City of Coronado v. City of San Diego

119 P.2d 359, 48 Cal. App. 2d 160
CourtCalifornia Court of Appeal
DecidedNovember 28, 1941
DocketCiv. 2825
StatusPublished
Cited by4 cases

This text of 119 P.2d 359 (City of Coronado v. City of San Diego) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Coronado v. City of San Diego, 119 P.2d 359, 48 Cal. App. 2d 160 (Cal. Ct. App. 1941).

Opinion

BARNARD, P. J.

This is an action for declaratory relief, to establish that certain waters have been dedicated to the use of the plaintiff, and to quiet its title thereto.

The material facts may be briefly summarized as follows: In 1886, the Coronado Water Company was organized for the purpose of supplying water to consumers in an area including what is now the city of Coronado. From 1886 to 1888 that company furnished water to the inhabitants of that area, which water it purchased and brought through a submarine pipe line built across San Diego Bay and running from the foot of Market Street in San Diego to the Coronado Peninsula. In 1888, this company purchased lands riparian to the Otay River, near the point where that river flows into San Diego Bay, and developed wells on said lands. From the latter part of 1888 to 1908 this water company secured practically all of its entire supply of water from these Otay wells, taking the water around the head of San Diego Bay and up the Strand to the present location of the city of Coronado.

In 1886, the Otay Water Company was organized for the purpose of acquiring water rights on the Otay River and Cottonwood Creek, and furnishing water to inhabitants “within the county of San Diego.” That company filed notices of appropriation of waters on the Otay River, including among the named places of intended use the cities of San Diego and Coronado. The Southern California Mountain Water Company, which was incorporated in 1895, acquired the rights of the Otay Water Company and filed additional notices of appropriation of the waters of the Otay and Dulzura Rivers and of Pine Creek and Cottonwood Creek, also naming among the places of intended use the cities of San Diego and Coronado. In 1897, that company constructed a dam on the Otay River about twelve miles above the location of plaintiff’s Otay wells. This dam and its reservoir will be referred to as the Otay Dam. In March, 1908, the Southern California Mountain Water Company, which for some time had been serving water to the city of San Diego, began to *163 supply the Coronado Water Company with practically its entire water requirements from the Otay Dam. In the beginning there was no written contract covering the sale of this water.

On February 6, 1912, the Southern California Mountain Water Company, as first party, and the Coronado Water Company as the second party, entered into a written agreement, which is one of the controlling factors in this action. This contract provided that the first party agreed to sell and deliver to the second party and the second party agreed to buy from the first party “all the water which said party of the second part may require to furnish and supply all the demands of its present consumers” between two points not material here, and “also all water for domestic and irrigation purposes for use” on certain portions of the Coronado Peninsula, including the present city of Coronado. The contract provided that such water was to be delivered “at the junction and connection of the Coronado Water pipe line with the main water pipe line running from the Lower Otay Dam to the city of San Diego. ’ ’ This point of delivery is between the Otay Dam and plaintiff’s Otay wells, and is known and referred to as the Coronado “Y”. It was provided that the contract was to be a continuing one for the purpose of supplying water to those then being supplied with water by the second party “and particularly the city of Coronado and its inhabitants,” and “without any limitation as to the time when such obligation to so furnish water shall cease,” and that “the only changes to be made herein are as to the compensation to be paid and received for such water, as herein provided. ’ ’ It was further provided that for ten years water was to be furnished at a certain price and thereafter at such rates as might be agreed upon by the parties or in the event they were unable to agree then at such rates as should be fixed by arbitration, the manner of arbitration being provided for.

Later, in 1912, the city of San Diego purchased the Southern California Mountain Water Company’s rights and water system on and in connection with the Otay River and the other streams above mentioned, paying some $4,000,000 therefor and taking the same subject to the above-mentioned contract of February 6, 1912. The transfer of this water system to the city of San Diego was consented to by the Railroad *164 Commission on the city’s express stipulation “that any legal claim for water which may be enforced against the company may likewise be enforced against the city.” Thereafter, the city of San Diego expended several million dollars in building the Barrett Dam, in improving the Otay Dam and the Morena Dam, and in other improvements to this water system. After the execution of the contract of February 6, 1912, the Coronado Water Company took all the water required by it for distribution to its consumers from the Otay Dam, purchasing the same under the terms of that contract at first from the Southern California Mountain Water Company and later from the city of San Diego, until some time in the year 1916, when the Otay Dam was washed out in a flood. After that occurrence the Coronado Water Company supplied most of its requirements from its Otay wells until a new Otay Dam was completed in 1919. It then resumed taking water from the Otay Dam but continued pumping from its Otay wells for a part of its requirements. This continued until 1935. From 1920 to 1935 about 30% of the water distributed by Coronado Water Company was pumped by it from its Otay wells and the remainder was purchased from the city of San Diego under the contract of February 6, 1912.

In 1922, the Coronado Water Company began to plan to develop a new supply of water from wells near the Tia Juana River, a few miles easterly from its Otay wells. In 1935, the defendant, the California Water & Telephone Company, purchased the business of the Coronado Water Company and began the development of water from wells in the Tia Juana River basin. In July, 1936, that company began using water from that source in its distribution system supplying the peninsula and the city of Coronado and, thereafter, rapidly substituted such water for the water previously purchased from the city of San Diego under the contract of February 6, 1912, with the result that by 1939 approximately 90% of its water was obtained from that source and about 10% was purchased under the contract of February 6, 1912.

On July 26, 1934, the Coronado Water Company had filed an action against the city of San Diego seeking an order directing said city to proceed with an arbitration for the purpose of fixing the rate to be paid for water purchased from that city under the contract of B’ebruary 6, 1912. On May 8, 1935, -a judgment was entered in that action directing the *165 city of San Diego to proceed to arbitration and to appoint its arbitrator within twenty days. No appeal was taken and the city of San Diego appointed its arbitrator. A settlement was negotiated between the parties and on March 17, 1936, the council of the city of San Diego passed a resolution approving a settlement of the action referred to and directing the city manager and city attorney to execute the proper documents to carry out the settlement agreement on the following basis and conditions: 1.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Rank v. (Krug) United States
142 F. Supp. 1 (S.D. California, 1956)
Sawyer v. City of San Diego
292 P.2d 233 (California Court of Appeal, 1956)
Allen v. California Water & Telephone Co.
176 P.2d 8 (California Supreme Court, 1946)
City of Coronado v. City of San Diego
140 P.2d 881 (California Court of Appeal, 1943)

Cite This Page — Counsel Stack

Bluebook (online)
119 P.2d 359, 48 Cal. App. 2d 160, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-coronado-v-city-of-san-diego-calctapp-1941.