Gregory Rockhouse Ranch, L.L.C. v. Glenn's Water Well Service, Inc.

2008 NMCA 101, 191 P.3d 548, 144 N.M. 690
CourtNew Mexico Court of Appeals
DecidedApril 22, 2008
Docket25,963
StatusPublished
Cited by8 cases

This text of 2008 NMCA 101 (Gregory Rockhouse Ranch, L.L.C. v. Glenn's Water Well Service, Inc.) is published on Counsel Stack Legal Research, covering New Mexico Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gregory Rockhouse Ranch, L.L.C. v. Glenn's Water Well Service, Inc., 2008 NMCA 101, 191 P.3d 548, 144 N.M. 690 (N.M. Ct. App. 2008).

Opinion

OPINION

VIGIL, Judge.

{1} Gregory Rockhouse Ranch, LLC, Gregory Ranch, Norman Scott Gregory, Larry Gregory, and Donald Wayne Gregory (collectively, Gregory) appeal from a judgment entered in favor of Glenn’s Water Well Service, Inc., and Clark A. Glenn (collectively, Glenn) on Glenn’s claims of slander of title and tortious interference with contractual relations. We conclude that the communications at issue in this case were privileged and, therefore, that the slander of title claim fails as a matter of law. Further, because there is no evidence in the record that Gregory’s conduct induced any breach of contract, the tortious interference with contract claim cannot be sustained. We therefore reverse.

BACKGROUND

{2} This appeal arises out of a dispute over entitlement to draw water from a well, denominated RA-5060, that is located on federal land. The RA-5060 well was drilled by the Lowe Drilling Company (Lowe) in 1962. In 1964 Lowe filed a Declaration of Ownership of Underground Water Right in association with this well, claiming 7 acre-feet of commercial water rights. It appears that water ceased being produced from RA-5060 at some point in the 1970s, and the well was released to the Bureau of Land Management (BLM) in 1974. The record contains no indication of any further activity with respect to RA-5060 for many years thereafter.

{3} On September 20, 1996, Lowe applied to the Office of the State Engineer (OSE) for a one-year emergency permit to change the location of the water rights associated with RA-5060. The OSE issued a letter to Lowe on October 4, 1996, stating that the application had been denied, and following further proceedings, the OSE formally denied Lowe’s application on February 7, 1998, on the ground that “the Water Right has been abandoned at the move-from location.”

{4} In November 1997, before the OSE issued its formal decision on the aforementioned application, Lowe filed a change of ownership document with the OSE purporting to convey to Glenn the commercial water rights associated with RA-5060 that Lowe had declared in 1964. In late 1997, Glenn began obtaining temporary permits from the OSE to draw limited quantities of water from RA-5060. Glenn also sought authorization from the BLM to make use of the well, representing in the application that Glenn owned RA-5060 and the associated water rights. The BLM issued the requested right-of-way to Glenn in 1998.

{5} Shortly after Glenn obtained the aforementioned permits and right-of-way, Gregory began corresponding with the BLM and the OSE about the status of RA-5060 and the associated water rights. The first letter of consequence was sent to the BLM on September 15, 1999. In that letter, Gregory expressed the “belief’ that “Glenn’s ownership of said well, as well as the water right, is in dispute and was improperly obtained.” Gregory therefore requested that the BLM “investigate as soon as possible to make a determination of ownership.” Gregory also submitted a permit application to the BLM, seeking authorization to use RA-5060. The BLM issued the requested right-of-way to Gregory, and the BLM began making inquiries about the legal status of RA-5060, together with the associated water rights.

{6} On November 19,1999, Gregory sent a letter to the OSE, explaining that Gregory had interests surrounding RA-5060. Gregory indicated that its investigation had revealed that the BLM owned the well. With respect to Glenn’s interests, Gregory asserted that “Glenn had falsely claimed that he owned the water well as well as had a valid commercial water right attached to the well. It is clear both [statements] are false and that he has no such rights.” Gregory went on to explain that it was seeking permission to use RA-5060, and that it would “strongly protest ... the granting of any ... right to Mr. Glenn in light of his previous fraud.”

{7} In late November 1999, Glenn entered into an agreement with Seven Rivers, Inc., whereby Glenn agreed to lease 50 acre-feet of water from Seven Rivers for a period of two years, contingent upon receipt of approval of a temporary transfer of the water to the RA-5060 location. To that end, Seven Rivers promptly filed an application for the requisite transfer with the OSE (the Seven Rivers application).

{8} On December 7, 1999, Gregory filed a formal protest against the Seven Rivers application. This was followed by a letter dated December 21, 1999, in which Gregory elaborated on its opposition to the Seven Rivers application. Gregory asserted that “no water right exists in the subject well, RA-5060, because the water right was forfeited many years ago due to failure to put the water to beneficial use.” Gregory further contended that “Glenn has been making false representations trying to obtain a water right from the State Engineer in order for him to commercially sell water from that well.” While acknowledging that Glenn had obtained a permit from the BLM to use the surface surrounding RA-5060, Gregory contended that the permit was obtained by falsely representing that Glenn owned the well. Gregory indicated that the BLM was investigating whether Glenn “should be subject to disciplinary action.” Finally, Gregory claimed that its commercial interests would be “severely and adversely impacted]” if Glenn was permitted to draw water from RA-5060, and closed by urging the OSE “not [to] allow or sanction the fraudulent appropriation of a water right by Mr. Glenn.”

{9} In December 1999, the BLM apparently concluded its preliminary inquiries about the status of RA-5060 and the associated water rights. The BLM determined that it owned the well by virtue of the 1974 release. Upon the advice of the OSE, the BLM also concluded that it owned the associated water rights. The BLM therefore filed a change of ownership document with the OSE on January 3, 2000.

{10} On May 10, 2000, Gregory sent another letter to the OSE. As mentioned above, the BLM had previously issued a right-of-way to Gregory. In the letter of May 10, 2000, Gregory asserted that this right-of-way granted it “the exclusive right to utilize” RA-5060, as well as “sole authority to authorize use of [its] well” by any third party. Gregory closed by reiterating its position that, due to abandonment, “no valid water rights exist concerning this well.”

{11} On May 26, 2000, the BLM sent a letter to Glenn indicating that it had received information from the OSE signifying that Glenn lacked any water rights in association with RA-5060. As a consequence, the BLM opined that Glenn lacked any basis for utilizing RA-5060.

{12} On June 5, 2000, Gregory sent another letter to the BLM. In this letter Gregory once again asserted that Glenn lacked any valid water rights in association with RA-5060 and expressed continuing opposition to the pending Seven Rivers Application. Gregory further noted that it had obtained a right-of-way from the BLM authorizing it to utilize RA-5060, and Gregory claimed that Glenn’s proposed use of the well would interfere with Gregory’s rights.

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Bluebook (online)
2008 NMCA 101, 191 P.3d 548, 144 N.M. 690, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gregory-rockhouse-ranch-llc-v-glenns-water-well-service-inc-nmctapp-2008.