Rural Water District No. 1 v. City of Wilson

243 F.3d 1263
CourtCourt of Appeals for the Tenth Circuit
DecidedMarch 22, 2001
Docket98-3337, 98-3340, 99-3075 & 99-3084
StatusPublished
Cited by7 cases

This text of 243 F.3d 1263 (Rural Water District No. 1 v. City of Wilson) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rural Water District No. 1 v. City of Wilson, 243 F.3d 1263 (10th Cir. 2001).

Opinions

HENRY, Circuit Judge.

Plaintiff Rural Water District No. 1, Ellsworth County, Kansas (commonly known as Post Rock Rural Water District) brought this case alleging that defendant City of Wilson, Kansas, (the City) violated 7 U.S.C. § 1926(b) by providing domestic water service to customers in Post Rock’s service area. Post Rock sought declaratory and injunctive relief under 28 U.S.C. §§ 2201 and 2202. Post Rock appeals the district court’s refusal to grant a permanent injunction preventing the City from providing domestic water service in Post Rock’s service area. Post Rock also appeals the district court’s refusal to award all of its attorney fees and expenses under 42 U.S.C. § 1988. The City cross-appeals the district court’s decision to grant a contingent injunction concerning the City’s provision of water service in the Purma Addition. The City further appeals the district court’s award of partial attorney fees to Post Rock under § 1988. We exercise jurisdiction pursuant to 28 U.S.C. § 1291, and affirm in part, reverse in part, and remand.

I.

The City is a municipal corporation in Ellsworth County, Kansas. Post Rock is a rural water district formed on March 5, 1979. Post Rock has the legal right pursuant to 7 U.S.C. § 1926(c) to provide water service “to all of Ellsworth County except the incorporated cities, including the City of Wilson as it existed on March 5, 1979.” Aplt-App. I at 147. The City owns and operates groundwater wells, water treatment systems, and water distribution systems within the Wilson city limits and within areas annexed into the City since January 1995. Pursuant to § 1926(c), customers within Post Rock’s service area must receive water service from Post Rock or provide their own water; they may not connect to the City water system unless Post Rock is unable to provide service or releases them from the water district.

To receive water service, Post Rock requires prospective customers to submit an application for a benefit unit, accompanied by an $800 application fee.2 This purchase of a benefit unit makes the prospective customer a part owner of the district. With a portion of the application fee, Post Rock hires an independent engineering firm to determine whether the customer can be adequately served by Post Rock “without curtailing service to existing Post Rock customers. If the engineer finds that there is sufficient capacity to serve the potential user and determines what additions will be required to the system, Post Rock then calculates the cost of adding the potential user to the system.” ApltApp. I at 151. Under this policy, the customer pays all of the costs of adding his property to Post Rock’s water system.

This appeal concerns three properties in Post Rock’s service area: the Purma Addition, the Prairie Estates Addition, and the Branda property. Purma Addition is located outside the 1979 Wilson city limits. On April 20,1995, the City annexed Purma Addition. In December 1995, the City extended its municipal water system to Pur-ma Addition and in July 1997, it began providing water service to the two duplexes in Purma Addition. Although Post Rock had the ability to deliver water to Purma Addition, Post Rock had no water pipes in Purma Addition at the time of trial. At the time of trial, no one in Purma Addition had made a formal application to [1268]*1268Post Rock for water service. A Post Rock study showed it would take two to five days to establish service to the duplexes, at a cost of $32,000.

Prairie Estates Addition is also located outside the 1979 Wilson city limits. At the time of trial, the City had not annexed Prairie Estates, but had studied the feasibility of running water pipes into the area. At the time of trial, Post Rock had not received a formal application for water service from anyone in Prairie Estates. Post Rock had no water pipes in Prairie Estates, but there was testimony that it would take three to six days to provide water service. At the time of trial, no houses had been built in Prairie Estates and none were planned in the immediate future. Post Rock could not state whether it would have the capacity to serve Prairie Estates in the future.

The Branda property was annexed into the City in 1992. Before January 19,1995, the City provided water service only to a house on the property. After January 19, 1995, the City also provided service to another building on the property. At the time of trial, Post Rock had not received an application for water service and had not done a cost analysis of providing water service to the property.

On February 6, 1997, Post Rock filed an amended complaint in federal district court alleging the City violated 7 U.S.C. § 1926(b) by providing water sendee in Post Rock’s service area and seeking declaratory and injunctive relief under 28 U.S.C. §§ 2201 and § 2202. In its trial brief, Post Rock asserted it was entitled to relief under 42 U.S.C. § 1983 and requested attorney fees pursuant to 42 U.S.C. § 1988.

After a bench trial, the district court entered judgment on October 27, 1998, concluding that Post Rock properly brought its claim for a violation of § 1926(b) under 42 U.S.C. § 1983. The district court determined that the City was encroaching on Post Rock’s service area, but concluded that Post Rock was not making service available because it charged customers for building water system infrastructure. The district court entered a contingent injunction as to Purma Addition, enjoining the City from providing water service if Post Rock agreed to provide service at a reasonable cost. The district court denied Post Rock relief as to Prairie Estates because Post Rock had not shown when, if ever, there would be domestic water users in that area and whether Post Rock would have the capacity to serve those users. The district court also denied Post Rock relief as to the Branda property because Post Rock had not shown it could serve the property and had not made service available. Post Rock filed a motion for attorney fees, expenses, and expert witness fees under § 1988. The district court concluded that Post Rock was a prevailing party under § 1988 and awarded Post Rock 25 percent of its claimed fees and expenses because it had prevailed on only a portion of its claim.

II.

Post Rock appeals the district court’s denial of injunctive relief, which we review for abuse of discretion. See Roe v. Cheyenne Mountain Conference Resort, Inc., 124 F.3d 1221, 1230 (10th Cir.1997).

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243 F.3d 1263, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rural-water-district-no-1-v-city-of-wilson-ca10-2001.