East Bay Municipal Utility District v. Kieffer

278 P. 476, 99 Cal. App. 240, 1929 Cal. App. LEXIS 540
California Court of Appeal·Decided May 29, 1929·No. Docket Nos. 3480, 3481 and 3482.·Published·Cited by 62 cases

Opinions

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[EDITORS' NOTE: THIS PAGE CONTAINS HEADNOTES. HEADNOTES ARE NOT AN OFFICIAL PRODUCT OF THE COURT, THEREFORE THEY ARE NOT DISPLAYED.] *Page 245 The defendant Kieffer, who will be referred to as the defendant, has appealed from the judgments in three separate proceedings in eminent domain. The three cases were consolidated for trial and tried together.

The plaintiff district includes within its boundaries the principal cities on the easterly shore of San Francisco Bay. For the purpose of providing a water supply for these cities the plaintiff selected a reservoir site, referred to by the parties as the Lancha Plana site, on the Mokelumne River, with the object of impounding the waters of that stream. Northerly and over a ridge from the Lancha Plana site is another reservoir site, referred to as the Arroyo Seco site. The plaintiff was granted a license by the federal power commission to construct and operate its proposed dam and reservoir and it acquired some of the lands in the reservoir site. Prior to the commencement of these suits the defendant had acquired title to large areas of land in both the Lancha Plana and the Arroyo Seco sites and options to purchase other lands in both sites. He had also acquired title to all but a small parcel of a strip of land connecting the larger areas owned by him in the two reservoir sites, this small parcel being in the middle of the strip and the title thereto being in Lee De Vries. At the time the first two suits were commenced the defendant held a mere option to purchase this De Vries parcel. He thereafter allowed the option to expire but it was subsequently renewed and *Page 246 he acquired title from De Vries before the third suit was filed.

September 7, 1926, the complaint in the first suit was filed and summons issued. The lands sought to be condemned by that suit consist of 5,657.1 acres owned by the defendant and lying on the Mokelumne side of the ridge. On the same day, in like manner, the plaintiff commenced the second suit to condemn 360 acres of land immediately along the Mokelumne River, owned by the Pacific Gas and Electric Company, on which the defendant held an option to purchase, and to which he acquired title before the trial. After the commencement of the first two suits the defendant acquired title to 1248 acres of other lands on the Mokelumne side of the ridge, on which he held options when the first two suits were commenced, and on December 20, 1926, the plaintiff commenced the third proceeding, by which it sought to condemn those lands. Prior to that time, as stated, the defendant had acquired title to the De Vries parcel of land, thereby consolidating all his holdings, except a small isolated parcel. The lands taken by the third suit, however, were entirely separated by those condemned in the first two proceedings from the other lands belonging to the defendant. The lands condemned in the three suits were not wholly within the reservoir site but, with two exceptions, included all of the defendant's contiguous lands, severance damages being thereby reduced to a minimum.

[1] The defendant in his answers claimed damages by reason of the severance of lands under option from lands owned by him which were taken. On motion of the plaintiff, the court struck out the allegations of the answers relating to such damages.

It may be conceded that an option to purchase land is property, but it does not constitute an interest in the land itself. "An option is not a transfer of property. No title is conveyed thereby. It is a mere right of election . . . to accept or reject a present offer within the time therein fixed." (Ware v.Quigley, 176 Cal. 694, 698 [169 P. 377, 378]; Ludy v.Zumwalt, 85 Cal.App. 119, 130 [259 P. 52].) The holder of a mere option to purchase land being condemned is not entitled to any part of the compensation to be paid therefor. (Russakov v.McCarthy Co., 206 Cal. 682 [275 P. 808]; In re Water Fronton Upper New *Page 247 York Bay, 246 N.Y. 1 [157 N.E. 911].) The lands under option referred to in the allegations stricken out were not sought to be condemned by the plaintiff. If it be contended that the defendant's ownership of the options enhanced the value to him of the lands taken, the obvious answer is that the value thereof to him or to any person in his situation is immaterial, he being entitled only to the market value of such lands and not to any special value thereof to him by reason of his advantageous position. (10 Cal. Jur. 339; Oakland v. Pacific Coast Lumber Mill Co., 171 Cal. 392, 399 [153 P. 705].) Since the appellant had no interest in the lands under option, it is axiomatic that he was not entitled to damages by reason of their severance from his lands which were taken, if such taking may be termed a severance. Of course, if the lands under option had been held under a contract obligating the defendant to purchase them a different rule would apply.

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East Bay Municipal Utility District v. Kieffer, 278 P. 476, 99 Cal. App. 240, 1929 Cal. App. LEXIS 540 (Cal. Ct. App. 1929).

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