Document: 533 U.S. 1121 S.Ct. 2023150 L.Ed.2d 72 NOTICE: This opinion is subject to formal revision before publication in the preliminary print of United States Reports. Readers are requested notify Reporter Decisions, Supreme Court States, Washington, D. C. 20543, any typographical or other errors, order that corrections may be made goes press.STATE OF KANSAS, PLAINTIFFv.STATE COLORADO No. 105, Orig. SUPREME COURT THE UNITED STATES Argued March 19, 2001Decided June 11, 2001 Syllabus The Arkansas River rises Colorado and flows through Kansas several emptying into Mississippi River. In 1949, Congress approved Compact (Compact), which negotiated, provided Article IV-D that, inter alia, future development river basin could not materially deplete usable quantity availability users river's waters. 1986, filed a complaint alleging had violated Compact. his first report, Special Master found post-Compact increases groundwater well pumping depleted waters violation IV-D; second he recommended damages awarded Kansas; third such measured by Kansas' losses attributable violations since 1950, paid money water, include prejudgment interest from 1969 date judgment. has four objections one, submits all should overruled. Held: 1. award does violate Eleventh Amendment. Thus, Colorado's exception contends Amendment precludes based on sustained individual farmers, as Report recommends. unquestionably required showing it direct its own merely seeking recovery for benefit individuals who real parties interest. Oklahoma ex rel. Johnson v. Cook, 304 387, 396. but one proceedings preventing upstream diversion justified exercise this Court's original jurisdiction. been full control litigation inception, right disposition unencumbered. injury farmers component formula adopted quantify here. When State properly invokes jurisdiction, neither measure of, nor method calculating, can retrospectively negate Nor would jurisdiction affected postjudgment decision about whether deposit recovered general coffers use those were hurt violation. Pp. 3-6. 2. unliquidated nature bar an long recognized common-law distinction between liquidated unsound, Funkhouser J. B. Preston Co., 290 163, 168, monetary fully compensate unless includes component, see, e.g., Milwaukee Cement Div., National Gypsum 515 189, 195. acted declining follow long-repudiated rule. 6-9. 3. determined appropriate rate begin running 1969. overruled insofar challenges rates Master's recommendation accrue 1950 9-14. (a) Because decided portion farmers' losses, applicable relevant years, rather than lower available used calculate damages. 9-10. (b) concluded according fairness considerations rigid theory compensation withheld. argument effectively foreclosed equities-balancing approach some merit, cannot say 1949 case law developed sufficiently put notice automatically time Therefore, analyzing case's facts awarding only much was balancing equities. equities support beginning later factors considered-that no thought pact being early years after signed interval passed injuries these proceedings, dramatic impact compounding over many years-fully justify view either party aware excessive pumping. suggests 1985, year filed, 1969, when knew have known violating Though issue close, favor date. overruling exceptions held guilty inexcusable delay failing complain more promptly because extent unclear even became obvious. That conclusion double-edged sword. Both States' interests served claim advanced basis known, clear once started they complex protracted. Given uncertainty damages' scope prevailed 1968 1985 fact power process quantified, request deny reasonable. 10-13. 4. value crop violations. fourth disagreed how additional yield produced with missing water. experts relied upon hypothesis generally linear relationship water increased yields. Colorado, whose expert recanted alternative proposal calculating damages, attempts poke holes methodology speculative application economic theory. attack unpersuasive, given inability mount effective challenge their terms complete failure provide plausible estimate damage. 14-17. part part; overruled; remanded. ON EXCEPTIONS TO REPORT SPECIAL MASTER Stevens, J., delivered Court, Parts I, IV, V unanimous, II III joined Rehnquist, Kennedy, Souter, Ginsburg, Breyer, JJ. Opinion Justice Stevens Court. 1 mountains just east Continental Divide, descends 280 miles border, then State, Oklahoma, empties On May 20, 1901, invoked seek remedy See 185 125, 126 (1902) (statement case). opinions written during past century, most recently 514 673, 675-678 (1995), we described history importance river. For present purposes suffices note two cases, 206 46 (1907), Kansas, 320 383 (1943), led negotiation agreement turn 1949. 