Wednesday, June 3, 2020

Salt Lake City v. Haik

The Utah Supreme Court recently issued its decision in the case of Salt Lake City v. Haik. This case is another chapter in a long-running dispute regarding access to water service in Albion Basin in Little Cottonwood Canyon.

For years, Mark Haik and the Pearl Raty Trust, and others have sought to get water service from Salt Lake City so they can develop their lots in the Albion Basin. In 2014, Salt Lake City brought a water right quiet title action against Mr. Haik, the Raty Trust, who responded with various counterclaims. One counterclaim asserted that Salt Lake City was required to provide water service to the lots under Article XI, Section 6 of the Utah Constitution. Mr. Haik's counterclaim was dismissed based on res judicata because he had already litigated (and lost) the same claim in federal court, but the Raty Trust was allowed to pursue her counterclaim. The Raty Trust asserted that although the Albion Basin is not within Salt Lake City's municipal boundaries, it is within the City's approved water service area, and that the City was, therefore, obligated to serve water to the Trust's lot. The district court disagreed and dismissed the counterclaim. The case was appealed to the Utah Court of Appeals, who affirmed the district court. The Trust then appealed to the Utah Supreme Court.

The Utah Supreme Court began its analysis by reviewing the language of Article XI, Section 6, which provides that all of the "waterworks, water rights and sources of water supply now owned or hereafter to be acquired by any municipal corporation, shall be preserved, maintained and operated by it for supplying its inhabitants with water at reasonable charges." The Trust asserted that because its property was within the City's water service area, the Trust was an "inhabitant" of the City and that the City was, therefore, constitutionally required to provide water service to the Trust's property. The Court disagreed, and determined that the Trust did not meet the plain-language definition of an "inhabitant" of Salt Lake City. Further, the Court held that it was not persuaded that those who ratified the Utah Constitution understood the word "inhabitant" to encompass any person who owned property within a city's approved water service area. The Court therefore affirmed the dismissal of the Trust's counterclaim.

To read the full opinion, click here.

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