Hauxwell v. Middle Republican NRD

319 Neb. 28
Nebraska Supreme Court·Decided May 23, 2025·No. S-23-791·Published·Cited by 1 cases

Opinion

Nebraska Supreme Court Online Library www.nebraska.gov/apps-courts-epub/ 05/23/2025 09:09 AM CDT

- 28 - Nebraska Supreme Court Advance Sheets 319 Nebraska Reports HAUXWELL V. MIDDLE REPUBLICAN NRD Cite as 319 Neb. 28

Bryan Hauxwell and Ami Hauxwell, appellants, v. Middle Republican Natural Resources District et al., appellees. ___ N.W.3d ___

Filed May 23, 2025. No. S-23-791.

1. Motions to Dismiss: Appeal and Error. Appellate review of an order granting a motion to dismiss is de novo. 2. Jurisdiction: Appeal and Error. A jurisdictional question that does not involve a factual dispute is determined by an appellate court as a matter of law, which requires the appellate court to reach a conclusion indepen- dent of the lower court’s decision. 3. Statutes: Appeal and Error. Statutory interpretation is a question of law that an appellate court resolves independently of the trial court. 4. Judgments: Appeal and Error. When the record demonstrates that the decision of the trial court is correct, although such correctness is based on different grounds from those assigned by the trial court, an appellate court will affirm. 5. Appeal and Error. In Nebraska, the right to appeal is purely statutory in that the right to appeal does not exist unless a statute provides for an appeal. 6. Jurisdiction: Statutes: Appeal and Error. The requirements of a stat- ute underlying a right to appeal are mandatory and must be complied with before the appellate court acquires jurisdiction over the subject matter of the action. 7. Statutes: Words and Phrases. The word “include,” as used in a statute, connotes that the provided list of components is not exhaustive and that there are other items includable that are not specifically enumerated. 8. Words and Phrases. A legal term of art is a word or phrase having a specific, precise meaning in a given specialty apart from its general meaning in ordinary contexts. 9. Statutes: Words and Phrases. When legal terms of art are used in stat- utes, they are to be construed according to their term of art meaning. - 29 - Nebraska Supreme Court Advance Sheets 319 Nebraska Reports HAUXWELL V. MIDDLE REPUBLICAN NRD Cite as 319 Neb. 28

10. Statutes. It is not within the province of a court to read a meaning into a statute that is not warranted by the language; neither is it within the province of a court to read anything plain, direct, or unambiguous out of a statute. 11. Jurisdiction: Appeal and Error. If the district court, sitting as an intermediate appellate court, lacked jurisdiction over a party’s appeal, a higher appellate court also lacks jurisdiction to decide the merits of the appeal.

Appeal from the District Court for Frontier County: James E. Doyle IV, Judge. Affirmed. George G. Vinton for appellants. Donald G. Blankenau and Kennon G. Meyer, of Blankenau, Wilmoth & Jarecke, L.L.P., for appellees. Funke, C.J., Miller-Lerman, Cassel, Stacy, Papik, and Freudenberg, JJ. Funke, C.J. INTRODUCTION The Nebraska Ground Water Management and Protection Act (NGWMPA) allows a person aggrieved by an order of a natural resources district issued under the NGWMPA to appeal the order. 1 The question before us is whether a let- ter denying an application to pool ground water from several registered wells, coupled with a copy of that application that was marked as “[d]enied,” is an order of a natural resources district under the NGWMPA. Because the relevant letter, with the accompanying application, is not an “order” as that term is defined in the NGWMPA, we affirm the order of the district court dismissing the appellants’ petition for review. BACKGROUND Factual Background The appellants, Bryan Hauxwell and Ami Hauxwell, are farmers who use ground water and surface water to 1 See Neb. Rev. Stat. §§ 46-701 to 46-756 (Reissue 2021). - 30 - Nebraska Supreme Court Advance Sheets 319 Nebraska Reports HAUXWELL V. MIDDLE REPUBLICAN NRD Cite as 319 Neb. 28

irrigate properties located within the Middle Republican Natural Resources District. Since 2020, the Hauxwells have been involved in litigation with the Middle Republican Natural Resources District, its chairperson, and its general manager (collectively NRD) about the Hauxwells’ irrigation practices and the NRD’s response to those practices. 2 Hauxwells’ Request to Pool Ground Water Denied While this litigation was ongoing, the Hauxwells submit- ted a “request to pool the use of ground water” from several registered wells for the 2023 to 2027 allocation period. Several weeks later, the Hauxwells received a letter stating that their application was denied. As the apparent basis for denial, the letter cited NRD rule “6-1.12.” This rule, which is not other- wise reflected in the record on appeal, is quoted in the letter as stating that the NRD may deny a pooling application “for any reason, including but not limited to, violations of the [d]istrict’s [r]ules, [r]egulations, or controls.” The letter invited the Hauxwells to contact the NRD if they had questions. Attached to the letter was the first page of the Hauxwells’ application, which was marked as “[d]enied” in a box labeled “[f]or [d]istrict use only.” We hereinafter refer to the letter and the attached application collectively as “the letter.” The letter was seemingly sent after a meeting of the NRD board of directors at which the board voted to deny the Hauxwells’ application. The Hauxwells also allegedly spoke with the NRD’s general manager after receiving the letter and were informed that the application was denied due to “‘pend- ing litigation.’” However, the information about the board meeting and the Hauxwells’ conversation with the general manager comes solely from the parties’ pleadings and other fil- ings. There is no evidence of the meeting or the conversation in the record on appeal. 2 See Hauxwell v. Middle Republican NRD, ante p. 1, ___ N.W.3d ___ (2025). - 31 - Nebraska Supreme Court Advance Sheets 319 Nebraska Reports HAUXWELL V. MIDDLE REPUBLICAN NRD Cite as 319 Neb. 28

Hauxwells’ Petition for Review The Hauxwells filed a “Petition for Review” with the dis- trict court for Frontier County, Nebraska, under the NGWMPA and the Administrative Procedure Act (APA), 3 challenging the denial of their pooling application. In the petition, the Hauxwells alleged that the denial of their application violated their constitutional rights and was arbitrary and capricious. The Hauxwells also alleged that the denial was contrary to a court order in another case staying penalties that the NRD had imposed on the Hauxwells. One of those penalties was that the Hauxwells “shall not receive the benefit of any pooling agreements.” The Hauxwells asked the court to reverse the denial of their pooling application and to order that the appli- cation be granted. The Hauxwells also sought attorney fees under Neb. Rev. Stat. § 25-1803 (Reissue 2016) on the ground that the NRD’s position was not substantially justified.

NRD’s Motion to Dismiss The NRD moved to dismiss the Hauxwells’ petition for lack of jurisdiction and failure to state a claim upon which relief may be granted. The NRD argued that the letter denying the Hauxwells’ pooling application was not “entitled to judicial review under the APA,” because the letter was not a “final agency action or an order of the [natural resources district] in a contested case.” The NRD based this argument on the APA’s definition of a “[c]ontested case” as a proceeding before an agency wherein the parties’ legal rights, duties, or privileges are required by law or constitutional right to be determined after a hearing. 4 The NRD argued that no agency adjudica- tory hearing was required or held in this case.

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