Second Big Springs v. Granite Peak

2023 UT App 22
CourtCourt of Appeals of Utah
DecidedMarch 2, 2023
Docket20210207-CA
StatusPublished

This text of 2023 UT App 22 (Second Big Springs v. Granite Peak) is published on Counsel Stack Legal Research, covering Court of Appeals of Utah primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Second Big Springs v. Granite Peak, 2023 UT App 22 (Utah Ct. App. 2023).

Opinion

2023 UT App 22

THE UTAH COURT OF APPEALS

SECOND BIG SPRINGS IRRIGATION CO., BAKER RANCHES INC., OKELBERRY RANCH LLC, RAY OKELBERRY, BRIAN OKELBERRY, AND JAKE OKELBERRY, Appellants, v. GRANITE PEAK PROPERTIES LC, GRANITE PEAK RANCH LC, KENNETH C. KNUDSON, AND MILLARD COUNTY, Appellees.

Opinion No. 20210207-CA Filed March 2, 2023

Fourth District Court, Fillmore Department The Honorable Anthony L. Howell No. 170700020

John H. Mabey Jr., David C. Wright, and Brooke A. White, Attorneys for Appellants J. Craig Smith, Nathan S. Bracken, and Jennie B. Garner, Attorneys for Appellees Granite Peak Properties LC, Granite Peak Ranch LC, and Kenneth C. Knudson Barton H. Kunz II, Attorney for Appellee Millard County Sean D. Reyes, Norman K. Johnson, Julie I. Valdes, Sarah M. Shechter, and Gordon H. Rowe, Attorneys for Amicus Curiae Utah State Engineer 1

1. The Utah State Engineer moved to file an amicus curiae brief supporting Appellants. The parties did not oppose the motion, and we granted it. Second Big Springs Irrigation v. Granite Peak Properties

SENIOR JUDGE KATE APPLEBY authored this Opinion, in which JUDGES GREGORY K. ORME and MICHELE M. CHRISTIANSEN FORSTER concurred. 2

APPLEBY, Senior Judge:

¶1 This case began as an action in which Second Big Springs Irrigation Co., Baker Ranches Inc., Okelberry Ranch LLC, Ray Okelberry, Brian Okelberry, and Jake Okelberry (collectively, Second Big Springs) alleged that Granite Peak Properties LC, Granite Peak Ranch LC, and Kenneth C. Knudson (collectively, Granite Peak) interfered with Second Big Springs’ already established water rights. But more than two years later and after Granite Peak’s joinder of twenty-five additional defendants, the district court classified the action as a general adjudication of water rights. Approximately sixteen months after that, the court dismissed the case on the basis that it lacked subject matter jurisdiction. This appeal ensued, and we reverse: general adjudications determine only the validity, characteristic, and ownership of water rights, and do not decide interference claims, which involve torts against property rights.

BACKGROUND

¶2 To put this case in context, we begin with a more detailed than usual description of its district court procedural history. This is because the case has evolved to include more parties, and some of those parties, as well as Granite Peak and the court itself, have at various times altered their positions, changing the course of the litigation over approximately four years and making the case at

2. Senior Judge Kate Appleby sat by special assignment as authorized by law. See generally Utah R. Jud. Admin. 11-201(7).

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this stage appear more complex than it is. 3 Despite its convoluted history, the matter on appeal is straightforward: Is this a tort case or is this a case more appropriately addressed in a general adjudication pursuant to the adjudication provisions of Utah’s Water and Irrigation Code? See generally Utah Code §§ 73-4-1 to -24. And if this is a matter for general adjudication, should it be part of an already pending general adjudication in another district?

¶3 Second Big Springs and Granite Peak own water rights in the Snake Valley Hydrographic Basin, a groundwater basin straddling the Utah–Nevada border. Second Big Springs’ rights are allegedly older than, or senior to, those of Granite Peak. This is significant because in Utah, “[a]ppropriators shall have priority among themselves according to the dates of their respective appropriations, so that each appropriator is entitled to receive the appropriator’s whole supply before any subsequent appropriator has any right.” Id. § 73-3-21.1. 4

¶4 Second Big Springs’ April 2017 complaint alleged that Granite Peak’s groundwater pumping was interfering with Second Big Springs’ senior water rights by depleting the aquifer, thereby “obstructing or hindering [Second Big Springs’] ability to

3. The district court docket has 402 entries, but no disposition has been made other than dismissal.

4. The previous version of this statute contained the same language, but it was only one subsection of the statute. Utah Code § 73-3-21.1(2)(a) (2021). The 2022 amendment deleted all other provisions of the section, leaving this language as the entirety of the section. Utah Code Ann. § 73-3-21.1 Amendment Notes (LexisNexis Supp. 2022). This language is the codification of what is known in the western United States as the prior appropriation doctrine. See 78 Am. Jur. 2d Waters § 355 (2013); Fredric J. Donaldson, Farmer Beware: Water Rights Enforcement in Utah, 27 J. Land, Res., & Env’t L. 367, 370 (2007).

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divert water.” The complaint identified Second Big Springs’ and Granite Peak’s Utah water rights in detail, including water right numbers, priority dates, beneficial uses, allowances, and points of diversion. Second Big Springs sought, among other things, damages and injunctive relief as well as a declaratory judgment (1) confirming its seniority; (2) declaring that “Big Springs Creek, Lake Creek and their spring sources . . . are fully appropriated”; and (3) declaring that Granite Peak has no rights in those waters.

¶5 Granite Peak moved to dismiss for lack of subject matter jurisdiction and failure to state a claim. It argued that because Second Big Springs’ action was “squarely aimed at reducing or eliminating” Granite Peak’s water rights, it was not an interference claim but, rather, a claim that required an adjudication of rights under Utah’s water law statutes. Granite Peak also argued that its Nevada water rights were implicated in the dispute and that Utah courts lack jurisdiction to adjudicate Nevada water rights. The district court rejected the argument that Second Big Springs was claiming something other than interference with its water rights, and because the complaint alleged a tort committed in Utah, the court found jurisdiction proper here.

¶6 The action proceeded, but in August 2018, Granite Peak filed a Motion for Leave to File Third-Party Complaint, Join Parties, or Make a General Determination of Water Rights. Among other things, it argued that adjudicating the alleged interference claim would require the joinder of “all water users” in the area “whose water rights are junior to [Second Big Springs’] water rights” and that those other users “must be added as third- party defendants or joined” because “[i]t is impossible both factually and legally to make the necessary determinations or grant the relief requested in a vacuum that does not consider the diversion of water by other intermingled water users.” The district court granted the motion to file a third-party complaint but denied the “request for a general determination.”

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¶7 Nearly two years after the action began, Granite Peak filed a Third-Party Complaint naming twenty-five additional parties. These included businesses and corporations, individuals, and government entities including the Bureau of Land Management (the BLM), 5 Millard County, and the Millard County School District (the school district). It alleged that to the extent each defendant with a junior water right caused harm to Second Big Springs, fault should be allocated proportionately.

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Bluebook (online)
2023 UT App 22, Counsel Stack Legal Research, https://law.counselstack.com/opinion/second-big-springs-v-granite-peak-utahctapp-2023.