Mielke v. Daly Ditches Irrigation D ( 1987 )


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  •                IN THE SUPREME COURT OF THE STATE OF MONTANA
    PERCY A. MLELKE and DEBORAH G.
    MIELKE ,
    Plaintiff and Respondents,
    DALY DITCHES IRRIGATION DISTRICT AND
    BOARD OF COMMISSIONERS OF DA.LY DITCHES
    IRRIGATION DISTRICT,
    Defendants and Appellants,
    DALY DITCHES IRRIGATION DISTRICT AND
    ROARD OF COMMISSIONERS OF DALY DITCHES
    IRRIGATION DISTRICT,
    Third-Party Plaintiffs and Appellants,
    THE STATE OF MONTANA and DEPARTMENT OF NATURAL
    RESCURCES AND CONSERVATION OF THE STATE OF MONTANA,
    Third-Party Defendznts and Appellants.
    APPEAL FROM:    District Court of the Fourth Judicial District,
    In and for the County of Ravalli,
    The Honorable Douglas Harkin, Judge presiding.
    COUNSEL OF RECOFD:
    For Appellant:
    Larry Persson argued for Daly Ditches, Hamilton,
    Montana
    Candace West argued for Dept. Natural Resources,
    Helena, Montana
    For Respondent :
    Jeffrey H. Langton argued for Mielke, Hamilton, Montana
    Submitted:   December 9 ,    198N
    Decided:   January 1 6 , 1 9 8 7
    Filed:    JAN 16 1987
    Mr. Justice John C.         Sheehy delivered the Opinion of the
    Court.
    The    Daly   Ditches    Irrigation District, the        State of
    Montana     and    the    Department    of     Natural   Resources   and
    Conservation (DNRC) of the State of Montana appeal herein
    from a final decision of the District Court, Fourth Judicial
    District, County of Ravalli, which held that the plaintiffs
    Percy and Deborah Mielke have a first priority water right
    for irrigation from Gird Creek on the basis of adverse use.
    We determine under the facts of this case that the
    Mielkes have failed to establish the requisite elements to
    acquire the prescriptive water right which was accorded to
    them by the District Court.
    The plaintiffs Mielkes are residents of Ravalli County,
    Montana, and own farm lands of which 98.44 acres produce
    crops by irrigation.        They obtained irrigation water through
    a lateral ditch owned by them and a headgate on Gird Creek
    which diverted water from the creek through their lateral.
    Gird Creek is a part of the Daly Ditch Irrigation District
    system.
    In July, 1983, the Daly Ditches Irrigation District
    locked the headgate through which Mielkes diverted water from
    Gird Creek to irrigate their lands.            This caused the Mielkes
    to commence an action in District Court against the defendant
    Dal-y Ditches Irrigation District.             In their complaint, the
    Mielkes alleged that they were the owners by appropriation of
    200 inches of water from Gird Creek and they asked for an
    injunction against the inference by the District with their
    water    right.     The    District    filed    its answer, generally
    denying     the    allegations    of     the     complaint,    pleading
    affirmatively that the water rights have been transferred by
    a predecessor so as to sever the water rights from the land
    and counterclaiming against. the Mielkes for fees for the 1983
    irrigating season.
    The   Mielkes        responded      to    the   counterclaim      and
    affirmative defenses by           general     denial, and by    alleging
    affirmatively     that     they    had   an    adverse   use   right    to
    irrigation water     for     98.44    acres.      The Mielkes    further
    contended that Contract No. 90, which provided water to the
    Mielkes at the rate of $1.25 per acre-foot was perpetual in
    its terms and that the State had wrongfully raised the fees
    during the period the State operated the project.
    The State of Montana and the DMRC were brought into the
    action as third party defendants by the District on a claim
    of indemnity.
    The Daly Ditches Irrigation District (sometimes referred
    to as the Daly Ditch Project) is a water project located in
    Ravalli County.     The project consists of several irrigation
    ditches and systems designed to supply water to irrigable
    lands near   Hamilton, Montana, on             the   east   side of    the
    Bitterroot River.        Historically, the Daly Ditch Project came
    into existence as a result of the acquisition of lands and
    water rights around the turn of the century by the Butte
    copper king, Marcus Daly.
    Mielkes' present farm lands were first described as part
    of lands passing by patents issued to Winfield Sherrill and
    Jacob Sherrill, dated 1889 and 1895, respectively.              In 1888,
    Jacob Sherrill filed        in the county records a notice of
    appropriation for 600 miner's            inches of water       from Gird
    Creek, claiming an original appropriation date of 1864.
