Property Owner Alleges Water Cooperative Breached Agreement Over Rights

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Gladstone Gregg is challenging a court decision that dismissed his claims against a water cooperative, alleging that he holds reversionary rights to a water system in Tonopah, Arizona. On January 13, 2026, the Arizona Court of Appeals reviewed Gregg’s appeal against Hassayampa Water Co-Op Inc., initially filed in Maricopa County Superior Court under Judge Randall H. Warner.

The case stems from an agreement made in 1981 among property owners for a cooperative water supply system. Gregg, who acquired part of this land in 2010, claims rights to the water system based on a series of deeds and agreements with the Bruehl Family Trust. His contention centers around two theories: first, that the dissolution of the original co-op in 2016 triggered reversionary rights back to landowners; second, that he holds a one-eighth interest due to corrective deeds and assignments from the Trust. However, the lower court sided with Hassayampa’s motion for judgment on the pleadings, arguing Gregg’s claims were barred by statutes of limitations and preclusion doctrines.

Gregg argues that his claim regarding reversionary rights under the 1982 Water Agreement is timely since he only became aware of Hassayampa’s denial of his rights in September 2022. The appeals court found merit in this argument and ruled that this aspect of his claim was not time-barred or precluded by previous litigation outcomes. Conversely, it upheld the dismissal of Gregg’s second theory concerning membership interests in the dissolved co-op due to waiver and statute limitations.

The appeals court vacated parts of the lower court’s decision and remanded for further proceedings regarding Gregg’s reversionary rights claim while affirming other aspects. It also vacated an award of $56,441.97 in attorneys’ fees granted to Hassayampa pending resolution on remand. Both parties’ requests for attorneys’ fees on appeal were denied as neither was deemed successful at this stage.

Representing Gregg is Louis D. Lopez from Greenberg & Traurig LLP, while Patrick T. Nackley and Devin M. Tarwater from Medalist Legal PLC represent Hassayampa Water Co-Op Inc. The appellate judges involved are Brian Y. Furuya, Angela K. Paton, and Daniel J. Kiley under Case No. 1 CA-CV 25-0282.

Source: 1CACV250282_Gregg_v_Hassayampa_Water_COOP_Inc_Opinion_Arizona_Court_of_Appeals.pdf


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