The LU Ranching Co. (LU Ranching) challenges the procedures for giving notice to interested parties involved in the Snake River Basin Adjudication (SRBA), maintaining that they violate the minimum due process requirements established by Section I of the Fourteenth Amendment of the United States Constitution and Article I of the Idaho State Constitution. In the alternative LU Ranching requests this Court to grant it relief from default judgments entered against it. The United States of America (United States) and the State of Idaho (State) stipulate to the facts but oppose LU Ranching’s legal positions.
I.
BACKGROUND AND PRIOR PROCEEDINGS
LU Ranching is a family-owned cattle operation in Southern Idaho and is the preference holder and grazing user of the Cliffs, South Mountain, Cow Creek Individual,
In 1997 pursuant to Idaho Code §§ 42-1409, 42-1411, 42-1412, an investigator for the Idaho Department of Water Resources (IDWR) reviewed water rights claims and prepared a Director’s Report for Reporting Area 6 and all the state-based domestic and stock water claims of LU Ranching and the United States. The report detailed and listed all existing and applied for water rights claims. On July 30, 1997, LU Ranching was personally served by first class mail with a letter of notice entitled: Notice of Director’s Report Reporting Area 6 (IDWR Basins 51, 55, and 61) for Small Domestic and Stock Water Rights. The notice stated in relevant part:
A complete copy of the Director’s Report, listing all of these domestic and stock water rights claimed under both state and federal law, is available at the SRBA courthouse in Twin Falls and the locations listed on the third page of this notice. Copies of the report can be made, but you may be charged for copying and mailing.
The complete Director’s Report contains recommendations to the SRBA Court on your water right and all other small domestic and stock water rights in your area. The Court will decide how it will decree all water rights. The Director’s recommendations in the full report are listed in two sections of the report:
Also included in the complete Director’s Report are descriptions of the United States’ claims for domestic and stockwater rights under federal law. The Director does not investigate these claims and makes no recommendations whether they should be granted or not. Sometimes the United States claims one right under both federal and state law. These are called “dual based” claims.
If you want to review someone else’s water right you need to look at the complete Director’s Report which is available at the SRBA courthouse in Twin Falls and the locations listed on the third page of this notice. Copies of the report can be made, but you may be charged for copying and mailing.
If you disagree with any element of the recommendation for your water right or anyone else’s water right and want to be heard in court, file an objection with the SRBA Court.
The notice stated that all objections to water rights as listed in the report must be received by the SRBA court before December 5, 1997, which gave LU Ranching 120 days within which to file. The notice also stated that IDWR would file its recommendation to the SRBA court after that deadline, and that the SRBA court would issue partial decrees on uncontested claims after February 3, 1998. Further, the notice stated that a notice would be sent on court dates for objections that were filed, but that no other notices would be forthcoming on any other adjudications or decisions. The notice also provided the following information:
If you have questions about the SRBA, public information brochures are available at any IDWR office. Maps and aerial photography of this reporting area, as well as assistance in using the maps and the photography, are available at the two IDWR offices in Boise. You are also welcome to call IDWR at any of its offices on the SRBA Court. You may also want to contact an attorney to assist you.
The notice set forth the addresses and phone number of the SRBA court and the various Department of Water Resources offices. LU Ranching was not informed of any actual conflict to its water claims, except as it would find if it reviewed the Director’s Report. This procedure tracks exactly the requirements set forth in I.C. §§ 42-1411(5) and (6) and 42-1412.
The State of Idaho did file timely objections to the United States’ water claims in Basin 55. They were adjudicated and settled. The State of Idaho appears here solely to defend the procedures used by the SRBA. In August of 2000 LU Ranching filed a motion in the SRBA to set aside these partial decrees on the basis of mistake, inadvertence, surprise, and/or excusable neglect pursuant to rule 60(b)(1) of the Idaho Rules of Civil Procedure and on the basis that the notice LU Ranching received did not meet the minimum requirements for due process as mandated by the Idaho and United States Constitutions. Both arguments were rejected by the SRBA court. LU Ranching filed its appeal.
II.