    In June, 1890, Winfield Sherrill and the Estate of Jacob
    Sherrill conveyed title to the land with the appropriated
    water right to James C. Flanner.             In September, 1890, Flanner
    conveyed title to the land and the water right to James W.
    Hamilton.     Hamilton, in turn, conveyed the same to Marcus
    Daly in October, 1890.
    In December, 1901, the Estate of Marcus Daly conveyed
    the various ditch and water rights acquired during Daly's
    lifetime (includ-ingthe waters of Gird Creek) to Ravalli Land
    and    Irrigation Company.            On    the    same date, the       estate
    conveyed many parcels of land               (including what is now the
    Mielkes'     property)    to     Ritterroot         Stock   Farm,       another
    corporation.       The    land       deed    to    Bitterroot     Stock    Farm
    specifically     excepted      and    reserved       therefrom    all     water
    rights, water ditches and rights-of-way for ditches which
    attached to or were part of the lands conveyed.                     In legal
    effect, then, Daly's lands were conveyed to the Bitterroot
    Stock Farm.      The water rights, ditches and easements for
    ditches, which were formerly held by Daly a.s appurtenant to
    the lands were separated and conveyed to Ravalli Land and
    Irrigation Company.
    In 1920 and 1934, John Kalberer (Mielkes' predecessor in
    interest) purchased land from the Ritterroot Stock Farm.                    At
    the same time, he also entered into water contracts with the
    Ra-valli Land and Irrigation Company for the purchase of water
    to irrigate his purchased lands.                  The water contracts were
    designated as Contract or Account No. 90.
    In 1946, Mielkes purchased the lands from Kalberer, and
    took    from him an assignment of Contract No.                    90 for the
    irrigation water.        Mielkes currently irrigate 98.44 acres.
    Under    Contract No.     90 with          Ravalli Land     and    Irrigation
    Company, Mielkes purchased (after Plielkes sold off 10 acres)
    water to irrigate 50 acres.
    While Kalberer was still the owner of the lands, in
    1943, Ravalli Land and Irrigation Company had conveyed all of
    its right, title and interest in its water rights, d.itches,
    easements, headgates and other structures to the State of
    Montana.     The State, under the Water Conservation Board (now
    DNRC) took over all the water company's water contracts as
    part of the Daly Ditch Project.     The State had come into the
    picture as a part of a depression-era effort to establish
    public     work   programs    through   the     encouragement     of
    construction of public works.       On April 23, 1943, Ravalli
    Land and Irrigation Company executed a deed, dated October I-,
    1942, conveying all      of   the Ravalli     Land   and   Irrigation
    Company's right, title and interest in the Daly Ditch project
    to the State Water Conservation Board.         From that date, the
    Water Conservation Board, and its successor DNRC, undertook
    operation of the Daly Ditch Water Project and continued to
    perform the water contracts with purchasers such as Mielkes
    through the 1982 irrigation season.
    Prior to 1942, the Estate of Margaret Daly (holder of
    about 1,250 acres) and the Bitterroot Stock Farm (holder of
    about 2,700 acres), as successors in interest of Marcus Daly,
    had not contracted with Ravalli Land and Irrigation Company
    for the purchase of water though these holders had continued
    to use water from the project on lands not sold by the Stock
    Farm.     At the time of the take-over by the State and. prior
    thereto, the Estate of Margaret Daly and the Bitterroot Stock
    Farm negotiated contracts with Ravalli Land and Irrigation
    Company similar to the water purchase contracts held by other
    water users on the project beginning February 1, 1942.
    This project was the only state-owned water project that
    the State directly operated, maintained and repaired.                In
    this it was unique among all the other projects owned by the
    State, as other state projects were operated and maintained
    by the various vrater users associations.            The Daly Ditch
    Project, however, was never self-supporting; that is, it was
    never paid for wholly by the water users.           From 1943, until
    the project was given up by the State, the debts exceeded
    credits by some $600,000.
    In 1979, the legislature directed the DNRC to dispose of
    the Daly Ditch Project and to cancel and write off accounts
    receivable carried on the books of the Department.                 The
    legislature further directed that if the DNRC was not able to
    dispose of the project as provided by law, then the Daly
    Ditch Project should be abandoned prior to January 1, 1983.
