Sain v. Montana Power Co.

84 F.2d 126, 1936 U.S. App. LEXIS 4408
CourtCourt of Appeals for the Ninth Circuit
DecidedJune 8, 1936
DocketNo. 7499
StatusPublished
Cited by3 cases

This text of 84 F.2d 126 (Sain v. Montana Power Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sain v. Montana Power Co., 84 F.2d 126, 1936 U.S. App. LEXIS 4408 (9th Cir. 1936).

Opinion

DENMAN, Circuit Judge.

This is an appeal by the-plaint .ffs from a final decree in equity -dismissing a bill of complaint charging unlawful interference with plaintiffs’ water rights, on the ground of failure of jurisdiction in the United States District Court. The dismissal by ihe court below was sua sponte, neither party presenting to it the question, the decision of which disposed of the controversy in that tribunal.

The complaint was.brought by several citizens of the state of Montana against the defendant power company, a corpo ration of New Jersey. The adequate jurisdictional amount was alleged.

The following facts appear from the allegations of the complaint: Ra:tlesnake creek is a short fresh-water stream emptying into the Missoula river in Western Montana. All parties to the action are successors in interest to certain persons who, prior to 1903, acquired rights to divert the waters of Rattlesnake creek; such rights being acquired by appropriation for beneficial uses. Rev.Codes Mont.1921, § 7093.

The complaint states that in 1903, in an action arising between various appropriators and claimants to the waters of the creek (such action being cause 1953 in lhe state district court), a final decree was entered, [127]*127fixing the rights of the parties in the order of their priority. All parties in the present case are privy to some of the parties in cause 1953. The company’s predecessor in interest was awarded, inter alia, appropriation rights 1, 2, and 9. Each of these was a right to appropriate a specified number of inches, to be diverted by means of two ditches tapping the creek below the points at which plaintiffs’ predecessors in interest (whose appropriations were likewise adjudicated and confirmed by the decree in cause 1953) drew their water. The complaint alleges the decree in cause 1953, in addition to adjudicating the water rights, provided: “ * • * * That the several parties to this action, and their successors in interest, and their agents, servants and employes, and all persons acting by, through or under them, be and they are hereby perpetually enjoined from in any manner interfering with the rights of each of the other parties as herein established.”

The complaint further alleges that, subsequent to the decree in cause 1953, the company or its predecessors did interfere with these adjudicated rights of plaintiffs, and thus, in effect, alleges the violation of injunction by changing the diversion points of rights 1,2, and 9 from the original ditches to a single point higher up the stream and above many of the diversion points of plaintiffs and their predecessors. Until 1931 there was sufficient flow in Rattlesnake creek to satisfy all the appropriation rights of the plaintiffs, in spite of the company’s new diversion point; but during the years 1931, 1932, and 1933 the flow was not sufficient to satisfy plaintiffs’ rights, though, it is alleged, if the diversion had not been made by the company, the flow down the channel would have been sufficient.

The complaint then prays that the defendant company’s rights be adjudged inferior to those of the plaintiffs, that the change of the company’s diversion point be adjudged injurious to plaintiffs, and that such change be enjoined.

The company, answering, alleged': (1) That the charged alteration in diversion points for rights 1, 2, and 9 was an accomplished fact when the decree in cause 1953 was entered, and that the decree was entered with the understanding that the water would be appropriated from the new point; (2) that no damage had resulted to plaintiffs from such change in diversion point; (3) that the company had acquired a right to divert the water at the upper diversion point by open, adverse, and notorious user for a period of more than 20 years; (4) that the plaintiffs were estopped by laches; and (5) that the statute of limitations barred this action.

It appeared in evidence, and the trial court found, that the decree in'cause 1953 in the state court had enjoined the defendant from interfering with the plaintiffs’ rights and held that in the instant case the plaintiffs were seeking injunction against actions by the company already enjoined in the state court action.' The trial court also found that, pursuant to the decree of the state court in cause 1953, a water commissioner had been appointed by the court rendering the decree, for the purpose of apportioning the waters of the stream in accord with the decree. Rev.Codes Mont.1921, § 7136, as amended by Laws 1925, c. 125, § L The evidence shows that such a commissioner had been appointed each year for the greater part of the years since the decree was entered, and that a commissioner was in authority during each of the years 1931, 1932, and 1933.

The lower court held that, because the alleged violation of plaintiffs’ rights violated the injunction of the state court, and also because of that court’s continuing control, through its water commissioner, the federal court should not assume jurisdiction in the field so occupied by the state tribunal. To test the correctness of this holding, we will briefly review the pertinent statutes of Montana -with reference to the principle guiding the relationship between state and federal courts in the exercise of their concurrent jurisdiction.

By Rev.Codes Mont.1921, § 7105, any or all parties claiming interests in the waters of a stream may be made parties to an action in which the relative rights and priorities of all litigants may be adjudicated and settled. Such an action, while in personam, is in effect one to quiet title to real property. Whitcomb v. Murphy, 94 Mont. 562, 565, 567, 23 P.(2d) 980.

Rev.Codes Mont.1921, § 7136, as amended by Laws 1925, c. 125, § 1, provides: “Whenever the rights of persons to use the waters of any stream * * * have been determined by a decree or decrees of a court of competent jurisdiction, it shall be the duty of the judge of the district court having jurisdiction of the subject matter, upon the application of the owners of at least ten per cent of the water rights affected by the decree or decrees, in the exercise of his [128]*128discretion, to appoint one or more commissioners, who shall have authority to ad-measure and! distribute to the parties bound by the decree or decrees the waters to> which they are entitled, according to their rights as fixed by such decree or decrees.”

Section 7150, as amended by Laws 1925, c. 125, § 5, provides that any owner or user of the waters of an adjudicated stream “who is dissatisfied with the method of distribution,” and “who claims to be entitled to more water than he is receiving,” or “is entitled to a right prior to that allowed him by such commissioner,” may file a written complaint in the appropriate court setting forth his claim. Notice is to be given to interested parties in such manner as the judge deems necessary. After a hearing, the judge is to make “such findings and order as he may deem just and proper in the premises” and give directions to the water commissioner accordingly. The procedure thus set out in section 7150 is not a formal trial. It is more in the nature of proceedings ancillary to the decree which originally adjudicated rights on the stream. Gans & Klein Inv. Co. v. Sanford, 91 Mont. 512, 520, 8 P. (2d) 808.

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Related

United States v. David L. Reynolds
919 F.2d 435 (Seventh Circuit, 1990)
Morrison v. Higbee
668 P.2d 1029 (Montana Supreme Court, 1983)
Sain v. Montana Power Co.
20 F. Supp. 843 (D. Montana, 1937)

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Bluebook (online)
84 F.2d 126, 1936 U.S. App. LEXIS 4408, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sain-v-montana-power-co-ca9-1936.