20240522Valiant to Staff 1-5.pdf

RECEIVED
2024 May 22, 1:49PM
IDAHO PUBLIC
UTILITIES COMMISSION
Rick L. Stacey, ISBN 6800
Taylor R. Brooks, ISBN 11542
MCCONNELL WAGNER SYKES + STACEY PLLc
827 East Park Boulevard, Suite 201
Boise, Idaho 83712
Telephone: [phone]
Facsimile: 208.489.01 10
[e-mail]
[e-mail]
Attorneys For Valiant Idaho, Inc. and TIC Utilities, LLC
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. GNR-W-24-01
IN THE MATTER OF INVESTIGATION
INTO VALIANT IDAHO, INC. AND
TIC UTILITIES, LLC, OWNERS OF A VALIANT AND TIC UTILITIES'
NORTHERN IDAHO WATER SUPPLY RESPONSES TO COMMISSION
AND DISTRIBUTION SYSTEM STAFF'S FIRST PRODUCTION
REQUESTS
[Nos. 1-5]
COME NOW, Valiant Idaho, LLC ("Valiant"), and TIC Utilities, LLC ("TIC") by and
through their attorneys of record, McConnell Wagner Sykes + Stacey PLLC, and hereby
responds to the Idaho Public Utilities Commission ("PUC") Staffs First Production Requests
("Requests").
PRELIMINARY STATEMENT
Valiant and TIC, based upon their current understanding and belief of the facts and the
information presently known, answer and object to the Requests as set forth herein.
These Responses are based upon diligent exploration by Valiant, TIC and their counsel but reflect
RESPONSES TO PUC STAFF'S FIRST PRODUCTION REQUESTS
1A I 0704.002TUOResponse to PUC Discovery.docx

only the current state of Valiant and TIC's understanding and belief as to the matters of inquiry.
It is anticipated that further discovery, independent investigation and consultation with experts
may supply additional facts, add meaning to known facts, and establish entirely new factual
conclusions and legal contentions, all of which may lead to substantial additions to, modifications
of and variations from these Responses. These Responses are,therefore, made without prejudice
to Valiant and TIC's rights to produce evidence of subsequently discovered documents or facts
which may become available.
Valiant and TIC make certain continuing objections ("Continuing Objections") to each
Request. Valiant and TIC's Response to each Request is submitted without prejudice to and
without waiving any Continuing Objection not expressly set forth in that Response. Accordingly,
the inclusion of an objection to a Request and any Response is neither intended as, nor shall in
any way be deemed a waiver of, any Continuing Objection or of any other specific objection
made herein.
CONTINUING OBJECTIONS
Nothing herein is intended to be nor should be construed as a waiver of any
attorney-client privilege, work-product protection or the right of privacy and, to the extent the
Requests may be construed as calling for the disclosure of information protected by such privilege
and/or doctrine, a Continuing Objection to each and every Request is thereby imposed.
Without waiving any Continuing Objection, Valiant and TIC provide the following
Responses to the Requests.
RESPONSES TO PUC STAFF'S FIRST PRODUCTION REQUESTS
1A I 0704.002TUOResponse to PUC Discovery.docx

RESPONSES TO REQUESTS FOR PRODUCTION
REQUEST NO. I: Please provide all incorporation documents related to TIC Utilities
and Valiant. Please include the articles of incorporation and any bylaws applicable to the
companies.
RESPONSE TO REQUEST NO. 1: Valiant and TIC object to this request from Staff
as it is unlikely to aid Staff or the Idaho Public Utilities Commission ("PUC") in determining
whether TIC Utilities and/or Valiant are owners of a water distribution system that is subject to
regulation from the PUC. Without waiving said objections, see the documents BATES
Numbered as TIC000001-000090. Please be advised that TIC000003-TIC000007, TIC000010-
00001 I, and TIC000034-000038 are CONFIDENTIAL under Idaho Code §48-801 et. seq.; Idaho
Code § 74-124(c); and § 74-124(e). Accordingly, CONFIDENTIAL documents shall be produced
herewith in accordance with Rule 233 of the Idaho Public Utilities Commission Rules of
Procedure. See IDAPA 31.01.01.233.02.
REQUEST NO. 2: Please provide a chart showing the relationships of TIC Utilities,
Valiant, and the Idaho Club Water System and any other entities related to the water system.
RESPONSE TO REQUEST NO. 2: Valiant and TIC object to this request from Staff
as it is unlikely to aid Staff or the PUC in determining whether TIC Utilities and/or Valiant are
owners of a water distribution system that is subject to regulation from the PUC. Without
waiving said objections, Valiant Idaho, LLC is owned in 1/3 interests by William Haberman,
Kenneth Clark, and Brian Kramer.TIC Utilities, LLC is 100%owned by Valiant Idaho, LLC.Valiant
purchased the Idaho Club at a Sheriff's Sale in November of 2016 and subsequently also acquired
a water system in that sale. Through two very contentious years of litigation, many construction
improvements and alterations of fixtures, and roughly $1 M in capital contributions to the water
RESPONSES TO PUC STAFF'S FIRST PRODUCTION REQUESTS
1A I 0704.002TUOResponse to PUC Discovery.docx