63 Stat. 145. us today involves 2 designed "[s]ettle existing disputes remove causes controversy" citizens concerning "[e]quitably divide apportion" benefits arising construction operation federal project "John Martin Reservoir." Compact, Art. reprinted App. Brief A-1, A-2. provides: 3 "This intended impede prevent beneficial Federal agencies, private enterprise, combinations thereof, involve dams, reservoir, works purpose utilization control, improved prolonged functioning works: Provided, River, defined III, shall under construction." Id., at A-5. It proviso paragraph special relevance case. 4 granted leave file three Colorado. U.S., 679-680. After taking evidence liability phase proceeding, Arthur L. Littleworth claims denied, find IV-D. id., 680. We recommendation, including laches. 687-689. remanded determine 694. 5 further report recommending Exceptions arguing barred incurred citizens, improperly claim. without prejudice renewal specific remedy. 522 1073 (1998). He did so now confronted both States. 6 recommends profits, 1950; water; report. (1) Constitution; (2) interest; (3) amount excessive; (4) credited flawed testimony, result production calculated. hand, objection submitting intervened flood projects 7 * recover another action, afoul Amendment.1 See, Texas New Mexico, 482 124, 130 (1987) ("The propriety judgments against specifically involving compact. proper actions, barrier, terms, applies suits State" (citations omitted)); see also Maryland Louisiana, 451 725, 745, n. 21 (1981); South Dakota North Carolina, 192 286, 317-321 (1904). contends, however, Kansas. 8 firmly established, undisputed litigation, text action Moreover, times invoke our acting agent trustee citizens. example, Hampshire 108 76 (1883), refused assume payment defaulted bonds formally assigned state plaintiffs remained beneficially owned individuals. And, Minnesota, 263 365 (1923), while plaintiff obtain injunction improper Minnesota's drainage ditches, precluded where financed contributions committed dividing among "in proportion [their] loss." 375. 9 Those cases make "State permitted enter controversy nominal forward citizens." 737; 89 (Eleventh acts "the attorney-general actors proceeding"). "governing principle" must show interest." 396 (1938). 10 showing. Indeed, proceeding diversions Cook offered example prior 393-394 (citing (1907)), Mexico enforcement interstate compact means within State's pursuit "general public interest" 132, 7. 11 record plainly discloses inception. Its entirely caused contractual obligations. short, there simply nothing suggest "nominal party" 12 redress wrong perpetrated sister ultimately decisions As previously recognized, prerogative proceeds judgment them "benefit hurt." 13 overrule exception. 14 next excepts despite unliquidated.2 At point time, substantial importance. matter, drew allow latter. Comment, Rothschild, Prejudgment Interest: Survey Suggestion, 77 Nw. U. Rev. 192, 196, 26 (1982) (discussing collecting sources). rule seems rested belief something inherently unfair requiring debtors pay unable halt accrual handing creditors fixed unassailable amount. 196. 15 lost hold legal imagination. Beginning last numerous courts commentators rejected acknowledge compensatory awards.3 allied itself evolving consensus 1933, expressed "is sound one." 168 (1933). analysis supporting gave doubt reasoning: "Whether class other, injured suffered loss regarded compensated if confined recoverable breach added obtaining damages." Ibid. Our 1933 consistently acknowledged component. 195 (1995) essential rationale ensure loss"); West Virginia 479 305, 310-311, (1987); General Motors Corp. Devex Corp., 461 648, 655, (1983). 16 Relying "concluded not, itself, Second Report, XV, Third 43. reaching conclusion, cognizant displaced subsequent doctrinal evolution. addition, careful consideration equitable might mitigate interest, concluding "considerations fairness," Board Comm'rs Jackson Cty. 308 343, 352 (1939), supported least 17 fault matter. While will deal below, answer sufficient conclude correct determining preclude interest.4 18 19 takes accrue. concerns, awarded, (when action), (when, concluded, Compact). entered exception, 1950. address question, timing issue. 20 testimony calculated necessary inflation changing market conditions varied year. calculation (lower) argues maintaining receive But if, already decided, Part supra, permissible necessarily follows free utilize whatever accurately losses. question revenue would-but actions-have earned farmers. correctly consequences best remedied mirrors cost borrowing forced undertake revenue. B 22 Although submission categorical claims, " 'be withheld,' respond 'considerations fairness.' 