Cherokee Metropolitan District v. Meridian Service Metropolitan District

Summary

The Colorado Supreme Court held that Meridian Service Metropolitan District had a right to intervene under Colorado Rule of Civil Procedure 24(a) in a declaratory judgment action concerning water-replacement credits and return flows. The court concluded that Meridian had an interest that could be practically impaired and that Cherokee Metropolitan District did not adequately represent Meridian’s interests. The court reversed the denial of intervention, vacated the declaratory judgment, and remanded for further proceedings.

Holdings

1. Meridian satisfied the interest requirement of C.R.C.P. 24(a)(2) because it claimed an interest in protecting its rights to reuse wastewater return flows from the jointly planned treatment facility, and that interest related to the declaratory judgment action challenging use of those flows.
2. Meridian satisfied the impairment requirement of C.R.C.P. 24(a)(2) because the declaratory judgment could practically preclude it from using the wastewater return flows for replacement credit, and Meridian had no independent means to challenge the water court's interpretation of the stipulation.
3. Meridian satisfied the inadequate-representation requirement of C.R.C.P. 24(a)(2) because its interests were similar to, but not identical with, Cherokee's, and reasonable doubts existed about whether Cherokee would adequately represent Meridian.
4. Because Meridian had a right to intervene but was denied an opportunity to participate, the water court's declaratory judgment had to be vacated and the proceedings reopened to allow Meridian to be heard.

Questions Presented

1. Whether Meridian had a right to intervene under C.R.C.P. 24(a)(2) in the declaratory judgment proceedings between Cherokee and UBS.
2. Whether the water court's declaratory judgment should stand after Meridian was improperly denied the opportunity to intervene and participate.

Disposition

reversed_and_remanded