Petrich Fam. & Melin v. T.U
Petrich Fam. & Melin v. T.U, 2026 MT 34
Affirmed in part, reversed in part on February 24, 2026, in a 5 to 0 published opinion — 39 pages and 10,286 words .
Case
DA 24-0656
Opinion
majority
Majority
Beth Baker
39 pages · 10,286 words
Joined by
Cory J. Swanson
Laurie McKinnon
Ingrid Gustafson
Jim Rice
Smog Index: 9.6
Gunning Fog Score: 8.6
Coleman Liau Index: 10
Spache Readability Score: 5
Average Syllables Per Word: 1.5
Average Words Per Sentence: 8.3
Flesch Kincaid Grade Level: 5.3
Automated Readability Index: 3.4
Flesch Kincaid Reading Ease: 71.6
Dale Chall Readability Score: 6.2
Cited by
Cites to
2011 MT 91 Heffernan v. Missoula City Council DA 10-0142 2025 MT 1 Trout Unlimited v. DNRC DA 23-0268 2017 MT 278 Quigley v. Beck DA 16-0629 2016 MT 281 Granite County Commissioners v. McDonald DA 16-0126 2020 MT 50 Hoon v. Murphy DA 18-0684 2014 MT 167 Skelton, et al. v. Pondera Co DA 12-0698 2024 MT 272 Parrot Ditch v. Ashcraft DA 23-0712 2015 MT 344 Teton Co-op Canal v. Teton Coop Reservoir DA 15-0136 2016 MT 145 Eldorado Coop Canal Co. v. Ben Hoge DA 15-0576 2011 MT 151 Trout Unlimited v. Beaverhead Water, etal DA 10-0382 2024 MT 158 Bradley Livestock v. Fraser DA 23-0472 2014 MT 120 Nelson v. Brooks DA 13-0570 2010 MT 203 Hohenlohe v. DNRC DA 09-0429 2020 MT 284 Meine v. Hren Ranches DA 19-0622 2010 MT 14 Matter of Water Complaint of Charles and Amelia Kelly DA 09-0313 2018 MT 300 Little Big Warm v. Doll DA 18-0123Full text
OCR’d from the filed PDF
Majority
Beth Baker
02/24/2026
DA 24-0656
IN THE SUPREME COURT OF THE STATE OF MONTANA
2026 MT 34
PETRICH FAMILY LIMITED PARTNERSHIP,
Claimant, Appellee,
and Cross-Appellant,
v.
TROUT UNLIMITED,
Objector, Appellant,
and Cross-Appellee.
______________________________________________
JAMES R. MELIN,
Claimant, Appellee,
and Cross-Appellant,
v.
TROUT UNLIMITED,
Objector, Appellant,
and Cross-Appellee.
APPEAL FROM:
Montana Water Court, Case Nos. 43B-0354-R-2021 and 43B-0148-R-2020
Honorable Stephen R. Brown, Chief Water Judge
COUNSEL OF RECORD:
For Appellant:
Meg K. Casey, Patrick Byorth, Walker Conyngham, Trout Unlimited,
Bozeman, Montana
For Appellees:
Benjamin S. Sudduth, Sudduth Law, PLLC, Bozeman, Montana
For Amicus Curiae Clark Fork Coalition:
Andrew Gorder, Clark Fork Coalition, Missoula, Montana
For Amicus Curiae Mill Creek Downstream Water Users:
William Cardiff Fanning, Fanning Law PLLC, Dillon, Montana
Submitted on Briefs: October 22, 2025
Decided: February 24, 2026
Filed:
__________________________________________
Clerk
2
Justice Beth Baker delivered the Opinion of the Court.
¶1
Trout Unlimited appeals the Water Court’s decision to generate implied rights in
adjudicating the water right claims of James R. Melin and the Petrich Family Limited
Partnership (“Petrich”) (collectively “Claimants”). Melin and Petrich cross-appeal the
Water Court’s determination that Trout Unlimited had standing to object and its partial
grant of summary judgment in favor of Trout Unlimited. We address the following issues
on appeal:
1. Whether Trout Unlimited had standing to object to Melin’s and Petrich’s claims
issued in the Water Court’s Preliminary Decree for Basin 43B.
2. Whether the Montana Water Court erred in limiting Petrich’s and Melin’s
decreed periods of use and diversion to May 1 to July 15.
3. Whether the Montana Water Court erred in generating implied claims outside the
decreed period of use.
We affirm the Water Court’s conclusion that Trout Unlimited had standing to object and
its grant of partial summary judgment. We reverse the Water Court’s generation of implied
rights and remand for further consideration.
FACTUAL AND PROCEDURAL BACKGROUND
¶2
Mill Creek flows north and northwest from its headwaters in the Absaroka
Mountains to its confluence with the Yellowstone River near Pray, Montana, in Park
County. Mill Creek’s hydrological cycle is typical for streams fed primarily by runoff from
mountain snowpack. Historically, flows increase during spring and early summer from
snowmelt and generally decline into the latter summer months. Petrich and Melin are both
water users on Mill Creek, which lies entirely within hydrological Basin 43B.
3
¶3
On October 14, 1981, and April 22, 1982, as part of the general adjudication process
under the 1973 Montana Water Use Act (“WUA”), Title 85, MCA, Petrich and Melin’s
predecessors in interest filed statements of claim for several existing water rights on Mill
Creek. The statements of claim identified decreed rights based on two pre-1973 decrees
entered by the Sixth Judicial District Court. Allen v. Wampler, No. 7583 (Mont. Sixth
Judicial Dist. filed June 1, 1938) (Allen Decree); Petrich v. Allen, No. 11616 (Mont. Sixth
Judicial Dist. filed July 22, 1964) (Petrich Decree).1 Petrich’s statements of claim 43B
101013-00 and 43B 101014-00 stated a period of use from April 15 to September 15.
Melin’s statements of claim 43B 194542-00 and 43B 194543-00 asserted a period of use
of April 1 to August 1, and April 1 to October 1, respectively.
¶4
On May 9, 2019, the Water Court issued a Preliminary Decree for Basin 43B,
generally adjudicating the Montana portion of the Yellowstone River above and including
Bridger Creek. Trout Unlimited timely filed several objections to Petrich’s and Melin’s
water right claims.2 Relevant to this appeal, Trout Unlimited alleged that the Claimants
overstated the period of use for several claims as decreed in the 1964 Petrich Decree.
¶5
Trout Unlimited moved for summary judgment, contending that the Petrich Decree
unambiguously limited their period of use. The Water Court granted Trout Unlimited
partial summary judgment and modified the Claimants’ period of use for the decreed right
1
The Petrich Decree treats the period of use and period of diversion elements as the same for all
disputed claims. We will refer to them collectively as the “period of use” throughout this Opinion.
2
Trout Unlimited objected to Petrich’s claims 43B 101013-00, 43B 101014-00, and 43B
101015-00 and to Melin’s claims 43B 194537-00, 43B 194539-00, 43B 194540-00, 43B
194541-00, 43B 194542-00, and 43B 194543-00.
4
to May 1 to July 15. The court left open the possibility for additional proceedings to further
adjudicate the Claimants’ existing water rights. The Claimants, in proposed pre-trial
orders, requested that the Water Court generate implied claims. After holding hearings for
Melin’s and Petrich’s claims, the Water Court upheld Trout Unlimited’s standing and
issued final rulings on its objections. The Court ordered the generation of two implied
claims for Petrich and one implied claim for Melin. It held that the Claimants had perfected
a use right between the Petrich Decree and the passage of the WUA. The Water Court
gave the implied claims a priority date of June 30, 1973. Trout Unlimited appeals the
implied claims, and Claimants appeal the prior summary judgment ruling.
We
consolidated the Petrich and Melin cases in this proceeding. The Clark Fork Coalition and
Mill Creek Downstream Water Users requested and were granted leave to file amicus
curiae briefs in support of Trout Unlimited.
