Opinion ID: 1165306
Heading Depth: 1
Heading Rank: 3

Heading: Absence of a justiciable controversy

Text: Defendants contend that no justiciable controversy exists in this case because of the fact that the contractual water rights which form the basis of plaintiff's applications are contingent on construction of the Gooseberry Project, which construction has not begun and may never take place. Defendants argue that the issues decided by the trial court were therefore hypothetical or abstract in nature instead of bearing upon real interests of the parties. This Court has held that the existence of a justiciable controversy does not depend on a showing that the opposing interests giving rise to the controversy are perfected or immediately exercisable. In Whitmore v. Murray City , [6] the plaintiff sought a declaratory judgment concerning the priority of his water rights as against those of the defendant city. The defendant argued that declaratory judgment was improper because the plaintiff had not yet constructed facilities with which to make use of the water rights and had not yet met certain statutory prerequisites to perfection of those rights. This Court responded to the defendant's contention as follows: We can find no merit to this contention. In this case the plaintiff will be put to considerable expense in perfecting his works so as to be able to put the water to a beneficial use. It is very important to him to obtain a determination as to the priority of his right when it is perfected in relation to defendant's rights which apparently conflict, before he makes these expenditures. In Gray v. Defa, 103 Utah 339, 135 P.2d 251, 254, this court said a declaratory judgment is a proper remedy: whenever it will serve a useful purpose in settling the uncertainty and insecurity giving rise to the proceeding. In the instant case the uncertainty which the court is asked to settle is whether plaintiff's right when he appropriates the water will be prior to defendant's right. Although it is true that plaintiff does not and cannot have a right to the use of the water until he has completed his works and put it to a beneficial use, nevertheless, the right to proceed and acquire this right by complying with the statutory requirements is a valuable right... . ... The fact that it is possible for a plaintiff to lose a right which he has at the time suit is commenced is no reason for not entertaining the action. [7] In the present case, plaintiff has shown a significant interest in obtaining a present declaration concerning its own rights as against those of defendants under the tripartite and repayment contracts, an issue not previously litigated. As discussed in Part I, above, plaintiff seeks resolution of this issue in performance of its duty to perfect and maintain its water applications under its assignment agreement with the Bureau. In addition, plaintiff occupies a position similar to that of the plaintiff in Whitmore v. Murray City in that its water rights cannot actually be perfected without the expenditure of large amounts of money, time and labor for construction of appropriate facilities. As with the plaintiff in that case, it is very important to [plaintiff] to obtain a determination as to the priority of [its] right when it is perfected in relation to [defendants'] rights which apparently conflict, before ... these expenditures [are made]. The success of plaintiff's efforts to arrange financing for the Gooseberry Project may also depend on resolution of the present uncertainty concerning water priorities. As discussed in Part I, above, the Declaratory Judgments Act mandates that its provisions be liberally administered in order to resolve uncertainties surrounding legal rights. [8] Because of the substantial present interest of plaintiff in the resolution of such uncertainty, we hold that a justiciable controversy exists and that the declaratory judgment of the trial court will serve a useful purpose in settling the uncertainty and insecurity giving rise to the proceeding, as required by the cited Whitmore and Gray cases.