St. Jude's Co. v. Roaring Fork Club, L.L.C.

2015 CO 51, 351 P.3d 442, 2015 Colo. LEXIS 588, 2015 WL 3947114
CourtSupreme Court of Colorado
DecidedJune 29, 2015
DocketSupreme Court Case 13SA132
StatusPublished
Cited by9 cases

This text of 2015 CO 51 (St. Jude's Co. v. Roaring Fork Club, L.L.C.) is published on Counsel Stack Legal Research, covering Supreme Court of Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
St. Jude's Co. v. Roaring Fork Club, L.L.C., 2015 CO 51, 351 P.3d 442, 2015 Colo. LEXIS 588, 2015 WL 3947114 (Colo. 2015).

Opinions

Justice COATS

delivered the Opinion of the Court.

1 1 St. Jude's Co. appealed directly to this court from a consolidated judgment of the water court in favor of Roaring Fork Club. With regard to the Club's two applications for water rights, the water court granted appropriative rights, approved the Club's accompanying augmentation plan, and amended the legal description of the Club's point of diversion for an already decreed right. With regard to the separate action filed by St. Jude's Co., the water court denied all but one of its claims for trespass, denied its claims for breach of a prior settlement agreement with the Club, denied its claims for declaratory and injunctive relief concerning its asserted entitlement to the exercise of powers of eminent domain, quieted title to disputed rights implicated in the Club's application for an augmentation plan, and awarded attorney fees in favor of the Club, according to the terms of the settlement agreement of the parties.

T 2 Because the Club failed to demonstrate an intent to apply the amount of water for which it sought a decree to any beneficial use, as contemplated by either the constitution or statutes of the jurisdiction, the water court's order decreeing appropriative rights is reversed. Because the water court did not, however, misinterpret the various agreements at issue or other governing law, make any clearly erroneous factual findings, or abuse its discretion concerning discovery matters or the award of attorney fees, the remaining rulings of the water court to which error has been assigned by St. Jude's Co. are affirmed. The Club's request for appellate attorney fees expended defending those fees already granted according to the provisions of the settlement agreement is also granted, and the matter is remanded to the water court for a determination of the amount of those fees.

[446]*446I.

T3 In March 2007, Roaring Fork Club, LLC., the owner of a private golf, fishing, recreational, and residential resort located near the town of Basalt, filed two water applications with the water court for Colorado Water Division 5. In its first application, the Club sought a decree for new appropria-tive rights and a change in the point of diversion for an existing right. With regard, to the former, the Club's application asserted that the Club had, since 2001, diverted 21 cubic feet per second ("cfs") from the Roaring Fork River, into the RFC Ditch, The application indicated that the RFC Ditch is a flow-through structure located entirely on Club land, which returns water to the Roaring Fork River approximately one half-mile downstream from its-point of diversion, and that the Club used the water in question and the RFC Ditch itself as an "aesthetic and recreational amenity to a golf course development, as well as for fish habitat and as a private fly-fishing stream." The Club sought a decree for the amount in question for "aesthetic, recreation, and piscatorial uses." With regard to its application for change of water right, the Club explained that it sought to align the legal description of its point of diversion with the actual location of its structure, for one of its existing water rights in the RFC Ditch, decreed in 1999 in Case No. 95CW356, for 10 efs conditional, with an appropriation date of December 12, 1995.

T4 On the same day, the Club filed a second application with the water court, seeking approval of an augmentation plan for the RFC Ditch This application explained that the Club diverted up to 40 efs in total through the wider-than-normal RFC Ditch, entailing evaporative losses from its surface area. The application proposed to augment the evaporative depletions associated with all of the Club's water rights through the RFC Ditch using a combination of previous decrees for water rights and consumptive use credits.

1 5 St. Jude's Co., an agricultural business, and Reno Cerise, one of two partners of St. Jude's Co., filed joint statements of opposition in both cases.1 St. Jude's Co. alleged that it retained water rights in the Roaring Fork River, that it currently diverted at the RFC Headgate and through the RFC Ditch, and that its rights would be adversely affected if the Club's applications were granted without the sufficient terms, conditions, and limitations. St. Jude's Co. therefore requested that the court place the Club on strict proof in its applications.