STANDARDS OF REVIEW
¶6
We review de novo the determination of a party’s standing to sue and the
interpretation of a statute. Heffernan v. Missoula City Council, 2011 MT 91, ¶ 28, 360
Mont. 207, 255 P.3d 80.
¶7
A motion for summary judgment is proper where there exists no genuine dispute of
material fact, and the movant is entitled to judgment as a matter of law. M. R. Civ.
P. 56(c)(3). Applying this standard, we review a trial court’s grant of summary judgment
de novo. Mont. Trout Unltd. v. Mont. Dep’t of Nat. Res. & Conservation, 2025 MT 1, ¶ 13,
420 Mont. 85, 561 P.3d 995. The interpretation of a judgment or decree is a question of
5
law reviewed de novo for correctness. In re Quigley, 2017 MT 278, ¶ 9, 389 Mont. 283,
405 P.3d 627 (citing Granite Cnty. Bd. of Comm’rs v. McDonald, 2016 MT 281, ¶ 5, 385
Mont. 262, 383 P.3d 740).
¶8
We review the Water Court’s conclusions of law for correctness. Hoon v. Murphy,
2020 MT 50, ¶ 24, 399 Mont. 110, 460 P.3d 849. We review its findings of fact for clear
error. Skelton Ranch, Inc. v. Pondera Cnty. Canal & Reservoir Co., 2014 MT 167, ¶ 27,
375 Mont. 327, 328 P.3d 644. We apply these same standards to the Water Court’s
generation of implied claims. See Hoon, ¶¶ 46-54.
DISCUSSION
Legal Background
¶9
Prior to the WUA, a water right claim could be perfected by one of two ways: the
appropriator could establish a “use right” by simply putting water to beneficial use or a
“filed appropriation right” by posting notice at the point of diversion and filing a notice of
appropriation with the county clerk. Hoon, ¶ 33 (citing In re Powder River Drainage Area,
216 Mont 361, 367, 702 P.2d 948, 951 (1985); Murray v. Tingley, 20 Mont. 260, 269, 50
P. 723, 725 (1897)); see also W.R.C.E.R. 2(a)(25), (71). Water users adjudicated their
claims by watercourse segments, seeking out localized decrees from district court judges.
In re Foss, 2013 Mont. Water LEXIS 17, *6-7 (Water Ct. Jan. 31, 2013) (citing Albert
Stone, Are There Any Adjudicated Streams in Montana?, 19 Mont. L. Rev. 19 (1957)).
6
Once adjudicated in those courts, use rights and filed appropriation rights became decreed
rights.3
¶10
Under the water rights adjudication process declared in Montana’s 1973 WUA,
“pre-1973 existing rights, new beneficial uses, and any proposed changes of use [fell] under
one administrative umbrella.” Parrot Ditch Co. v. Ashcraft, 2024 MT 272, ¶ 29, 419 Mont.
93, 558 P.3d 1183 (internal quotations omitted); see also Mont. Const. art. IX, § 3(4).
Decreed rights, use rights, and filed appropriation rights are types of historical rights
deemed existing water rights under the WUA. Section 85-2-102(13), MCA (“‘Existing
right’ or ‘Existing water right’ means a right to the use of water that would be protected
under the law as it existed prior to July 1, 1973.”); W.R.C.E.R. (2)(a)(70). Because the
WUA recognizes existing water rights, pre-1973 law is used to determine the existence and
validity of water rights acquired before 1973. Teton Co-Op Canal Co. v. Teton Coop
Reservoir Co., 2015 MT 344, ¶ 20, 382 Mont. 1, 365 P.3d 442 (citing Axtell v. M.S.
Consulting, 1998 MT 64, ¶ 25, 288 Mont. 150, 955 P.3d 1362); see also Hoon, ¶¶ 33-35
(distinguishing statutes predating WUA for perfecting use rights and filed rights).
¶11
In 1979, the Legislature created the Water Court and gave it “exclusive jurisdiction”
to adjudicate all matters related to existing water rights in Montana, including the
systematic, general adjudication of those rights. Sections 84-2-212 through -282, 3-7-101
through -502, MCA; Eldorado Coop Canal Co. v. Hoge, 2016 MT 145, ¶ 19, 383 Mont.
3
Decreed rights made prior to the commencement of the general adjudication process are legally
distinct from the decreed rights issued by final decree under the WUA. Section 85-2-234, MCA;
W.R.C.E.R. (2)(a)(18).
7
523, 373 P.3d 836 (citing § 3-7-224(2), MCA). The first step in the general adjudication
process required persons who claimed existing water rights to file a statement of their
existing water right claims by the statutory deadline. Mont. Trout Unltd. v. Beaverhead
Water Co., 2011 MT 151, ¶ 2, 361 Mont. 77, 255 P.3d 179 (Trout Unltd. I); Section
85-2-212, MCA.4
¶12
The statement of claim form required the claimant to list the elements of their claim,
including the “times of use claimed,” and “the approximate dates of first putting water to
beneficial use for the various amounts and times claimed . . . .” Section 85-2-224(1)(c),
(f), MCA. The WUA also directed claimants to provide “maps, plats, aerial photographs,
decrees . . . or other evidence in support of their claim.” Section 85-2-224(2), MCA. Once
properly filed, a statement of claim became prima facie proof for the elements of a water
right. Section 85-2-227(1), MCA. Failure to file a statement of claim by the extended
deadline, however, “establishe[d] a conclusive presumption of abandonment of that right.”
Section 85-2-226, MCA; see generally In re Yellowstone River, 253 Mont. 167, 832 P.2d
1210 (1992).
¶13
The WUA’s complete overhaul of Montana’s water law and the general adjudication
process led to unintended errors. In re Foss, 2013 Mont. Water LEXIS 17, *31. Claimants
needed to readily engage with new legal standards, resulting in mistakes and “substantial
confusion surrounding [the] correct filing procedures.” In re Foss, 2013 Mont. Water
4
The Legislature eventually extended this deadline to July 1, 1996, though “late claims” were
penalized with restrictions. Section 85-2-221(3), MCA; Hill v. Ellinghouse, 2024 MT 158, ¶ 37,
417 Mont. 308, 553 P.3d 365.
8
LEXIS 17, *31. A common mistake included filing several existing water right claims in
a single statement of claim. In re Foss, 2013 Mont. Water LEXIS 17, *31. To mitigate
this common error, the DNRC and Water Court generate what is known as “implied
claims” from the originally filed statement of claims. W.R.C.E.R. 2(a)(33), 11(b), 13(e),
35; In re Foss, 2013 Mont. Water LEXIS 17, *31-32; In re Climbing Arrow Ranch Inc.,
2019 Mont. Water LEXIS 1, *4-6 (Water Ct. Mar. 6, 2019). The generation of implied
claims is intended to “strik[e] a balance between recognizing existing water rights and
forbidding the creation of water rights that were forfeited by missing the statutory claim
filing deadline.” Open A Ranch Inc. v. Clark Canyon Water Supply Co., 2020 Mont. Water
LEXIS 356, *55 (Water Ct. June 8, 2020) (citing In re Climbing Arrow Ranch, 2019 Mont.
Water LEXIS 1, *5); see § 85-2-226, MCA.
Petrich’s and Melin’s Existing Water Rights
¶14
In 1938, the Park County District Court adjudicated the rights of parties to divert
water from Mill Creek in the Allen Decree. The Allen Decree adjudicated water rights
diverted through several ditches constructed on Mill Creek. The Allen Decree required all
decreed water users to install and maintain headgates and measurement devices at the point
of diversion. Melin has three claims whose historical basis is the Allen Decree, 43B
194539-00, 43B 194540-00, and 43B 194541-00, all diverted through the Melin Ditch.
Petrich did not claim any water rights based on the Allen Decree.
¶15
In 1963, Petrich and Melin’s predecessors in interest, together with Alexander A.
and Elizabeth Malcomb, petitioned the district court to enter a supplemental decree for
9
“surplus water” flowing in Mill Creek. After receiving evidence from the parties, the court
entered the Petrich Decree. In this Decree, the district court made the finding of fact that
“during the months of May and June and until approximately the 15th of July” excess water
flowed in Mill Creek. The court decreed water rights to Petrich, Melin, and other water
users. It also required the awarded parties to install and maintain measuring boxes at the
point of diversion. The Petrich Decree is the sole historical basis for several of Petrich and
Melin’s existing water rights.
