Heavirland v. State , 372 Mont. 300 ( 2013 )


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  •                                                                                           October 22 2013
    DA 12-0759
    IN THE SUPREME COURT OF THE STATE OF MONTANA
    
    2013 MT 313
    LOREN HEAVIRLAND, SUE HEAVIRLAND
    and LYLE A. WEIST,
    Claimants and Appellees,
    v.
    STATE OF MONTANA,
    Objector and Appellant.
    APPEAL FROM:           Montana Water Court,
    Upper Missouri Division, Teton River Basin (41O), Cause No. 41O-97
    Honorable Russ McElyea, Presiding Judge
    COUNSEL OF RECORD:
    For Appellant:
    Timothy C. Fox, Montana Attorney General, Jeremiah D. Weiner, Assistant
    Attorney General; Helena, Montana
    For Appellee:
    Justin B. Lee, Attorney at Law; Choteau, Montana
    Submitted on Briefs: August 7, 2013
    Decided: October 22, 2013
    Filed:
    __________________________________________
    Clerk
    Justice Michael E Wheat delivered the Opinion of the Court.
    ¶1    The State of Montana appeals from the Montana Water Court’s Order that determined
    Loren Heavirland, Sue Heavirland and Lyle A. Weist (collectively, claimants) produced
    sufficient evidence to overcome the presumption of abandonment of their water right claim.
    We affirm.
    ISSUES
    ¶2    We address the following issues:
    1.   Did the Water Court correctly conclude that 79 Ranch governs the issue of
    abandonment?
    2.      Did the Water Court correctly conclude that the claimants produced sufficient
    evidence to show they had no intent to abandon their water right?
    FACTUAL AND PROCEDURAL BACKGROUND
    A.     Factual Background.
    ¶3    In 1904, Frank Truchot filed and perfected the water right which is the subject of this
    controversy. The water right, for surface water from Muddy Creek, was for 24.43 CFS to be
    applied by flood irrigation on a maximum of 645 acres. In 1913, Christina Weist, wife of
    Henry Weist, purchased the water right. The Weists used the water right to flood irrigate
    their farm. Raymond (Ray), Henry Weist’s son, took over the farm in the mid-1940s. Ray
    stopped irrigating when he went into military service in 1941. He re-commenced irrigation
    in 1947-48. From that time until 1961, Ray used Muddy Creek for irrigation in years when
    water was available.
    2
    ¶4     Ray’s son, Lyle Weist (Lyle), explained the right was very difficult to use due to the
    slope of the ground and the heavy clay “gumbo” soil. Lyle stated in his supplemental
    affidavit that the Weists had to pump water from Muddy Creek uphill into a ditch along the
    north end of the property. To flood irrigate the property, Henry and Ray would dam the
    ditch to send water flowing in a southeasterly direction over the fields, back into Muddy
    Creek. Lyle explained: “[W]hen the property was flood irrigated in the spring and summer,
    the plants on the west side of the field drowned by the time the water reached the east side of
    the field.” Ray and Henry attempted to counter the problem by irrigating the field only in
    late fall to put moisture in the ground for the next season; and by planting hardier crops, like
    alfalfa. These efforts proved unsuccessful. Ray also attempted using hand lines to irrigate
    his property. He decided against using a wheel line after seeing a wheel line fail on a similar
    neighboring property. In particularly dry years, when there was no water in Muddy Creek,
    Ray could not irrigate his crops. In the driest years, he had to resort to crop rotation. Ray
    completely ceased irrigating his fields by 1962, “due to the inefficient nature of flood
    irrigation.” Lyle also stated in an affidavit that his father’s age and deteriorating physical
    condition contributed to his decision to stop irrigating. Ray had the Sun River Electric
    Cooperative run three-phase power out to the property sometime in the late 1960s or early
    1970s. This, Lyle stated, was in contemplation of the possibility that Lyle would want to run
    pivot irrigation when he one day took over the farm.
    ¶5     Lyle returned to the farm in 1975 and subsequently purchased it. In 1978, Lyle
    looked up the history of water rights on the property at the Teton County Courthouse. In
    3
    1981 he and his wife, Linda, filed a statement of claim in the Montana general stream
    adjudication. Lyle installed a 14-tower Valley Center Pivot during the winter of 1981-82
    and resumed irrigating. He continued irrigating with the center pivot until 1991, when he
    sold the property and water right to the Heavirlands. The pivot cost over $125,000 and that
    expenditure, in part, forced Lyle to sell the farm. After the Heavirlands purchased the
    property, they irrigated every year except for one, when water was not available.
    B.     Procedural Background.
    ¶6     Lyle and Linda Weist’s claim appeared in the Temporary Preliminary Decree for
    Basin 41O with DNRC issue remarks. The issue remarks noted that the 1962 Teton County