97 (quoting Cty., 352). County equities&nbhyph;balancing adopted. There merit position. 193 (affirming Appeals read "disapproving 'balancing equities' deciding interest"). 23 However, direction indicated earlier opinions, caselaw injury. believed balance achieve remedy, imposing compensation. (prejudgment limited fairness"); Miller Robertson, 266 243, 258 (1924) ("[W]hen arrive fair compensation, court discretion equivalent element damages" claims); Restatement Contracts 337, p. 542 (1932) "may allowed court, justice requires it"). confident fashion certainty imposed matter course. We, therefore, believe carefully 24 agree do appropriately considered factors. particular, signed, violated. 106. years. 99-101; 3, supra. 25 reasoning form punishment, refusal party. argues, rewards ignorance discourage diligence making sure compliance consistent "rigid withheld," but, reasons discussed above, persuaded declined adopt identified inappropriate all, balanced limiting Specifically, choice dates surely debatable; reasonable people can-and do-disagree. examining ourselves, majority appropriate.5 27 well-pumping. saying inexcusable, continued obvious 688-689. two-edged sword, however. understandable amorphous known. Once occurred, equally evaluate significance Despite Master, elapsed filed. period uniquely 28 reasons, sustain 1985. IV 29 final determination violations, largest accomplished estimating farmland crops planted farmland, price crops, difference what land actually received. 30 bearing calculation. They agreed short supply area each year, 178 Tr. 127-128; shortage resulted ibid.; prices 46. 31 exact effect diverted yields question. score, accepted notion "[u]p longer produces yield." 47. parted ways precisely water.6 With figures drawn number studies, Professor Norman Whittlesey, principal expert,7 quantitative estimates yield, per unit various grown farmland. initially attempted propose model, abandoned position flaws data. 197 44-46. 32 having effects abstract numbers (for due water) correct, were, economically profitable drill wells underground sources suffer reduced surface 41-49. install wells, concludes, know valuable 33 assertion digging would, retrospect, employ rejecting His thoughtful worth quoting full: 34 "Given hindsight day economists, everyone supplemental ... . why done, indicate too high. favorable economics drilling understood time. Quality information regarding costs returns readily available. [211 Tr.] 31. Some age otherwise, wanted go term debt. capital, credit borrow. Many 'cash poor.' Id. 32. averse risk. tenants, landlord willing investment. farms small total acreage, acreage spread out space, feasible practical consider [208 37-39. Capital investments, ten repayment periods, less long-term investments. 32." 60-61. 35 accepting good speculation, comparative advantages opposed irrigation, ability understand implement different choices hindsight. damage conclusions unpersuasive.8 36 37 remand preparation opinion. 38 ordered. 39 O'Connor, concurring dissenting part, Scalia Thomas, JJ., joined. NOTES: "The Judicial construed extend suit equity, commenced prosecuted Citizens Subjects Foreign State." yet calculated, illustrated breaking down claimed Of $62,369,173 claimed, $9,218,305 represents indirect actual dollars occurred. remaining $53,150,867, $12 million constitutes adjustment (a type concedes appropriate) (approximately $41 million) investment opportunities. 87-88 (hereinafter Report). magnitude will, course, accrues. III-B, infra. century criticizing, qualifying, distinction, Faber York, 222 N. Y. 255, 262, 118 E. 609, 610-611 (1918); Bernhard Rochester German Ins. 79 Conn. 388, 398, 65 A. 134, 138 (1906); (1932); McCormick, Law Damages 51, 210 (1935); T. Sedgwick, Measure 315 (9th ed. 1912); cf. S. Williston, 1413, 2508 (1920) disinclination uncertain practice theoretical grounds"). thorough modern treatment issue, Dobbs, Remedies 3.6(3) (2d 1993). O'Connor insufficiently evolved obligations post, 3-7 (opinion part). indeed flux stock traditional prohibition, (1933), stated explicitly fairness" demand it, (1939). contemporary accord. 337(b), ("Where contract broken [is set easily ascertainable money], performance due"). Under circumstances, think informed contracting agreement's silence deprived reviewing authority willfully O'Connor's reasoning, compacts 1987, 4, retain perpetual incentive reap knowledge lack Scalia, Thomas Kennedy Chief run filing complaint. author produce judgment, Justices voted endorse text. noted, "Colorado dispute, general, [water usage] yield... particular coefficients reliable increase occurred depletions headgate deliveries [affected] lands." academic adequately account reductions real-world "weather, disease, pests." 