    By    quitclaim   deed     dated   December   23,   1982,   the   DNRC
    transferred all of its right, title and interest in and to
    the    Daly    Ditch     Project   to   the   Rava-lli Water      Users
    Association.      By quitclaim deed dated December 31, 1982,
    Ravalli Water Users Association transferred all of its right,
    title and interest in and to the Daly Ditch Water Project to
    the Daly Ditches Irrigation District.          That District, which
    is the defendant in this case, is now the operator of the
    Daly Ditch Project.
    The water contract assigned by John Kalberer to Percy A.
    Mielke is one of the water contracts taken over by the State
    of Montana as a result of the transfer from the Ravalli Land
    and Irrigation Company to the State Water Conservation Board.
    The State of Montana furnished water continuously to Mielkes
    under Contract No. 90 from 1946 through 1982 by means of the
    Daly Ditch Project.       Mielke terminated his payments as billed
    in 1980, though he had previously paid in every year since
    1946.   The Mielkes received water for irrigation from the
    project for the irrigation seasons of 1981 and 1982, but made
    no payment.    By letters dated in 1982, the Mielkes asserted
    that they were not claiming contract water but were claiming
    water under an 1864 water right and therefore they had no
    obligation to pay any further water charges under the water
    contract.
    The    Mielkes   had   originally   petitioned   to   join   the
    Irrigation District, but have since withdrawn their petition
    and refused to join the District.        Rased on their refusal to
    join the District           their failure      make payments, the
    Irrigation District locked the headgate that diverts water to
    the Mielkes' property.       By stipulation, during the pendency
    of this litigation, irrigation waters have been supplied to
    the Mielkes.
    The payments by Mielkes under Contract No. 90 have never
    exceeded charges for water in excess of 50 acre units.            The
    District Court found:
    60. The Mielkes and their predecessors have never
    paid any amount to anyone, nor have they or their
    predecessors ever been billed for any irrigation
    used over and above the 50 acre units. Therefore,
    the Mielkes have had the free and unencumbered use
    of irrigation water since the Spring of 1946 and
    their predecessors had and enjoyed such status
    prior to that date. Assuming Mielkes' total water
    use is 200 miner's inches for 98.44 acres, the
    amount of water used on 48.44 acres thereof is 49%
    of the total or 98 miner's inches.
    The District Court entered judgment for Mielkes on the
    basis of adverse use for 93 (sic) miner's inches as a first
    priority right in Gird Creek, for up to four flood irrigation
    applications, for seven days each, on their lands between May
    1 and September 30 of each year.         This is the judgment from
    which appeal is taken.
    Since    the    basis   of   the District Court        judgment is
    adverse use, we will discuss further facts pertaining to such
    judgment as    found by      the court from the evidence as we
    discuss the legal issues here.
    The acquisition of title by adverse possession or title
    by prescription is a common law development associated with
    the ownership and possession of land.          At first ownership and
    possession    went     hand-in-hand.         The   common    law   early
    recognized that one could be the owner of land and be only in
    constructive possession of it.         There evolved the principle
    that constructive possession follows title and can only be
    overcome or defeated by actual possession adverse thereto.
    In Verwolf v. Low Line Irrigation Co. (1924), 
    70 Mont. 570
    , 578, 
    227 P. 68
    , 71, we said that a water right, a right.
    to the use of water, while it partakes of the nature of real
    estate, is not land in any sense, and that the right to the
    use of water for irrigation or other lawful purposes may be
    lost by one and acquired by another by prescription.                 In
    determining whether a water right is gained by prescription,
    it is usually necessary for the courts to apply principles
    that developed out of statutes or case law relating to the
    adverse use of real estate.
    A title acquired by prescription is sufficient against
    all, S 70-19-405, MCA, and our statutes recognize two ways
    for the acquisition of such title.       One may claim adverse use
    founded on an instrument or judgment, S 70-19-407, MCA, or by
    actual occupancy under claim of title not founded on an
    instrument or       judgment.      Section    70-19-409, MCA.       The
    difference seems to be that occupancy under a claim founded
    on instrument or judgment, subject to statutory limitations,
    will provide title to the whole tract, whereas occupancy
    under a claim not founded under an instrument or judgment
    gives title only to the land actually occupied.