¶16
When the Water Court entered its Preliminary Decree for Basin 43B in May 2019,
it decreed the period of use for all claims consistent with the Claimants’ statements of
claims, allowing Petrich April 15 to September 15 periods of use and Melin periods of use
from April 1 to October 1 and April 1 to November 1.5 Trout Unlimited timely filed three
objections to Petrich’s claims and six objections to Melin’s claims. The Water Court
consolidated Trout Unlimited’s objections into two separate proceedings—one for
Petrich’s water right claims and another for Melin’s. Among other objections, Trout
Unlimited alleged that both Claimants overstated the period of use as decreed in the 1964
Petrich Decree.
5
Melin’s predecessors in interest self-objected to the period of use during the objection period for
Basin 43B’s Temporary Preliminary Decree entered on January 16, 1985. They objected to 43B
194542-00’s decreed period of use of April 1 to August 4, stating that it should be from “April 1
to November 1, because in late summer and fall water is available at the point of diversion from
the water source because of extra late summer and fall moisture and failure by prior appropriators
to use their water right.” A subsequent Water Master’s Report amended the period of use to April 1
to November 1, which the Water Court adopted on May 25, 1994. In re the Adjudication of the
Existing Rights to the Use of All Waters, Case No. 43B-402 (Mont. Water Ct. filed on May 25,
1994).
10
¶17
Trout Unlimited moved for summary judgment in both the Melin and Petrich
proceedings, asserting that the Petrich Decree unambiguously limited the period of use to
May 1 to July 15. The Water Court agreed and granted partial summary judgment in favor
of Trout Unlimited. The court reserved ruling on whether Claimants were entitled to
periods of use extending beyond those dates. Petrich and Melin then requested the Water
Court to generate implied claims based on historical use and authorized from the original
claims whose period of use was limited at summary judgment. The Water Court held a
hearing on all objections that it had not resolved in the summary judgment order. After the
objection hearing and in their proposed findings and conclusions, Petrich and Melin alleged
that Trout Unlimited lacked standing to object.
¶18
Following the parties’ post-trial submissions, the Water Court concluded that Trout
Unlimited had standing and issued orders generating two implied claims for Petrich and
one for Melin. The Water Court determined that Petrich and Melin had perfected historical
use rights, which it found were indicated in their statements of claim. Though the
Claimants were unable to establish with certainty when the water first was put to beneficial
use, the Water Court determined the implied claims had a priority date of June 30, 1973.
¶19
1. Whether Trout Unlimited had standing to object to Melin’s and Petrich’s claims
issued in the Water Court’s Preliminary Decree for Basin 43B.
¶20
To have standing under the WUA, an objector must show “good cause” to object
with a timely filed written statement. Section 85-2-233, MCA. Even if a party has no
ownership of a water right interest, we do not interpret § 85-2-233, MCA, “to deny a party’s
ability to be heard where that party has met all common law and statutory requirements for
11
standing to object to a preliminary decree and has shown that its interest in the use of water
has been affected by the decree.” Trout Unltd. I, ¶ 33 (internal quotations and citations
omitted). 6 An objector satisfies common law standing when they “allege past, present or
threatened injury to a property or civil right, and the alleged injury must be distinguishable
from the injury to the public generally, but it need not be exclusive to the complaining
party.” Trout Unltd. I, ¶ 27 (citations omitted). Citizen organizations also have standing
to challenge governmental actions on behalf of their members under this standard. Trout
Unltd. I, ¶ 27 (citations omitted).
¶21
The Water Court concluded that Melin and Petrich failed to preserve their standing
argument by raising it in their proposed findings of fact and conclusions of law because
the issue was not raised as a contention in the Claimants’ proposed prehearing orders. The
Water Court added that even if Melin and Petrich preserved their claims, they failed to
properly apply Trout Unlimited I when they asserted that Trout Unlimited did not have
standing because it lacked an interest in a water right claim on Mill Creek. Melin and
Petrich argue on appeal that the Water Court failed to assess whether Trout Unlimited met
6
Our decision in Trout Unlimited I turned on the Water Court’s improper interpretation of “good
cause” in § 85-2-233, MCA (2005). Based on its interpretation, the Water Court narrowed the
field of persons with good cause to object to only those with an ownership interest in a water right
in the watercourse at issue. ¶¶ 9, 33-34. Since Trout Unlimited I, the Legislature has expanded
“good cause” to object to include showing “an ownership, leasehold, economic, or clearly
demonstrated particularized interest in an existing water right, permit, certificate, state water
reservation under [§] 85-2-316, [MCA,] or right to receive water through an irrigation project and
that the person’s interest has been affected by the decree.” Section 85-2-233(1)(b), MCA (2015
Mont. Laws ch. 283, § 1).
12
the common-law standing requirements and reached its conclusion solely on its assessment
that Trout Unlimited had “good cause” to object.
¶22
Trout Unlimited’s timely objections to Melin and Petrich’s claims included a letter
stating that its organization had been active in the Yellowstone Basin for decades. In
briefing, Trout Unlimited explained that its Montana chapter was chartered expressly to
defend the Yellowstone River and its tributaries. It asserted and provided evidence
demonstrating the organization’s participation in Montana’s Fish and Game Commission’s
petition for instream flow reservations on the Yellowstone River in 1977. This action
resulted in instream flow reservations on Mill Creek. Trout Unlimited maintained that the
organization continues to work with Montana’s Fish, Wildlife and Parks Department to
address the persistent dewatering of Mill Creek—a critical habitat for the Yellowstone
Cutthroat Trout. In its prehearing disclosures, Trout Unlimited included witnesses to
substantiate its standing to object.
¶23
Trout Unlimited’s objections claimed that the Preliminary Decree did not reflect the
historic basis for the Claimants’ existing water rights and affected instream flow
reservations for the Yellowstone River and Mill Creek. Trout Unlimited contended that
Petrich and Melin’s water right claims as adjudicated in the Preliminary Decree interfered
with the organization’s
goals to reconnect
tributary streams dewatered
by
over-appropriation, to defend the instream flows Trout Unlimited historically supported,
and to restore habitat for the Yellowstone Cutthroat Trout. The organization alleged an
13
injury distinguishable from the general public and showed good cause to object. The Water
Court correctly concluded that Trout Unlimited had standing.
¶24 2. Whether the Montana Water Court erred in limiting Petrich’s and Melin’s decreed
periods of use and diversion to May 1 to July 15.
¶25
To succeed on a motion for summary judgment, the movant bears the burden to
show that there is no genuine dispute of material fact. Axtell, ¶ 21. Once this is
accomplished, the burden shifts to the non-moving party to prove, “by more than mere
denial and speculation,” that a genuine dispute of material fact exists. Axtell, ¶ 21 (citation
omitted). A court reviews the evidence in the light most favorable to the non-moving party.
Lorang v. Fortis Ins. Co., 2008 MT 252, ¶ 38, 345 Mont. 12, 192 P.3d 186. If there is no
genuine dispute of material fact, it must then determine whether the moving party is entitled
to judgment as a matter of law. Axtell, ¶ 21.
¶26
The original and properly filed statement of claim for a water right is “prima facie
proof of the element of a claim.” Section 85-2-227(1), MCA. An objector seeking to
overcome this prima facie proof must prove by a preponderance of evidence “that the
elements of the claim[s] do not accurately reflect the beneficial use of the water right as it
existed prior to July 1, 1973.” W. R. Adj. R. 19; Nelson v. Brooks, 2014 MT 120, ¶ 34,
375 Mont. 86, 329 P.3d 558. A preponderance of evidence is evidence that shows a fact is
“more probable than not.” Hohenlohe v. State, 2010 MT 203, ¶ 33, 357 Mont. 438, 240
P.3d 628.
