McAtee v. Faulkner Land & Livestock, Inc.

744 P.2d 121, 113 Idaho 393, 1987 Ida. App. LEXIS 450
CourtIdaho Court of Appeals
DecidedSeptember 28, 1987
Docket16491
StatusPublished
Cited by7 cases

This text of 744 P.2d 121 (McAtee v. Faulkner Land & Livestock, Inc.) is published on Counsel Stack Legal Research, covering Idaho Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McAtee v. Faulkner Land & Livestock, Inc., 744 P.2d 121, 113 Idaho 393, 1987 Ida. App. LEXIS 450 (Idaho Ct. App. 1987).

Opinion

SUBSTITUTE OPINION

The Court’s prior opinion, dated August 3, 1987, is hereby withdrawn.

BURNETT, Judge.

This appeal comes to us from a judgment confirming the ownership of a decreed water right in an Idaho stream. The district court rejected a claim that the decreed right had been abandoned or forfeited. On appeal we are asked to decide (1) whether the district judge’s decision was contrary to the evidence; (2) whether the judge abused his discretion in limiting the scope of rebuttal testimony and in failing to consult with another judge who had viewed the premises; and (3) whether the court erred in awarding compensation for damages, costs and attorney fees incurred as the result of a temporary restraining order. On cross-appeal, the owners of the decreed right contend that the compensatory award was inadequate. For reasons explained below, we affirm the district court’s judgment on all points.

The background facts, somewhat simplified for the sake of discussion, are as follows. The parties own adjoining rural acreages along Croy Creek, and a tributary colorfully called Red Elk Creek or Red Elephant Creek, in Blaine County. The upstream land belongs to the decreed right owners: Faulkner Land & Livestock, Inc., Bruce and Linda Butler, and an entity known as the Raizin corporate profit-sharing plan. Their ownership is based upon a decree entered in 1909, granting their predecessor in interest an allocation of 200 inches of Croy Creek water with a priority date of June 1, 1880. S.C. Frost, et al. v. Alturas Water Company, et al., October 6, 1909, District Court of Lincoln County. The downstream land belongs to the parties challenging the decreed right: Vince, Mary and Kent McAtee. The McAtees’ predecessor received 350 inches of water with a priority date of June 1, 1883.

The McAtees purchased their property in 1964 with the intent of growing crops. At that time, none of their land had been irrigated with water from Croy Creek. The McAtees undertook extensive efforts during the next twenty years to irrigate increasing portions of the property with sprinkler and ditch systems. Upstream, since 1959, the land belonging to the decreed right owners had been used to pasture roving bands of sheep as well as some cattle and horses. Natural vegetation on the property was flood irrigated by diversions constructed across Croy Creek at various intervals.

Apparently, the parties had no disagreement over the use of Croy Creek water until the spring of 1985, when the McAtees learned that some of the decreed right owners were offering to sell subdivided lots along with appurtenant water. The McAtees sent a letter to the owners, asserting that the decreed right to 200 inches of 1880 water had been abandoned or forfeited. One of the owners then built an earth and. gravel dam at a point upstream from previous diversions. The new structure altered the flow of water reaching the McAtees’ downstream property. The McAtees promptly sued. Their complaint was broadly worded, alleging not only that the decreed right to 200 inches of 1880 water had been abandoned or forfeited, but also that the new dam was interfering with the McAtees’ entitlement to 350 inches of 1883 water. The McAtees sought, and the district court issued, a temporary restraining order preventing the decreed right owners from continuing to divert any water from Croy Creek or its tributary. Ultimately, the McAtees sought a permanent injunction as well as damages for crop losses allegedly caused by the altered water flow. The decreed right owners counterclaimed for losses allegedly produced by the restraining order.

The district court conditioned the restraining order upon the posting of a $1,500 bond. The order subsequently was extended and the bond was increased to $5,000. A hearing on the issuance of a preliminary injunction was consolidated *396 with a nonjury trial on the ultimate merits of the lawsuit. The trial focused upon the status of the decreed right to 200 inches of 1880 water; little was said about the McAtees’ allegation that their right to 350 inches of 1883 water had been violated. After a careful examination of all the evidence, the district judge concluded that the McAtees had failed to prove the elements of abandonment or forfeiture. The judge confirmed the existing ownership of 200 inches of 1880 water and he dismissed all other claims in the McAtees’ complaint. In addition he awarded compensation of $5,000 — the amount of the bond — to the decreed right owners who had been adversely affected by the temporary restraining order. This appeal and cross-appeal followed.

I

Although the McAtees sought at trial to prove both common law abandonment and statutory forfeiture, they have not pursued the abandonment theory on appeal. However, they do maintain that the district judge erred in his decision on the forfeiture question.

Forfeiture of water rights is conceptually distinct from common law abandonment. Abandonment is predicated upon the elements of intent and conduct. It requires an intent to abandon and the actual surrender or relinquishment of water rights. Sears v. Berryman, 101 Idaho 843, 623 P.2d 455 (1981). Statutory forfeiture focuses instead upon time and conduct. Idaho Code § 42-222(2) provides that all rights to water are lost where the áppropriator fails to make “beneficial use” of the water for a continuous five-year period regardless of intent. See, e.g., Gilbert v. Smith, 97 Idaho 735, 552 P.2d 1220 (1976).

The courts have said repeatedly that forfeitures are not favored. It follows that forfeitures must be demonstrated by “clear and convincing evidence.” Carrington v. Crandall, 65 Idaho 525, 531, 147 P.2d 1009, 1011 (1944); A. HUTCHINS, THE IDAHO LAW OF WATER RIGHTS 70 (1956). The determination of whether an appropriator has forfeited his right involves a twofold inquiry. The first question is how, and for how long, the water has been used. This is a question of fact. See, e.g., Sears v. Berryman, supra. Accordingly, our standard of review is limited. We will not set aside a trial court’s findings of fact unless they are clearly erroneous. I.R.C.P. 52(a). Clear error will not be deemed to exist, even where the required quantum of proof at trial is clear and convincing evidence, if the court’s findings are supported by substantial and competent, though conflicting, evidence. E.g., Rhodes v. State, Department of Health and Welfare, 107 Idaho 1120, 695 P.2d 1259 (1985); Faw v. Greenwood, 101 Idaho 387, 613 P.2d 1338 (1980). However, the second question — whether the use to which the water has been put constitutes a “beneficial use” — is a question of law. See generally Rudge v. Simmons, 39 Idaho 22, 226 P. 170 (1924); Pyke v. Burnside, 8 Idaho 487, 69 P. 477 (1902). On that question we exercise free review.

We first address the factual issue.

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Bluebook (online)
744 P.2d 121, 113 Idaho 393, 1987 Ida. App. LEXIS 450, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcatee-v-faulkner-land-livestock-inc-idahoctapp-1987.