system to get it operational, ownership and authorization to operate that water system was
granted to Valiant by the First Judicial District Court, in and for the County of Bonner, State of
Idaho, with limitations subject to an injunction. See Valiant Idaho, LLC v. VP Incorporated, 164 Idaho
314, 429 P.3d 855 (2018); Valiant Idaho, LLC v.JV L.L.C., 164 Idaho 280, 429 P.3d 168 (2018).
Valiant then contracted with TIC to maintain and operate the water system associated
with the Idaho Club in 2018 after the Supreme Court affirmed the district court's rulings, again
subject to the preliminary injunction. It was not until 2022 that TIC and Valiant had actually
completed the work necessary to separate the Idaho Club water system from that of VP, Inc.'s
water system. The injunction was lifted in 2023. Shortly thereafter, Valiant and TIC entered into
a contract with Gem State to sell the water and sewer systems to it,which Gem State terminated
in February 2024.
REQUEST NO. 3: Please provide copies of all correspondence between TIC/Valiant
and any Home Owners [sic] Association ("HOA") regarding the sale or transfer of the Valiant
Water System. This should include all e-mails, agreements, proposals, and other documents.
RESPONSE TO REQUEST NO. 3: See the produced documents BATES numbered
as TIC000001-000090. This Response will be seasonably supplemented after the HOA Annual
Meeting on June 20, 2024. Please be advised that TIC000003-TIC000007, TIC000010-00001 I,
and TIC000034-000038 are CONFIDENTIAL under Idaho Code § 48-801 et. seq.; Idaho Code §
74-124(c); and § 74-124(e). Accordingly, CONFIDENTIAL documents shall be produced
herewith in accordance with Rule 233 of the Idaho Public Utilities Commission Rules of
Procedure. See IDAPA 31.01.01.233.02.
REQUEST NO. 4: Please provide any HOA agendas and minutes that are related to
the sale or transfer of the Valiant Water System to the HOA.
RESPONSES TO PUC STAFF'S FIRST PRODUCTION REQUESTS
1A I 0704.002TUOResponse to PUC Discovery.docx

RESPONSE TO REQUEST NO. 4: See the produced documents BATES numbered
as TIC000001-000090. This Response will be seasonably supplemented after the HOA Annual
Meeting on June 20, 2024. Please be advised that TIC000003-TIC000007, TIC000010-00001 I,
and TIC000034-000038 are CONFIDENTIAL under Idaho Code § 48-801 et. seq.; Idaho Code §
74-124(c); and § 74-124(e). Accordingly, CONFIDENTIAL documents shall be produced
herewith in accordance with Rule 233 of the Idaho Public Utilities Commission Rules of
Procedure. See IDAPA 31.01.01.233.02.
REQUEST NO. 5: Please provide the names of the board members of any HOAs
mentioned above.
RESPONSE TO REQUEST NO. 5: Valiant and TIC object to this request from the
Commission Staff as it seems unlikely to aid the Commission Staff in determining whether TIC
Utilities and/or Valiant are owners of a water distribution system that is subject to regulation
from the PUC. Without waiving said objection, the Master HOA governing the Idaho Club is
composed of 5 members: William Haberman, on behalf of Valiant Idaho, LLC ("Declarant"),
Martin Quill, David Reed, Read Tuddenham, and Christopher Norton. This Board is subject to
change at the annual meeting of the HOA on June 20, 2024. This Response will be seasonably
supplemented after the HOA Annual Meeting on June 20, 2024.
DATED: May 22, 2024.
MCCONNELL WAGNER SYKES + STACEY PLLc
/s/ Taylor R. Brooks
By: Taylor R. Brooks, Attorneys For Valiant
Idaho, Inc. and TIC Utilities, LLC
RESPONSES TO PUC STAFF'S FIRST PRODUCTION REQUESTS
1A I 0704.002TUOResponse to PUC Discovery.docx

CERTIFICATE OF SERVICE
HEREBY CERTIFY that on May 22, 2024, a true and correct copy of the foregoing
document was served via E-mail upon the following parties:
Adam Triplett, Esq.
Deputy Attorney General
Idaho Public Utilities Commission
PO Box 83720 [e-mail]
Boise, Idaho 83720-0074 Attorneys For Commission Staff
11331 W. Chinden Blvd, BLDG 8, Suite
201-A
Boise, Idaho 83714
/s/ Keri Guiberson
Keri Guiberson, Paralegal
RESPONSES TO PUC STAFF'S FIRST PRODUCTION REQUESTS
1A I 0704.002TUOResponse to PUC Discovery.docx