Double RL Co. v. Telluray Ranch Properties

54 P.3d 908, 2002 Colo. LEXIS 823, 2002 WL 31116693
CourtSupreme Court of Colorado
DecidedSeptember 23, 2002
DocketNo. 01SA273
StatusPublished
Cited by4 cases

This text of 54 P.3d 908 (Double RL Co. v. Telluray Ranch Properties) is published on Counsel Stack Legal Research, covering Supreme Court of Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Double RL Co. v. Telluray Ranch Properties, 54 P.3d 908, 2002 Colo. LEXIS 823, 2002 WL 31116693 (Colo. 2002).

Opinion

Justice BENDER

delivered the Opinion of the Court.

I. Introduction

In this case we hold that without first providing notice of the cancellation to the owner of the right as required by section 87-92-305(7), 10 C.R.S. (2002), the water court may not cancel a conditional water right when the holder fails to file a timely application for a finding of reasonable diligence within the time prescribed by statute.

Double RL Ranch, located in Ouray County, held a conditional water right of .083 e.f.s. for domestic use. The water court canceled Double RL's conditional water right after Double RL failed to file an application for a finding of reasonable diligence before the statutory deadline. However, the water court failed to provide notice of the cancellation as required by statute.

Upon reconsideration of the cancellation order by motion of Double RL, the water court affirmed the cancellation and deemed Double RL's right abandoned.

Double RL directly appeals the judgment of the water court. We reverse the judgment of the water court and direct it to reinstate Double RL's conditional water right and permit it to file an application for a finding of reasonable diligence.

II. Facts and Proceedings Below

In 1994, Double RL was granted a decree for a conditional water right to divert water from a seep area located on the Double RL Ranch in Ouray County. The seep is tributary to Dallas Creek and the Uncompahgre River. The conditional right of .088 ef.s. was decreed for domestic purposes with an adju[910]*910dication date of December 31, 1992 and an appropriation date of February 28, 1992. The water court sent Double RL's attorney and custodian of documents, Richard P. Tis-del, a copy of the conditional decree. Mr. Tisdel passed away between 1994 and 2000.

While reviewing the status of its water rights, Double RL obtained a copy of the 1994 decree from the water court in May 2001. At that time, Double RL learned that its application for a finding of reasonable diligence was over a year past due. In accordance with section 37-92-301(4)(a)(1), 10 C.R.S. (2002),1 the decree mandated that Double RL file an application for a finding of reasonable diligence by February 2000 to maintain the conditional water right. Because Double RL failed to file the required diligence application by February 2000, in keeping with section 801(4)(a)(I), the water court canceled Double RL's conditional water right on May 29, 2001.

Section 37-92-305(7), 10 C.R.S. (2002) 2 requires that before a conditional water right may be canceled, the water court must provide notice of the pending cancellation to the owner of the right. The water court's cancellation order of May 29 does not address the issue of notice. Double RL contends that it never received notice prior to the cancellation of its conditional water right by the water court.

On June 18, 2001, Double RL moved the water court to vacate the order canceling its water right and to allow Double RL to file a belated application for a finding of reasonable diligence. Subsequently, the water court denied Double RL's motion and deemed the conditional water right abandoned and canceled. The water court's order states that there is no evidence in the court's file that the water court sent notice of cancellation to Double RL or its attorney. Likewise, there is no evidence on file with Mr. Tisdel's law firm that he received notice of cancellation on behalf of Double RL.

Double RL directly appeals the water court's cancellation of its conditional water right to this court.

III, Analysis

A. Interpretation of Sections 37-92-301(4)(a)(I) and 37-92-305(7)

This case presents a question of statutory interpretation. Double RL argues that the water court improperly interpreted see-tions 301(4)(a)(I) and 805(7) when it denied Double RL's motion to vacate the order canceling its conditional water right. It argues that the water court's decision considers only the mandate of section 301(4)(a)(I) and ignores the notice of cancellation provision of section 805(7).

When interpreting a statute, the court must determine and give effect to the legislature's intent. Office of Consumer Couns. v. Pub. Utils. Comm'n, 42 P.3d 23, 27 (Colo.2002). If the plain language of the statute clearly expresses the legislative intent, then the court must give effect to the ordinary meaning of the statutory language. Similarly, the court should avoid interpreting a statute in a way that defeats the obvious intent of the legislature. Id. If the statute is ambiguous, unclear, or subject to alternative constructions, then the court may turn to the legislative history for guidance. § 2-4-208(1)(c), 1 C.R.S. (2002); City of Aurora v. Bd. of County Comm'rs, 919 P.2d 198, 200 (Colo.1996). A statute must be read and considered as a whole. Each part of the statute must be given consistent and harmonious effect. Office of Consumer Couns., 42 P.3d at 27.

[911]*911Section 301(4)(a)(I) was enacted in 1969 as part of the Water Right Determination and Administration Act. Bar 70 Enters., Inc. v. Highland Ditch Ass'n., 694 P.2d 1253, 1254 (Colo.1985). This section requires that to maintain a conditional water right, the owner of the right must file an application for a finding of reasonable diligence every six years from the date the conditional water right is decreed.3 If the owner fails to file the application, then the conditional water right "shall be considered abandoned" and will be canceled by the court. § 87-92-801(d)(a)(I) (emphasis added).

We have treated the deadline for filing an application for a finding of reasonable dili-genee as a statute of limitations. Broyles v. Fort Lyon Canal Co., 695 P.2d 1136, 1142 (Colo.1985). Our decisions have strictly construed the language in section 801(4)(a){(I) to mean that if the deadline is missed, then the conditional right is automatically canceled. Id. In Town of De Beque v. Enewold, 199 Colo. 110, 116, 606 P.2d 48, 52 (1980), this court quoted and upheld a trial court ruling that stated, " Tthe language of ... [section 37-92-301(4)] with respect to the effect of failure to file an application for a finding of reasonable diligence within the prescribed time is clear and unequivocal: ... said conditional water right shall be considered abandoned." In Bar 70 Enterprises, 694 P.2d at 1256, this court held that when an owner files an application for a finding of reasonable diligence four days after the deadline, the "conditional water right is considered abandoned, and therefore terminated." See also In re Simineo v. Kelling, 199 Colo. 225, 228, 607 P.2d 1289, 1291 (1980).

In 1975, six years after the enactment of section 801(4)(a)(D), the General Assembly enacted section 805(7).

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