    Water Resources Survey and 1978 USDA Aerial Photograph No. 178-177 appear “to
    indicate 0.00 acres irrigated.” These remarks raised an issue of abandonment. No party filed
    objections to the Claim or to the DNRC issue remarks. Meetings between the claimants and
    the DNRC failed to resolve the issue remarks.
    ¶7     On December 8, 2008, DNRC Water Resource Specialist Kraig Van Voast (Van
    Voast) filed a Memorandum with the results of his review of the water right claim. Van
    Voast was not able to confirm historical irrigation from Muddy Creek on the claimed place
    of use. He reviewed the 1962 Teton County Water Resource Survey and the 1957 air photos
    used to produce the Water Resource Survey. Based on his review, it appeared Bynum
    Irrigation District “E” Canal may have serviced the claimed place of use at some time prior
    to 1962, but it did not appear to be serviced by a ditch system connected to Muddy Creek.
    Van Voast also reviewed several documents Loren Heavirland provided, including a 1941
    4
    aerial photo. Van Voast determined that none of this information resolved a lack of proof of
    historical irrigation from Muddy Creek. He stated none of the historical data sources he
    reviewed showed any of the ditches or canals that would be required to transport the water
    from the claimed point of diversion to the claimed place of use.
    ¶8     Because of the potential abandonment issue remark, the Water Master issued an order
    joining the State of Montana in the adjudication, through the Attorney General, pursuant to
    § 85-2-248(7), MCA. The State moved for summary judgment, or, in the alternative, partial
    summary judgment, on the issue of abandonment. Based on the factual record, the Water
    Master issued an order granting partial summary judgment to the State. The ruling found
    that the nonuse of the water right from 1962 to 1982 was a sufficiently long period of
    continuous nonuse to raise a rebuttable presumption of an intent to abandon the water right
    and to shift the burden of proof to the claimants to overcome the presumption.
    ¶9     The Water Master held an evidentiary hearing on the matter. The Water Master filed
    a Report containing findings of fact and conclusions of law. In his Report, the Water Master
    concluded the water right had been abandoned, reasoning:
    Nonuse of claim 41O 47356-00 from 1962 to 1982 is sufficient to establish a
    long period of continuous nonuse and shift the burden to the claimants to rebut
    the presumption of an intent to abandon the water right. The evidence
    presented by the claimants has not overcome that burden.
    ¶10    Claimants filed an Objection to the Water Master’s Report with the Chief Water Court
    Judge. They set forth three main arguments: (1) Abandonment of existing water rights
    should be determined under the law as it existed prior to July 1, 1973; (2) the Water Master’s
    5
    application of 79 Ranch analysis to their existing right was therefore an impermissible
    retroactive application of the law; and (3) even if 79 Ranch applied, the claimants had
    successfully rebutted the presumption of intent to abandon the water right by producing
    sufficient evidence explaining and excusing the long period of nonuse.
    ¶11    The Water Court ruled that 79 Ranch applied to the claimants’ case. The Water Court
    further found that the Water Master had erred in finding that the claimants had failed to
    produce sufficient evidence to rebut the presumption of intent to abandon.
    ¶12    The State appeals.
    STANDARD OF REVIEW
    ¶13    At the State’s urging, we take this opportunity to clarify the standard of review.1
    Because the case involves both a Water Master and the Water Court, two standards of review
    are relevant: the standard the water judge applies to the Water Master’s report and the
    standard we apply to the Water Court’s opinion. Abandonment of a water right is a
    “question of fact.” Section 89-902, RCM (1947).2 Montana’s Rule 53 is clear regarding the
    1
    In Weinheimer Ranch, Inc. v. Pospisil, 
    2013 MT 87
    , ¶ 19, 
    369 Mont. 419
    , 
    299 P.3d 327
    ,
    we applied our customary standard of review of the trial court’s findings of fact for clear error and
    its conclusions of law for correctness. Weinheimer Ranch, ¶ 19. There, although the case involved
    the Water Court’s review of findings made by a water master, the parties did not invoke a different
    standard of review and we did not consider it. We do so here.
    2
    The 1973 Montana Constitution provides: “All existing rights to the use of any waters for
    any useful or beneficial purpose are hereby recognized and confirmed.” Mont. Const. art. IX, §
    3(1). Pursuant to that provision, the Water Use Act preserves “existing rights.” See §§ 85-2-101(4),
    85-2-102(12), MCA. We have previously applied § 89-902, RCM, defining abandonment as a
    question of fact, to abandonment issues arising from pre-1973 water rights. See 79 Ranch v. Pitsch,
    
