Farmers Irrigating Ditch & Reservoir Company, a Colorado Mutual Ditch Company v. Nick Kane

McWILLIAMS, Circuit Judge.

This interpleader action has its genesis in a flood. Farmers Irrigating Ditch & Reservoir Company, a Colorado mutual ditch company with its principal place of business in Loveland, Colorado (hereinafter referred to as “Farmers”), was the owner of a reservoir known as Lawn Lake in Larimer County, Colorado. On July 12, 1982, an embankment of the Lawn Lake Reservoir broke and released a great amount of water which flowed down and through a natural channel known as Fall River into and through the Town of Estes Park and thereafter into Lake Estes, where it was contained.…