Pete's Mountain Homeowners Ass'n v. Oregon Water Resources Department

238 P.3d 395, 236 Or. App. 507, 2010 Ore. App. LEXIS 933
CourtCourt of Appeals of Oregon
DecidedAugust 11, 2010
DocketCV07100740; A138923
StatusPublished
Cited by23 cases

This text of 238 P.3d 395 (Pete's Mountain Homeowners Ass'n v. Oregon Water Resources Department) is published on Counsel Stack Legal Research, covering Court of Appeals of Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pete's Mountain Homeowners Ass'n v. Oregon Water Resources Department, 238 P.3d 395, 236 Or. App. 507, 2010 Ore. App. LEXIS 933 (Or. Ct. App. 2010).

Opinion

*510 LANDAU, P. J.

In this water rights case, the Oregon Water Resources Department (the department) approved an application of Pete’s Mountain Water Co., Inc. (the water company), to amend a water right permit. Petitioners, a neighborhood association and a number of local area residents, filed a petition for judicial review of an order in other than a contested case. The water company intervened and moved to dismiss for want of statutory standing, arguing that, under ORS 536.075(1), only a “party affected” by an order of the department may seek review of the order; in this case, the water company argued, petitioners were not parties to the prior proceeding. The department joined in the motion to dismiss. Petitioners conceded that they were not parties to any prior proceedings in this case because there was no prior proceeding to which they could have become a formal party. They argued that the fact that they were affected by the department’s order was sufficient to confer standing. The trial court agreed with the water company and the department and dismissed the petition for judicial review.

Petitioners appeal, assigning error to the dismissal on standing grounds. They contend that, notwithstanding the statutory provision that only “parties” may seek judicial review, they have standing because the term must be understood to refer to “persons,” regardless of whether they participated in any prior proceedings, so long as they are affected by the order that they challenge. Interestingly, on appeal, the department switches positions and now sides with petitioners in asking for reversal. The water company adheres to its contention that, even if there was no proceeding to which petitioners could have become formal parties, the statute nevertheless confers standing only on such “parties.” We agree with petitioners and the department and reverse and remand.

I. PACTS

Because this matter was dismissed at the pleading stage, we take the pertinent facts from the petition for judicial review and “consider as true the facts alleged and all reasonable inferences that may be drawn therefrom.” Glubka v. Long, 115 Or App 236, 238, 837 P2d 553 (1992).

*511 The water company holds water right permit G-5383 issued by the department. G-5383 authorized the withdrawal of groundwater for group domestic use and limited irrigation in an approximately 147-acre area in Clackamas County. Petitioner Pete’s Mountain Homeowners Association (the homeowners association) is a nonprofit corporation consisting of homeowners in the Clackamas County area generally known as “Pete’s Mountain.” One of the homeowners association’s stated purposes is to ensure the protection and sustainable management of groundwater supplies and other natural resources in the area. Many of the homeowners association’s members have individual groundwater rights. The individual petitioners all live in the “Pete’s Mountain” area and use individual groundwater wells that are exempt from the department’s permitting requirements. ORS 537.545(1) (no permit required for “[s]ingle or group domestic purposes in an amount not exceeding 15,000 gallons a day”). 1

For many years, the water company served water to households outside the place of use specified in G-5383. In 2004, the water company filed an application with the department to amend the place of use of G-5383 to significantly expand the water company’s authorized place of use— although the amendment application did not seek to change the maximum number of homes that could be served. The department assigned the reference number T-9767 to the permit amendment application. In late 2006 and early 2007, the homeowners association filed comments with the department on T-9767. The homeowners association asserted that approving the application was erroneous as a matter of law and fact because such an action would fail to protect existing groundwater rights and the public interest. The department subsequently issued a final order in other than a contested case approving T-9767 with conditions.

Petitioners — both the homeowners association and the named individuals — filed a petition for judicial review in the Clackamas County Circuit Court. They alleged that they were adversely affected by the department’s final order. The *512 water company intervened and moved to dismiss the petition, arguing that petitioners lacked standing to seek review of the department’s order. In particular, the water company argued that petitioners failed to satisfy the statutory requirement that only a “party affected” by an order may challenge it in court. According to the water company, the term “party” in the water rights statute should be interpreted consistently with the definition of the same term in the Oregon Administrative Procedures Act (APA), ORS 183.310(7), which limits the term to persons to whom a state agency had granted formal status as a party to the proceeding in which the agency generated the challenged order. The department joined the water company’s motion.

Petitioners argued for a broader interpretation of “party,” asserting that the APA definition does not apply and that the proper analysis of the statutory language leads to the conclusion that a “party affected” includes a person who is affected by the final order in other than a contested case, but has not necessarily achieved formal party status in the agency proceedings. According to petitioners, a person’s involvement in the agency process leading to the final order in other than a contested case is immaterial under ORS 536.075(1); the key is whether the final order affected the person seeking judicial review.

The circuit court granted the motion to dismiss and explained in a letter opinion that, because petitioners lacked “partjr” status in the agency proceedings below, they did not have standing to seek judicial review of the final order in other than a contested case. The court explained that, under both the plain meaning of ORS 536.075(1) and the APA definition of the term “party,” petitioners did not have the special status that is required by ORS 536.075(1) as a recognized participant in the agency proceeding below.

II. ANALYSIS

On appeal, petitioners reprise their contention that an affected “party” who may seek judicial review of an order in other than a contested case under ORS 536.075(1) is merely any affected “person,” regardless of that person’s status in the proceeding that generated the order challenged.

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Bluebook (online)
238 P.3d 395, 236 Or. App. 507, 2010 Ore. App. LEXIS 933, Counsel Stack Legal Research, https://law.counselstack.com/opinion/petes-mountain-homeowners-assn-v-oregon-water-resources-department-orctapp-2010.