¶27
The Water Court found that “[t]he unambiguous language and context of the Petrich
Decree provides for a period of use of May 1 to July 15.” It concluded that Trout Unlimited
14
had overcome its burden to prove that Petrich and Melin’s period of use in their statements
of claim did not accurately reflect the Petrich Decree. The Water Court granted summary
judgment and modified the decreed period of use for claims 43B 194542-00,
43B 194543-00, 43B 101013-00, and 43B 101014-00 to May 1 to July 15. On appeal,
Petrich and Melin argue that the Petrich court did not intend to set a precise period of use
and that the Water Court impermissibly relied on extrinsic evidence to hold otherwise.
Petrich and Melin add that the third-party abstracts from Mill Creek are evidence
demonstrating a genuine dispute of material fact, which the Water Court errantly ignored.
Trout Unlimited counters that the Water Court properly relied on the Petrich Decree to
come to its conclusion that, given the context, the court unambiguously limited the period
of use, and the presentation of third-party abstracts is unavailing.
¶28
The construction of a prior judgment’s effect should be “in accordance with its clear
and unambiguous operative language.” Meine v. Hren Ranches, Inc., 2020 MT 284, ¶ 21,
402 Mont. 92, 475 P.3d 748 (citing Harland v. Anderson Ranch Co., 2004 MT 132, ¶ 24,
321 Mont. 338, 92 P.3d 1160; Quigley v. McIntosh, 110 Mont. 495, 510, 103 P.2d 1067,
1074 (1940) (Quigley II); Gans & Klein Inv. Co. v. Sanford, 91 Mont. 512, 523, 8 P.2d
808, 811 (1932)). The subject language must be read “in the context of the entirety of the
operative language of the judgment as a whole, with ‘effect to every word and part,’”
Meine, ¶ 21 (quoting State ex rel. Foote v. First Jud. Dist. Ct., 72 Mont. 374, 379, 233
P. 957, 959 (1925)), including “such effects and consequences as follow by legal
implication from its terms, although not expressed,” State ex rel. Foote (citation omitted).
15
¶29
A court must interpret a prior judgment to have “reasonable intendment,” In re
Quigley, ¶ 15 (quoting Granite Cnty. Bd. of Comm’rs, ¶ 19), and construe it to avoid “a
positive wrong” where possible, Gans & Klein, 91 Mont. at 524, 8 P.2d at 811 (citation
omitted).
A court’s interpretation of a historical decree should be consistent with
established and applicable law. In re Quigley, ¶ 15 (citing Granite Cnty. Bd. of Comm’rs,
¶¶ 21-22). A historical water right’s characteristics are determined by the law existing at
the time it arose. Section 85-2-102(13), MCA; Teton Co-Op Canal Co., ¶ 20 (citing Axtell,
¶ 25).
¶30
The Petrich Decree came about years after the Allen Decree, when Petrich, Melin,
and Malcomb—who were planning to construct a diversion ditch—filed a petition under
§ 89-829, RCM (1947), to appropriate “surplus” or “extra” water not decreed in the Allen
Decree and alleged to be available in Mill Creek. Several defendants responded to the
petition and contested the petitioners’ allegations. Central to the responding defendants’
claims was that they had been taking spring flood waters not previously decreed and had
senior use rights to water that the petitioners sought. After considering these facts and
evidence presented at trial, the district court entered the Petrich Decree.
¶31
The Decree included the following findings of fact:
That the Court finds that during the months of May and June and until
approximately the 15th day of July of the normal irrigating season there is
flowing in the Mill Creek at the headgate of the Mill Creek Flat Ditch
approximately 10,000 miners’ inches of water in excess of the total quantity
of water heretofore adjudicated and decreed by this Court in the aforesaid
action.
16
¶32
Based on this and other findings, the district court then made several conclusions of
law, including:
The Court concludes, as a matter of law that each of the parties to this action
are the owners of and entitled to the possession of their respective lands as
described in their complaints and cross complaints filed herein and in these
Findings of Fact; and that each of the parties to this action are owners of the
right to use of that quantity of the waters of Mill Creek and its tributaries in
addition to their previous decreed rights, hereinabove set forth in said
findings of fact . . . .
The Petrich Decree declared water rights perfected before trial but after the Allen Decree
with a priority date of June 4, 1964, and decreed new water rights for the petitioners with
a priority date of June 3, 1964.
¶33
Petrich and Melin point out that the court did not specify the period of use in its
conclusions of law. The court stated twice in its findings of fact, however, that the period
of available water was from May 1 to approximately July 15. It further implied this fact
when it found that the soil required more water “especially in the early growing portion of
the summer season, in the months of June and July.” The court also expressly incorporated
its findings of fact into its conclusion. The findings of fact “provide a foundation for the
court’s judgment,” In re Marriage of Johnson, 1999 MT 254, ¶ 24, 296 Mont. 311, 989
P.2d 356, and “a decree can only determine rights in accordance with the issues as framed
in the proceedings.” Quigley II, 110 Mont. at 510, 103 P.2d at 1074 (citation omitted).
Petrich’s conclusions of law rested on its factual determinations, including the limited
availability of excess water in Mill Creek, both in terms of quantity and time of year.
17
¶34
Whether the subject language of a prior judgment is “ambiguous, unclear, or
imprecise” as it relates to a subsequent dispute is a question of law reviewed for
correctness. Meine, ¶ 21 (citing In re Quigley, ¶ 15 (citing Granite Cnty. Bd. of Comm’rs,
¶ 19)). Ambiguity exists only where the disputed language is “susceptible to more than
one objectively reasonable meaning or effect when read in the context of the entirety of its
operative language, with effect to all.” Meine, ¶ 22 (citations omitted). Ambiguity does
not exist where there is “mere disagreement or dispute over the correct interpretation,” or
a party asserts that there is ambiguity. Meine, ¶ 23 (citations omitted). A court’s
“[i]nterpretations must be reasonable.” Section 1-3-233, MCA; see Meine, ¶ 21 (“[T]he
interpretation and construction of a prior judgment is generally subject to the same rules
for the interpretation and construction of other written instruments.”).
¶35
“Approximately July 15,” even if imprecise, cannot reasonably be construed to read
September, October, or even November, when read in the context of the entirety of the
Decree. Nowhere else does the Petrich Decree contain language reflecting dates so far
adrift from May 1 to mid-July to leave the court’s repeated reference to these dates
ambiguous when it was addressing “the early growing portion of the summer season.”
Citing Quigley v. McIntosh, 88 Mont. 103, 290 P. 266 (1930) (Quigley I), the Claimants
argue that, historically, only priority limited a water user’s right to excess water. But the
Water Court here was construing the language of a specific decree, which Petrich and
Melin’s predecessors in interest had sought to determine their rights to excess water. It
concluded that the Petrich court’s repeated reference to May 1 to approximately July 15
18
shows a clear intention to limit Mill Creek water users’ right to excess waters with a period
of use. The Water Court’s interpretation and construction of the Petrich Decree as a
defined period of use between May 1 to no later than July 15 is reasonable. Cate v.
