Baker Ranches, Inc. v. Burgum
CourtCourt of Appeals for the Ninth Circuit
Date FiledSeptember 30, 2026
Docket24-5713
StatusPublished
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Full Opinion
FOR PUBLICATION
UNITED STATES COURT OF APPEALS
FOR THE NINTH CIRCUIT
BAKER RANCHES, INC.; DAVID No. 24-5713
JOHN ELDRIDGE; RUTH
D.C. No.
ELDRIDGE, as Co-Trustees of the
3:21-cv-00150-
David John Eldridge and Ruth
GMN-CSD
Eldridge Family Living Trust dated
January 31, 2007; ZANE JORDAN;
JUDEE SCHALEY,
OPINION
Plaintiffs - Appellants,
v.
DOUG BURGUM, in his official
capacity as Secretary of the United
States Department of the Interior;
UNITED STATES DEPARTMENT
OF THE INTERIOR; SHAWN
BENGE, in his official capacity as
Acting Director of the National Park
Service; NATIONAL PARK
SERVICE; ASHLEY ADAMS, in
her official capacity as
Superintendent of the Great Basin
National Park,
Defendants - Appellees.
2 BAKER RANCHES, INC. V. BURGUM
Appeal from the United States District Court
for the District of Nevada
Gloria M. Navarro, District Judge, Presiding
Argued and Submitted March 24, 2026
Pasadena, California
Filed September 30, 2026
Before: Johnnie B. Rawlinson and John B. Owens, Circuit
Judges, and Sidney A. Fitzwater, District Judge. *
Opinion by Judge Owens;
Dissent by Judge Rawlinson
SUMMARY **
Sovereign Immunity / McCarran Amendment
The panel reversed the district court’s dismissal of a suit
against federal defendants (“the United States”) for lack of
subject matter jurisdiction based on sovereign immunity.
In 1934, a Nevada state court entered the Baker-
Lehmann Decree, setting out the water rights for the Baker-
Lehman Creeks, which flow through what is now the Great
Basin National Park. Under the Baker-Lehmann Decree,
*
The Honorable Sidney A. Fitzwater, United States District Judge for
the Northern District of Texas, sitting by designation.
**
This summary constitutes no part of the opinion of the court. It has
been prepared by court staff for the convenience of the reader.
BAKER RANCHES, INC. V. BURGUM 3
Plaintiffs, including Baker Ranches, Inc., own downstream
water rights. Plaintiffs alleged that the Park engaged in
activities that reduced water flow and jeopardized their water
rights. They sued the United States to enjoin such activities
and enforce their rights under the Decree.
Plaintiffs argued that the United States’ sovereign
immunity was waived by the McCarran Amendment, which
waives the sovereign immunity of the United States “in any
suit (1) for the adjudication of rights to the use of water of a
river system or other source, or (2) for the administration of
such rights, where it appears that the United States is the
owner of or is in the process of acquiring water rights.” 43
U.S.C. § 666(a). The McCarran Amendment was enacted in
1952 but retroactively applies to the administration of
previously acquired water rights. The district court
determined that sovereign immunity was not waived by the
McCarran Amendment and dismissed Plaintiffs’ case for
lack of jurisdiction.
Reversing, the panel held that the McCarran Amendment
waived the United States’ sovereign immunity. First, the
McCarran Amendment waives sovereign immunity for the
administration of rights determined in a “comprehensive”
adjudication, and the Baker-Lehmann Decree was
comprehensive. The Baker-Lehman Adjudication was
meant to serve as a final determination of all relative water
rights upon the Baker-Lehman Creeks. Second, the
McCarran Amendment controls in cases adjudicating or
administering water rights, and Baker Ranches is suing for
the administration of water rights they hold under the Baker-
Lehmann Decree. Accordingly, the panel held that the
McCarran Amendment waived the United States’ sovereign
immunity from this suit.
4 BAKER RANCHES, INC. V. BURGUM
Dissenting, Judge Rawlinson would affirm the district
court’s determination that the sovereign immunity of the
United States was not waived by the McCarran
Amendment. Under the language of the McCarran
Amendment, expressed legislative intent, Supreme Court
authority, and this Court’s precedent, the United States did
not waive its sovereign immunity for the Baker-Lehman
Creeks adjudication. Thus, the Baker Lehman Decree does
not bind the United States.
COUNSEL
Benjamin J. Hogan (argued), Bryan Cave Leighton Paisner
LLP, Denver, Colorado; Jean-Claude Andre, Bryan Cave
Leighton Paisner LLP, Santa Monica, California; Seth M.