    In this case, Mielkes contend their title is derived
    under both methods.    They apparently founded a claim of right
    under the Sherrill appropriation of 1864, though the legal
    title to this appropriation appears to have been severed from
    the lands when the Estate of Marcus Daly placed title to the
    lands in one corporation, and title to the water rights in
    another.     Mielkes have contended before the District Court
    and in this Court that despite the documentary separation of
    the water rights from the lands, in actual practice since
    1901 there has been no actual severance.      Accordingly, the
    Mielkes have filed a statement of claim for existing water
    rights before the water courts of this State for 200 miner's
    inches of Gird Creek for use between May 1 and September 30
    of each year based on the 1864 Jacob Sherrill right.    Mielkes
    argue that the severance by conveyance of the water rights
    did not give rise to any physical change in the quality,
    quantity or availability of water used on Mielkes' lands, nor
    to their periods or purposes of use.     Ritterroot Stock Farm
    had no legal tit1.e to any water rights nor contract for water
    after 1901, until 1942, just before the transfer to the
    State.     On this basis, Mielkes contend that the transfers by
    the Daly interests in 1901 merely severed the title to the
    land and water rights but did not sever the use of the water
    to which it had been appurtenant, especially as to Gird
    Creek.
    The District Court made reference to this argument in
    its findings and conclusions, but apparently did not rely on
    the same.    If it had determined that the Mielkes' adverse use
    of water was founded on an instrument giving rise to color of
    title, the result, applying principles derived from adverse
    use   in   land     cases, would be    that the Mielkes would be
    entitled to 200 miner's inches of water without reduction,
    based on a use right.       Instead the District Court reduced the
    Mielke claim to 93 (sic) miner's inches, and from that we
    must conclude that the District Court, though not clearly
    indicating, did not find a title based on adverse use founded
    on an instrument or judgment.          In any event, we determine
    that any claim of adverse use by the Mielkes in this case
    cannot be founded on the Sherrill appropriation which was
    severed from the land in the Daly transfers.                The annual
    payment by the Kielkes on Contract No. 90 is a recognition of
    the para.mount right of the State of Montana to sell the water
    as a separate property interest from the land.               For that
    reason, we are not concerned with a dispute of fact between
    the parties as to whether there are sufficient waters in Gird
    Creek to supply 200 miner's inches of water as claimed by the
    Mielkes.    The defendan.ts contend that a considerable portion
    of the water in Gird Creek is not Gird. Creek water but is
    supplemental water transferred by the project from Skalkaho
    Creek.     Since we determine that Mielkes have not established
    adverse use to 200 miner's inches founded on an instrument or
    judgment,     the    resolution   of   the   fact   issue    makes     no
    difference.
    We    turn     then   to   determine   whether   Miel.kes      have
    established an actual adverse use of the wa.ters under a claim
    of title not founded on an instrument or judgment.                   All
    parties agree that the elements of proof required to sustain
    a claim of prescriptive water rights are:
    1.   A minimum of 5 years contin.uoususe (10 years prior
    to 1953);
    2.     Exclusive use by          the claimant       (uninterrupted and
    peaceable) ;
    3.     Open use;
    4.     Use under claim of right (or color of title);
    5.     Use    that    is    hostile,    that      is,   an   invasion    of
    another's claimed right which the owner has the opportunity
    to prevent;
    6.     Use by the claimant of water at a time when the
    owner needed the water;
    7.     Use substantial enough to put the owner on notice of
    the deprivation; and,
    8.     The owner must have been in position to maintain an
    action        to      prevent      the   cl-aimant's usage           through    the
    prescriptive period.
    Smith v. Krutar            (1969), 
    153 Mont. 325
    , 
    457 P.2d 459
    ;
    Grimsley v. Estate of Spencer (Mont. 1983), 
    670 P.2d 85
    , 40
    St.Rep. 1585.
