(1)Where any water users' association formed under the law of this state has entered
into or proposes to enter into a contract with the United States for the payment by
the association of the construction and other charges of a federal reclamation
project constructed or under construction within this state, and where the funds for
the payment of such charges are to be obtained by the association from
assessments levied upon the stock of such association and constituting liens upon
the lands of such stockholders, the association, in any case where the said contract
or proposed contract would modify or affect any individual contracts between the
United States and such stockholders or between the association and such
stockholders, may file in the district court of the county in wh
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(1)
Where any water users' association formed under the law of this state has entered
into or proposes to enter into a contract with the United States for the payment by
the association of the construction and other charges of a federal reclamation
project constructed or under construction within this state, and where the funds for
the payment of such charges are to be obtained by the association from
assessments levied upon the stock of such association and constituting liens upon
the lands of such stockholders, the association, in any case where the said contract
or proposed contract would modify or affect any individual contracts between the
United States and such stockholders or between the association and such
stockholders, may file in the district court of the county in which the office of such
water users' association is situated, a petition entitled ........ water users' association
against the stockholders of said association and the owners and mortgagees of
land within the ........ federal reclamation project. No other or more specific
description of the defendants shall be required.
(2) In the petition it may be stated that the association has entered into or
proposes to enter into a contract with the United States, to be set out in full in said
petition, with a prayer that the court find the contract to be valid, and a modification
of any individual contracts between the United States and the stockholders of said
association or between the association and its stockholders, insofar as any
individual contracts are at variance with such association contract. Thereupon a
notice in the nature of a summons shall issue under the hand and seal of the clerk
of the court stating in brief outline the contents of said petition and showing where
a full copy of the contract or proposed contract may be examined, such notice to be
directed to the said defendants under the same general designations, which shall
be deemed sufficient to give the court jurisdiction of all matters involved and
parties interested.
(3) Service shall be obtained by publication of this notice as in the case of
publication of summons in an action to quiet title to real property and by the
posting of the notice and complete copy of the contract or proposed contract in the
office of the association and at three other public places within the boundaries of
such federal reclamation project. Any stockholder in the plaintiff association or
owner or mortgagee of land within a federal reclamation project affected by the
contract proposed to be made by the association may answer said petition within
twenty days or such further time as may be allowed therefor by the court. The
failure of any person affected by the said contract to answer shall be construed, so
far as that person is concerned, as an acknowledgment of the validity of the said
association contract and as a consent to the modification of the said individual
contracts with the association or with the United States, to the extent that such
modification is required to cause the said individual contracts to conform to the
terms of the contract or proposed contract between the plaintiff and the United
States. All persons filing answers shall be entered as defendants in said cause and
their defenses consolidated for hearing or trial.
(4) At the hearing the court shall examine all matters in controversy and
shall enter judgment and decree as the case warrants, showing how and to what
extent, if any, the individual contracts of the defendants or under which they claim
are modified by the association's contract or proposed contract with the United
States. In reaching its conclusions in such causes, the court shall follow a liberal
interpretation of the law and shall disregard informalities or omissions not affecting
the substantial rights of the parties, unless it is affirmatively shown that these
informalities or omissions led to a different result than would have been obtained
otherwise. The Colorado rules of civil procedure shall govern matters of pleading
and practice as nearly as may be. Costs may be assessed or apportioned among
contesting parties in the discretion of the trial court. Review of the judgment of the
district court shall be as provided by law and the Colorado appellate rules.