The Mark O. Hatfield U.S. Courthouse in Portland, Ore. is seen in this file photo. The Westland Irrigation District in Northeast Oregon is asking a federal judge to dismiss a lawsuit accusing it of cheating smaller growers out of water.

The Westland Irrigation District in Northeast Oregon has asked a federal judge to dismiss a lawsuit accusing it of cheating smaller growers out of water.

In June, seven farms ranging from about 60 acres to 800 acres filed a complaint alleging the district stole their water to benefit three operations with more than 5,000 acres.

During oral arguments on Oct. 18, attorneys for the district told U.S. District Judge Michael Simon in Portland, Ore., that the lawsuit belongs in state court, not federal court.

“They’ve failed to exhaust the underlying state remedies that would make their claim ripe in federal court,” said Nicole Hancock, attorney for Westland.

The hearing focused on jurisdictional issues rather than the merits of the complaint, which claims the district used fraudulent accounting to make water available to the larger operations at the expense of the smaller growers, who have senior water rights.

The lawsuit belongs in state court because it deals with interpretations of Oregon contract law and water law, said Hancock. “It’s going to be a combination of those.”

Julie Weis, attorney for the plaintiffs, said it would be more efficient to resolve the case in federal court, particularly since filing a new lawsuit in state court may drag the dispute into the 2017 irrigation season.

The lawsuit belongs in federal court because it will likely entail water contracts with the U.S. Bureau of Reclamation and the impact of the Endangered Species Act on water allocation, said Michael Haglund, attorney for the plaintiffs.

“There may well be intersections with federal law in this case,” Haglund said.

The judge signaled that he’s inclined to rule the lawsuit belongs in state court, since the case doesn’t neatly meet the legal standards for trying it in federal court.

Though he does have the authority to make an exception, there would need to be a valid reason — other than his personal preference, said Simon. “That’s no way to run a legal system.”

It also wouldn’t make sense to try the case in federal court only to later refer a question of law to the Oregon Supreme Court, he said.

Simon said he expects to rule on the jurisdiction issue by mid-November or early December.

If the plaintiffs are worried about delay, they can in the meantime file a state lawsuit against the district, Simon said. If he decides the case belongs in federal court, the state lawsuit can then be dismissed.

“That will have absolutely no bearing on what I do here,” he said.