Reid, Bryan Cave Leighton Paisner LLP, St. Louis,
Missouri; Debbie Leonard, Leonard Law PC, Reno, Nevada;
Kole W. Kelley and Ivan L. London, Mountain States Legal
Foundation, Lakewood, Colorado; for Plaintiffs-Appellants.
Ezekiel Peterson (argued) and Katharine Laubach,
Attorneys, Environment & Natural Resources Division;
Adam R.F. Gustafson, Acting Assistant Attorney General;
United States Department of Justice, Denver, Colorado;
Karen Glasgow, Supervisory Attorney-Advisor, Office of
the Solicitor, United States Department of Interior, Denver,
Colorado; Andrew M. Bernie and Jason Lee, Trial
Attorneys; United States Department of Justice,
Washington, D.C.; Holly A. Vance, Assistant United States
Attorney, Office of the United States Attorney, United States
Department of Justice, Reno, Nevada; for Defendants-
Appellees.
BAKER RANCHES, INC. V. BURGUM 5
J. Gregory Cloward, Deputy Attorney General; Jeffrey M.
Connor, Chief Deputy Solicitor General; Aaron M. Ford,
Nevada Attorney General; Office of the Nevada Attorney
General, Carson City, Nevada; for Amicus Curiae State of
Nevada.
Laura A. Schroeder, Therese A. Ure Stix, and Caitlin R.
Skulan, Schroeder Law Offices PC, Portland, Oregon, for
Amici Curiae Central Nevada Regional Water Authority,
Humboldt County, Humboldt River Basin Water Authority,
Nevada Association of County Commissioners, Nevada
Land Action Association, Nevada Grazing Board of District
No. 4, Pershing County, Pershing County, Pershing County
Water Conservation District, The Rose of Snowville LLC,
Washoe County, and White Pine County.
David H. Rigdon, Taggart & Taggart LTD, Carson City,
Nevada, for Amici Curiae Western State Farm Bureau
Federations (Nevada Farm Bureau Federation, Idaho Farm
Bureau Federation, and California Farm Bureau Federation).
Karen A. Peterson and Keith H. Ketola, Carson City,
Nevada; Theodore Beutel, Eureka County District Attorney,
Eureka, Nevada; for Amicus Curiae Eureka County.
6 BAKER RANCHES, INC. V. BURGUM
OPINION
OWENS, Circuit Judge:
Baker Ranches, Inc., David John Eldridge, Ruth
Eldridge, Zane Jordan, and Judee Schaley (collectively
“Plaintiffs”) appeal from the district court’s dismissal of
their suit against federal defendants (“the United States”) for
lack of jurisdiction based on sovereign immunity. We have
jurisdiction under 28 U.S.C. § 1291, and we reverse and
remand.
I. BACKGROUND
In 1934, a Nevada state court entered a decree that set
out the water rights for the Baker-Lehman Creeks, which
flow through what is now Great Basin National Park (“the
Park”), created in 1986. Under the so-called “Baker-
Lehman Decree” (“Decree”), Plaintiffs own downstream
water rights. Baker Ranches has long used the water to
support its extensive ranch operations.
Plaintiffs allege that the Park has engaged in activities—
ranging from water diversion to planting vegetation—that
have reduced water flow and jeopardized their downstream
water rights, threatening to put Baker Ranches out of
business. Plaintiffs sued the United States to enjoin such
activities and enforce their rights under the Decree.
After extensive litigation in multiple forums, the district
court held that the United States enjoyed sovereign
immunity, meaning the state and federal courts lack subject
matter jurisdiction to enforce the Decree against the United
States. Plaintiffs have contended throughout that sovereign
immunity was waived by the McCarran Amendment, which
was enacted in 1952 but retroactively applies to the
BAKER RANCHES, INC. V. BURGUM 7
administration of previously acquired water rights. See State
Eng’r v. S. Fork Band of the Te-Moak Tribe of W. Shoshone
Indians of Nev. (Te-Moak), 339 F.3d 804, 811–13 (9th Cir.
2003). We agree. To understand why, we begin with a brief
history of the development of water rights in the West and
the role of the McCarran Amendment.
A. Development of Federal and Nevada Water Law
Water rights—crucial to the development of the land-
rich, water-poor American West—were initially adjudicated
through individual private actions. See 1 Robert E. Beck,
Waters & Water Rights § 15.01 (2026). A claimant would
file a complaint asserting rights to a particular water source
and alleging interference by defendants, who would file
answers and cross-complaints asserting their own rights.
But because the rights of all claimants to a particular water
source are closely interrelated, “[e]ach claimant is therefore
directly and vitally interested, not only in establishing the
validity and extent of his own claim, but in having
determined all of the other claims” to that water source. Pac.