    204 Mont. 426
    , 431, 
    666 P.2d 215
    , 217 (1983) (“Abandonment of a water right is a question of fact.
    Section 89-802, Revised Codes of Montana, 1947 (applicable here, repealed in 1973).”).
    6
    standard of review that the Water Court applies to the findings of fact in a Water Master’s
    report. “[T]he court must accept the master’s findings of fact unless clearly erroneous.” M.
    R. Civ. P. 53(e)(2).
    ¶14    Rule 53 does not subject conclusions of law to clear error review. The Water Court
    properly recognized that, in reviewing the master’s conclusions of law, the “standard of
    review is plenary and [the court] . . . must determine whether the [master’s] . . . conclusions
    are correct as a matter of law.” Geil v. Missoula Irrigation Dist., 
    2002 MT 269
    , ¶ 22, 
    312 Mont. 320
    , 
    59 P.3d 398
    . Thus, the Water Court reviews the Water Master’s findings of fact
    for clear error and the Water Master’s conclusions of law for correctness. M. R. Civ. P.
    53(e)(2); Geil, ¶ 22.
    ¶15    “This Court applies the same standards of review to the Water Court as it does to an
    appeal from a district court.” Mont. Trout Unlimited v. Beaverhead Water Co., 
    2011 MT 151
    , ¶ 16, 
    361 Mont. 77
    , 
    255 P.3d 179
    . Whether the standard of review was applied
    correctly is a question of law. See Milliken Research Corp. v. Dan River, Inc., 
    739 F.2d 587
    ,
    593 (Fed. Cir. 1984).3 We therefore review the Water Court’s September 19, 2012, Order
    Regarding Abandonment de novo, to determine whether it correctly applied the clear error
    standard of review to the Water Master’s findings of fact and whether its conclusions of law
    are correct. See Morris Plan Industrial Bank v. Henderson, 
    131 F.2d 975
    , 977 (2d Cir. N.Y.
    3
    Although Fed. R. Civ. P. 53(e) was amended in 2003 to require de novo review of a
    master’s findings instead of the clearly erroneous standard found in the Montana rule, cases decided
    under the pre-2003 federal rule are instructive.
    7
    1942) (Hand., L.) (in reviewing a district court’s decision on a referee’s report pursuant to
    Rule 53(e), “the question is the same in this court as it was in the district court.”).
    ¶16    Even where the Water Master’s findings find substantial support in the evidence, the
    Water Court still may determine that they were clearly erroneous. We have long recognized
    that “[s]ubstantial evidence and clearly erroneous are not synonymous[.]” Interstate Prod.
    Credit Ass’n v. Desaye, 
    250 Mont. 320
    , 323, 
    820 P.2d 1285
    , 1287 (1991). Thus, the court
    may determine that “[a] finding is ‘clearly erroneous’ when although there is evidence to
    support it, the reviewing court on the entire evidence is left with the definite and firm
    conviction that a mistake has been committed.” U.S. v. U.S. Gypsum Co., 
    333 U.S. 364
    , 395,
    
