldorado‘s water right claims included a cumulative annual volume quantification of 15,000 acre-feet. The Water Court determined that this volume quantification represented Eldorado‘s historic beneficial use of its existing water rights. The Water Court incorporated the volume quantification into the post-decree abstracts for each of Eldorado‘s water right claims and concluded that “Eldorado‘s rights shall appear in the Final Decree for the Teton River Basin (41O) in accordance with the [amended] abstracts attached hereto.”
¶6 Eldorado appealed the Water Court‘s order, which we recently addressed in Eldorado I. In Eldorado I, we concluded that the Water Court acted within its discretion under
¶7 The Joint Objectors are downstream Teton River water rights holders whose predecessors were not parties to the Perry Decree. In July 2015, the Joint Objectors informed Water Commissioner Ben Hoge that Eldorado was approaching the volumetric quantification established by the Water Court‘s order and requested that Water Commissioner Hoge cap the distribution of Eldorado‘s water to the volumetric quantification. After learning of the request, Eldorado petitioned the Water Court to stay the volume quantification order pending Eldorado‘s appeal to this Court in Eldorado I. The Water Court denied Eldorado‘s request in August 2015. Later that same month, Water Commissioner Hoge ceased delivering water to Eldorado.
¶8 On August 23, 2015, Eldorado filed a dissatisfied water user complaint in the District Court pursuant to
STANDARD OF REVIEW
¶9 On appeal from a dissatisfied water user proceeding we review findings of fact to determine whether they are supported by substantial credible evidence and conclusions of law for correctness. In re Water Complaint of Kelly, 2010 MT 14, ¶ 25, 355 Mont. 86, 224 P.3d 640.
DISCUSSION
¶10 Whether the District Court erred in denying Eldorado‘s dissatisfied water user complaint.
¶11 As an initial matter, we decline to address Eldorado‘s challenge to the Water Court‘s determination that its existing water rights are subject to a cumulative annual volume quantification of 15,000 acre-feet. We upheld the Water Court‘s determination regarding the elements of Eldorado‘s existing water rights in Eldorado I and affirmed the 15,000 acre-foot volume quantification. Eldorado I, ¶¶ 34, 43. Accordingly, the volumetric quantification issue no longer presents an actual controversy and has been rendered moot. See Havre Daily News, LLC v. City of Havre, 2006 MT 215, ¶ 31, 333 Mont. 331, 142 P.3d 864. The issues related to enforcement of the volumetric quantification are not moot, however, and we will consider them.
¶12 In its order, the District Court first concluded that the Water Court has “jurisdiction over all matters relating to the determination of existing water rights” in Montana and that a district court “only has jurisdiction to enforce the provisions of a final decree or a temporary preliminary decree as issued and modified by a water court.” Accordingly, the District Court determined that it did not have the authority to stay the volumetric quantification imposed on Eldorado‘s water rights. The court concluded further that it must enforce the Water Court‘s volumetric quantification because its jurisdiction in a dissatisfied water user action is limited to determining “whether [or not] the water commissioner is distributing water to existing water rights holders pursuant to the adjudication decree.” (Quoting Baker Ditch Co. v. Dist. Ct., 251 Mont. 251, 256, 824 P.2d 260, 260 (1992).) Accordingly, the District Court denied Eldorado‘s dissatisfied water user complaint because it concluded that it had “no power to override the decision of the Water Court” to establish a volumetric quantification for Eldorado‘s existing water rights.
¶13 On appeal, Eldorado asserts several points of error. Eldorado first contends that the purpose of a dissatisfied water user action is limited to enforcing the rights determined by a prior decree. In this case, Eldorado asserts, the prior decree that should be enforced is the Perry Decree. As such, Eldorado claims that the District Court erred by not enforcing the Perry Decree‘s terms and by instructing the Water Commissioner to enforce the volumetric quantification established in the modified temporary preliminary decree. Furthermore, Eldorado contends, the Water Court‘s order imposing a volumetric quantification is not enforceable because the statutory procedures for enforcing a water court decree were not initiated. Finally, Eldorado claims that the District Court‘s order violated its due process rights because it was not given notice or any opportunity to be heard before the District Court enforced the 15,000 acre-feet volumetric quantification.