Hargrave, 209 Mont. 265, 272-73, 680 P.3d 952, 956 (1984); Granite Cnty. Bd. of Cmm’rs,
¶ 19 (citing Gans & Klein, 91 Mont. at 522, 8 P.2d at 811).7
¶36
The Water Court held that the Petrich Decree unambiguously decreed the period of
use from May 1 to July 15, and the Claimants attached no other documents to their
statements of claim to indicate otherwise. The Water Court thus correctly determined that
Trout Unlimited overcame the prima facie proof of Melin’s and Petrich’s statement of
claims. The burden then shifted to Melin and Petrich to show the existence of specific,
disputed facts. M. R. Civ. P. 56(e)(2). The Claimants’ presentation of third-party abstracts
was insufficient to establish a dispute of material fact on the Claimants’ historical use of
water inconsistent with Petrich. The Water Court did not err in concluding that they had
7
Because the Water Court determined that the Petrich Decree was unambiguous, Melin and
Petrich take issue with the Water Court’s citation to facts in external documents. The Claimants
support their argument with the principle that a court must first find ambiguity before “resort[ing]
to pleadings or evidence” when construing a judgment or decree. Harland, ¶ 23 (quoting Quigley
II, 110 Mont. at 510, 103 P.2d at 1074); Meine, ¶ 21 (citations omitted). Montana law, however,
does not bar consideration of all extrinsic evidence when the instrument is adjudged to be
unambiguous. “[F]or the purposes of aiding the court in determining, as a preliminary matter,
whether the instrument contains ambiguity, objective evidence of ‘the circumstances under which
[the instrument] was made, including the situation of the subject of the instrument and of the parties
to it,’ may be shown and considered.” Mary J. Baker Revocable Tr. v. Cenex Harvest States,
Coop., 2007 MT 159, ¶ 55, 338 Mont. 41, 164 P.3d 851 (quoting § 1-4-102, MCA). The cited
facts include that the petitioners sought to build a ditch and to divert available surplus flood waters
and that the increased efficiency of several ditches led the defendants to divert surplus waters
outside of the Allen Decree. The object of the extrinsic evidence was to clarify the circumstances
under which the Petrich Decree arose. The court’s consideration of the pleadings was proper to
adjudge whether ambiguity existed in the Petrich Decree.
19
not shown the existence of disputed material facts and properly granted partial summary
judgment in favor of Trout Unlimited.
¶37
3. Whether the Montana Water Court erred in generating implied claims outside the
decreed period of use.
¶38
Once the Water Court granted partial summary judgment based on the Petrich
Decree, it gave Petrich and Melin the opportunity to show that the excess period claims
should be implied as historical use rights. The Water Court found that the Claimants’ and
other witnesses’ testimony that water was diverted historically supported a use right
perfected prior to July 1, 1973. Considering the evidence presented at trial and in the
statements of claim, the Water Court authorized Petrich’s implied claims based on claims
43B 101013-00 and 43B 101014-00, with a period of use and diversion from April 15 to
April 30 and from July 16 to September 15, respectively.8 The Water Court also recognized
an implied claim based on Melin’s 43B 194543-00 claim, with a period of use and diversion
from April 1 to April 30 and from July 16 to October 1.9 Because the Claimants did not
request a supplemental decree as required by statute predating WUA, the Water Court
applied a penalty pursuant to § 89-837, RCM (1947), making the Claimants’ rights junior
to all other existing rights generated under that framework.10 The Water Court did not,
8
The implied claims generated are 43B 30160099 and 43B 30160100.
9
The implied claim generated is 43B 301060105.
10
Trout Unlimited argued at summary judgment that the Claimants were “barred” from using Mill
Creek outside of the scope of the Petrich Decree. On appeal, Trout Unlimited incorporates this
contention into its argument that the Water Court lacked the authority to generate implied claims
under the enjoining language in the Petrich Decree and under § 89-829, RCM (1947). As an initial
matter, the Petrich court prohibited appropriators from using or interfering with rights already
20
however, issue an order to generate Melin’s second requested implied claim for 43B
194542-00, noting that Melin could not produce evidence that flow rates were greater than
what was decreed for other, senior rights diverted at the same point during the disputed
period of use. Trout Unlimited contends that the court improperly used the implied claims
principle to expand the Claimants’ decreed water rights.
¶39
The Water Rights Claim Examination Rules define an implied claim as “a claim
authorized by the water court to be separated and individually identified when a statement
of claim includes multiple rights.” W.R.C.E.R. 2(a)(33). Typically, the DNRC identifies
an implied claim during the claim examination period and requests the Water Court’s
review. In re Musselshell River below Roundup Basin, 1994 Mont. Water LEXIS 18,
*78-79 (Water Ct. July 14, 1994); W.R.C.E.R. 35(a). But the DNRC does not always
identify implied claims during the claim examination process. In re Musselshell River
decreed. As the Water Court noted in its summary judgment order, that injunction did not bar all
subsequent appropriation from the stream. The Petrich Decree enjoined only those appropriations
that caused injury. Subsequent appropriation by beneficial use alone was contemplated by the
statutory framework that Trout Unlimited cites, albeit with a penalty. Section 89-837, RCM
(1947). Under the 1921 statutory framework, Mill Creek became an “adjudicated stream” after
the district court’s entry of the Allen Decree. Sections 89-829, -839, RCM (1947). Once a district
court adjudicated a stream, the petition process became the proper method for new appropriations
on that stream. Anaconda Nat’l Bank v. Johnson, 75 Mont. 401, 410-11, 244 P. 141, 144 (1926);
see also A Summary Digest of State Water Laws, Nat’l Water Comm’n, 455-56 (Richard L.
Dewsnup & Allen W. Jenson ed. 1973). Absent a petition and new adjudication, a water user
exceeding a previously decreed amount was deemed by statute to have a junior priority date to all
other senior and properly decreed appropriators. Section 89-837, RCM (1947) (“Failure to comply
with the provisions of this act deprives the appropriator of the right to use any water of such stream,
or other source of supply, as against any subsequent appropriator mentioned in or bound by a
decree of the court.”) (emphasis added); see also Donich v. Johnson, 77 Mont. 229, 245, 250
P. 963, 967-68 (1926) (holding that without subsequent, intervening appropriators, a water user
could perfect a use right outside of the statutory framework). The Petrich Decree did not bar the
Claimants from perfecting use rights on the adjudicated streams; at most, it would have operated
to penalize them with juniority to other previously decreed users.
21
below Roundup Basin, 1994 Mont. Water LEXIS 18, *78-79. Consequently, if during the
general adjudication process it becomes apparent or a party requests it, the Water Court
may generate an implied claim after issuance of an interlocutory decree. In re Foss, 2013
Mont. Water LEXIS 17, *31-32; In re Climbing Arrow Ranch Inc., 2019 Mont. Water
LEXIS 1, *4-6. This Court recognizes the Water Court’s authority to generate implied
claims when based on “substantial credible evidence . . . .” Hoon, ¶¶ 46-54.
¶40
The Water Court has developed a legal standard for determining when it will
generate an implied claim.
First, the implied claim must be justified by some evidence in the claim form
or the documents attached thereto, although supplemental evidence can be
used to explain or clarify the claim and its contents. Second, evidence must
exist of actual historic use corroborating the implied claim. Third, the
creation of the implied claim should not result in a change to historic water
use or increase the historic burden to other water users. The burden to meet
these criteria rests on the person seeking recognition of an implied claim.
In re Foss, 2013 Mont. Water LEXIS 17, *32. The Water Court uses the Foss test in
determining whether to modify the content of a statement of claim. Open A. Ranch Inc.,
2020 Mont. Water LEXIS 356, *44-46, 55; Circle S. Ranch, 2019 Mont. Water LEXIS 8,
*15-17 (Water Ct. May 16, 2019). When a party requests the generation of an implied
claim, they are asserting that the original statement of claim does not accurately reflect the
existence of multiple claims. Circle S. Ranch, 2019 Mont. Water LEXIS 8, *15-17;
W.R.C.E.R. 2(a)(33), 35. The person seeking an implied claim thus must prove that all
elements of the Foss test are met. In re Paulson, 2020 Mont. Water LEXIS 254, *5 (Water
Ct. April 17, 2020) (citation omitted); In re Foss, 2013 Mont. Water LEXIS 17, *32; W. R.
22
Adj. R. 19. Like all other claims, an implied claim must include the elements of the existing
right. W.R.C.E.R. 35 (citing § 85-2-224, MCA).