    68 S. Ct. 525
    , 542 (1948); Desaye, 250 Mont. at 323, 820 P.2d at 1287.
    DISCUSSION
    ¶17 1.     Did the Water Court correctly conclude that 79 Ranch governs the issue of
    abandonment?
    ¶18    The issue of which standard for determining abandonment applies is a legal
    conclusion. See In re Musselshell River Drainage Area, 
    255 Mont. 43
    , 50, 
    840 P.2d 577
    ,
    581 (1992) (stating “the Water Court correctly applied the thrust of 79 Ranch to the facts
    before it.”); Haggin v. Saile, 
    23 Mont. 375
    , 381, 
    59 P. 154
    , 155 (1899) (reviewing district
    court’s determination of “the law as to what constituted abandonment” for correctness). We
    review the Water Court’s legal conclusions to determine whether they are correct.
    Weinheimer Ranch, ¶ 19. The Water Court reviewed the Water Master’s conclusion that 79
    Ranch applies to abandonment of a pre-1983 water right claim for correctness and
    8
    determined the Water Master correctly concluded the standard from 79 Ranch applied. We
    agree.
    ¶19      79 Ranch provides that:
    [A] long period of nonuse is strong evidence of an intent to abandon the water
    rights. In effect, such a long period of continuous nonuse raises the rebuttable
    presumption of an intention to abandon, and shifts the burden of proof onto the
    nonuser to explain the reasons for nonuse . . . . To rebut the presumption of
    abandonment, there must be established some fact or condition excusing long
    periods of nonuse, not merely expressions of desire or hope.
    79 Ranch, 204 Mont. at 432-33, 666 P.2d at 218 (emphasis added). In In re Clark Fork
    River Drainage Area (Clark Fork II), we explained: “To rebut the presumption of
    abandonment, the claimant must establish some fact or condition excusing the long period of
    nonuse, not mere expressions of hope or desire reflecting a gleam-in-the-eye philosophy
    regarding future use of the water.” In re Clark Fork River Drainage Area, 
    274 Mont. 340
    ,
    344, 
    840 P.2d 1353
    , 1355 (1995) (internal citations and quotations omitted).
    ¶20      Claimants contend that 79 Ranch analysis should not apply because it could threaten
    their pre-1973 water right. Claimants argue that it is improper to apply post-1973 case law
    to pre-1973 water rights claims because they are “existing rights” and must be protected
    under the law as it existed in 1973. Because 79 Ranch was not decided until June of 1983,
    and because it effected a change in the law, claimants assert, it should not apply.
    ¶21      The 1973 Montana Constitution provides: “All existing rights to the use of any
    waters for any useful or beneficial purpose are hereby recognized and confirmed.” Mont.
    Const. art. IX, § 3(1). Pursuant to that provision, the Water Use Act preserves “existing
    9
    rights.” See §§ 85-2-101(4), 85-2-102(12), MCA. However, the protection of “existing
    rights” does not preclude applying post-1973 precedent. In Musselshell River we determined
    that 79 Ranch does not offend the Montana Constitution’s protection of existing rights. In re
    Musselshell River Drainage Area, 255 Mont. at 48-49, at 580-81. A strong presumption
    exists in favor of the retroactive application of new judicial rules of law. Stavenjord v.
    Montana State Fund, 
    2006 MT 257
    , ¶ 9, 
    334 Mont. 117
    , 
    146 P.3d 724
    . Thus, we agree with
    the Water Court that 79 Ranch should be applied retroactively.
    A.     79 Ranch and existing rights.
    ¶22    As the Water Court explained, we have already concluded the protection of pre-1973
    existing water rights does not preclude applying our 79 Ranch decision retroactively. We
    reiterate our statement in Musselshell River, equally applicable here, that 79 Ranch “was not
    the stunning reversal appellants assert it to be.” Musselshell River, 255 Mont. at 47, 840
    P.2d at 579. 79 Ranch did not overrule the past precedent relating to abandonment, it
    clarified how the law already essentially operated.
    ¶23    A finding of abandonment requires showing both nonuse and intent to abandon.
    Thomas v. Ball, 
    66 Mont. 161
    , 167, 
    213 P. 597
    , 599 (1923). A lengthy period of nonuse has
    long been considered “potent evidence” of an intent to abandon. Smith v. Hope Mining Co.,
    