Live Stock Co. v. Or. Water Bd., 241 U.S. 440, 449 (1916)
(citation omitted). As settlement boomed in the West,
conflicts over water rights increased, resulting in
voluminous piecemeal litigation.
The rights of all claimants to a particular water source
are “so closely related that the presence of all is essential”
for a final determination of any rights to that water source.
Id. But joinder of the “hundreds or thousands” of individual
claims to a water source would have been “extremely
cumbersome and inefficient.” United States v. Oregon, 44
F.3d 758, 763–64 (9th Cir. 1994). Several Western states,
including Nevada, attempted to solve the problem by
8 BAKER RANCHES, INC. V. BURGUM
establishing statutory procedures to adjudicate all water
rights on entire stream systems at once.
In 1913, Nevada created its present statutory system for
the mass adjudication of surface water rights. See Act of
Mar. 22, 1913, ch. 140, 1913 Nev. Stat. 192 (codified as
amended at Nev. Rev. Stat. ch. 533) (“1913 Nevada Water
Law”). Under this system, adjudication would proceed as
follows. The State Engineer initiates the process. Nev. Rev.
Stat. Ann. § 533.090. He provides notice of the proceedings,
gathers relevant stream flow data, collects proofs of
appropriation, hears objections, and enters an order of
determination “defining the several rights to the waters of
the stream or stream system.” Id. §§ 533.090, 533.095,
533.100, 533.160. After further notice and hearings, the
state district court affirms or modifies the Engineer’s order
in a decree setting out a “final” and “conclusive” distribution
of water rights. Id. §§ 533.185, 533.210. The rights set out
in that decree may then be enforced and administered by the
Engineer and state water commissioners acting as officers of
the court. Id. § 533.220.
But one issue remained. “While these statutory
adjudications seemed to promise an end to the confusing and
conflicting adjudication of water rights in multiple cases, the
system was impaired by the refusal of the federal
government to participate.” Oregon, 44 F.3d at 765. The
United States claimed extensive water rights in the West,
yet—shielded by sovereign immunity—could refuse states’
attempts to adjudicate and administer those rights. States
found themselves unable to secure a final and conclusive
determination of rights whenever the United States appeared
in a watershed. See S. Rep. No. 755, 82d Cong., 1st Sess. 4
(1951). And the United States’ refusal to submit to state
BAKER RANCHES, INC. V. BURGUM 9
court adjudication and administration provoked significant
political backlash. 1
In 1952, Congress took action. It passed the McCarran
Amendment, which waives the sovereign immunity of the
United States “in any suit (1) for the adjudication of rights to
the use of water of a river system or other source, or (2) for
the administration of such rights, where it appears that the
United States is the owner of or is in the process of acquiring
water rights.” 43 U.S.C. § 666(a). The statute “applie[s]
retroactively and thus waive[s] the United States’ immunity
from suit for the administration of water rights acquired
before the law came into effect.” Am. Indian Law Deskbook
§ 8:18 (2024) (citing Te-Moak, 339 F.3d at 813); see also
1
One notable example was the federal government’s attempt to acquire
water rights in the Santa Margarita River watershed to support the
military establishment at Camp Pendleton. Locals who depended on the
water felt “subversively exploited” by the federal government’s water
grab. A Bill to Authorize Suits Against the United States to Adjudicate
& Administer Water Rights: Hearings on S.18 Before a Subcomm. of the
S. Comm. on the Judiciary, 82d Cong. 77 (1951) (letter of George F.
Yackey, general manager of the Fallbrook Public Utility District). The
matter resulted in public outcry, spawning multiple articles and even a
short film produced and directed by Frank Capra. See, e.g., Stanley
High, Washington Tyranny: Another Case Study, Reader’s Digest, Dec.
1951, reprinted in 98 Cong. Rec. 124 (1952); Frank Capra, The
Fallbrook Story (1952).
The United States was also involved in highly contentious water
controversies on the Quinn River in Nevada, and in several Colorado
water districts. See Hearings on S.18, 82d Cong. 47 (1951) (statement
of W.T. Mathews, Attorney General of the State of Nevada); id. at 26–
27 (statement of Glenn G. Saunders, representing the National
Reclamation Association). These controversies, caused by the United
States’ use of its sovereign immunity to preclude the adjudication and
administration of the water rights it claimed, formed the backdrop to
Congress’ consideration of the McCarran Amendment.
10 BAKER RANCHES, INC. V. BURGUM
United States v. Puerto Rico, 287 F.3d 212, 217 (1st Cir.
