State of Montana v. Talen Montana, LLC

130 F.4th 675 · United States Court of Appeals for the Ninth Circuit · March 4, 2025 · No. 23-3353

Summary

The Ninth Circuit affirmed the district court’s judgment quieting title to the United States for the riverbeds underlying four designated river segments in Montana, while affirming title to Montana for one segment. Applying the “navigability in fact” test from PPL Montana, LLC v. Montana, the court determined that riverbed ownership hinges on whether the rivers were navigable at the time of statehood in 1889. The panel upheld the district court’s segment-by-segment analysis and factual findings, rejecting appeals from both the State of Montana and the dam operators.

Court
United States Court of Appeals for the Ninth Circuit
Writing for the Court
Ana de Alba; Holly A. Thomas; Salvador Mendoza, Jr.
Jurisdiction
United States Court of Appeals for the Ninth Circuit
Decision date
March 4, 2025
Docket number
23-3353
Procedural posture
Appeal from the United States District Court for the District of Montana
Standard of review
Clear error for factual findings; de novo for legal conclusions and mandate rule
Precedential value
published
Parties
State of Montana v. Talen Montana, LLC; Northwestern Corporation; United States; United States Forest Service; United States Bureau of Reclamation; United States Bureau of Land Management
Disposition
affirmed

Topics

quiet titletitle disputesreal estate

Practice areas

real estatefederalism

Questions Presented

  1. Whether the district court correctly applied the PPL segment‑by‑segment navigability test to determine riverbed title.
  2. Whether the district court erred in applying the mandate rule with respect to the 17‑mile Great Falls reach.
  3. Whether the district court’s findings of non‑navigability for the four segments are reversible.

Holdings

  1. The panel held that the district court correctly applied the PPL framework and did not violate any PPL mandate, affirming the judgment that title to the United States for four segments and title to Montana for the Sun River segment is proper.
  2. The panel held that the district court’s consideration of the Sun River to Black Eagle Falls Segment was consistent with the Supreme Court’s mandate, which limited the holding to the portion "at least from the head of the first waterfall to the foot of the last" and did not foreclose analysis of the Sun River segment.

Key quotations

Upon statehood, the State gains title within its borders to the beds of waters then navigable, while the United States retained title to riverbeds underlying non‑navigable rivers. (at 4)
The segment‑by‑segment approach to navigability for title is well settled, and it should not be disregarded. (at 19)

Factual background

The State of Montana, the United States, and hydroelectric dam owners Talen Montana, LLC and Northwestern Corporation dispute title to the riverbeds underlying several river segments in Montana. Title depends on whether each segment was "navigable in fact" at statehood in 1889. The parties presented extensive expert testimony on depth, gradient, and historic use of the rivers.

Procedural history

The district court conducted a bench trial, found four river segments non‑navigable and one segment (Sun River to Black Eagle Falls) navigable, and quieted title accordingly. The State of Montana appealed the district court’s judgments; Talen Montana, LLC and Northwestern Corporation cross‑appealed the portion of the judgment that quieted title to Montana for the Sun River segment.

Remand instructions

Remand to the district court to proceed with Phase II and determine damages as to the Sun River to Black Eagle Falls Segment.

Court Document

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