    18 Mont. 432
    , 438, 
    45 P. 632
    , 634 (1896) (nine years’ nonuse of a water right, when that
    period exceeded the statute of limitations, was “very potent evidence, if it stood alone, of an
    intention to abandon.”). Courts have long relied on testimony and evidence submitted by
    both parties to evince the circumstances of nonuse and elucidate whether intent to abandon
    10
    existed. See Smith, 18 Mont. at 438, 45 P. at 634; Thomas, 66 Mont. at 168, 213 P. at 600.
    Although the party alleging abandonment has historically carried the burden of proving
    intent to abandon, Thomas, 66 Mont. at 168, 513 P. at 600, the opposing party has always
    had to produce enough evidence to at least cast doubt on the existence of that intent. The
    court would then construe the circumstances surrounding the alleged abandonment—as
    established by the evidence the parties set forth—to determine whether intent to abandon
    existed. See Featherman v. Hennessy, 
    42 Mont. 535
    , 540-41, 
    113 P. 751
    , 753 (1911).
    ¶24    The shift from a long period of nonuse being considered “potent evidence” of an
    intent to abandon to its raising a rebuttable presumption such intent existed is merely an
    incremental change from the earlier rule. Musselshell River, 255 Mont. at 49, 840 P.2d at
    580. The shift changes the timing of when the party opposing the abandonment finding must
    produce evidence of intent. Before 1973, a party opposing abandonment would defend
    against the claim by producing evidence and testimony at trial to establish the party did not
    intend to abandon a water right. Now, 79 Ranch “is akin to a caveat to claimants that they
    should not rest their case without addressing the potent evidence of intent to abandon which
    arises from a long period of non-use.” Musselshell River, 255 Mont. at 49, 840 P.2d at 580.
    This does nothing to change the policy that “the courts will not lightly decree an
    abandonment of a property so valuable [as water] in a semi-arid region such as this.”
    Thomas, 66 Mont. at 167, 213 P. at 599. However, it also honors the age-old principle that:
    [A]s the settlement of the country has advanced, the great value of the use of
    water has become more and more apparent…As a result, the law, crystallized
    in statutory form, is that an appropriation of a right to the use of running water
    11
    flowing in the creeks must be for some useful or beneficial purpose, and when
    the appropriator, or his successor in interest, abandons and ceases to use the
    water for such purpose, the right ceases.
    Power v. Switzer, 
    21 Mont. 523
    , 529, 
    55 P. 32
    , 35 (1898). 79 Ranch operates primarily to
    clarify the law of abandonment as it has always existed.
    ¶25    Because we conclude that 79 Ranch primarily clarified operation of the existing law,
    we do not assume that rights which are not protected under 79 Ranch would be protected
    under the law as it existed prior to July 1, 1973. The Water Court correctly concluded that
    application of 79 Ranch is not precluded by Montana’s Constitution or statutes.
    B.     79 Ranch and Dempsey retroactivity analysis.
    ¶26    In our decision in Dempsey v. Allstate Ins. Co., we held that “all civil decisions of this
    court apply retroactively to cases pending on direct review or not yet final, unless all three of
    the [factors from Chevron Oil v. Huson, 
    404 U.S. 97
    , 
    92 S. Ct. 349
     (1971)] . . . are
    satisfied . . . .” Dempsey v. Allstate Ins. Co., 
    2004 MT 391
    , ¶ 31, 
    325 Mont. 207
    , 
    104 P.3d 483
    . Importantly, Dempsey requires that the decision to be applied non-retroactively “must
    establish a new principle of law, either by overruling clear past precedent on which litigants
    may have relied or by deciding an issue of first impression whose resolution was not clearly
    foreshadowed.” Dempsey, ¶ 21.
    ¶27    The claimants cannot satisfy the conjunctive, three-factor Dempsey test because we
    conclude the incremental shift in the law 79 Ranch caused did not establish a new principle
    of law or decide an issue of first impression. We can see no reason why 79 Ranch should not
    apply retroactively under these circumstances.
    12
    ¶28    We hold that the Water Master and the Water Court correctly concluded 79 Ranch
    governs the issue of abandonment in Montana.
    ¶29 2. Did the Water Court correctly conclude that the claimants produced sufficient
    evidence to show they had no intent to abandon their water right?
    ¶30    The State argues there is insufficient evidence to support the Water Court’s finding
    that the claimants justified the twenty-year period of non-use of their water right. The State
    also argues that the Water Court committed error by improperly treating two of the Water
    Master’s findings of fact as clearly erroneous without employing clear error analysis.
    Specifically, the State contests the Water Court’s treatment of the Water Master’s findings
    that (1) no specific evidence was introduced to demonstrate that age or infirmity contributed
    to Ray’s decision to cease irrigating his property; and (2) installation of three-phase power to
    the claimant’s predecessor’s property did not indicate a plan to install a pivot irrigation
    system. This alleged “violation” of M. R. Civ. P. 53(e)(2), the State asserts, is so serious as
    to require reversal.
    ¶31    “The question of abandonment of the use of any of the waters was one of fact,
    dependent upon the evidence of the conduct, acts, and intent of the parties claiming the
    usufruct of the water.” Power, 21 Mont. at 529, 55 P. at 34. As the Water Court observed,
    intent to abandon “need not be proved directly, but may be inferred from all the
    circumstances of the case.” Denver by Bd. Of Water Comm’rs v. Snake River Water Dist.,
    