2002) (“[T]he McCarran Amendment applies to water rights
acquired prior to 1952 . . . .”); United States v. Dist. Ct. in &
for Eagle Cnty. (Eagle Cnty.), 401 U.S. 520, 522–23 (1971)
(applying the McCarran Amendment when the United States
claimed reserved rights acquired in 1905).
The McCarran Amendment was introduced to correct the
“chaotic condition” caused by the United States’ refusal to
participate in the statutory procedures designed to adjudicate
and administer at once all the interlocked water rights on a
stream system, which threatened “a throw-back to the
conditions that brought about the enactment of the statutory
water laws.” S. Rep. No. 755, 82d Cong., 1st Sess. 5 (1951).
Being focused on the “evils growing out of [the United
States’] immunity” from proceedings in which “all water
users on a stream . . . are interested and necessary parties,”
the bill was not intended to waive the United States’
immunity from private suits. Id.
For instance, in response to concerns that individuals
might use the bill to block the construction of projects by the
Bureau of Reclamation, Senator Pat McCarran—the bill’s
Senate sponsor and namesake—assured that it was “not
intended to be used for the purpose of obstructing or
delaying Bureau of Reclamation projects.” Id at 9. Indeed,
he clarified that the Amendment’s waiver of immunity was
“not intended to be used for any other purpose than to allow
the United States to be joined in a suit wherein it is necessary
to adjudicate all of the rights of various owners on a given
stream.” Id. at 9. Adopting this intended limit, our courts
have since held that the McCarran Amendment only allows
the United States to be joined in suits involving a
“comprehensive water right adjudication.” Oregon, 44 F.3d
at 766 (quoting United States v. Idaho, 508 U.S. 1, 9 (1993)).
BAKER RANCHES, INC. V. BURGUM 11
B. Water Rights on the Baker-Lehman Creeks
1. The Baker-Lehman Adjudication and Decree
More than two decades before the passage of the
McCarran Amendment, the State Engineer of Nevada in
1925 initiated a determination of water rights on the Baker-
Lehman Creeks (“Baker-Lehman Adjudication”). The
adjudication took place according to the procedures laid out
in the 1913 Nevada Water Law, Nevada’s statutory system
for the mass adjudication of water rights. See Nev. Rev. Stat.
ch. 533. The United States did not participate or assert any
claims. After publishing notices and collecting claimants’
proofs of appropriation, the State Engineer issued his order
of determination nearly eight years after the adjudication
began. A copy of the order of determination was mailed to
all claimants, and to the United States.
After the State Engineer filed the order of determination
in the Seventh Judicial District Court of Nevada, the state
court scheduled a hearing for interested parties to raise
exceptions to the order of determination. Copies of the
scheduling order were mailed to the claimants and to the
United States, and published in a local newspaper. Again,
the United States did not participate.
Finally, on October 16, 1934, the state court entered the
Baker-Lehman Decree. Applications to modify the decree
were to be submitted within three years of its entry. See Nev.
Rev. Stat. § 533.210. Under Nevada law, this decree was to
be a final determination of water rights on the Baker-
Lehman Creeks. Id. Any future rights claimed on the Baker-
Lehman Creeks could only be adjudicated in a
“supplemental adjudication,” which under state law may not
disturb any existing rights under the 1934 Baker-Lehman
Decree. See Mineral County v. Lyon County, 473 P.3d 418,
12 BAKER RANCHES, INC. V. BURGUM
429 (Nev. 2020) (observing that Nevada’s water law
“expressly prohibits reallocating adjudicated water rights”).
The Baker-Lehman Decree provided, in part, that “each
and every water user of the Baker and Lehman Creeks
stream system . . . be perpetually enjoined and restrained”
from “diverting or using or preventing or obstructing the
flow . . . of any of the water” except in the manner provided
for by the Decree. It further required every water user to
“keep . . . the main stream channel through his land[ ]
reasonably clean of weeds, vegetation, and deposits of silt”
and “maintain” the channels to facilitate “minimum loss of
conveyed water.”
2. The Parties’ Water Rights
Under the Baker-Lehman Decree, Baker Ranches holds
adjudicated water rights with a priority date between 1872
and 1904; David John Eldridge and Ruth Eldridge hold
rights with a priority date of 1872; and Zane Jordan and
Judee Schaley hold water rights with a priority date of 1876.
