Case Summary
Issue:
Whether a State may effectuate an uncompensated land-grab by claiming that a river is generally navigable as a whole without engaging in a section-by-section analysis of the river and by claiming that a river is navigable based upon present-day use?
Plaintiff:
PPL Montana, LLC
Defendant:
State of Montana
Amicus Curiae:
Mountain States Legal Foundation and Utah Farm Bureau Federation
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Case History
In 2003, two Montana citizens sued PPL Montana, LLC, which replaced the Montana Power Company and purchased its hydroelectric facilities and land, and two other hydroelectric companies in federal court seeking compensation for Montana for the companies’ use of riverbeds under two federally licensed hydroelectric facilities and arguing under the Equal Footing Doctrine that the riverbeds are part of its school trust and that they owed hundreds of millions in unpaid rent to Montana. After Montana intervened, the court dismissed the case in 2005.
PPL and the other hydroelectric companies then sued in Montana state court seeking a declaration that federal law precludes or preempts any claim for compensation. Montana filed a counterclaim demanding back rent. After the other companies settled, Montana moved for partial summary judgment, arguing that the Missouri, Madison, and Clark Fork Rivers were navigable in 1889, when Montana was admitted to the Union; therefore, Montana owned the riverbeds under the Equal Footing Doctrine. PPL argued that navigability is determined on a section-by-section basis at the time of statehood. Despite substantial disputed evidence, the court granted partial summary judgment, and, in 2008, ordered PPL Montana to pay Montana $40 million for past use of the riverbed and required it to pay compensation for all future use.
In March 2010, a divided (5-2) Montana Supreme Court, over a strong dissent, upheld the lower court; its ruling affects over 500 miles of rivers and 5,600 acres of riverbeds. On June 20, 2011, the Supreme Court agreed to review the ruling of the Montana Supreme Court.
On September 7, 2011, MSLF filed its brief and, after the completion of all briefing, oral arguments were conducted on December 7, 2011.