    The           facts    found by     the District Court include the
    following:
    Mielkes          had,    since the acquisition of               their   lands,
    utilized 200 miner's inches of water per year, at least three
    to four times during the irrigating season for a period up to
    seven days each time.              The other contract user of irrigation
    water from Gird Creek was Ritterroot Stock Farm, itself,
    which        had     sold   the    Mielke   lands    to    their     predecessor,
    Kalberer, and had assigned their rights to him for 60 acres
    of irrigation water (of which 10 acre units had later been
    disposed)      .      John    Roberts     of   the   Bitterroot       Stock    Farm
    testified that the Stock Farm had difficulty obtaining enough
    water downstream from Mielkes to fulfill its needs.                             The
    Mielkes and the Bitterroot Stock Farm used the water in
    rotation,         t h e S t o c k Farm t a k i n g t h e w a t e r when M i e l k e s were
    n o t using it.           There was e v i d e n c e t h a t i n most s e a s o n s t h e r e
    was    enough w a t e r          f o r both     farms,     a l t h o u g h on one o c c a s i o n
    t e s t i f i e d t o by Mielke, t h e Stock Farm had g i v e n up i t s r i g h t
    b e c a u s e t h e r e was n o t enough w a t e r l e f t o v e r a f t e r t h e Mielke
    usage t o j u s t i f y p a y i n g a n i r r i g a t o r on t h e S t o c k Farm.              The
    i r r i g a t i o n u s e by t h e M i e l k e s o f 9 8 . 4 4 a c r e s was open i n t h a t
    there       was     a    county      road     alongside        their      acreage       and     the
    amount       of     their        irrigation       use    was       open    and     obvious       to
    persons t r a v e l i n g along t h a t road, including t h e d i t c h r i d e r s
    for    the       District;        moreover,       the    District         h e a d q u a r t e r s was
    only    a    short distance              from t h e Mielke          farm.         The    lateral
    d i t c h from t h e h e a d g a t e on Gird Creek on M i e l k e s '                   l a n d was
    owned       by     the     Mielkes        and    except       on    one     occasion,          they
    g e n e r a l l y opened t h e h e a d g a t e t h e m s e l v e s when t h e y needed t o
    take water.              Robert Lowery t e s t i f i e d t h a t h i s f a t h e r , Glen
    Lowery,      had been a d i t c h r i d e r f o r t h e S t a t e i n t h e e a r l y
    years of          i t s operation of            the project,         and h i s f a t h e r had
    t o l d him t h a t t h e Mielke r i g h t was t h a t o f " f r e e w a t e r " which
    apparently          was     interpreted         t o mean       a    first      right      to    the
    w a t e r s o f G i r d Creek.           The f a t h e r a p p a r e n t l y b e l i e v e d t h a t
    t h e Mielkes had a w a t e r r i g h t i n G i r d Creek b a s e d on some
    color of t i t l e not then explained.
    Equally           apparent       from     the     record,       however,         are     two
    F a c t o r s which m i l i t a t e a g a i n s t a t i t l e by p r e s c r i p t i o n i n t h e
    Mielkes.          First,        t h e owner o f t h e Daly D i t c h P r o j e c t d u r i n g
    a l l of     t h e p e r i o d o f c l a i m e d a d v e r s e u s e was t h e S t a t e o f
    Montana.          While t h e B i t t e r r o o t S t o c k Farm may i t s e l f have had
    d i f f i c u l t y i n g e t t i n g w a t e r b e c a u s e o f t h e Mielke u s e ,          the
    S t o c k Farm was i t s e l f a c o n t r a c t u s e r , and t h e e v i d e n c e f a i l s
    to    disclose           that     any    shortage        of    water       which      may      have
    occurred for the Stock Farm under its water contract was
    brought to the attention of the owner of the project, the
    State of Montana.    A substantial question exists whether the
    State of Montana as owner had notice that the Mielkes were
    claiming adversely to it with respect to the waters in excess
    of those provided under Con-tractNo. 90.
    Secondly, for 34 years the plaintiffs paid the State of
    Montana what they were annually billed for the use of the
    water on their lands under a contract based upon 50 acres.
    By payment to the owners of the water right, the plaintiffs
    recognized in them a superior right to sell the waters to the
    Daly Ditch system.
    In Sherlock v. Greaves (1938), 
    106 Mont. 206
    , 216, 
    76 P.2d 87
    , 90-91, where the defendants maintained a right to
    waters in a ditch by adverse possession, this Court said:
    Since the claim of the defendants, if any, to the
    waters of Crow Creek is not made under an
    a-ppropriation by them, any claim to the use of the
    water as against the plaintiffs, who are not the
    owners of the "Swede Ditch," cannot be adverse to
    the rights of such plaintiffs. The defendants by
    their payment to the owners of that ditch recognize
    in those plaintiffs and their predecessors in
    interest a paramount right, and therefore there was
    no basis for a finding of adverse possession by the
    defendants. (Citing a case.)
    It is, of course, true that the statement of the State's
    ditch rider, Lowery, seemed to indica-te his belief that the
    Mielkes were entitled to "free water" as of right.      It is
    also true that title by prescription can arise from mistaken
    assumption of title.    See Calfee v. Duke (Texas 1976), 
    544 S.W.2d 640
    .