The United States claims two types of water rights on the
Baker-Lehman Creeks. First, it holds appropriative rights
set out in the Baker-Lehman Decree, which it acquired from
private appropriators. Second, the United States now claims
reserved water rights, which it never asserted before the
instant litigation and were not adjudicated or recognized in
the Baker-Lehman Decree. These reserved water rights stem
from various reservations of land made in the twentieth
century. 2 The earliest of these reservations dates to 1909,
2
When the United States withdraws land from the public domain and
reserves it for a federal purpose, we understand it to reserve enough
water to carry out the purpose of the reservation. See Winters v. United
States, 207 U.S. 564, 577 (1908). Reserved water rights vest, or have a
BAKER RANCHES, INC. V. BURGUM 13
when the federal government reserved approximately
556,000 acres to establish the Nevada National Forest. See
Proclamation No. 839, 35 Stat. 2220 (Feb. 10, 1909).
Additional reservations were made in 1922, for the Lehman
Caves National Monument, and in 1986, to create Great
Basin National Park. See Proclamation No. 1618, 42 Stat.
2260 (Jan. 24, 1922); Great Basin National Park Act of 1986,
Pub. L. No. 99-565, § 2, 100 Stat. 3181 (Oct. 27, 1986).
3. The Instant Litigation
When Plaintiffs first began appropriating water from the
Baker-Lehman Creeks, the streams flowed through land in
the public domain. Now, the streams originate in and run
through Great Basin National Park. Plaintiffs allege that the
Park’s activities—diverting water for campgrounds and dust
suppression, felling logs that block creek channels, and
planting vegetation—have reduced water flow, impairing
the rights of downstream water users like themselves.
In 2021, Plaintiffs filed suit in Nevada state court to
enjoin these activities and enforce the water rights they hold
under the Baker-Lehman Decree. The United States
removed the suit to federal district court and claimed
sovereign immunity, and litigation commenced regarding
the proper forum for the case. In an earlier unpublished
disposition, we held that the state court had prior exclusive
jurisdiction only if the United States had waived sovereign
immunity, and directed the district court to consider whether
sovereign immunity was waived under the McCarran
Amendment. See Baker Ranches, Inc. v. Haaland, Nos. 22-
priority date, on the date of the federal reservation. See Cappaert v.
United States, 426 U.S. 128, 138 (1976).
14 BAKER RANCHES, INC. V. BURGUM
15765, 22-15846, 2023 WL 6784357 (9th Cir. Oct. 13,
2023). 3
The district court determined that sovereign immunity
was not waived by the McCarran Amendment and dismissed
the case for lack of jurisdiction. It concluded that because
the United States did not participate in the 1934 Baker-
Lehman Adjudication, it was not a “comprehensive
adjudication” for which the McCarran Amendment waives
sovereign immunity. It did not reach the United States’
separate argument that the McCarran Amendment did not
apply because Plaintiffs’ suit was not one for the
“administration” of water rights. Plaintiffs timely appealed
the district court’s dismissal. We take up the question of
whether the McCarran Amendment waives the United
States’ sovereign immunity in this case, and we hold that it
does.
II. DISCUSSION
A. Standard of Review
“We review de novo the district court's dismissal for lack
of subject matter jurisdiction, including whether the United
States has waived its sovereign immunity.” Harger v. Dep’t
3
Litigation has since proceeded concurrently in federal and state court.
The state court found that the McCarran Amendment waived sovereign
immunity and ultimately issued orders holding the United States in
contempt of the Baker-Lehman Decree and granting Baker Ranches
access to Park land to maintain the streams. The United States appealed
these orders to the Nevada Supreme Court, which held that it lacked
jurisdiction due to this court’s previous decision vacating the district
court’s remand to state court. See Haaland v. Baker Ranches Inc., 560
P.3d 664 (Nev. 2024) (unpublished table decision). It dismissed the
appeal without prejudice, and the United States may move for
reinstatement should the case be remanded back to state court from the
federal district court. Id.
BAKER RANCHES, INC. V. BURGUM 15
of Lab., 569 F.3d 898, 903 (9th Cir. 2009). A waiver of
sovereign immunity “must be unequivocally expressed,” and
the party suing the United States “bears the burden of
pointing to such an unequivocal waiver of immunity.”
Holloman v. Watt, 708 F.2d 1399, 1401 (9th Cir. 1983) (per
curiam) (quoting United States v. Mitchell, 445 U.S. 535,
538 (1980)).
B. The Baker-Lehman Decree Was Comprehensive
The McCarran Amendment waives sovereign immunity
only for the administration of rights determined in a
“comprehensive” adjudication. See Eagle Cnty., 401 U.S. at
524 (“‘[T]he administration of such rights’ in § 666(a)(2)
must refer to the rights described in” § 666(a)(1).); Idaho,
508 U.S. at 3 (the United States may be joined “as a
defendant in a comprehensive water right adjudication”).
