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SUPREME COURT OF ARIZONA En Banc MERWYN C. DAVIS, Trustee under the Merwyn C. Davis Trust dated July 27, 1981, ) ) ) ) Plaintiff/Counter-Defendant/ ) Appellee, ) ) and ) ) CHINO GRANDE, L.L.C., ) ) Plaintiff/Intervenor/Counter- ) Defendant/Appellee, ) ) v. ) ) AGUA SIERRA RESOURCES, L.L.C., a ) Texas limited liability company, ) ) Defendant/Counter-Claimant/ ) Appellant, ) ) and ) ) RED DEER CATTLE, INC., a Texas ) corporation; CJ PARTNERS, a ) Nevada limited partnership; and ) SEIBERT FAMILY LIMITED ) PARTNERSHIP, a Nevada limited ) partnership, ) ) Defendants/Appellants. ) __________________________________) Arizona Supreme Court No. CV-08-0163-PR Court of Appeals Division One No. 1 CA-CV 06-0806

Yavapai County Superior Court No. CV 20040716

O P I N I O N

Appeal from the Superior Court in Yavapai County The Honorable David L. Mackey, Judge ________________________________________________________________ Opinion of the Court of Appeals, Division One 217 Ariz. 386, 174 P.3d 298 (App. 2008) VACATED AND REMANDED ________________________________________________________________

ROBERT S. LYNCH & ASSOCIATES By Robert S. Lynch And ANNA YOUNG PLLC By Anna C. Young Attorneys for Merwyn C. Davis LEWIS AND ROCA LLP By Dale Danneman Michael F. McNulty Robert G. Schaffer Attorneys for Chino Grande, L.L.C. GALLAGHER & KENNEDY, P.A. By Michael R. Ross Cober C. Plucker And TOM GALBRAITH By Tom Attorneys for Cattle, Inc., Partnership ATTORNEY AT LAW Galbraith Agua Sierra Resources, L.L.C, Red Deer CJ Partners, and Seibert Family Limited

Phoenix

Prescott

Phoenix

Phoenix

Phoenix

MAGUIRE & PEARCE, PLLC By Michael J. Pearce Rita P. Maguire Attorneys for Amicus Curiae Town of Prescott Valley ARIZONA DEPARTMENT OF WATER RESOURCES By W. Patrick Schiffer, Chief Counsel Kenneth C. Slowinski Scott M. Deeny Attorneys for Amicus Curiae Arizona Department of Water Resources RYLEY CARLOCK & APPLEWHITE By Cynthia M. Chandley L. William Staudenmaier Jenny J. Pelton Attorneys for Amici Curiae Freeport-McMoRan Copper and Gold, Inc., Roosevelt Water Conservation District, and the Town of Chino Valley 2

Phoenix

Phoenix

Phoenix

SALMON, LEWIS & WELDON, P.L.C. Phoenix By M. Byron Lewis John B. Weldon, Jr. Mark A. McGinnis Attorneys for Amicus Curiae Salt River Project Agricultural Improvement & Power District ________________________________________________________________ B A L E S, Justice

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Arizona Law