73-1-16 - Petition for hearing to determine validity -- Notice -- Service -- Pleading -- Costs -- Review.
73-1-16. Petition for hearing to determine validity -- Notice -- Service -- Pleading --Costs -- Review.
Where any water users' association, irrigation company, canal company, ditch company,reservoir company, or other corporation of like character or purpose, organized under the laws ofthis state has entered into or proposes to enter into a contract with the United States for thepayment by such association or company of the construction and other charges of a federalreclamation project constructed, under construction, or to be constructed within this state, andwhere funds for the payment of such charges are to be obtained from assessments levied upon thestock of such association or company, or where a lien is created or will be created against any ofthe land, property, canals, water rights or other assets of such association or company or againstthe land, property, canals, water rights or other assets of any stockholder of such association orcompany to secure the payment of construction or other charges of a reclamation project, thewater users' association, irrigation company, canal company, ditch company, reservoir companyor other corporation of like character or purpose may file in the district court of the countywherein is situated the office of such association or company a petition entitled ".......... WaterUsers' Association" or ".......... Company," as the case may be, "against the stockholders of saidassociation or company and the owners and mortgagees of land within the .......... FederalReclamation Project." No other or more specific description of the defendants shall be required. In the petition it may be stated that the water users' association, irrigation company, canalcompany, ditch company, reservoir company or other corporation of like character and purposehas entered into or proposes to enter into a contract with the United States, to be set out in full insaid petition, with a prayer that the court find said contract to be valid, and a modification of anyindividual contracts between the United States and the stockholders of such association orcompany, or between the association or company, and its stockholders, so far as such individualcontracts are at variance with the contract or proposed contract between the association orcompany and the United States.
Thereupon a notice in the nature of a summons shall issue under the hand and seal of theclerk of said court, stating in brief outline the contents of said petition, and showing where a fullcopy of said contract or proposed contract may be examined, such notice to be directed to thesaid defendants under the same general designations, which shall be considered sufficient to givethe court jurisdiction of all matters involved and parties interested. Service shall be obtained (a)by publication of such notice once a week for three consecutive weeks (three times) in anewspaper published in each county where the irrigable land of such federal reclamation projectis situated, (b) as required in Section 45-1-101 for three weeks, (c) by publishing the notice onthe Utah Public Notice Website created in Section 63F-1-701, for three weeks prior to the date ofthe hearing, and (d) by the posting at least three weeks prior to the date of the hearing on saidpetition of the notice and a complete copy of the said contract or proposed contract in the officeof the plaintiff association or company, and at three other public places within the boundaries ofsuch federal reclamation project. Any stockholder in the plaintiff association or company, orowner, or mortgagee of land within said federal reclamation project affected by the contractproposed to be made by such association or company, may demur to or answer said petitionbefore the date set for such hearing or within such further time as may be allowed therefor by thecourt. The failure of any persons affected by the said contract to answer or demur shall beconstrued, so far as such persons are concerned as an acknowledgment of the validity of saidcontract and as a consent to the modification of said individual contracts if any with such
association or company or with the United States, to the extent that such modification is requiredto cause the said individual contracts if any to conform to the terms of the contract or proposedcontract between the plaintiff and the United States. All persons filing demurrers or answersshall be entered as defendants in said cause and their defense consolidated for hearing or trial. Upon hearing the court shall examine all matters and things in controversy and shall enterjudgment and decree as the case warrants, showing how and to what extent, if any, the saidindividual contracts of the defendants or under which they claim are modified by the plaintiff'scontract or proposed contract with the United States. In reaching his conclusion in such causes,the court shall follow a liberal interpretation of the laws, and shall disregard informalities oromissions not affecting the substantial rights of the parties, unless it is affirmatively shown thatsuch informalities or omissions led to a different result than would have been obtained otherwise. The Code of Civil Procedure shall govern matters of pleading and practice as nearly as may be. Costs may be assessed or apportioned among contesting parties in the discretion of the trial court. Review of the judgment of the district court by the Supreme Court may be had as in other civilcauses.
Amended by Chapter 90, 2010 General Session