Plaintiffs sued to enforce rights determined by the Baker-
Lehman Adjudication between 1925 and 1934, years before
the passage of the McCarran Amendment would have
required the United States to participate. Because the United
States was not a party and the reserved rights it asserts today
were not determined in the adjudication, the United States
and the dissent argue that the Baker-Lehman Adjudication
was not “comprehensive.”
But this reasoning distorts the meaning and purpose of
the requirement that adjudications be “comprehensive.”
This requirement—which does not appear in the text of the
statute—was imposed by courts to reflect the purpose of the
McCarran Amendment. See Dugan v. Rank, 372 U.S. 609,
618 (1963) (citing S. Rep. No. 755, 82d Cong., 1st Sess. 9
(1951)); see also Oregon, 44 F.3d at 766. “The clear federal
policy evinced by [the McCarran Amendment] is the
avoidance of piecemeal adjudication of water rights in a
16 BAKER RANCHES, INC. V. BURGUM
river system . . . . [T]he McCarran Amendment bespeaks a
policy that recognizes the availability of comprehensive
state systems for adjudication of water rights as the means
for achieving these goals.” Colo. River Water Conservation
Dist. v. United States, 424 U.S. 800, 819 (1976) (emphasis
added). Because the McCarran Amendment exists to
support “comprehensive state systems for adjudication,” its
waiver of sovereign immunity is construed to extend only to
adjudications that take place in that context. Id. By contrast,
“piecemeal, private water rights litigation”—the types of
suits that the McCarran Amendment was intended to help
comprehensive state systems replace—sit outside the scope
the McCarran Amendment. Oregon, 44 F.3d at 768.
The 1913 Nevada Water Law is clearly one of those
“comprehensive state systems” that the McCarran
Amendment was meant to support. Our caselaw has
recognized it as such. See Te-Moak, 339 F.3d at 811
(describing the law as “Nevada’s comprehensive system for
adjudicating water rights”). It replaced piecemeal
adjudications by providing a comprehensive procedure for
the collection, adjudication, and final determination of all
rights to water on a stream system. See Nev. Rev. Stat.
§§ 533.087-533.320. Those claiming a right to water must
submit proof of their claim, or the claim will be deemed
abandoned. See id. § 533.087. Nor could the system
function any other way: claims that are not asserted cannot
be allowed to linger, as that would undermine the certainty
and finality that these adjudications were meant to establish.
Over the course of nine years, the Baker-Lehman
Adjudication was conducted scrupulously according to the
procedures laid out in the 1913 Nevada Water Law. The
State Engineer and the Seventh Judicial District Court of
Nevada repeatedly provided notice to all claimants and to the
BAKER RANCHES, INC. V. BURGUM 17
United States. The United States chose not to assert any
claims, raise any exceptions, or apply for any modifications
to the resulting Baker-Lehman Decree. A claimant’s failure
to assert its alleged water rights during an adjudication does
not render the adjudication any less “comprehensive,” in the
sense that the drafters of the McCarran Amendment
intended.
Regardless of the United States’ failure to claim the
reserved rights that it alleges today, the Baker-Lehman
Adjudication was meant to serve as a final determination of
all relative water rights upon the Baker-Lehman Creeks,
meaning it was “necessary to adjudicate all of the rights of
various owners” to avoid the sort of piecemeal litigation that
existed before such statutory mass adjudications were
possible. Eagle Cnty., 401 U.S. at 525 (quoting S. Rep. No.
755, 82d Cong., 1st Sess., 9). It was therefore precisely the
sort of “comprehensive” adjudication that the McCarran
Amendment was meant to support. See id.
According to the United States, an adjudication is not
comprehensive unless it is “able to determine all claims in a
river system, including those of the United States where it
has some water rights.” The dissent goes even further,
asserting that an adjudication is not comprehensive unless it
in fact did “resolve the rights of all claimants to a stream of
water.” Under these readings, the Baker-Lehman
Adjudication was not comprehensive because it took place
while the United States still enjoyed sovereign immunity
from water rights adjudications, and the United States’
reserved water rights went unadjudicated. The United States
argues that applying the McCarran Amendment here would
be unfair, as it would “cause the retroactive forfeiture of all
federal claims and defenses . . . that the United States could
18 BAKER RANCHES, INC. V. BURGUM
have presented had there been a waiver of sovereign
immunity at the time of the adjudication.”