    However, in this case we have the additional problem
    that when the Mielkes took waters from Gird Creek over the
    years in this case, they were taking waters admittedly paid
    for by them as contract waters, and mixed with waters to
    which they now claim adverse use.                 In that regard, the
    possession of the Mielkes to the use of the water was not
    exclusive, but was in participation with the owner, the State
    of Montana.    Title by an adverse use cannot then be gained,
    if we apply to this case the principles that are applicable
    to   adverse user       of   lands:    "[Wlhen two persons are in
    possession the seisin follows the owner.              Where either owned
    a better title than the other, the law wil.1 refer the joint
    occupancy to the right of such owner."                5 Thompson on Real
    Property, S 2547, at 626 (1979).
    The   rule   is    "tha.t in    case   of   a    mixed   or   common
    possessj-on of     land by     both   parties to a        suit, the    law
    adjud.ges the riqhtful possession to him who holds legal
    title, and no length of time of possession can give title by
    adverse possession as against the legal title."                 Vider v.
    Zavislan (Colo. 1961), 362 P.2d 1.63, 166.            -- Carley v.
    See also
    Davis   (Okla. 1969), 
    452 P.2d 772
    , 776,        (Mixed or    shared
    possession is not the kind of possession that gives rise to
    title by prescription).
    We stated in Smith v. Krutar, 153 Mont. at 330, 457 P.2d
    Developing case law in this state provides three
    basic prerequisites for establishing adverse user:
    (1) that the claimant used water at a time when
    the plaintiff had need of it; (2) that he used it
    in such a substantial manner as to notify plaintiff
    that it was being deprived of water to which it was
    entitled; and (3) that during all of that period,
    plaintiff could have maintained. an action against
    him for so using the water.        (Citing Ring v.
    Schultz (1962), 
    141 Mont. 94
    , 101, 375 P.2d 1.08,
    111.)
    If the use of property of another was permissive in the
    beginning, the use can be changed into a hostile and adverse
    use only by the most unequivocal conduct of the user; and the
    evidence of adverse use m.ust be strictly construed against
    the adverse user, and every reasonable intendment should be
    made in favor of the true owner.       Price v. Western Life
    Insurance Co. (1944), 
    115 Mont. 509
    , 514, 
    146 P.2d 165
    , 167.
    There is no showing here that the owner, the State of
    Montana, was notified by the Plielkes, that it as owner was
    being deprived of water to which it was entitled.   Bitterroot
    Stock Farm may have had notice of such use; but notice to
    another contract user would not constitute notice to the
    State.     The Mielkes' claim to title by prescription to t.he
    excess water over their contract supply, therefore, fai1.s.
    The    defendants, State of Montana   and   DNRC   raise a
    further issue that a title by adverse possession may not be
    acquired against the State.   Mielkes object to the raising of
    this issue upon the grounds that it was not considered in the
    District Court.    Our search of the record reveals that while
    the issue may have been raised in briefs, it does not appear
    that the District Court considered the issue.       Because we
    have decided the question of title by adverse use on other
    grounds foregoing, we have not in this opinion considered the
    issue of whether an adverse title under the circumstances of
    this case may be acquired. against the State.
    The District Court concluded that Contract No. 90 had
    been terminated and was no longer in effect.     No appeal was
    taken from that portion of the District Court judgment.
    We reverse the judgment of this cause and remand the
    same to the District Court with directions to enter judgment
    in favor of the defendants.
    We Concur:
    C h i e f Justice
    The Hon. Henry Loble, District Judge, dissenting:
    I respectfully dissent.
    The District Court entered judgment in favor of the
    Mielkes, on    the basis of adverse use, granting them               93
    miner's inches as a first priority right in Gird Creek.             Our
    review    is   confined   to   determining     whether      there    is
    substantial credible      evidence   to    support   this   decision.
    Helehan v. Ueland    (1986), 
    725 P.2d 1192
    , 1194, 43 St.Rep.
    1679, 1682.    "In so determining, we must view the evidence in
    the light most     favorable to the prevailing party."              -
    Id.
    "Further, the evid.ence may conflict with other evidence and
    still be deemed 'substantial.'"      -
    Id.