    788 P.2d 772
    , 776 (Colo. 1990). “The circumstances must be such as to justify an inference
    13
    of intention to abandon; in other words, to leave the property to be taken by any other person
    who chooses to do so.” Featherman, 42 Mont. at 540-41, 113 P. at 753.
    ¶32    We agree with the Water Court that determining whether a water right has been
    abandoned requires weighing all of the relevant factual circumstances of the case. See
    Power, 21 Mont. at 529, 55 P. at 34; Denver by Bd. Of Water Comm’rs, 788 P.2d at 776;
    Featherman, 42 Mont. at 540-41, 113 P. at 753. To successfully rebut a presumption of
    abandonment, a claimant must produce “[s]pecific evidence explaining or excusing the long
    period of non-use of the particular water rights on the specific property . . . .” Musselshell
    River, 255 Mont. at 51, 840 P.2d at 582. Specific evidence must relate to the specific non-
    use on the property in question. Musselshell River, 255 Mont. at 50-51, 840 P.2d at 581
    (evidence, not specific to the acreage in question, that certain spans of years were “pretty
    dry” and “most people” did not have sufficient funds to reopen ditches was not sufficient to
    rebut the presumption of abandonment). A statement asserting lack of sufficient funds to
    irrigate is not enough, standing alone, to rebut a presumption of abandonment. 79 Ranch,
    204 Mont. at 218-19, 666 P.2d at 433.
    ¶33    The Water Court weighed the specific evidence regarding relevant factual
    circumstances the claimants had presented and concluded it was sufficient to overcome the
    presumption of abandonment. The Water Court held that the Water Master misapprehended
    the effect of the evidence the claimants presented, leaving the Water Court with the firm
    conviction the Water Master had committed clear error.
    14
    ¶34    Our review of the record supports the Water Court’s determination that the claimants
    submitted sufficient evidence to overcome the presumption of abandonment. Lyle testified
    extensively regarding the specific obstacles associated with irrigating the Weist’s property.
    For instance, he stated: “[W]hen the property was flood irrigated in the spring and summer,
    the plants on the west side of the field drowned by the time the water reached the east side of
    the field.” Although the record does not reveal Ray’s age in 1962, there is no reason to
    doubt Lyle’s testimony in his sworn affidavit that age and illness contributed to his father’s
    decision to cease irrigating. And the decision to install three-phase power to the property, in
    contemplation of one day running a pivot irrigation system, is at least “slight” evidence that
    the Weists did not intend to abandon their water right. The fact that Lyle actually did install
    a pivot irrigation system when he was able to supports his assertion that Ray obtained three-
    phase power to the property believing his son might want to run such a system. Lyle
    resumed irrigation as soon as he installed the center pivot. Lyle’s statement that he was
    forced to sell the farm in part due to the debt he incurred in purchasing the center pivot
    supports his testimony that financial hardship prevented irrigation for some time. Finally,
    Lyle actually filed and sold the water right. Unlike in Musselshell River, all of these facts
    and assertions provided specific context for nonuse of the specific water right at issue.