But the United States’ argument runs headlong against
the purpose of the McCarran Amendment and our caselaw,
which has repeatedly warned against narrowing the
Amendment based on “extremely technical” constructions
of the comprehensiveness requirement. Eagle Cnty., 401
U.S. at 525; see also Oregon, 44 F.3d at 768. The McCarran
Amendment was motivated by Congress’ concern that “the
United States not be subjected to piecemeal, private water
rights litigation,” and “[t]he comprehensiveness standard
requires the consolidation of existing controversies, not the
reopening of settled determinations.” Oregon, 44 F.3d at
768 (first citing Eagle Cnty., 401 U.S. at 525; and then citing
United States v. Dist. Ct. for Water Div. No. 5, 401 U.S. 527,
529 (1971)).
The United States would instead have us reopen a settled
determination that has stood for decades. Indeed, sixty-
seven decrees in Nevada pre-date the McCarran
Amendment’s waiver of sovereign immunity, and the United
States’ argument undermines the finality of each of them.
The United States suggests that because these adjudications
took place before the passage of the McCarran Amendment,
it has the right to assert, at any time—even centuries from
now—any previously-unadjudicated claim to water rights,
regardless of how long it has sat on those alleged rights. This
would mean that none of those sixty-seven pre-McCarran
Amendment decrees can be considered settled. It would be
absurd to wring this result out of a requirement crafted by
courts to further the McCarran Amendment’s purpose of
ending piecemeal adjudications and the interminable water
rights conflicts they engendered. See, e.g., Oregon, 44 F.3d
at 768; Eagle Cnty., 401 U.S. at 525.
BAKER RANCHES, INC. V. BURGUM 19
Furthermore, retroactively applying the McCarran
Amendment is no issue. The United States argues that it
cannot be bound to respect water rights determined in an
adjudication where it did not have the opportunity to raise
potential claims and defenses. But the Supreme Court
rejected that argument in Eagle County, holding that the
United States could be joined in a supplemental adjudication
despite not being a party to the preceding adjudication. See
401 U.S. at 525-26. Because the supplemental adjudication
could not unsettle rights determined in the preceding
adjudication, the United States was bound to respect the
water rights determined in the preceding adjudication, where
it—like here—did not have the opportunity to raise potential
claims or defenses. 4 See id.
Moreover, we have squarely held, for decades, that “the
McCarran Amendment waives the United States’s immunity
from suit, not only for the administration of water rights
acquired after the statute’s enactment, but also for the
4
That supplemental adjudications may not unsettle rights determined
under previous mass adjudications further undermines the United States’
argument that it is unfair to bind it to the results of an adjudication it
chose not to take part in. The United States suggests that anyone who
owns water rights under the sixty-seven pre-McCarran Amendment
decrees should simply seek a supplemental adjudication to determine the
United States’ reserved rights. But because rights determined in those
supplemental adjudications could not supplant any previously
adjudicated rights, this would place the United States in precisely the
same position—bound to respect the results of the preceding
adjudications, which it did not participate in. See Nev. Rev. Stat.
§ 533.210(1) (decrees entered pursuant to the 1913 Water Law are
“final” and “conclusive”); Mineral County, 473 P.3d at 429 (Nevada’s
water law “expressly prohibits reallocating adjudicated water rights that
have not been abandoned, forfeited, or otherwise lost pursuant to an
express statutory provision”).
20 BAKER RANCHES, INC. V. BURGUM
administration of water rights acquired before the law came
into effect.” Te-Moak, 339 F.3d at 813. In that case, we
found no issue with applying the McCarran Amendment to
waive the United States’ immunity from administration of
the pre-McCarran Amendment Humboldt Decree. Id. at
811-13. The Supreme Court likewise found the McCarran
Amendment applicable even when the underlying federal
water rights were acquired in 1905, nearly a half-century
before the passage of the McCarran Amendment. See Eagle
Cnty., 401 U.S. at 523. And the First Circuit has
independently come to a similar conclusion, holding that
“the McCarran Amendment applies to water rights acquired
prior to 1952, as long as the suit against the government is
commenced subsequent to that date.” Puerto Rico, 287 F.3d
at 217.
The dissent acknowledges that Te-Moak holds “that the
McCarran Amendment applies retroactively.” But it claims
that Orff v. United States, 358 F.3d 1137 (9th Cir. 2004), a
case that “[t]ellingly . . . did not discuss or distinguish Te-
Moak,” constitutes binding precedent requiring “that the
McCarran Amendment does not apply absent adjudication
of the claims of all parties.”
Orff and Te-Moak are in fact distinguishable for an
important reason: Orff, unlike Te-Moak, is not a McCarran
Amendment case. The plaintiffs in Orff “did not even plead
jurisdiction under the McCarran Amendment.” 358 F.3d at
1144. Tellingly, neither the United States nor the district
court found it necessary to discuss Orff’s implications on the
instant litigation.