¶14 The Joint Objectors counter that Eldorado‘s dissatisfied water user complaint is a collateral request for a stay of the Water Court‘s order imposing a volumetric quantification. The Joint Objectors therefore contend that Eldorado waived its right to challenge the volumetric quantification here because Eldorado did not challenge the Water Court‘s denial of its request for a stay of the volumetric quantification. The Joint Objectors next assert that under
Waiver by Eldorado‘s failure to seek review of the Water Court‘s denial of its stay request
¶15
A person owning or using any of the waters of the stream ... who is dissatisfied with the method of distribution of the waters of the stream ... by the water commissioner ... and who claims to be entitled to more water than the person is receiving ... may file a written complaint, duly verified, setting forth the facts of the claim.
¶16 While Eldorado‘s dissatisfied water user complaint did challenge the Water Court‘s volumetric quantification that was then pending on appeal, it also challenged the Water Commissioner‘s distribution of Teton River water and contested which water rights decree is applicable to that distribution. Eldorado‘s complaint therefore involved the distribution of water, while Eldorado‘s motion to stay the Water Court‘s order involved the adjudication of its existing water rights. Montana‘s water rights system distinguishes water adjudication from water distribution. Compare
Enforcement of the Water Court‘s volumetric quantification
¶17 Eldorado contends that the District Court erred because the only enforceable decree for the Teton River is the Perry Decree; therefore, the District Court is authorized to direct the Water Commissioner to administer water according to the terms of the Perry Decree only. The Joint Objectors counter that the District Court properly enforced the provisions of the modified temporary preliminary decree for Basin 41O because that decree supersedes the Perry Decree. Both Eldorado and the Joint Objectors rely on provisions of the Montana Water Use Act in support of their arguments.
¶18 It is well-established that “statutes should be construed according to the plain meaning of the language used therein.” Fellows I, ¶ 21 (quoting State v. Price, 2002 MT 229, ¶ 47, 311 Mont. 439, 57 P.3d 42) (internal quotations omitted). Furthermore, a statute “must be read as a whole, and its terms should not be isolated
¶19 While Montana‘s Constitution recognizes and confirms “existing rights to the use of any waters for any useful or beneficial purpose,”
¶20 Under
¶21
¶22 Here, it is undisputed that the Water Court properly issued a temporary preliminary decree for Basin 41O pursuant to
¶23 We are unpersuaded by Eldorado‘s claim that the District Court “improperly strayed” from the Perry Decree‘s terms by instructing the Water Commissioner to impose the volumetric quantification established in the modified temporary preliminary decree. The Water Use Act clearly provides that “[f]or purposes of administering water rights, the provisions of a temporary preliminary decree or a preliminary decree, as modified after objections and hearings, supersede a claim of existing right until a final decree is issued.”
Procedure for enforcing the modified temporary preliminary decree
¶24 Eldorado argues that the temporary preliminary decree was not enforceable because the appropriators in Basin 41O did not initiate procedures prescribed in
(1) Whenever the rights of persons to use the waters of any stream or other source of supply have been determined by a decree of a court of competent jurisdiction, including temporary preliminary, preliminary, and final decrees issued by a water judge, it is the duty of the judge of the district court having jurisdiction of the subject matter, upon the application of the owners of at least 15% of the water rights affected by the decree, in the exercise of the judge‘s discretion, to appoint one or more commissioners. The commissioners have authority to admeasure and distribute to the parties owning water rights in the source affected by the decree the waters to which they are entitled, according to their rights as fixed by the decree and by any certificates, permits, and changes in appropriation right issued under chapter 2 of this title....