    The majority reverses the District Court's judgment on
    the basis of "two factors which militate against a title by
    prescription in the Mielkes."        First, the majority states
    that "a substantial question exists whether the State of
    Montana as owner had notice that the Mielkes were claiming
    adversely to it with respect to the waters in excess of those
    provid.ed under Contract No. 90."     (Emphasis added.)      However,
    - record shows that the State had more than adequate
    the
    notice.    Mielke testified that he irrigated all of his land,
    98.44 acres, every year since 1946, using about 200 miner's
    inches of Gird Creek water each year.       He paid only for water
    sufficient. to irrigate 50 acres [about 107 miner's inches].
    Everytime he took water, he - - State what he was going
    told the
    to do.    He opened his own headgate and turned water from Gird
    Creek into his ditch without permission.
    Robert Lowery, who was the ditch rider - - State in
    for the
    the years 1946-1950, testified that his father, who was the
    manager of the Daly Ditch Project and also employed by -
    the
    State, told him that Mielke was entitled to free water.
    Robert Lowery also testified that Mielke was only - pay for
    to
    - portion of the water used and the balance - - - free water
    a                                           was a
    right.   Lowery gave Mielke permission to operate the headgate
    in recognition of his free water right.             Lowery only allowed
    people     with   a   free    water     right     to   open   their    own
    headgates--others operating on a contract right were not
    allowed to open their own headgate.             Rased on the record and
    the District Court's decision, the term "free water" means
    water that Mielke had         a right to use without charge as
    contrasted to water he paid for under his Contract No. 90.
    In addition, and as the majority opinion stated, "there
    was a county road alongside [Mielkes'] acreage and the amount
    of their irrigation use was open and obvious to persons
    traveling along that road, including the d-itch riders - -
    for the
    District; moreover, the District Headquarters was only a
    short distance from the Mielke farm."                  (Emphasis added.)
    Specifically, Mielke testified that District Headquarters was
    about one-third       of   a mile     from his property       and anyone
    driving on the road could. see him, with a shovel, irrigating.
    He also testified that State Personnel, including the ditch
    riders, drove back and forth on the road.              " [TIhere ain't a
    day that goes by that there ain't some of their crew that
    goes over."
    In conclusion, the record shows that the State had more
    than adequate notice.
    The    second    factor, which, according to the majority
    opinion, militates against adverse use is that "plaintiffs
    aid the State    ...      for the use of the water on their lands
    under a contract based upon - acres."
    50                         (~mphasisadded.)
    True, "under Contract No. 90           ...   Mielkes purchased        ...
    water to irrigate - acres."
    50              (Emphasis added.)        However,
    "Mielkes currently irrigate 98.44 acres."         (Emphasis added.)
    Mielke testified that the most water he ever paid the State
    for was that sufficient to irrigate - acres.
    50                   The ditch
    rider, a State emplo ee, testified that:     1)    Mielke was only
    - pay - - a portion of the water he used; 2)
    to    for                                           the balance of
    the water was a free water right; 3)    the free water was in
    add-ition to what   Mielke   got under Contract No.        90, and
    4)   Mielke had about a 100 inch free water right.          It was
    this free water right - a.bout 100 inches, not the purchased
    of
    contract water, that Mielkes claimed on the basis of adverse
    possession.   On that basis, the District Court granted such
    claim.   Mielkes did not claim a right by adverse possession
    to water purchased from the State and used to irrigate 50
    acres.   Rather, they claimed a right, by adverse possession
    to approximately 100 miner's inches used. to irrigate the
    remaining 48.44 acres of their land.       Therefore, the fact
    that Mielkes paid for their contract water does not affect
    their claim of adverse possession of unpurchased non-contract
    water.   Even the majority recognized this fact.      They stated:
    " [Mielkes] were taking wa.ters admittedly paid -
    for        - -as
    them
    contract waters, and mixed with waters - which they -
    to           now
    claim adverse use."    The majority opinion also referred to
    "Mielkes' claim to title by prescription to the excess -
    of
    water over their contract supply    . . ."        Furthermore, the
    majority questioned whether the State had notice that "the
    Nielkes were claiming adversely to it with respect to waters
    - excess - those provided under Contract - -
    in       of                              No. 90."
    The majority's last argument is that the "possession of
    Mielkes to the use of t.he water was not exclusive, but was in
    participation with the owner, the State of Montana."            The
    majority asserts that when two persons are in possession, the
    seisin follows the owner.          In support, they cite Carley v.
