PARK CITY — A 3rd District judge has slammed down a dam on Summit County's efforts to initiate eminent domain proceedings against the largest water supplier in the Snyderville Basin.
Judge Robert K. Hilder on Thursday granted a motion to dismiss the county's condemnation action against Summit Water Distribution Co., which serves approximately 2,400 shareholders, representing two-thirds of the basin's users.
In a strongly worded decision, Hilder left little wiggle room in rejecting the county's approach of trying to take the water company through its Mountain Regional Water Service District.
He said that if the county believed condemnation necessary, it should have first attempted to annex the usage area. To come at it through the special service district was tantamount to an end run seeking to take the water company's assets "extra-territorially," Hilder said.
"I have never seen a condemnation action as brazen as the one the special services district attempted, and they didn't get away with it," said Summit Water lead attorney Robert Campbell.
"To attempt to take the bank accounts, personal property and all the other assets in this manner is something that, as far as I know, has never been attempted in Utah," said Campbell, who has handled condemnation cases dating back to Utah Department of Transportation cases in the 1960s.
"This is one of the most significant eminent domain cases in some time in this state, and the judge was correct in finding the county acted precipitously in trying to take these assets."
The trial featured sparring between two of most decorated war-horses in condemnation actions — and, until two years ago, partners in the same law firm — with Clark Sessions leading legal arguments for the county.
"We're disappointed, to say the least," Sessions said. "But I'd also say there were some unique and intriguing decisions surrounding many of these issues."
Sessions said the county will appeal the decision to the Utah Supreme Court.
Some close to Thursday's proceedings indicated the county may try another tactic — coming at eminent domain directly as a county entity, where it may find surer legal footing, rather than the service-district avenue.
County commissioners immediately huddled behind closed doors with attorneys after the decision Thursday, trying to decide the next step.
"I am sorely disappointed at the judge's decision," said commissioner Shauna Kerr. "But, boil it all down, it doesn't eliminate my commitment that we as a county have a need and right to organize our water resources for the health, safety, welfare and benefit of all the residents of the county, not just a few."
Such sentiments left Van Martin, Summit Water general manager, feeling cautious vindication.
"It's a good victory for us, and we're very appreciative the judge saw things our way. But we still get down to the problem of having to deal with the county and if they want to make our lives miserable, they probably can," Martin said. "I'd hope this decision would cause the county to back off and let us do business as usual, but I don't expect it, frankly. They're probably too far into this to just drop it." During arguments, Campbell cast Mountain Regional's condemnation efforts as seeking revenue streams to prop up a shaky public system that had produced $1,200 annual water bills, or three times Summit Water's average of $400 rates. Kerr scoffed at such numbers.
"They've never been able to identify this mythical $1,200 user, nor have we, because one doesn't exist. Rates never were going into those ranges," Kerr said.
But a jubilant Andrew Shaw, managing member/president of Snyderville development Mountain Valley Ranch, said, "Clearly if the county wanted to be good guys, they'd have attempted annexation first, but they also plainly knew our shareholders would nix annexation because our bills would shoot way up. So they tried this side-door play and lost.
"History proves resources like water are best developed by a long, slow process. These yo-yos from the county tried to make insty-pop water overnight in a microwave. Thank God someone in our system put the kibosh on it."
E-MAIL: gtwyman@desnews.com