Turner Ex Rel. Manzano Resources v. Bassett

2003 NMCA 136, 81 P.3d 564, 134 N.M. 621
CourtNew Mexico Court of Appeals
DecidedNovember 6, 2003
Docket22,877
StatusPublished
Cited by6 cases

This text of 2003 NMCA 136 (Turner Ex Rel. Manzano Resources v. Bassett) is published on Counsel Stack Legal Research, covering New Mexico Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Turner Ex Rel. Manzano Resources v. Bassett, 2003 NMCA 136, 81 P.3d 564, 134 N.M. 621 (N.M. Ct. App. 2003).

Opinion

OPINION

BUSTAMANTE, J.

{1} This case arises from a dispute over the ownership of water rights following a sale of land (the property) pursuant to a real estate contract to Manzano Resources. William M. Turner, in his official capacity as Trustee of Manzano Resources and Westwater Resources (Turner), filed suit to quiet title to the water rights at issue. Turner amended the complaint to allege negligent misrepresentation and conversion, as well as to state claims for restitution and declaratory judgment.

{2} Following a hearing, the trial court granted summary judgment in favor of Defendants Carroll G. Bassett, Gordon R. Bassett, James N. Bassett, Bassett Brothers Water Sales Company (collectively referred to as the Bassetts), and Hydro Source, Inc., Estancia Basin Water Supply, L.L.C., and Edgewood Water Cooperative, Inc. The trial court determined that: (1) the Bassetts had successfully severed the water rights associated with the land prior to selling the property; (2) even if the water rights had not been successfully severed, New Mexico’s adverse possession statute, NMSA 1978, § 37-1-22 (1973), precluded Turner’s action in its entirety; and (3) even if the trial court was wrong on the first two points, Turner’s claims for negligent misrepresentation and conversion were barred by the applicable statutes of limitations.

{3} Concluding that the Bassetts failed to successfully sever the water rights from the land prior to sale of the property, and concluding that adverse possession of water rights cannot occur in New Mexico, we reverse and remand for trial on the merits on Turner’s action to quiet title, and for trial on the merits of Turner’s remaining claims for restitution and declaratory judgment. Having concluded that adverse possession cannot be had in water rights, as a matter of law, we do not address either the adequacy of the trial court’s findings related to adverse possession or the adequacy of the facts to support a finding of adverse possession. We affirm on preservation grounds the trial court’s dismissal of Turner’s claims for negligent misrepresentation and conversion.

BACKGROUND

{4} Ray Bassett established the water rights in question by filing a declaration in 1950, as provided by law. See NMSA 1978, § 72-12-5 (1931) (providing for the declaration of beneficial use of a vested water right); see also NMSA 1978, § 72-12-18 (1983) (providing that all underground waters in New Mexico are public waters subject to appropriation for beneficial use). The declaration stated that Ray Bassett was irrigating 125 acres with underground water. The Bassetts owned several irrigation water rights in addition to the rights declared in the 1950 declaration.

{5} In 1974, Ray Bassett filed an Application for Permit to Change Place or Purpose of Use, Combine and Appropriate Underground Waters (the 1974 application). The 1974 application requested that the State Engineer allow the Bassetts to sever the water rights from the land (which includes the property later conveyed to Turner), combine water from three wells, and use that combined water for continued irrigation of the same land and additional land, as well as for commercial, industrial, domestic, and housing subdivision purposes. The State Engineer approved the application, in part, and granted a permit (the 1976 permit), subject to the condition that “[pjroof of application of water to beneficial use shall be filed on or before Dec. 15,1976.”

{6} The Bassetts contend that the 1976 permit states that the subject water rights were severed from the property. We disagree. The 1976 permit only states that the water rights “are to be severed,” indicating an event yet to occur. Our reading is supported by a 1980 State Engineer Memorandum indicating that water rights “may eventually be severed” from the property.

{7} The Bassetts obtained a second permit in 1979, subject to the same conditions set forth under the 1976 permit, which enlarged the area in which the water could be used. Starting in 1980, the Bassetts began filing a series of applications for extensions of time in which to put the water to beneficial use. The Bassetts, however, never complied with the conditions in the 1976 and 1979 permits requiring that they file proof of application of water to beneficial use. As a result, the State Engineer never issued a certificate and license to appropriate the water. The Bassetts stopped irrigating the land around 1981, and were not irrigating the land at the time of the conveyance.

{8} The property was sold to Manzano Resources in 1984. At the time of the conveyance, both the Bassetts and Turner may have been operating under the belief that there were no water rights appurtenant to the property. The Bassetts may have believed, and represented to Turner, that they had already severed the water rights from the property. It is undisputed that water rights were not negotiated during the sale. It is disputed whether the Bassetts reserved the water rights in the sale documents. Turner claims that based on the Bassetts’ representation that the water rights had been severed, he filed a petition in 1987 for reclassification of property from “prime farm land” to “dry land.”

{9} In 1991, the Bassetts conveyed then-interest in the water rights to Hydro Source, Inc. In 1998, Hydro Source, Inc. filed a change of ownership of the water rights to Estancia Basin Water Supply, L.L.C. with the State Engineer. In late August of 1998, Turner became aware of the conveyance to Estancia Basin. Upon learning of the conveyance, Turner began investigating whether the Bassetts had reserved the water rights. Turner obtained a copy of the warranty deed for the property, and found that it contained no express and specific reservation of water rights. In September, Turner filed a Change of Ownership of Water Rights to Westwater Resources. In October 1998 Turner received a copy of a letter from the State Engineer to Carroll Bassett. The letter noted that both parties had filed change of ownership of water rights for the same water and asked for clarification of the matter. Turner filed an action to quiet title in August 1999. The trial court granted summary judgment in favor of all Defendants and this appeal followed.

DISCUSSION

Standard of Review

{10} “Summary judgment is appropriate where there are no genuine issues of material fact and the movant is entitled to judgment as a matter of law.” Self v. United Parcel Serv., Inc., 1998-NMSC-046, ¶ 6, 126 N.M. 396, 970 P.2d 582. On appeal, we review de novo the trial court’s decision to grant summary judgment. See Hasse Contracting Co. v. KBK Fin., Inc., 1999-NMSC-023, ¶ 9, 127 N.M. 316, 980 P.2d 641. We must view the pleadings, affidavits, and depositions presented, for and against a motion for summary judgment, in a light most favorable to the nonmoving party. See Gardner-Zemke Co. v. State, 109 N.M. 729, 732, 790 P.2d 1010, 1013 (1990). Summary judgment is foreclosed either when the record discloses the existence of a genuine controversy concerning a material issue of fact, or when the trial court granted summary judgment based upon an error of law. See id.; see also Garcia v. Sanchez, 108 N.M. 388, 395, 772 P.2d 1311, 1318 (Ct.App.1989).

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Related

Tomlinson v. Burkett
New Mexico Court of Appeals, 2018
Polaco v. Prudencio
2010 NMCA 073 (New Mexico Court of Appeals, 2010)
Turner Ex Rel. Manzano Resources v. Bassett
2005 NMSC 9 (New Mexico Supreme Court, 2005)

Cite This Page — Counsel Stack

Bluebook (online)
2003 NMCA 136, 81 P.3d 564, 134 N.M. 621, Counsel Stack Legal Research, https://law.counselstack.com/opinion/turner-ex-rel-manzano-resources-v-bassett-nmctapp-2003.