    ¶35    The State challenges the Water Court’s failure to apply clear error analysis to the
    Water Master’s fifth factual finding. The Water Master found:
    The testimony addressing Raymond Weist’s conduct from 1962 to 1975 is
    minimal. Lyle Weist testified only in general terms regarding this period of
    time. From this testimony, it appears that Raymond simply gave up trying to
    15
    irrigate a difficult field. It is implied that advancing age and health issues may
    have played a role, but nothing specific was provided to give any substance to
    these implications. In the late 1960s or early 1970s, Raymond Weist had three
    phase power installed on the property. Lyle testified that Raymond had asked
    him if he ever intended to irrigate the property in the future. Lyle indicated
    that he hoped to be able to do so. Based on this potential, Raymond proceeded
    to have the power company bring three phase power to the property. From
    Lyle’s testimony, it appears that the three phase power was installed for two
    reasons: (1) if they ever did get back to irrigating the property with a center
    pivot system, it would require three phase power, and (2) it was convenient.
    The power company was doing work in the area at the time. The motivation
    for three phase power was a possible center pivot system, but there was no
    actual plan to install such a system.
    ¶36    The State argues that the Water Court ignored the paucity of evidence in the record
    when it rejected the Water Master’s finding that the Weists did not justify the period of non-
    use. The finding of abandonment, however, depends upon the entire factual circumstances
    surrounding the case. See Power, 21 Mont. at 529, 55 P. at 34; Featherman, 42 Mont. at
    540-41, 113 P. at 753. The Water Master examined all of those factual circumstances and
    found them insufficient to show the claimants did not intend to abandon their water right.
    Thus, the Water Master found the right had been abandoned.
    ¶37    The Chief Water Judge, looking at the same factual circumstances, concluded the
    Water Master’s finding misapprehended the effect of the evidence. In the Water Court’s
    view, the factual circumstances—including Lyle’s testimony and the evidence of the Weists’
    acts—demonstrated the claimants did not intend to abandon their water right. In light of its
    review of the relevant circumstances, the Water Court concluded that the Water Master had
    “misapprehended the totality of the evidence, leaving the [Water] Court with a firm
    conviction a mistake was committed.”
    16
    ¶38    In light of the Water Court’s thorough consideration of the “entire evidence,” U.S.
    Gypsum, 333 U.S. at 395, 68 S. Ct. at 543, we conclude that the Water court correctly
    applied the clear error standard of review.
    CONCLUSION
    ¶39    The Water Court correctly applied 79 Ranch analysis. The Water Court correctly
    concluded that the claimants submitted sufficient evidence to rebut the presumption of
    abandonment.
    ¶40    Affirmed.
    /S/ MICHAEL E WHEAT
    We concur:
    /S/ JIM RICE
    /S/ PATRICIA COTTER
    /S/ BETH BAKER
    /S/ BRIAN MORRIS
    17
    

Document Info

Docket Number: DA 12-0759

Citation Numbers: 2013 MT 313, 372 Mont. 300

Judges: Baker, Cotter, Morris, Rice, Wheat

Filed Date: 10/22/2013

Precedential Status: Precedential

Modified Date: 8/7/2023