Las Vegas Valley Water District v. Michelas

360 P.2d 1041, 77 Nev. 171, 38 P.U.R.3d 369, 1961 Nev. LEXIS 107
CourtNevada Supreme Court
DecidedApril 7, 1961
DocketNo. 4339
StatusPublished
Cited by2 cases

This text of 360 P.2d 1041 (Las Vegas Valley Water District v. Michelas) is published on Counsel Stack Legal Research, covering Nevada Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Las Vegas Valley Water District v. Michelas, 360 P.2d 1041, 77 Nev. 171, 38 P.U.R.3d 369, 1961 Nev. LEXIS 107 (Neb. 1961).

Opinion

[172]*172OPINION

By the Court,

Badt, C. J.:

Respondent agrees with appellant’s statement of the legal issue presented to this court, adding only the last phrase as italicized to appellant’s statement of the issue. It is as follows:

“May the Appellant, Las Vegas Valley Water District, supply water service in an area where Respondent may and does already supply water service under a certificate of public convenience and necessity issued by the Nevada Public Service Commission without the payment of just compensation to Respondent?”

Likewise, in pre-trial proceedings, it was ordered, pursuant to stipulation, as follows: “That the questions of law shall be to determine whether or not the plaintiff may invade the territory so held by franchise by the defendant, or whether it can only invade the territory through the [exercise] of right of eminent domain.”

In the same pre-trial proceedings the court ordered that the Public Service Commission of the State of Nevada might intervene and that its filing of points and authorities would be tantamount to filing a petition in intervention and an order granting intervention. A copy of such order was served upon the Public Service Commission. The commission did not take advantage of the court’s order.

We refer to appellant as the Water District and to the respondent as Michelas. The proceedings were initiated in the court below by the complaint of the Water [173]*173District, alleging that it was a “quasi-municipal corporation” organized under what is hereafter referred to as the Act of 1947, and engaged in the business of selling water to persons living in the Las Vegas Valley Water District, Clark County, Nevada; that Michelas was engaged in the business of selling water in a portion of the City of Las Vegas and had “a nonexclusive right” to sell water, said right being issued by the Public Service Commission of Nevada; that there were difficult questions of law pertaining to the rights and duties of the parties and that a declaratory judgment was sought defining same, and for further relief. Michelas answered, alleging that in 1941 he received “an exclusive right” to operate a water service in the six named blocks of the Meadows Addition to the City of Las Vegas.

As a first counterclaim he alleged that he had expended in excess of $300,000 in the acquisition of pumps, wells, real property, machinery, and other equipment “for the purpose of serving water users in his exclusive territory” ; that the Water District had, with full knowledge of plaintiff’s grant from the Public Service Commission knowingly, willfully, and deliberately, without first “seeking the utilization of the rights” conferred by the Act of 1947, entered upon Blocks 15 and 16 of the said Meadows Addition (for the servicing of which blocks he had obtained a certificate of convenience and necessity from the Public Service Commission), and unlawfully installed water mains and service connections within the area being then serviced by Michelas; that by reason thereof defendant had been damaged in the sum of $28,800, “the value of the loss of profits directly resulting by reason of plaintiff’s illegal acts”; that plaintiff’s acts were malicious and in gross and wanton disregard of defendant’s rights and privileges, by reason whereof defendant demanded exemplary damages in the sum of $50,000.

As a second counterclaim, Michelas likewise asserted that a controversy existed between the parties; that Michelas had been granted by the commission “the exclusive right” to furnish water in the disputed area; that the Water District had no right to service such disputed area other than under the Act of 1947; that it had [174]*174deliberately, willfully, and knowingly neglected and failed to follow the provisions of said act, and that Michelas would suffer irreparable injury unless the Water District should be restrained; that he had no adequate remedy other than injunctive relief. He prayed for a restraining order, $28,000 compensatory damages, $50,000 exemplary damages, and further relief.

Michelas’ references to the failure of the Water District to act within the provisions of the Act of 1947 had reference to paragraph 7 of section 1 of said act, reading as follows:

“7. To have and exercise in the State of Nevada the right of eminent domain, either within or without said district, and in the manner provided by law for the condemnation of private property for public use, to take any property necessary to carry out any of the objects or purposes of this act, whether such property be already devoted to the same use by any district or other public corporation or agency or otherwise, and to condemn any existing works or improvements in said district now or hereafter used. The power of eminent domain vested in the board of directors of said district shall include the power to condemn, in the name of the district, either the fee simple or any lesser estate or interest in any real property which said board by resolution shall determine is necessary for carrying out the purposes of this act. Such resolution shall be prima-facie evidence that the taking of the fee simple or easement, as the case may be, is necessary.”

The order of the Public Service Commission relied upon by Michelas, after caption reciting the proceeding, reads as follows:

“ORDER
“It Appearing There has been filed with the Commission an application by Theodore Michelas for a certificate of public convenience and necessity to operate a water service in Blocks 4, 12, 13, 14, 15 and 16, in the Meadows Addition to the City of Las Vegas; and
“It Further Appearing That there is no such service [175]*175now being given in said District; and by granting said application would be in the public interest,
“It Is Ordered That the application of Theodore Michelas for a certificate of public convenience and necessity to operate a water service in Blocks 4, 12, 13, 14, 15 and 16 in the Meadows Addition to the City of Las Vegas, be and the same is hereby granted.
“Dated: Carson City, Nevada
April 28, 1941”

(1) It is advisable at this point to dispose of the categorical statement of Michelas that the foregoing order vests in him an exclusive franchise to render water service in the area described as against the similar categorical statement by the Water District that this is a non-exclusive franchise. Patently, on its face, the franchise given in the order granting to Michelas a certificate of public convenience and necessity to operate his service in the six blocks described is not exclusive. However, the matter may not so simply be dismissed.

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Cite This Page — Counsel Stack

Bluebook (online)
360 P.2d 1041, 77 Nev. 171, 38 P.U.R.3d 369, 1961 Nev. LEXIS 107, Counsel Stack Legal Research, https://law.counselstack.com/opinion/las-vegas-valley-water-district-v-michelas-nev-1961.