    Davis    (Okla. 1969), 
    452 P.2d 772
    ; and Vider v.            Zavislan
    (Colo. 1961.), 
    362 P.2d 163
    .     The     defendant     in    Carley
    testified that his land was his continual place of work until
    he put it in Soil Bank and that his cattle were on the land
    all one summer.        The plaintiff testified that there had never
    been a year since 1944, that he did not have possession of
    such tract.       The appeals court affirmed the trial court's
    determination that plaintiff's claimed. "exclusive" possession
    was     shared    by     others   and    thus,     not    sufficient      for
    prescriptive title purposes.
    In Vider, the defendant held             title to the disputed
    tracts of land and built his temporary drift fences upon such
    land.    The plaintiff had actual or constructive possession of
    the land.        Under    such circumstances, the Colorado Court
    applied the following rule:
    [I]n case of a mixed or common possession - -
    of land
    by both parties to a suit, the law adjudges the
    rightful hossession to him who holds legal tit.le,
    and. no length of time of possession can give title
    by adverse possession as against the legal title.
    (Emphasis added.)
    These two out-of-state cases cited by the majority are
    not applicable to the case at hand.              First, Carley and Vider
    adjudicate ownership of land.            The water at issue in this
    case was - held in ownership by the State in its role as a
    not
    sovereign.       The State obtained the use of this water from
    Ravalli Land and Irrigation Co. and sold the - thereof, as
    use
    a ditch company, in the same manner as its predecessor.                  Only
    the - of the water for purposes of sale was a.cquired by the
    use
    State.     Norman v. Corbley (1905), 
    32 Mont. 195
    , 203, 
    79 P. 1059
    ,    1060.         Secondly, there    was     no     mixed   or    common
    possession, by the Mielkes and the State, of the water at
    issue.      Mielkes had exclusive use of the water.                  Mielke
    testified that he irriga.ted - of his land every year since
    all
    1946.     There is no evidence that the State also used this
    water.
    The District Court concluded that the Mielkes satisfied
    all requirements for adverse possession of a water right for
    93 miner's inches.            "This Court will not substitute its
    judgment for that of the trier of fact.                  We will consider
    only     whether    substantial credible           evidence    supports   the
    findings and conclusions.                Findings will n.ot be overturned
    unless there is a clear preponderance of evidence against
    them, recognizing that evidence may be weak or conflicting,
    yet still support the findings."                Jensen v. Jensen (Mont.
    1981), 
    629 P.2d 765
    , 768, 38 St.Rep. 927, 930.                 Further, the
    appellant must overcome the presumption that the District
    Courtls order is correct.            Jensen v. Jensen (1979), 
    182 Mont. 472
    , 
    597 P.2d 733
    .   "Finally, a reviewing court is never
    justified in substituting its discretion for that of the
    trial court."       Marriage of Ward (Mont. 1986), 
    725 P.2d 1211
    ,
    1213, 43 St.Rep.          1825, 1827.        "In determining whether the
    trial    court     abused     its    discretion, the question        is not
    whether the reviewing court agrees with the trial court, but,
    rather, did the trial court in the exercise of discretion act
    arbitrarily without the employment of conscientious judgment
    or     exceed    the    bounds      of   reason,   in   view   of   all   the
    circumstances, ignoring recognized principles resulting in
    substantial injustice."             Porter v. Porter (1970), 
    155 Mont. 451
    , 457, 
    473 P.2d 538
    , 541.
    Because there is substantial evidence supporting the
    District Court's decision and because the District Court did
    not act arbitrarily, I would affirm its decision granting
    Mielkes a water right of 93 miner's inches on the basis of
    adverse possession.
    However,    such    decision      brings    UP    another
    question--whether adverse possession can be acquired against
    the State under the facts of this case.     Mielkes argue that
    this issue was not set forth, before trial, a.s a defense and,
    therefore, was waived.   The issue was raised in pre-decision
    briefs, but it was not ruled upon by the ~istrict Court.
    Therefore, I would remand this case for findings of fact and
    conclusions of 1-aw on the question of whether such defense
    was waived and, if not waived, for findings and conclusions
    on whether adverse possession can be obtained against the
    State und-er the facts of this case.    See, State v. Shirokow
    (Cal. 1980), 
    605 P.2d 859
    , 866.
    Hon. Henry Loble
    Judge, Sitting for
    Justice John C.
    Mr. Justice Frank B. Morrison, Jr.:
    I concur in the foregoing dissent of Judge Loble.