State v. State

Background

A Special Master filed a report about a dispute between the states of Montana and Wyoming over damages. The Master twice asked the parties to say whether the amount at stake justified more litigation, noting that fees and expenses might be higher than any recovery.

Reasoning

The Court accepted the Master’s process, encouraged the parties to think carefully about whether to continue using the Court’s time, and cited a long-standing preference that states try to resolve disputes by agreement. The Court told the Special Master to help the parties seek resolution, including by revisiting how fees and expenses are divided, and mentioned a federal rule as guidance for settlement offers. The Court also set a schedule: exceptions to the Report within 45 days, replies within 30 days, and sur-replies within 30 days.

Real world impact

The Court granted the Special Master’s motion for fees and disbursements and awarded $201,104.90 for services from July 2, 2013 through April 30, 2014. That fee award must be paid equally by Montana and Wyoming. The order pushes the states to weigh the cost of further litigation against possible recovery, encourages negotiated settlements, and gives the Special Master authority to revisit fee-sharing arrangements if the parties try to resolve the dispute. If the states choose to continue, the Court’s deadlines will control the next filings.