Olson v. H & B PROPERTIES, INC.

882 P.2d 536, 118 N.M. 495
CourtNew Mexico Supreme Court
DecidedSeptember 13, 1994
Docket21316
StatusPublished
Cited by16 cases

This text of 882 P.2d 536 (Olson v. H & B PROPERTIES, INC.) is published on Counsel Stack Legal Research, covering New Mexico Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Olson v. H & B PROPERTIES, INC., 882 P.2d 536, 118 N.M. 495 (N.M. 1994).

Opinion

OPINION

FROST, Justice.

Plaintiff-Appellee Olson filed a declaratory action against Defendanb-Appellant H & B Properties, Inc. (“H & B”) seeking an equitable reallocation of irrigation ditch usage rights in the Mimbres Valley Swarts Community Ditch Irrigation System, also known as the Swarts West Side Ditch (“Swarts ditch”). The district court granted summary judgment for Olson and eliminated three days of H & B’s ditch usage. Based upon the cessation of purpose doctrine of the law of easements, we affirm.

FACTS

Olson and H & B own adjacent real property in Grant County, New Mexico. Both own water rights appurtenant to their land, and both share ownership of the Swarts ditch which runs through their property and carríes water from a headgate on the Mimbres River to their respective lands.

The Swarts ditch was constructed in 1884 through the joint labor and capital of the 1884 community, Olson and H & B’s predecessors in interest. In 1934, the owners of the Swarts ditch executed and recorded a document entitled “Declaration of Owner of Water Right.” The 1934 Declaration recites that the community, in 1884, according to mutual agreement and mutual concessions and by their joint efforts and joint capital, organized the Swarts ditch to irrigate the lands of the community. The 1934 Declaration also allocates usage time for the ditch. It states the acreage of each field abutting the ditch, the name of its owner, and the number of days of ditch usage allotted to each field. Accordingly, from north to south on the ditch, the 1934 Declaration allocates usage of the ditch as follows: (1) McElroy 8.31 acre tract allotted 3 days, (2) McElroy 5.16 acre tract allotted one day, (3) Swarts 39.55 acre tract 1 allotted five days, (4) Carrillo 43.01 acre tract allotted three days, (4) McElroy 11.36 acre tract allotted three days, and (5) McKinn 21.46 acre tract allotted three days.

Olson and H & B are successors in interest to these lands; Olson owns the McKinn 21.46 acre tract and H & B owns the other four tracts. Before this declaratory action to reapportion ditch rights, Olson and H & B apportioned ditch usage between themselves consistent with the usage rights of their predecessors in interest under the 1934 Declaration. H & B used the ditch exclusively for fifteen consecutive days (total McElroy, Swarts, and Carrillo days), and Olson used the ditch exclusively for three days (total McKinn days). A full rotation cycle of the ditch was eighteen days.

In 1974, the Luna County district court entered a final order in Mimbres Valley Irrigation Co. v. Salopek, No. 6326 (N.M.Dist.Ct., Dec. 10, 1974), adjudicating water rights to the Rio Mimbres stream system and underground water basin, including the water rights appurtenant to the lands of Olson and H & B. In Mimbres Valley, the court determined that the 11.36 acre McElroy tract was no longer a viable irrigable field entitled to water for beneficial use and abolished H & B’s water rights appurtenant to the 11.36 acre tract. Id.

In 1990, Olson filed the declaratory action now before us on appeal, seeking an equitable adjustment of his and H & B’s rights to ditch usage. Olson argued that because H & B had lost its right to irrigate the 11.36 acre McElroy tract pursuant to the Mimbres Valley adjudication, H & B should also lose its three days of ditch usage allocated to the 11.36 acre McElroy tract in the 1934 Declaration. Granting summary judgment for Olson, the district court eliminated the three days of H & B’s ditch rights associated with the 11.36 acre McElroy field. The total rotation cycle of the Swarts ditch was thereby reduced from eighteen to fifteen days, with twelve days allocated to H & B and three days allocated to Olson.

There is insufficient water flow in the Swarts ditch to satisfy the water rights or irrigation needs of Olson and H & B, and both parties apparently need to use alternative methods of acquiring water. Neither Olson, H & B, nor any of their predecessors in interest have entered into any agreement modifying the terms of the 1934 Declaration. The 1934 Declaration does not address the affect of changes in water rights on ditch usage.

DISCUSSION

The only issue on appeal is whether the district court correctly eliminated three days from the Swarts ditch rotation cycle. The material facts are not in dispute.

H & B contends that the district court impermissibly divested it of its property ownership rights in the ditch by abrogating three days of its ditch usage. Citing Holmberg v. Bradford, 56 N.M. 401, 244 P.2d 785 (1952), and NMSA 1978, Section 73-2-7, H & B asserts that “ditches are ditches and water is water,” the right to one does not follow the right to the other, and ditches are governed by property law rather than water law. Thus, according to H & B, although it lost its water rights appurtenant to the 11.36 acre McElroy tract, its right to three days of ditch usage associated with that tract remains in H & B’s full ownership and control, subject to disposition as H & B desires (except, of course, for use to irrigate the 11.36 acre McElroy tract which no longer has appurtenant water rights). In sum, H & B contends that as a successor in interest of the original owners of the Swarts ditch, H & B’s ditch rights as documented in the 1934 Declaration constitute a valuable property interest that cannot be confiscated by the court. Although H & B is correct in stating that ditch and water rights are distinct, H & B’s argument is flawed because, as we discuss, it disregards basic concepts of the law of easements.

New Mexico cases have long recognized that ditch rights and water rights are distinct, are derived from different sources, and are governed by different rules of law. See, e.g., Snow v. Abalos, 18 N.M. 681, 694-97, 140 P. 1044, 1048-49 (1914). Water rights are derived from appropriation for beneficial use while ditch rights are derived from ownership of the ditch and an easement therein. See Murphy v. Kerr, 296 F. 536, 542-44 (D.N.M.1923), aff'd, 5 F.2d 908 (8th Cir.1925); Snow, 18 N.M. at 695, 140 P. at 1048-49. The physical structure of the ditch itself is real property, owned by the community who built it as tenants in common by virtue of their joint investment of capital and labor. Id. at 695, 140 P. at 1048. Successors in title to the lands of the original ditch community likewise own the ditch as tenants in common, having acquired their interest in the ditch structure with title to their land. See id. at 692-93, 140 P. at 1048.

The right of way for water flow through the irrigation ditch, as distinguished from ownership of the ditch structure itself, is an easement. Murphy, 296 F. at 543; cf. Holmberg, 56 N.M. at 407, 244 P.2d at 789 (stating community ditch is “in effect an easement for the purpose of transporting water” without distinguishing the right of way of water flow through the ditch as an easement from the right to ownership of the ditch itself as real property); Posey v. Dove, 57 N.M. 200, 212-13, 257 P.2d 541

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Bluebook (online)
882 P.2d 536, 118 N.M. 495, Counsel Stack Legal Research, https://law.counselstack.com/opinion/olson-v-h-b-properties-inc-nm-1994.