Texas v. New Mexico, 482 U.S. 124 (1987)

Texas v. New Mexico


No. 65, Orig.


Argued April 29, 1987
Decided June 8, 1987
482 U.S. 124

ON EXCEPTIONS TO REPORT OF SPECIAL MASTER

The 1949 Pecos River Compact between New Mexico and Texas divides the water of the Pecos River between the States, but, because of the river’s irregular flow, does not specify a particular amount of water to be delivered by New Mexico to Texas each year. Instead, Article III(a) of the Compact provides that

New Mexico shall not deplete by man’s activities the flow of the Pecos River at the New Mexico-Texas state line below an amount which will give to Texas a quantity of water equivalent to that available to Texas under the 1947 condition.

In 1974, Texas filed this original action to resolve a dispute between the States with respect to the "1947 condition" and other matters. A Special Master was appointed, and this Court previously adopted his report specifying the methodology to be used in calculating Texas’ entitlement to water. The case is now before the Court on both parties’ exceptions to the Master’s recent report calculating the acre-feet shortfall of water that should have been delivered to Texas for the years 1950-1983, and recommending that, in addition to performing its ongoing obligation under the Compact, New Mexico be ordered to make up the accumulated shortfall by delivering a specified amount of water each year for 10 years, with a penalty in kind, i.e., "water interest," for any bad-faith failure to deliver the additional amounts.

Held:

1. Both parties’ exceptions with respect to the Master’s calculation of the shortfall that is chargeable to New Mexico are rejected. P. 128.

2. There is no merit to New Mexico’s contention that this Court may order only prospective relief, and may not provide a remedy for past breaches of the Compact. Although a compact, when approved by Congress, becomes a law of the United States, it is still a contract, subject to construction and application in accordance with its terms. There is nothing in the nature of compacts generally or of the Pecos River Compact in particular that counsels against rectifying a failure to perform in the past as well as ordering future performance. Moreover, good-faith differences (as here) about the scope of contractual undertakings do not relieve either party from performance. A court should provide a remedy if the contract’s terms provide a sufficiently certain basis for determining both that a breach has occurred and the nature of the remedy. Pp. 128-129.

3. New Mexico contends that, in any event, it should be afforded the option of paying money damages for past shortages. Although the Master’s report noted that both sides would possibly be better off with monetary repayment, he concluded that the Compact, which does not specify a remedy in case of a breach, contemplates delivery of water, and that this Court may not order relief inconsistent with the Compact’s terms. However, the Compact itself does not prevent the ordering of a suitable remedy, whether in water or money, and the Eleventh Amendment is no barrier to a monetary judgment, since that Amendment applies only to suits by citizens against a State. Any concern as to difficulties in enforcing judgments against States is insubstantial here, since if money damages were to be awarded, it would only be on the basis that, if the sum awarded is not forthcoming in a timely manner, a judgment for repayment in water would be entered. This matter is returned to the Master for such further proceedings as he deems necessary and for his recommendations as to whether New Mexico should be allowed to elect a monetary remedy and, if so, the size of the payment and other terms that New Mexico must satisfy. Pp. 129-132.

4. A decree is entered with respect to New Mexico’s current and future obligation to deliver water pursuant to Article III(a) of the Compact. Moreover, both the Master’s recommendation that, because applying the approved apportionment formula is not entirely mechanical, and involves a degree of judgment, an additional enforcement mechanism be supplied, and his preferred solution -- the appointment of a River Master to make the required periodic calculations -- are accepted. This Court’s jurisdiction over original actions like this one provides it with ample authority to appoint such a master. On remand, the Special Master is requested to recommend an amendment to the decree, specifying as he deems necessary the River Master’s duties and the consequences of his determinations. Pp. 133-136.

Exceptions to Special Master’s report sustained in part and overruled in part; decree entered.

WHITE, J., delivered the opinion of the Court, in which all other Members joined, except STEVENS, J., who took no part in the consideration or decision of the case.