Rural Water District No. 4 v. City of Eudora

The Rural Water District Number 4 of Douglas County, Kansas and the City of Eudora were in a dispute over water rights. The District contended that Eudora was trying to poach its customers. Because the District was burdened by a USDA-guaranteed loan, Eudora's actions potentially implicated federal law which prohibits municipalities from poaching rural water district customers while the federal loan is in repayment. The District sued the City under 42 U.S.C. 1983; the case went to trial and a jury awarded damages to the District. On appeal, the Tenth Circuit vacated the verdict, finding that the District violated a Kansas statute that prevented rural water district from obtaining USDA loan guarantees unless the guarantee was "necessary." Soon after the appeal, the Kansas legislature amended the statute and removed the "necessary" requirement. The district court then ruled that the amendment did not apply retroactively, and denied summary judgment to both parties. The retroactivity question was certified to the Tenth Circuit, who upheld the district court's conclusion that the amended state statute did not apply retroactively. Therefore, the District was still bound by the "necessary" requirement. View "Rural Water District No. 4 v. City of Eudora" on Justia Law