Orff involved a 1963 contract between the Westlands
Water District and the United States. See id. at 1141. The
dispute was whether the United States had waived its
BAKER RANCHES, INC. V. BURGUM 21
sovereign immunity under a different statute, 43 U.S.C.
§ 390uu. See id. at 1144. We discussed the McCarran
Amendment solely to reject the plaintiffs’ argument that a
prior McCarran Amendment case precluded the United
States from asserting sovereign immunity under this
different statute. 5 See id. at 1142-43. We explained that the
McCarran Amendment did not apply in Orff because it
concerned a “private lawsuit for damages between the
farmers and the government.” Id. at 1143. Simply put, we
conclude that the clear retroactivity language of Te-Moak,
which is a McCarran Amendment case, speaks far louder
than anything in Orff, which is not.
The dissent cites Metropolitan Water Dist. and Dugan
for the same proposition as Orff: that the McCarran
Amendment applies solely to adjudications of the rights of
all claimants on a stream. But those cases clarify only that,
consistent with the McCarran Amendment’s purpose, the
private lawsuits involved in those cases were not
comprehensive. See Metro. Water Dist. of S. Cal. v. United
States, 830 F.2d 139, 144 (9th Cir. 1987) (holding that the
McCarran Amendment “does not authorize private suits to
decide priorities between the United States and particular
claimants”); Dugan, 372 U.S. at 618 (holding that the
McCarran Amendment does not apply to “a private suit to
determine water rights solely between the respondents and
the United States”). Neither case imposes a requirement that
a comprehensive adjudication include all possible claimants.
These cases did not involve adjudications of the rights of
5
In that prior case, the district court applied the McCarran Amendment,
rejecting the United States’ argument that it did not apply “because all
of the claimants to water from a given stream [were] not defendants in
the action.” Barcellos & Wolfsen, Inc. v. Westlands Water Dist., 491 F.
Supp. 263, 266 (E.D. Cal. 1980).
22 BAKER RANCHES, INC. V. BURGUM
multiple parties like those at issue in Te-Moak and Eagle
Cnty.
Like the dissent, the United States also attempts to limit
Te-Moak, arguing that it applies only to cases in which the
United States is a later purchaser of previously adjudicated
rights. It insists that the McCarran Amendment cannot be
retroactive in the instant case, where the United States is
claiming unadjudicated reserved rights. This argument fails
twice over.
First, the United States is a later purchaser of previously
adjudicated rights, which it holds in addition to the reserved
rights it now claims. In Te-Moak, the United States acquired
rights that had previously been adjudicated under the
Humboldt Decree, so it was subject to suits for the
administration of the Humboldt Decree; here, the United
States acquired rights that had been previously adjudicated
under the Baker-Lehman Decree, so it should be subject to
suits for the administration of the Baker-Lehman Decree. 6
See Te-Moak, 339 F.3d at 807. Indeed, forcing the United
States to take the bitter with the sweet was one of the key
purposes of the McCarran Amendment: in stripping the
United States of sovereign immunity in state water rights
6
The district court found the United States’ acquisition of decreed rights
“irrelevant to this case” because Baker Ranches’ claims “relate[d] to the
United States’ reserved water rights” and “do not stem from the United
States’ acquired decreed rights.” We disagree with this reasoning.
Plaintiffs are suing to enforce their own rights under the Baker-Lehman
Decree. Plaintiffs are not bringing any claims regarding the United
States’ reserved rights; it is the United States that now alleges the
existence of reserved water rights to claim that the Baker-Lehman
Adjudication was not comprehensive. The water rights that Plaintiffs
seek to enforce are interconnected with all other water rights on the
Baker-Lehman Creeks.
BAKER RANCHES, INC. V. BURGUM 23
proceedings, Congress sought to prevent it from receiving
the protection of state water law on one hand while flouting
it with impunity on the other. See, e.g., Hearings on S.18,
82d Cong. 44 (1951) (statement of Rep. Yorty) (the United
States “should take the same disabilities as well as take the
benefits” of private appropriators). The United States’ own
water rights enjoy the protection of the Baker-Lehman
Decree; the United States must therefore respect the water
rights of others under the very same Decree.
Second, even if the United States had not purchased
rights adjudicated under the Baker-Lehman Decree, the
distinction that the United States attempts to draw between
reserved rights and adjudicated rights is untenable. The
Supreme Court had no issue applying the McCarran
Amendment when the United States held pre-McCarran
Amendment reserved rights, just as it does here. See Eagle
Cnty., 401 U.S. at 523 (holding that the McCarran
Amendment waived sovereign immunity where the United
States held “reserved waters for the White River National
Forest, withdraw