City of Hugo v. Nichols , No. 10-7043 (10th Cir. 2011)Annotate this Case
The City of Hugo, Oklahoma, and the Hugo Municipal Authority, a public water trust, (collectively "Hugo") contracted with the City of Irving, Texas, ("Irving") for the sale of water Hugo has been allocated or sought to be allocated under permits issued by the Oklahoma Water Resources Board ("Board"). Hugo and Irving brought suit against the nine members of the Board for a declaration that certain Oklahoma laws governing the Board’s water allocation decisions were unconstitutional under the dormant Commerce Clause and an injunction prohibiting their enforcement. The district court granted summary judgment for the Board, and Hugo and Irving appealed. Upon review, the Tenth Circuit concluded that Hugo, as a political subdivision of Oklahoma, lacked standing to sue the Board under the dormant Commerce Clause. Irving, whose injury was solely premised on a contract it entered into with Hugo, likewise could not demonstrate standing because any injury to Irving cannot be redressed. Concluding no plaintiff had the necessary standing, the Court vacated the district court’s order and remanded the case back the district court to dismiss for lack of federal jurisdiction.