¶41
“[I]t must be clear that a claimant intended to claim two or more rights in a single
filing, and is not simply trying to make up for an un-claimed water right that was
overlooked prior to the filing deadline.” In re Martinell, 2018 Mont. Water LEXIS 3,
*11-12 (Water Ct. June 14, 2018). The generation of implied claims may not “be used to
circumvent the claim filing process” or to “expand the elements of a filed statement of
claim and thereby create the groundwork to add additional water rights . . . .” In re
Eliasson Ranch Co., 2004 Mont. Water LEXIS 2, *6-7 (Water Ct. June 28, 2004). The
existence of multiple rights within a single statement must be evident; a usual indicator is
“an overstatement of some element of claim on a single statement of claim form.” In re
Eliasson Ranch Co., 2004 Mont. Water LEXIS 2, *5-6 (reciting examples “such as: listing
points of diversion on two or more sources; listing two previously decreed rights with
different priority dates on one claim form; combining the flow rates of multiple decreed
rights on one claim; claiming a flow rate in excess of a previously decreed right; or
combining multiple purposes such as irrigation, stock, and mining uses on one claim
form”).
¶42
The Claimants raised their request for the generation of implied claims in proposed
pre-trial orders filed in August 2023, preceding the objection hearing. The Water Court
conducted hearings for Melin’s claim on December 18, 2023, and for Petrich’s claim two
days later. Trout Unlimited called expert hydrologist Rankin Holmes and the Claimants to
23
testify. Claimant James Melin is the son of Robert and Wanda Melin. Robert and Wanda
were among the Petrich petitioners who filed statements of claim for those decreed rights
in 1982. James Melin was born in 1949 and has lived in the Mill Creek area for nearly all
his life. He inherited the property from his parents in 2017. Gerald Petrich represented the
Petrich Family Limited Partnership. Gerald was another named petitioner in the Petrich
Decree and filed statements of claim for his decreed rights in 1981. Gerald Petrich was
the only witness to testify to personal knowledge of the litigation surrounding the Petrich
Decree. The Claimants also called Arthur Burns, a fence-line neighbor to Melin for 24
years; Keith Neal, who has lived in the area for approximately 60 years; Gordon Rigler, a
66-year-old homesteader living in the area nearly all his life; and Randy Petrich, Gerald’s
son and Melin’s neighbor. The Water Court found all witnesses credible.
¶43
The Claimants divert the water at issue through the Northside Ditch. The Northside
Ditch did not exist at the time of the Allen Decree and was the impetus for the Petrich
litigation. The Claimants began constructing it shortly after the Petrich Decree was issued.
They first ran water through it sometime after 1965. According to witnesses, the ditch
diverts no other water rights with a priority date senior to the Petrich Decree.
¶44
The Water Court determined from the evidence that the Claimants’ historic use of
water from the Northside Ditch beyond the periods specified in the Petrich Decree justified
an implied claim for use rights for those periods of time. The Water Court recognized, as
it had in previous cases, that the claimants’ “overstatement” of the period of use in their
claim was a proper basis for generating an implied claim and not an attempt to add new
24
rights under the auspices of a previously filed statement of claim. The Water Court’s
precedent shows that an implied claim may be permitted under such circumstances. See In
re Eliasson Ranch Co., 2004 Mont. Water LEXIS 2, *5-6 (identifying as one example
“claiming a flow rate in excess of a previously decreed right”). The court thus was not
foreclosed as a matter of law from considering Melin and Petrich’s asserted implied claims
once it ruled on partial summary judgment that the Petrich Decree declared a defined
period of use.
¶45
Trout Unlimited contends that the Claimants failed nonetheless to meet their burden
to satisfy all elements of the Foss test. Trout Unlimited urges this Court to require that the
Water Court impose a standard of proof and afford notice to other water users when the
Water Court generates an implied right. The amici mount similar arguments, emphasizing
that the Claimants should have filed a use right for the additional periods they claimed to
have used historically. In response, Melin and Petrich argue that the overstatement of the
period of use is evidence of their intent to claim multiple water rights and gave sufficient
notice to other water users. The Claimants posit that witness testimony at the hearing
constituted substantial credible evidence to establish actual historic use during the period
at issue. Finally, they assert that because the parties historically used the water as claimed
on the statements of claim, there is no increased historic burden to other water users.
¶46
Under the clear error standard, we first determine whether the Water Court’s
findings are supported by substantial evidence. Skelton Ranch, Inc., ¶ 27 (citation omitted).
Next, if the findings are supported by substantial evidence, we determine whether “the trial
25
court misapprehended the effect of the evidence.” Skelton Ranch, Inc., ¶ 27 (citation
omitted). Finally, we may find clear error if the entirety of evidence leaves us with the
“definite and firm conviction that a mistake has been committed.” Skelton Ranch, Inc.,
¶ 27 (citation omitted). “Substantial evidence is evidence which a reasonable mind might
accept as adequate to support a conclusion, even if the evidence is weak or conflicting.”
Skelton Ranch, Inc., ¶ 27 (quotation omitted). It need not amount to a “preponderance of
the evidence, but it must be more than a scintilla.” Skelton Ranch, Inc., ¶ 27 (citation
omitted).
“[S]ubstantial evidence is not synonymous with clearly erroneous and a
reviewing court may find that a finding is clearly erroneous even though there is evidence
to support it.” Skelton Ranch, Inc., ¶ 27 (citation omitted).
¶47
Because the burden of proof is on a claimant, W. R. Adj. R. 19, Melin and Petrich
have the “initial burden of producing evidence as to a particular fact,” as they would “be
defeated if no evidence were given on either side.” Section 26-1-401, MCA. “The party
holding the affirmative of the issue must produce the evidence to prove it . . . . The burden
throughout is on him who has the affirmative of an issue.” Stocking v. Johnson Flying
Serv., 143 Mont. 61, 66, 387 P.2d 312, 315 (1963). “[N]othing can be left to mere
conjecture.” Stocking, 143 Mont. at 65, 387 P.3d at 314; see also Hoon, ¶¶ 46-54; In re
Foss, 2013 Mont. Water LEXIS 17, *35.
¶48
With these standards in mind, we turn to the Water Court’s consideration of the
three Foss elements on the record presented.
26
Evidence in the Statements of Claim
¶49
When determining whether the statement of claim contains evidence of an implied
claim, “the narrow [i]nquiry before the [c]ourt is whether the original claim, or its
supporting documents[,] reference two water rights rather than one.” Open A Ranch Inc.,
2020 Mont. Water LEXIS 356, *56. This threshold element must be met. In re Eliasson
Ranch Co., 2004 Mont. Water LEXIS 2, *6-7.
¶50
In this case, all three statements of claim show a similar pattern. The statement of
claim described the other water right elements—besides the period of use—as identical to
the Petrich Decree.11 On the statement of claim form, the Claimants overstated the period
of use, ranging from as early as April 1 to as late as October 1. Each Claimant checked
“Decreed Water Right” on its statement of claim, selecting from the options of “Decreed
Water Right,” “Filed Appropriation Right,” or “Use Water Right.”
The Claimants
submitted only the Petrich Decree to support their claimed period of use.
¶51
Because the Petrich Decree limited the period of use from May 1 to July 15, the
Water Court found more than one right within each of the stated claims—one, a decreed
right whose period of use dates from May 1 to July 15 and another, a use right, bookending
those dates. Though the Claimant checking “Decreed Water Right” supplies evidence that
the Claimant intended to claim only the rights decreed in the Petrich Decree, that statement
is not dispositive to the existence of multiple rights contained within a single statement of
claim. In re Foss, 2013 Mont. Water LEXIS 17, *27-28 (holding that claimants checking
11
Although not an issue on appeal, Trout Unlimited also objected to the place of use for Melin’s
claims.
27
the “Filed Appropriation Right” instead of the “Use Water Right” did not overcome the
prima facie proof that the statement of claim provided for the claimant’s priority date).
Trout Unlimited argues that the Water Court erroneously recognized the Claimants’
“expanded water use through the creation of new post-1973 implied water rights in the
adjudication context, rather [than] referring them to the DNRC permit or change processes
outside the Water Court’s jurisdiction.”
The court determined, however, that the
Claimants’ overstatement of the period of use reflected their pre-1973 water use, a proper
reason to imply a claim for use rights within their timely filed statements of claim.
¶52
Applying its standard for implied claims, the Water Court did not err in finding the
overstatement of the period of use sufficient to satisfy the first element of the Foss test.
