KLAMATH FALLS, Ore. - The United States Court of Appeals for the Federal Circuit has ruled in favor of the United States in the long-running lawsuit titled Baley v. United States, commonly known as the Klamath Project water “Takings Case.” The plaintiff water users sought just compensation for taking of their water rights in 2001 when the United States re-allocated irrigation water to threatened and endangered species under the Endangered Species Act (ESA).