44, 12. But, predicted 25% possibilities. 51 reduction adjust controlled experimental data 'realistic conditions' western high temperatures, winds, insects, stressful conditions"). Whittlesey professor agricultural economist Washington University. publications, concern kind issues presented case, fill pages curriculum vitae. Kan. Exh. 891. disregard expert's comparison model literature admits, 46, values "a 'short-short run' situation, is, intra-seasonal transaction capital involved, harvesting irrigation required." 63. circumstances involved short-short situations, situations higher derived contexts evaluating model. ibid. 40 whom join, part. 41 I therefore join concur coming half Compact's Compact) approval, clearly precedents. 42 dealing apportioning flow A contract. bargained-for exchange signatories "remains document applied accordance terms." 128 Petty Tennessee&nbhyph;Missouri Bridge Comm'n, 359 275, 285 (1959) (Frankfurter, dissenting) ("A contract"). fundamental tenet deemed contracted reference principles made. Norfolk & Western R. Co. Train Dispatchers, 499 117, 129-130 (1991); Farmers Merchants Bank Monroe Reserve Richmond, 262 649, 660 (1923); Williston 30:19 (4th 1999). basic thus intendment itself." Virginia, 238 202, 233 (1915). whether, negotiated approved, fairly said intended, expected assumed, exposing event breach. Cf. 232-236 (awarding "an proportion" Virginia's interest-bearing debt finding "there escape duty accruing assumed"). 43 fail contemplated awarded. "venerable rule" common unavailable or, significantly, unascertainable (1995). Contrary suggestion, ante, 6-8, 1943 ultimate approval Congress. By awards best, recognizes. 3; 11; (1933) (noting numerous, harmonious, allowance claims," respect evolution"). To sure, then, along courts, criticized absence statute providing own, still denied continue great many, probably most, circumstances. 353 (1939); Blau Lehman, 368 403, 414 (1962); Lineman Schmid, Cal. 2d 204, 211, P.2d 408, 412 (1948) (Although formerly demands practically obliterated, reading discloses, citation almost uniformly adhered to, namely, allowable depend standard certain except accord, verdict decree"); 3.5, 165 (1973) ("Most contrary, pecuniary ascertained computed, theory, trial"); (1935) (explaining evolution America); 3.6(1), 336 1993) significant limitation apart statute, dollar sum standards" (footnotes omitted)). 44 Awards appear rarer still. Williams Idaho Potato Starch 73 13, 24, 245 1045, 1051-1052 (1952); Meyer Strom, Wash. 818, 829-830, 226 218, 224 (1951); 207- 213, P.2d, 410-413; ("Interest furnish definite test due" (footnote 315, 614 1912) ("Generally speaking, contract, unliquidated, until ascertained" fact, Clark Giacomini, 85 Colo. 530, 536-537, 277 P. 306, (1929); Denver Horse Imp. Schafer, 58 376, 390, 147 367, 372 (1915); Roe Snattinger, 91 567, 568, 581, 582 (1914); Evans Moseley, 84 322, 332-333, 114 374, 378 (1911). 45 Finally, important unheard approval. Unlike instruments credit, 232- 36; 317- 321 (1904), sort, apportionment notoriously difficult ascertain. resort data, complicated methodologies, sophisticated analyses subject, determined. 6, 2; X (detailing variables elements damages). surprising never suggested stream. And 124 (1987), partially behest breaching State. 129-132. How, reasonably breach? predicate apparently, actions thence. light history, inescapable participant drafting asked reacted marked surprise rendered liable sanctioned today. parties' course clear, "fair intendment" very in-kind says instance. contemplates delivery pure simple. A-1. "it sought decree commanding 'to deliver provisions Compact.' XI, 98. 383, 391 (1943) prayer relief feet acre feet"). Not amend Neither appears ever anticipated expected, signing. 47 ignores seizing instead behind criticism general. 7-8. dispute component." Ante, 8; 195, recognizes, 8, precedents governing governed fairness." Blau, (internal quotation marks omitted); 651-653, (1983); Funkhouser, 168-169. especially where, here, governmental body another. 309-312 349-353. 48 unconventional old; rights late starting invariably pending; and, statutes doctrine laches rarely steady buildup become quite large, approximately illustrates. One particularly rudimentary conception dictate ought interpret novel principle 50 indication exposure conjunction duties apparent belief, contextualized historical create across-the-board prospect large awards. Had suspected effects, certainly provision situation. likely wake decision, creates backdrop operated. provision, [as interest] remain fallen." 353; 101 ("Prejudgment here benefitted, injured"). 49 foregoing respectfully dissent

Category: 10