Dow v. Lassen Irrigation Company

California Court of Appeal·Decided May 31, 2022·No. C091965A·Published

Opinion

Filed 5/31/22 Separate opinion from 2/23/22 opinion CERTIFIED FOR PUBLICATION

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA THIRD APPELLATE DISTRICT (Lassen) ----

JAY DOW, as Trustee, etc., C091965

Plaintiff and Respondent, (Super. Ct. No. 4573)

v.

LASSEN IRRIGATION COMPANY,

Defendant and Appellant.

APPEAL from a judgment of the Superior Court of Lassen County, Leonard J. LaCasse, Judge. Reversed.

Kronick, Moskovitz, Tiedemann & Girard, Scott A. Morris and William T. Chisum, for Defendant and Appellant.

Brownstein Hyatt Farber Schreck and Bradley J. Herrema, for Plaintiff and Respondent.

This is our third opinion interpreting provisions of the 1940 Susan River Water Rights Decree (decree) as it pertains to disputes between Jay Dow, as trustee for the Dow-Bonomini 2013 Family Trust (trust), and Lassen Irrigation Company (Irrigation Company) regarding the water rights allotted in the decree. (See Dow v. Lassen Irrigation Co. (2013) 216 Cal.App.4th 766 (Dow I); Dow v. Honey Lake Valley Resource Conservation Dist. (2021) 63 Cal.App.5th 901 (Dow II).)

1 In this appeal, the Irrigation Company challenges the superior court’s orders interpreting paragraphs1 17 and 55 of the decree. The superior court adopted the trust’s interpretations of those paragraphs, thereby overturning the contrary decisions by Honey Lake Valley Resource Conservation District, serving as the watermaster administering the decree (watermaster).2 Although the superior court expressed an unfamiliarity with water law, it viewed the trust’s interpretations of the paragraphs as “not ridiculously inconsistent with the objectives of the overall agreement” and “within the bounds of the agreement and . . . consistent with the language in the agreement.” The superior court interpreted paragraph 55 to recognize the 1931 judgment in Barham v. Cannon, Lassen County Superior Court Case No. 3037 (3037 Judgment) awarded water rights to the parties subject to that judgment (whose lands are now owned by the trust)3 and excepted such water rights from being superseded by the decree. Paragraph 55 provides: “This judgment and decree shall supersede all former judgments and decrees as to the water rights involved, except the decrees of the above entitled Court in the cases of [the 3037 Judgment] and Frank Buffum, et ux. vs. Lasson [sic] Irrigation Company.” Practically, the superior court interpreted paragraph 55 to recognize the trust is entitled to divert 740 acre feet of water under the 3037 Judgment, and such water rights

1 All further references to paragraph(s) are to paragraph(s) in the decree unless otherwise specified. 2 The watermaster also appealed the superior court’s orders. We subsequently granted the trust’s motion to dismiss the watermaster’s appeal because the watermaster is not an aggrieved party within the meaning of Code of Civil Procedure section 902. (Dow v. Lassen Irrigation Co. (2022) 75 Cal.App.5th 482.) 3 In a declaration submitted by Dow on behalf of the trust in the superior court, Dow declared the trust owns all the lands subject to the 3037 Judgment. There is no dispute in that regard.

2 are superior to the water rights allotted in the decree and excepted from the provisions and requirements thereof. The superior court further interpreted paragraph 17 to allow any water user with allotments in two or more ditches in different schedules of the decree, to unilaterally change the place of use from the acreages identified in one schedule to the acreages identified in another schedule (irrespective of where those lands are located in the Susan River stream system), provided the quantity of water diverted by the water user does not exceed the total of the water user’s allotments under the decree.4 Paragraph 17 provides, in pertinent part: “Nothing herein contained shall, or shall be construed to . . . prevent[] any party hereto, who has allotments to two or more ditches, from using all or any portion of his allotments through each or any number of his ditches on all or any portion of his land, so long as the maximum quantity of water diverted shall not exceed the aggregate of all allotments to all of his ditches.” In the alternative, “[e]ven if the Watermaster were correct in its characterization of the meaning of Paragraph 17,” the superior court found the trust’s request to change the place of use as to some of its allotted water rights (which was denied by the watermaster), was otherwise consistent with Water Code section 1706 and “general principles of California water law.” We conclude the trust’s interpretations of paragraphs 17 and 55, as adopted by the superior court, are unreasonable considering the language, record, history, and context of the decree. The superior court’s finding the trust’s place of use change request otherwise comports with Water Code section 1706 and California water law also does not save the paragraph 17 order. As we explain, at least a portion of the trust’s allotted water rights subject to the place of use change request are riparian, and such rights may not be severed

4 As explained post, the allotted water rights in the decree as to specific parties are identified in different schedules; each schedule pertains to a different area of the Susan River watershed.

3 from the riparian land for use on other lands. We accordingly reverse the superior court’s orders in their entirety. We further clarify the analytical framework for interpreting provisions of the decree to assist the superior court in resolving any future disputes between the parties. Because the superior court expressed an unfamiliarity with the unique subject of water law, the principles of which are essential to interpreting the decree’s provisions, we include a brief discussion of California water rights post and explain how such principles impact the interpretation of the decree. FACTUAL AND PROCEDURAL BACKGROUND I The Susan River Stream System “The ‘Susan River has its source on the east slope of the Sierra Nevada . . . in the southwesterly portion of Lassen County . . . at an elevation of about 7,900 feet. Its channel follows a general easterly direction from Silver Lake through McCoy Flat Reservoir and through Susanville and on to Honey Lake to which it is tributary. . . .’ “ ‘Susan River has four important tributaries, namely, Piute Creek which comes in from the north at Susanville, Gold Run Creek and Lassen Creek which come in from the south between Susanville and Johnstonville, and Willow Creek which is tributary from the north above Standish.’ “ ‘Under normal conditions the flows of Lassen and Gold Run Creeks and of Susan River above Susanville are fairly well sustained from melting snows until early in June.’ ” (Dow I, supra, 216 Cal.App.4th at pp. 768-769, fn. omitted.) II The Circumstances, Investigation, And Findings Leading Up To Entry Of The Decree “Before the litigation that led directly to the Susan River decree, there was a history of ‘[t]rouble’ involving ‘the use of water and ditches diverting [water] from Susan River.’ In 1893, a judgment was entered in a case involving water from the Susan River

4 entitled J.D. Byers et al. v. Chas. K. Hartson, B. H. Leavitt, C. C. Hutchinson, et al. (Super. Ct. Lassen County, 1893, No. 280).” (Dow I, supra, 216 Cal.App.4th at p. 771.) “From 1893 forward, ‘various groups of water right owners [were] involved in a number of cases of water right litigation on Willow Creek, Gold Run Creek, Lassen Creek, Upper Susan River, and on Piute Creek.” (Ibid.) The 3037 Judgment was the result of one such litigation. A The 3037 Judgment The sole item in the record pertaining to the 3037 Judgment is the judgment itself. The parties have not provided copies of the complaint or any other portion of the record in the 3037 Judgment case. The 3037 Judgment identifies A. C. Barham and Delta N.

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