(2) When the existing rights of all appropriators from a source or in an area have been determined in a temporary preliminary decree, preliminary decree, or final decree issued under chapter 2 of this title, the judge of the district court may, upon the application by both the department of
natural resources and conservation and one or more holders of valid water rights in the source, appoint a water commissioner. The water commissioner shall distribute to the appropriators, from the source or in the area, the water to which they are entitled.
authority to admeasure and distribute to the parties owning water rights in the source affected by the [Perry Decree] the waters to which they are entitled, according to their rights as fixed by the decree and by any ... changes in appropriation right issued under chapter 2 of this title.
¶25 Here, the District Court appointed Water Commissioner Hoge pursuant to
¶26 Although Water Commissioner Hoge was appointed to distribute water pursuant to the Perry Decree, it is Water Commissioner Hoge‘s “duty to admeasure and distribute” water to appropriators “in the same manner and under the same rules as decreed water rights are admeasured and distributed.”
¶27 We find no support for Eldorado‘s additional procedural arguments under
¶28 Eldorado‘s interpretation of the applicable statutes is contrary “to the plain meaning of the language used therein.” Fellows I, ¶ 21. Moreover, such an interpretation conflicts with the “whole statutory scheme” for water rights the Legislature has implemented pursuant to its constitutional mandate. Stokes, ¶ 15. Here, the Water Court entered a temporary preliminary decree establishing the water rights in Basin 41O. The Water Court—acting within its exclusive jurisdiction—then interpreted and determined the nature and extent of Eldorado‘s existing water rights after objections and hearings. At that point, the provisions of the temporary preliminary decree relating to Eldorado‘s rights “supersede[d] [Eldorado‘s] claim of existing right” under the Perry Decree,
¶29 As stated above, the “whole question” in a dissatisfied water user proceeding under
Due Process
¶30 Eldorado contends that its due process rights were violated because it was not provided with notice and had no opportunity to be heard prior to the volumetric quantification being enforced. Eldorado “participated in a four-day trial in front of a Water Master” following the objections to its water right claims as established in the temporary preliminary decree. Eldorado I, ¶ 7. The Water Master then issued a report “regarding each of Eldorado‘s claimed water rights.” Eldorado I, ¶ 8. The Master‘s report received objections from all parties—including Eldorado. Based on these objections, the Water Court amended the Master‘s report to include a combined annual volume for Eldorado‘s claims of 15,000 acre-feet. Eldorado I, ¶ 15. Eldorado appealed the Water Court‘s order to this Court and argued that “the Water Court impermissibly constrained its water rights by quantifying the volume of [its] rights as it did.” Eldorado I, ¶ 23. We concluded that the Water Court correctly determined the extent of Eldorado‘s rights and we therefore upheld “the Water Court‘s findings regarding volume.” Eldorado I, ¶ 34.
¶31 Once Water Commissioner Hoge informed Eldorado that he had been requested by the Joint Objectors to administer Eldorado‘s rights by the volumetric quantification, Eldorado sought a stay of the volume quantification order from the Water Court, which the Water Court denied. The Water Court‘s order denying the stay concluded that the “Water Commissioner is subject to direction by the local district court judge. Future enforcement of the 15,000 acre foot limit will be pursuant to the district court‘s authority to administer water rights.” As detailed above, the Water Court‘s imposition of the volumetric quantification modified the temporary preliminary decree, and the District Court accordingly had authority to enforce the volumetric quantification. Eldorado exercised its statutory right to file a dissatisfied water user complaint and was heard on its complaint.
¶32 “Under both federal and state jurisprudence the requirements for procedural due process are (1) notice, and (2) opportunity for a hearing appropriate to the nature of the case.” Montanans for Justice v. State, 2006 MT 277, ¶ 30, 334 Mont. 237, 146 P.3d 759 (citations omitted). These requirements “are ‘flexible’ and are adapted by the courts to meet the procedural protections demanded by the specific situation.” Montanans for Justice, ¶ 30 (citation omitted). Here, Eldorado participated in every step of
CONCLUSION
¶33 We affirm the District Court‘s order denying Eldorado‘s dissatisfied water user complaint.
CHIEF JUSTICE MCGRATH, JUSTICES SHEA, COTTER and WHEAT concur.