Eagle Creek Irrigation Co. v. A.C. & C.E. Invs., Inc., 165 Idaho 467

Summary

The Idaho Supreme Court considered whether 15 shares in a mutual irrigation company automatically passed as an appurtenance to 15 acres of land acquired by A.C. & C.E. Investments, Inc. The court held that appurtenancy of the shares required a factual inquiry into the corporation’s governing documents and the history of the water right, distinct from the general appurtenancy of the company’s water right. It vacated the portion of the district court’s judgment holding that the shares and water right were appurtenant to the property.

Holdings

1. Shares in a mutual irrigation company do not automatically pass as appurtenances to a specific tract of land merely because the company supplies water to that land. Whether the shares are appurtenant to the particular property is a factual inquiry requiring examination of the company's governing documents and the history by which the company acquired its water rights.
2. A.C. & C.E. Investments was not entitled to attorney's fees on appeal because it was not the prevailing party and the governing law was not well settled.

Questions Presented

1. Whether shares in a mutual irrigation company pass as an appurtenance to property when neither the water right nor the corporate documents specifically identify the shares with the property conveyed.
2. Whether A.C. & C.E. Investments was entitled to costs and attorney's fees on appeal.

Disposition

vacated