Middle Creek Farm, LLC v. Portsmouth Water & Fire District

Supreme Court of Rhode Island·Decided June 16, 2021·No. 19-95·Published

Opinion

June 16, 2021

Supreme Court

No. 2019-95-Appeal. (NC 16-231)

Middle Creek Farm, LLC, et al. :

v. :

Portsmouth Water & Fire District et al. :

NOTICE: This opinion is subject to formal revision before publication in the Rhode Island Reporter. Readers are requested to notify the Opinion Analyst, Supreme Court of Rhode Island, 250 Benefit Street, Providence, Rhode Island 02903, at Telephone (401) 222-3258 or Email: opinionanalyst@courts.ri.gov, of any typographical or other formal errors in order that corrections may be made before the opinion is published. Supreme Court

No. 2019-95-Appeal. (NC 16-231)

Middle Creek Farm, LLC, et al. :

v. :

Portsmouth Water & Fire District et al. :

Present: Suttell, C.J., Goldberg, Robinson, Lynch Prata, and Long, JJ.

OPINION

Justice Lynch Prata, for the Court. The defendant, Portsmouth Water &

Fire District (PWFD or the district), appeals from a judgment entered in favor of the

plaintiffs, Middle Creek Farm, LLC (Middle Creek Farm); Middlecreek, LLC;

Douglas W. Politi; and Catherine M. Politi (plaintiffs).1 PWFD contends that the

hearing justice erred in partially granting Middle Creek Farm’s motion for summary

judgment in its declaratory-judgment action.

1 Middle Creek Farm filed the instant action. The three other plaintiffs were later joined for all parties in interest to be part of the declaratory-judgment action. See G.L. 1956 § 9-30-11. Those plaintiffs have ownership interests in the subdivision lots in contention in this case. Of the named plaintiffs in this case, only Middle Creek Farm has filed briefs in this Court. The defendant City of Newport has not filed a statement on appeal and did not oppose Middle Creek Farm’s efforts to connect to the PWFD water system.

-1- On appeal, PWFD contends that the hearing justice erred in deciding that the

three lots at issue are part of PWFD’s coverage area under its charter. PWFD asserts

that the Superior Court should have given deference to PWFD’s interpretation of its

charter. PWFD additionally argues that the plaintiffs failed to exhaust their

administrative remedies and failed to join indispensable parties. For the reasons set

forth in this opinion, we affirm the judgment of the Superior Court.

Facts and Travel

This matter concerns an eleven-lot subdivision that straddles the border

between Portsmouth and Middletown. Seven lots have homesites located in

Portsmouth, and four lots have homesites located in Middletown. Three of the four

lots that have homesites in Middletown (sub-lots 1, 2, and 4) contain a portion of

land located in Portsmouth. One of the four lots has no land in Portsmouth and is

entirely in Middletown (sub-lot 3).2

The subdivision was approved by the planning boards of both Middletown

and Portsmouth. In May 2016, PWFD petitioned the Portsmouth Planning Board to

reopen its final approval of the so-called “Middle Creek subdivision.” At the

reopened hearing, PWFD requested that Middle Creek Farm be required to extend a

2 The Superior Court denied Middle Creek Farm’s motion for summary judgment for sub-lot 3, indicating that the lot was not entitled to receive water from PWFD because it had no land in Portsmouth. Middle Creek Farm has decided not to pursue any further relief for sub-lot 3. -2- water main from an adjoining street in Portsmouth that would pass in front of all of

the lots in the subdivision and connect to another water main on another street in

Portsmouth to make a full loop, which would benefit PWFD by improving water

flow for PWFD water mains.

Middle Creek Farm filed suit in Superior Court, originally intended to be a

so-called “friendly suit,” at the suggestion of PWFD, in order to stimulate the City

of Newport’s agreement to the water tie-in as described. The City of Newport

provides water to the Town of Middletown. On July 19, 2016, PWFD held a meeting

at which the water main extension was formally approved and accepted. Shortly

thereafter, the City of Newport agreed to allow the tie-in for the lots located partially

or wholly in the Town of Middletown. Subsequently, PWFD refused to permit

Middle Creek Farm to connect the four sub-lots that have houses located in

Middletown to the water main; and, as stated supra, three of those lots contain

property in Portsmouth.

Middle Creek Farm’s action requested declaratory and injunctive relief. It

sought a declaration that PWFD was required to provide water services to the

subdivision lots.3 Subsequently, the other party-plaintiffs were joined in the case.

3 PWFD filed an answer admitting that its purpose is obtaining and maintaining a supply of water for the inhabitants of Portsmouth. -3- In due time, Middle Creek Farm filed a motion for summary judgment, to which

PWFD objected.

At a hearing on the motion for summary judgment, Middle Creek Farm argued

that sub-lots 1, 2, and 4 were entitled to water service from PWFD because each of

those lots had a portion of its property in Portsmouth that was taxed by both the

Town of Portsmouth and PWFD, and that the payment of taxes triggered the

obligation to provide water to those lots. Middle Creek Farm also argued that neither

the language of PWFD’s charter nor that of G.L. 1956 § 46-15-2 prevented the lots

that have a portion of property in Portsmouth from being entitled to connect to the

PWFD water system.4 Middle Creek Farm further contended that, in accordance

4 General Laws 1956 § 46-15-2, entitled “Approval of public water supply facilities,” provides in pertinent part as follows:

“(a) No municipal water department or agency, public water system, including special water districts or private water company, engaged in the distribution of water for potable purposes shall have any power:

“* * *

“(3) To extend its supply or distribution mains into a municipality or special water district wherein it has not heretofore legally supplied water;

“* * *

“(5) To extend the boundaries of a special water district; or

-4- with § 46-15-2, PWFD may “extend its supply or distribution mains” and “supply

water” outside its district because it had legally supplied water to a location in

Middletown in the past pursuant to a stipulation entered in the Newport County

Superior Court case of Brennan v. Esposito, NC-85-264.5

PWFD argued at the hearing that it was prohibited from providing water to

the lots in question because those lots were not in its area of coverage as outlined in

Section 5 of its charter. According to PWFD’s interpretation of its charter, it was

required to provide water only for any property that has a building located within its

coverage area in the town of Portsmouth. PWFD also contended that its charter

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