USI Properties East, Inc. v. Simpson

938 P.2d 168, 21 Colo. J. 721, 1997 Colo. LEXIS 446, 1997 WL 275506
CourtSupreme Court of Colorado
DecidedMay 27, 1997
DocketNo. 96SA100
StatusPublished
Cited by82 cases

This text of 938 P.2d 168 (USI Properties East, Inc. v. Simpson) 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
USI Properties East, Inc. v. Simpson, 938 P.2d 168, 21 Colo. J. 721, 1997 Colo. LEXIS 446, 1997 WL 275506 (Colo. 1997).

Opinion

Justice MARTINEZ

delivered the Opinion of the Court.

This appeal from the Water Court for Water Division No. 5 concerns the interpretation of a stipulation regarding the water rights of the applicants-plaintiffs-appellants, USI Properties East Inc., Diamond Bar T Limited Liability Company and Diamond Bar T Joint Venture (collectively, applicants or USI) and the objectors-defendants-appellees, the City and County of Denver (Denver) and Cyprus Climax Minerals (Climax). The water court denied and dismissed USI’s motion for declaratory judgment, which the water court treated as a motion in limine, and granted Englewood’s motion for summary judgment. Applying general principles of contract law, we determine that the plain terms of the stipulation in question limited the stipulation’s application to Beaver Creek. USI’s motion in limine was properly denied and the City of Englewood’s motion for summary judgment was properly granted. We affirm the order of the water court.

I.

Several cases have been filed regarding the water rights at issue here. We will briefly identify those cases significant to the case before us and then discuss their relevant history.1 First, Case No. 91CW211, filed by the applicants in December 1991, sought an alternate point of diversion for the Diamond Bar T Ditch No. 3 for the purpose of irrigation. In November 1994, Case No. 94CW264 was filed by the applicants for an alternate point of diversion and for additional beneficial uses at the new point of diversion. In 1995, Case No. 95CW65 was filed by the applicants requesting the water court to make a determination regarding the subordination of Denver’s, Englewood’s, and Climax’ water rights pursuant to the stipulation at issue here.

Although the history of these eases is complicated and lengthy, it is useful to understand the context of the dispute before us. Raymond D. Sloan, predecessor in interest to USI, owned the Diamond Bar T Ranch. In 1951, Sloan diverted water from Beaver Creek to supplement the flows of the Diamond Bar T No. 2 Ditch, although he did not have a decreed right to divert from Beaver Creek. However, in 1971, in Case No. C.A. 1430, Sloan had a pending claim for the Sloan No. 1 Ditch water right on Beaver Creek with an appropriation date of July 31, 1951.

In 1955, Englewood purchased conditional water rights on Cabin and Meadow Creeks, and other tributaries of the Fraser River, known as the Cabin-Meadow Creek System. Englewood sought a proposed point of diversion on Beaver Creek for its Cabin-Meadow Creek System. Subsequently, Englewood, Denver, and Climax entered into various agreements regarding the Cabin-Meadow Creek System water. In 1970, Englewood filed an application for Biennial Finding of Reasonable Diligence for the Cabin-Meadow Creek System in Case No. W — 40. This application was opposed by Sloan and a group of landowners known as Grand River Environmental Action Today, Inc. (GREAT).

On March 15, 1971, Sloan, GREAT, Denver, Englewood and Climax entered into a [171]*171stipulation in order to resolve the objections raised by Sloan and GREAT. This oral stipulation was read into the record of Case No. W-40, Englewood’s diligence proceeding. Later, the stipulation (the W-40 Stipulation) was reduced to writing and filed with and approved by the water court. As written, the W-40 Stipulation was entered on April 12, 1971, effective March 15, 1971. The W-40 Stipulation provided in pertinent part:

8. Englewood, Denver and Climax agree that they and their successors or assigns shall never make a call[2] on the waters of Beaver Creek (or Little Beaver Creek, the same being known by both names) to supply any of their water right priorities in the Fraser River Basin or for any other purpose if such call would prevent the owner Or owners of the following described water rights from making maximum use of the water claimed under said rights:
(a) Sloan No. 1 Ditch *
(b) Diamond Bar Tee No. 3 Ditch *
* As they have been claimed in Civil Action No. 1430 in the District Court of Grand County, Colorado Water District No. 51.
(c) Diamond Bar Tee No. 1 Ditch * *
(d) Diamond Bar Tee No. 4 Ditch * *
* * As they have been claimed in Civil Action No. 1768 in the District Court of Grand County, Colorado, Water District No. 51.
This agreement shall apply regardless of the priority date or dates finally awarded to said claims. Denver will withdraw its statement of opposition to the Sloan No. 1 Ditch in Case No. 1430. in the District Court of Grand County, Colorado, and Denver, Englewood and Climax will not challenge these rights.

After agreeing to the above stipulation, Sloan and GREAT withdrew their objections in the W-40 diligence proceeding for the Cabin-Meadow Creek System.

However, in 1991, water rights that were irrigating Diamond Bar T Ranch through the Diamond Bar T Ditch No. 2 were sold. In order to obtain alternate irrigation water for the ranch, the applicants filed Case No. 91CW211 for an alternate point of diversion and new place of use for Diamond Bar T Ditch No. 3 in the amount of 5.0 cubic feet per second (cfs).3 In Diamond Bar T Ditch No. 3 was a conditional water right which had not been perfected and which the record implies never irrigated the ranch. Engle-wood filed an Objection, but Denver and Climax did not.

Subsequently, the application in Case No. 91CW211 was decreed for the alternate point of diversion and place of use for Diamond Bar T No. 3 Ditch for irrigation. Englewood and USI then executed a second stipulation (the 1994 Stipulation) in Case No. 91CW211 which interpreted the meaning of the W-40 Stipulation. The 1994 Stipulation was filed with the water court and provided that Paragraph 8 of the W-40 Stipulation was intended:

to provide physical water supplies to the four ditches named in said Stipulation to-wit: (a) Sloan No. 1 Ditch, (b) Diamond Bar Tee No. 3 Ditch, (c) Diamond Bar Tee No. 1 Ditch, and (d) Diamond Bar Tee No. 4 Ditch, by cessation of diversions as necessary of one or more water rights which divert upstream from one or more of the said named ditches, and was not intended to require the cessation of diversions other than those which could provide such physical water supplies upstream of the named ditches.

Denver and Climax were not parties to the 1994 Stipulation.

In 1994, the applicants, relying on a subordination allegedly established by the W-40 Stipulation, filed the application in Case No. 94CW264 for an alternate point of diversion and change of use regarding Diamond Bar T No. 3 Ditch and for approval of the remain-[172]*172mg beneficial uses of domestic, stock watering and fish culture.4

In April 1995, the applicants filed a motion for declaratory judgment in Case No. 95CW65, concerning the meaning and effect of the W-40 Stipulation and to enforce the subordination of Denver’s Fraser River Basin water rights to applicants’ water rights, specifically applicants’ rights concerning Diamond Bar T No. 3 Ditch. Englewood filed a motion for summary judgment in the declaratory judgment proceeding, alleging, inter alia,

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Bluebook (online)
938 P.2d 168, 21 Colo. J. 721, 1997 Colo. LEXIS 446, 1997 WL 275506, Counsel Stack Legal Research, https://law.counselstack.com/opinion/usi-properties-east-inc-v-simpson-colo-1997.