LU RANCHING’S DUE PROCESS RIGHTS WERE NOT VIOLATED
A. Standard of Review
LU Ranching is challenging the constitutionality of Idaho Code §§ 42-1409, 42-1411, 42-1412 and Regulation AOl. Such a challenge is a question of law over which this Court exercises free review.
Goodman Oil Co. v. Idaho State Tax Comm’n,
B. Due Process
Some of the factors in Mathews v. Eldridge are apparent. The private interest at stake is great. The right to water is a permanent concern to farmers, ranchers and other users. The importance of the government’s interest is great, as the steward of a finite resource that is the lifeblood for much of the state’s economy and quality of life. The other elements to be considered require more analysis.
LU Ranching contends that requiring parties to sift the Director’s Reports so that they notify themselves as to claims potentially or actually adverse to their own is too onerous and risks the deprivation of water rights, maintaining that water right claimants who object to or knowingly file conflicting claims against other known and identified water claimants must personally serve such parties when pursuing adverse decrees. LU Ranching relies upon
Mennonite Board of Missions v. Adams,
Mullane
concerned an adjudication of a common trust fund in which the only notice given of the commencement of the action was notice by publication in a newspaper, as directed by New York law.
Mullane,
These cases concern notice of the commencement when a party of the action must be alerted to the fact of a lawsuit. The United States Supreme Court has insisted on less exacting standards for notice of subsequent procedures and actions when parties know proceedings may affect their rights.
See Texaco, Inc. v. Short,
Whether the actions through which the water right decrees were rendered against LU Ranching can be considered a subsequent proceeding to the commencement of the SRBA is a point disputed by LU Ranching. This argument is premised on the idea that once the SRBA was commenced, water claims are dealt with in subcases that will adjudicate the rights. Under AOl (2)(p), (10)(c, k), (14) and (15), the SRBA subcases have their own discovery schedule, scheduling orders and trial. Thus, each final decree arising from the subcases is a result of a
In
Joyce v. Rubin,
It must be remembered that a suit to determine the priority and amount of water that each user from a stream is entitled to is somewhat different from the ordinary action, and the general rules of pleading have never been technically observed or strictly enforced in this class of cases, for if they were, in many eases where there are a hundred or more parties to the action the pleadings would be very voluminous.
The Court noted the unique status of water adjudication and the SRBA in
In re SRBA Case No. 39576,
This Court has long accepted that water right adjudications present unique circumstances, often requiring a departure from established rules of procedure----
When the SRBA was authorized by statute in 1986, no reasonable method of initiating the proceeding, providing notice to potential claimants, examining the Snake River Basin or preparing a report of that system, or means of objecting to that report or claimed water rights within that system was provided by the existing Rules of Civil Procedure. In order for the Legislature to provide for an adjudication, including the claims within the scope of the McCarran Amendment, and in light of the absence of applicable Rules of Civil Procedure, it was necessary for the Legislature to provide special procedural rules for the initiation of the SRBA.
Other courts have focused on the unique qualities of water adjudication in deciding what satisfies due process. In
In re Rights to the Use of Gila River,
Despite claims that following the procedures in the SRBA would require a Herculean effort, LU Ranching was able to recognize the conflicts and get notice of the objections to its water claims once it actually looked at the Director’s Report. LU Ranching simply looked too late. Its difficulties arise from a lack of timely attention, not inadequacy of notice.
III.
LU RANCHING IS NOT ENTITLED TO RELIEF PURSUANT TO RULE 60(b)(1)
LU Ranching contends it has a right to relief under IRCP 60(b)(1), allowing relief from final judgment on the grounds of mistake, inadvertence, surprise, or excusable neglect, because it had not been able to complete its investigation into the Unites States’ claims by the time the final decrees were entered due to the complex nature of the Director’s Reports and the failure to obtain timely notice in violation
of due
process. As previously noted, LU Ranching received adequate and timely notice of the materials it
The district court was correct in observing that the failure by LU Ranching was not how “a reasonably prudent person under the circumstances” should have acted. There is neither excusable neglect nor mistake in this case.
IV.
CONCLUSION
The decisions of the district court are affirmed. The respondents are awarded costs.