Corroborative Evidence of Actual Historic Use
¶53
At the objection hearing, the burden fell on the Claimants to demonstrate in fact that
the requested implied claims existed. The Water Court requires that the Claimant produce
evidence showing actual historic use. In re Foss, 2013 Mont. Water LEXIS 17, *32. The
court allows the submission of “supplemental evidence . . . to explain or clarify a claim and
its contents.” In re Foss, 2013 Mont. Water LEXIS 17, *32. Such supplemental evidence,
however, must find some basis in the statement of claim form or the attached documents.
In re Climbing Arrow Ranch Inc., 2019 Mont. Water LEXIS 1, *8-9 (rejecting claimant’s
supplemental evidence for larger place of use because it was “untethered from anything in
the claim file”); In re Foss, 2013 Mont. Water LEXIS 17, *36-37. As the Water Court
explained in In re Foss, “[o]ne of the purposes of a trial is to clarify or augment existing
28
evidence so an informed decision about a claim can be made.” 2013 Mont. Water LEXIS
17, *36.
¶54
The Petrich Decree was the only supporting document attached to the statement of
claim forms substantiating the Claimants’ actual historic use as relevant to the period of
use. To satisfy the second Foss element, the Claimants needed to present supplemental
evidence for each element of their implied claims as they existed prior to July 1, 1973.
Section 85-2-224, MCA; In re Foss, 2013 Mont. Water LEXIS 17, *26-28; W. R. Adj. R.
19; W.R.C.E.R. 35(c).
¶55
At trial, counsel asked Gerald about the following stipulation made during the
Petrich litigation:
It was stipulated by and between attorneys of record that the Court is to take
as a matter of proof that Mill Creek has surplus water in excess of decreed
water which is at least 10,000 inches which exists during the spring run-off,
but no later than July 15 . . . .
Although Gerald was aware of the stipulation, he did not think that the Petrich Decree
provided a period of use in accordance with that stipulation. Gerald testified that he
believed the Petrich Decree gave him the right to divert water so long as he did not injure
senior users and water was available at his point of diversion. He believed all of his rights
were decreed rights, including the uses outside of the Petrich Decree’s period of use
limitation. James Melin testified to a similar understanding. Attaching the Petrich Decree
as the primary document in support of their claim reinforces this belief. Witnesses asserted
that the only variations in the Claimants’ diversion of water from year to year were a
product of available flows and calls from senior appropriators or as administered by the
29
water commissioner. Gerald and the other witnesses observed that excess water typically
became available in early April and began to peter out around August to early October.
¶56
The Claimants could not prove an exact date they began diverting water outside of
the Petrich Decree’s limitations.
All witnesses testified, however, that it was done
consistently and historically. Witnesses recalled only one occasion on which the water
commissioner shut off the Northside Ditch in accordance with the July 15 limitation. The
date of this event is unclear, but witnesses stated that a district court judge subsequently
ordered that the water for the Northside Ditch be reinstated. Evidence of the Claimants’
historic use outside the Petrich Decree’s period of use limitation was complicated,
however, by the installation of a pipeline on Mill Creek sometime in the 1990s, which
made water delivery more efficient throughout the watercourse. The Northside Ditch’s
headgate is immediately above the pipeline inlet.
¶57
An appropriator’s intent and beneficial use are central principles underpinning water
use rights. 79 Ranch, Inc. v. Pitsch, 204 Mont. 426, 431-32, 666 P.2d 215, 217-18 (1983).
“The intention of the claimant is . . . a most important factor in determining the validity of
an appropriation of water. When that is ascertained, limitation of the quantity of water
necessary to effectuate his intent can be applied according to acts, diligence, and needs of
the appropriator.” Toohey v. Campbell, 24 Mont. 13, 17, 60 P. 396, 397 (1900) (quoting
Power v. Switzer, 21 Mont. 523, 530, 55 P. 32, 35 (1898)). A claimant’s intent is
determined by “his acts and the circumstances surrounding his possession of the water, its
30
actual and contemplated use and the purposes thereof.” Toohey, 24 Mont. at 18, 60 P. at
397.
¶58
As this Court has held, “Water rights [are] limited to the amount of water actually
put to beneficial use, despite the amount of water diverted or claimed.” 79 Ranch, Inc.,
204 Mont. at 431-32, 666 P.2d at 217-18; see also Hoon, ¶ 35. Stated differently, “[u]ntil
a claimant is himself in position to use the water, the right to the water, or water right does
not exist . . . .” for the purposes of establishing seniority, Miles v. Butte Elec. & Power Co.,
32 Mont. 56, 69, 79 P. 549, 554 (1905), and for the purposes of establishing an existing
water right under the general adjudication process, § 85-2-102(13), MCA. Taken together,
these principles create a “policy of the law . . . [that] prevent[s] a person from acquiring
exclusive control of a stream, or any part thereof, not for present and actual beneficial use,
but for mere future speculative profit or advantage, without regard to existing or
contemplated beneficial uses.” Toohey, 24 Mont. at 17, 60 P. at 397.
¶59
Neither the Claimants nor the Water Court gave much attention to the stipulation
between the Petrich Decree’s litigants.
Those parties—Gerald Petrich and Melin’s
predecessors—agreed that 10,000 miner’s inches of water was available for diversion from
Mill Creek during spring run-off and “no later than July 15.” The Water Court did not
mention the stipulation in its order despite its significance to the Claimants’ intent and the
availability of water for beneficial use prior to July 1, 1973. Gerald testified at the hearing
that his lawyer during the Petrich litigation let the stipulation and the period of use
limitation “slip by.” But the attorney-client relationship is one of agency; generally, if the
31
attorney is acting within the scope of his authority, the client is bound to the statements
made by that attorney. Crane Creek Ranch, Inc. v. Cresap, 2004 MT 351, ¶ 12, 324 Mont.
366, 103 P.3d 535; State v. Dow, 71 Mont. 291, 300, 229 P. 402, 405 (1924). The
stipulation is at odds with the Claimants’ testimony that they did not believe the Petrich
Decree limited their period of use because it shows the litigants’ then-present intent not to
appropriate later than July 15. Besides Gerald’s testimony, it is the only available evidence
on the parties’ intent when the Petrich Decree was entered.12
¶60
The Water Court did not address the inconsistencies between Gerald’s testimony
and the stipulation. This Court typically defers to the trial court on issues of fact, as it is in
the best position to determine the candor and credibility of witnesses when findings are
dependent on oral testimony. In re Kelly, 2010 MT 14, ¶ 25, 355 Mont. 86, 224 P.3d 640
(citation omitted). When contemporaneous documents contradict oral testimony, however,
the trier of fact should give little weight to that oral testimony. United States v. U.S.
Gypsum Co., 333 U.S. 364, 395-96, 68 S. Ct. 525, 542 (1948), cited in Skelton Ranch, ¶ 27.
Though Gerald was not the only witness the Claimants offered, he was the only witness
testifying to the Claimants’ intent and available water when the court entered the Petrich
12
In 1985, when the Water Court entered a temporary preliminary decree for Basin 43B, Melin
was decreed an existing right, 43B 194537-00, with a priority date of April 1, 1912. Gerald and
several other water users objected in part because the use right was not decreed in the Petrich
Decree. The parties stipulated to a use right whose priority date was May 1, 1965, with a period
of use of April 1 to July 15. The parties amended the period of use, however, to April 20 to
September 24. When asked about the stipulations, Gerald could not explain why the initial
stipulation ended on July 15 or why the parties agreed to amend, only that he objected because he
believed Melin’s use of water was inefficient.
32
Decree. The weight of his testimony on these facts is diminished because it contradicts the
stipulation.
¶61
The stipulation also calls into question whether, prior to the enactment of the WUA,
water actually was available outside the Petrich Decree’s limitations. The Water Court
even acknowledged that most of the witnesses’ observations post-dated July 1, 1973. An
added wrinkle is that witnesses testified, and the Water Court recognized, that the
installation of the pipeline in the 1990s increased the efficiency of water delivery on Mill
Creek. Gerald testified that the pipeline increased water availability by 30 to 45 days.
