Virgin Valley Water Dist. v. Paradise Canyon, LLC

Summary

The court held that the lease unambiguously gave the District sole and absolute discretion to set the rental rate for renewed water-share leases after January 1, 2020, and that the implied covenant could not be used to impose a market-rate limitation absent intentional interference with the lease's purpose. It also held that the lessee was not independently responsible for proving beneficial use, while identifying multiple trial errors involving judicial notice, evidence, jury instructions, attorney misconduct, and unequal trial-time limits. The court affirmed portions of the judgment, reversed others, and remanded for further proceedings under the proper construction of the lease.