16 The following fall, in October 2007, St. Jude's Co. and Cerise filed a complaint with the water court naming the Club as defendant. In the complaint, St. Jude's Co. alleged that while it currently diverted 'at the RFC Headgate and through the RFC Ditch, it did so on a "temporary basis," that these rights were actually decreed for a different headgate-the John Cerise Headgate-also on Club property, and that St. Jude's Co. had suffered curtailment of its rights because the Club refused the Company access to, and use of, the John Cerise Headgate. St. Jude's Co. further alleged that this denial violated its rights under both Colorado law and a settlement agreement between the parties governing their shared use of the RFC Ditch. The complaint made a number of claims against the Club based on these allegations, including, as relevant here, trespass on the Company's water rights and easements; a claim for declaratory judgment regarding the rights of St. Jude's Co. the Club, the RFC Ditch, and the Company's ditch water rights, including a declaration of the Company's right to exercise the power of eminent domain to condemn an easement for an underground pipeline through Club land, in lieu of reliance on the RFC Ditch; breach of the settlement agreement between the parties; and, ultimately, a request to quiet title to Priority 280 (one of the sources of water proposed for the Club's augmentation plan) in St. Jude's Co., to the exclusion of the Club.2 As remedies, St. Jude's Co. requested [447]*447declaratory and injunctive relief, as well as monetary damages.

T7 Upon motion by St. Jude's Co., the water court consolidated its lawsuit with the Club's pending water applications. After extensive proceedings, including an eight-day trial and a site visit, the water court issued a consolidated judgment for the three cases, consisting of its findings of fact and conclusions of law. The court found that St. Jude's Co. and the Club owned contiguous properties next to the Roaring Fork River, where the Club owned the upstream parcel, upon which it operated a golf club, residential accommodations, and related recreational opportunities, and that St. Jude's Co. owned the downstream parcel, where it conducted agricultural operations. The court further found that the dispute between St. Jude's Co. and the Club was shaped by prior litigation, addressed in Roaring Fork Club, L.P. v. St. Jude's Co., 36 P.3d 1229 (Colo.2001), in which this court determined that the Club had committed trespass by unilaterally altering irrigation ditches on Club property used by St. Jude's Co., including by replacing the John Cerise Ditch with the RFC Ditch. The water court noted that the prior litigation had ultimately been resolved by settlement, embodied in two documents: the Settlement Agreement and Mutual Release ("Release Agreement") and the Ditch Easement, Access, Maintenance, Repair Operation and Settlement Agreement ("Ditch Agreement"), the latter governing the shared use of the RFC Ditch by both St. Jude's Co. and the Club.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Dwight v. Morfitt
Colorado Court of Appeals, 2021
Hill v. Warsewa
D. Colorado, 2020
Colorado Insurance Guaranty Ass'n v. Sunstate Equipment Co., LLC
2016 COA 64 (Colorado Court of Appeals, 2016)
Colorado Insurance Guaranty Ass'n v. Sunstate Equipment Co.
2016 COA 64 (Colorado Court of Appeals, 2016)
Keel v. Industrial Claim Appeals Office of the State of Colorado
2016 COA 8 (Colorado Court of Appeals, 2016)
Keel v. Industrial Claim Appeals Office
2016 COA 8 (Colorado Court of Appeals, 2016)
St. Jude's Co. v. Roaring Fork Club, L.L.C.
2015 CO 51 (Supreme Court of Colorado, 2015)

Cite This Page — Counsel Stack

Bluebook (online)
2015 CO 51, 351 P.3d 442, 2015 Colo. LEXIS 588, 2015 WL 3947114, Counsel Stack Legal Research, https://law.counselstack.com/opinion/st-judes-co-v-roaring-fork-club-llc-colo-2015.