Melin also testified that the efficiency of the new irrigation systems, especially the pipeline,
completely changed the water availability as compared to 1963 or 1973. The Water Court
did not explain the pipeline’s effect—or other improvements’ effects—on the increased
availability of water, nor did it offer reasoning for determining that the pipeline was
inconsequential to the witnesses’ observations.
¶62
The Water Court generated implied claims for an additional 76 to 107 days beyond
the limitations in the Petrich Decree. Without grappling with the installation of the
pipeline or the Petrich Decree stipulation, the Water Court concluded that the witnesses’
testimony was unrebutted and was substantial credible evidence supporting its findings.
But the span of time the Claimants and other witnesses discussed ranged from 1965, when
the Claimants first ran water through the Northside Ditch, to as late as the day before the
objection hearing. Given these omissions, the Water Court’s finding of historical use was
insufficient to conclude that the water was both legally and physically available outside of
33
the Petrich Decree period of use limitation or that the Claimants used water at those times
and prior to July 1, 1973.
¶63
The Water Court did conclude that Melin failed to offer substantial evidence
supporting the generation of an implied claim from 43B 194542-00. The court reasoned
that Melin did not provide evidence of flow rates exceeding other senior rights flowing
through the same ditch—the Melin Ditch. It noted that this information should have been
available because the Petrich Decree required measuring boxes. Despite remarking that
historical flow rates should have been available for one claim, the Water Court seemingly
found this fact unimportant for the Claimants’ other existing water right claims diverted
through the Northside Ditch. On appeal, we are unable to decipher its reasoning for the
distinct treatment between ditches and the availability of evidence establishing historical
flow rates.
¶64
The Claimants bore the burden of presenting specific facts to prove the elements of
the implied claim as they existed prior to July 1, 1973.
W.R.C.E.R. 35(c) (citing
§ 85-2-224, MCA); Musselshell River below Roundup Basin, 1994 Mont. Water LEXIS
18, *81-86. For the reasons discussed, we are unable to conclude that the Claimants met
their burden.
¶65
This case is distinguishable from Hoon. The Water Court in Hoon generated an
implied claim based on observations that the Claimants diverted the full capacity of the
ditch and proof that the ditch exceeded the amount claimed in the original filed right. Hoon,
¶ 54. Though the key witness testified from memory that the ditch had always diverted its
34
full capacity, the court found no substantial evidence proving an exact date. Hoon, ¶ 51.
The Water Court used the death of the witness’s grandfather in 1950 as a moment in time
to establish the priority date, based on the witness’s observation and memory. Hoon, ¶ 51.
¶66
Similarly, in Musselshell River below Roundup Basin, 1994 Mont. Water LEXIS
18, *81-86, after finding evidence of two claims in the statement of claim form, the Water
Court determined the contours of the implied claim by methodically discussing the
evidence or lack thereof supporting each element. Under its analysis for priority date, the
Water Court noted that “[w]hen the testimony of a witness is sufficient to prove an act or
transaction within a certain period, but is so vague and uncertain as not to fix the time
within that period, the best that can be done for the party producing such witness is to fix
the date at the end of the period.” Musselshell River below Roundup Basin, 1994 Mont.
Water LEXIS 18, *81-82 (quoting Vidal v. Kensler, 100 Mont. 592, 598, 51 P.2d 235, 238
(1935)).
¶67
Under the second element of the Foss test, the Water Court did not adhere to its
standard governing modifications to existing water rights. It did not explain how the record
evidence proved that generating the implied claims Melin and Petrich requested would not
“expand the elements of [their] filed statement of claim . . . to add additional water rights.”
Eliasson Ranch Co., 2004 Mont. Water LEXIS 2, *6-7. Without findings addressing that
evidence—or lack thereof—we conclude that the Water Court did not support its
conclusions that the second Foss element was satisfied, particularly that the Claimants
provided sufficient proof of a priority date for their use right perfected before July 1, 1973.
35
Skelton Ranch, Inc., ¶ 27 (citation omitted). In light of our remand on the third Foss
element, as discussed next, we do not foreclose the Water Court from reconsidering the
second Foss element, explaining its reasoning as applied to the entire record.
Change to Historic Use or Increase in Burden to other Water Users
¶68
“[T]he creation of the implied claim should not result in a change to historic water
use or increase the historic burden to other water users.” In re Foss, 2013 Mont. Water
LEXIS 17, *32. When historic evidence exists and no one asserts that recognizing the
implied claims would cause a change to historic use or increase historic burdens on other
water users, this element is satisfied. In re Foss, Mont. Water LEXIS 17, *33.
¶69
The Water Court’s analysis under this element was cursory. It stated that because
water was historically used beyond the Petrich Decree, there was no change to historic
water use or historic burden to other water users. The Water Court then supported this
claim by asserting that it used the most junior date of existing water rights to “avoi[d]
conflict with other Mill Creek water users holding existing water rights.”
¶70
The Water Court’s analysis terminated at the passage of the WUA, even though the
Foss test instructs the Water Court to consider changes to historic use and historic burden.
The WUA allows for new appropriations, albeit under the DNRC’s permitting process.
Section 85-2-302, MCA. These water users, like those with existing rights, took “with
notice of the conditions existing at the time they make their appropriations.” Quigley II,
110 Mont. at 505, 103 P.2d at 1072 (citation omitted). They, too, are entitled to notice and
an opportunity to be heard.
36
¶71
“Water rights are property rights, and the adjudication of property rights requires
that a property owner be afforded due process.” Little Big Warm Ranch, LLC v. Doll, 2018
MT 300, ¶ 11, 393 Mont. 435, 431 P.3d 342 (citations omitted). “Notice must be
reasonably calculated to inform parties of proceedings [that] may directly and adversely
affect their legally protected interests.” Little Big Warm Ranch, LLC, ¶ 11. In Circle S
Ranch, the Water Court maintained that a “request for an implied claim is a form of motion
to amend [the] parent claim filed after date of issuance of the preliminary decree. Notice
is necessary because the implied claims are not included in the preliminary decree.” 2019
Mont. Water LEXIS 8, *16-17 (citing § 85-2-233(6), MCA).
¶72
Amicus Mill Creek Downstream Water Users argues that the overstatement of a
single element on the Claimants’ statements of claim and abstracts gave them insufficient
notice of the generation of implied claims. Mill Creek Downstream Water Users contends
that in granting the implied claim for 17.24 cfs on an already over-appropriated stream that
has historically been dewatered after the snowmelt runoff recedes, the Water Court failed
to recognize the new burden on Mill Creek. Even though these implied rights received a
priority date of June 30, 1973, decreeing more water rights on a contentious, over-decreed
source only produces more complication for both junior and senior water rights holders.
Without adequate notice, they contend that they had no chance to rebut Petrich’s and
Melin’s claimed historic use. Given its summary conclusion on the Foss elements, we
conclude that the Water Court erred in generating the implied claims without adequate
notice or full consideration of its effect on other water users.
37
CONCLUSION
¶73
We affirm the Water Court’s conclusion that Trout Unlimited had standing to bring
its objections.
We also affirm the Water Court’s decision that the Petrich Decree
unambiguously limited the period of use from May 1 to July 15. We reverse the Water
Court’s generation of implied claims as authorized by 43B 101013-00, 43B 101014-00,
and 43B 194543-00. We remand for further consideration of the implied claims consistent
with this Opinion. The Water Court is instructed to provide notice of the implied claims
and, following the opportunity for other water users to be heard, to make factual findings
and conclusions for each element of the implied claims as enumerated in § 85-2-224(1)
and as they existed before July 1, 1973. W.R.C.E.R. 35(c); see e.g. Musselshell River
below Roundup Basin, 1994 Mont. Water LEXIS, *81-86.
/S/ BETH BAKER
We Concur:
/S/ CORY J. SWANSON
/S/ LAURIE McKINNON
/S/ INGRID GUSTAFSON
/S/ JIM RICE
38