Victory in Hage vs. US

Case Profile

Case:
Hage v. United States

Case No.: USCC91-1470L

Court:
United States Court of Federal Claims, Washington D.C.

Date Filed: Sept. 26, 1991

Issues: The case alleges the taking of Wayne and Jean Hage's property rights on their large cattle ranch, located in Central Nevada. This includes private deeded land, water rights, ditch rights of way, forage rights, range improvements and cattle. The case was filed after a lengthy conflict with the USFS and the BLM.

Major Decisions:

Phase One: Determining the property rights owned by Plaintiff

1. Summary Judgment: March 8, 1996
Impact of Decision: The court denied in part, the governments summary judgment motion. It granted summary judgment on plaintiffs argument that the grazing permit was a contract and instead ruled that grazing permit was a revocable license, not a binding contract, and thus the cancellation of the permit cannot entitle the permittee to damages due to breach of contract. The court denied the government's motion on the takings allegations and rights to compensation on nearly all of the remaining claims, finding "that a limited evidentiary hearing is necessary to address the mixed questions of law and fact" regarding property interests in water, ditch rights-of-way, rangeland forage adjacent to stockwatering sites, cattle, and the Hage's ranch as well as ownership of permanent range improvements. Case Updates: June 1996, August 1996

2. Final Decision: January 29, 2002
Impact of Decision: (Counsel's Analysis of final decision). At issue in this phase of the case was the nature and scope of the Hage's property rights on the federally managed grazing allotments appurtenant to the Hage's Pine Creek Ranch. In his decision, Judge Smith found that the Hages owned extensive water rights on their grazing allotments. Also, that they were the owners of ten 1866 Act ditch rights of way the scope of which included 50 feet on either side of the ditches, for which the Hage's did not need to obtain a special permit in order to maintain the ditches. The court also concluded that the Hage's have a right to the water, so long as they can put it to beneficial use.

Phase Two: Determining whether a taking of property under the Fifth Amendment of the US Constitution occurred.

1. Trial Date Set for May 3 - May 21, 2004.
2. Hage v. US order issued on February 5, 2003 (pdf - 2pgs)

Phase Three: Determining the value and compensation owed to the Plaintiff.

1. Litigated simultaneously with the takings issue.

Status: With the first phase of trial complete where the court determined what property is owned by the Hage, the case moves into the second phase, where plaintiffs will have the opportunity to prove the government's actions and environmental regulations took Hage's property without compensation. Once this is complete, presuming we prevail, we will move into the final phase of the case, valuation phase, at the trial court level where the court will determine what the property is worth and how much is owed to the Hages.

Related Issue: Monitor Valley Water Rights Adjudication

Background: Prior to the filing of Hage v. United States, the Hage's were already involved in a Nevada State Water Rights Adjudication, which covered a large part of their ranch. The adjudication process is initiated when a dispute arises over the ownership of the water in an area that has not previously been adjudicated. In this case, the US Forest Service had filed claims over most of the Hage's water.

This issue is being litigated simultaneously with the Claims Court case, however, it is currently close to being completed. The State Water Engineer report, which the Claims Court incorporated in its findings, determined Hage owned all but a small percentage of the water in Monitor Valley. The federal government is appealing this determination in State Court.

Additional Information:
Did the decisions in Hage v. United States state that ranchers do not need a grazing permit?

Nevada State Court Upholds Water Rights
(Cornerstone, December 1999)

Water's for Fightin,' Whiskey's for Drinkin'
(Cornerstone, April 1997)

Interview with Ladd Bedford on Hage
(Cornerstone, March 1999)