In a Feb. 21 filing, the Pagosa Area Water and Sanitation District (PAWSD) filed its response to the counterclaims raised by the San Juan Water Conservancy District (SJWCD) as part of the ongoing lawsuit between the two districts concerning the potential sale of Running Iron Ranch.
The SJWCD counterclaims include allegations that PAWSD’s attempts to sell the ranch are a breach of the 2015 agreement between the two districts and the Colorado Water Conservation Board (CWCB).
It also requests a declaratory judgment that PAWSD is not allowed to sell the ranch during the planning period specified in the 2015 agreement unless it makes “every effort” to retain the property, as stated in the agreement. The agreement designates the planning period as extending for 20 years from 2015 to 2035.
The counterclaims also request an injunction from the court preventing PAWSD from taking actions to sell the ranch, acting in a manner that diminishes the SJWCD’s and CWCB’s ability to find partners for the reservoir project, or making unilateral decisions concerning the management of the property.
The PAWSD response broadly denies the claims made in the SJWCD counterclaim and presents a variety of affirmative defenses, including failure to state a claim, immunity, duress, mistake, a failure by the SJWCD to mitigate damages it may have suffered, prior breach of contract and inducement of a breach of contract by words or conduct.
The response concludes by requesting that the court deny the SJWCD’s counterclaims and award costs and attorney’s fees to PAWSD along with any other relief the court deems proper.
According to board discussion at the Feb. 17 SJWCD meeting, this filing is the last filing necessary before the lawsuit can move forward and the discovery process, where both parties can obtain information from the other concerning the case, can begin.
josh@pagosasun.com
