Lindsay-Strathmore Irrigation District v. Wutchumna Water Co.

296 P. 933, 111 Cal. App. 688, 1931 Cal. App. LEXIS 1273
California Court of Appeal·Decided February 11, 1931·No. Docket No. 114.·Published·Cited by 21 cases

Opinion

BARNARD, P. J.

This is an appeal from an order and judgment of the Superior Court of Tulare County in a proceeding brought by the Lindsay-Strathmore Irrigation District, seeking the issuance of a writ of mandate to compel the Wutchumna Water Company to deliver to the petitioner, certain water from the main canal of said water company. It appears that the Kaweah River, shortly after it emerges from the foothills of the Sierra Nevada mountains, divides into two channels at a point known as “McKay Point”. Below that point the northerly channel is known as the St. Johns River and the southerly channel is known as the *691 Kaweah River. Both of these channels run approximately parallel with each other in a general westerly direction, through the county of Tulare. These two channels traverse a large comparatively level delta area, comprising thousands of acres of land, which is known as the Kaweah Delta. The Wutchumna Water Company is a corporation of the type familiarly known as a mutual water company, although it is not strictly such a company, as its water is not appurtenant to any particular land. It was incorporated in 1872, its articles of incorporation beginning as follows: “We, the undersigned, being desirous of forming a corporation for the purpose of Agriculture and Irrigating and the construction and maintaining of ditches or canals to convey water to Visalia and other places in Tulare County, for the purpose of using the water conveyed therein, do hereby certify and declare as follows, viz.:”

The entire outstanding stock of this company is 91 shares, and its principal purpose is to distribute among its stockholders water diverted by it from the Kaweah River, pursuant to two distinct and long-standing rights of appropriation. By the first of these, a considerable portion of the flow of the Kaweah River is diverted into a large canal owned by the company and known as the Wutchumna ditch, which leads out of the northerly bank of the Kaweah River a short distance upstream from McKinley Point. This ditch runs in a westerly direction for several miles to a large storage reservoir, known as Bravo Lake. Upon leaving this reservoir, said ditch flows in a southwesterly direction for about seven miles, when it crosses the St. Johns River and then continues in a westerly direction for approximately ten miles. The lands of the company’s stockholders are scattered along the entire course of the ditch and are served by laterals and side ditches from the main canal. A short distance downstream from the point where this ditch crosses the St. Johns River, the company has a second diversion, known as Barton Cut, where water is taken from the St. Johns River and added to the water flowing in the ditch just described. About a mile and a half southwesterly from Bravo Lake and about six miles northeasterly from Barton Cut is a point in the Wutchumna ditch, known as '“Lee Drop”.

The Lindsay-Strathmore Irrigation District is and since 1915 has been, an irrigation district organized under the *692 Irrigation District Act of California (Stats. 1897, p. 254) and amendments thereto. The district, which is entirely within the county of Tulare, embraces an area of about 16,000 acres, 9,000 acres thereof being planted to permanent crops, such as “oranges, citrus trees and deciduous fruit”, which require irrigation during the irrigating season. Not having sufficient water to irrigate the land already in cultivation, and also for the purposes of securing additional water for the irrigation of lands within its boundaries, in December, 1924, the district made a contract with one H. R. Huebert whereby Huebert agreed to buy shares of the capital stock of certain mutual water companies, including the Wutchumna Ditch Company, and to sell and convey to the district the water and water rights represented by said shares. It was further agreed that until such water and water rights were purchased from Huebert by the district, the district should lease from him the right to use this water at an agreed rental, including the payment of all sums that Huebert should be required to pay as assessments to the' several water companies. Pursuant to this agreement, Huebert acquired 18 % shares of stock in the Wutchumna Water Company. The purchase price of these shares was $93,-921.96, and the irrigation district also paid to the water company $12,084.60 in assessments thereon. Since June 1, 1928, 16.33 shares of this stock have been issued in the name of the Lindsay-Strathmore Irrigation District. In order to receive its proportion of the water diverted from the Kaweah River by the water company, the irrigation district, at an expense of $62,000, constructed a pipe-line and conduit from a point near Lee Drop to a tract of land owned by the district, known as the Rancho de Kaweah. While this construction work was under way, the Wutchumna Water Company on October 6, 1928, served upon the district a written notice stating that it was the established policy of the company “that none of its waters shall be diverted for non-riparian uses”, and that it was not the intention of the water company to permit the district to divert any water from their ditches for use on nonriparian lands and any efforts to so divert water would be resisted to the utmost. On November 20, 1928, the district served on the water company a written demand that it deliver to the district at the point known as Lee Drop, 16.33/91sts of the water diverted by it from the Kaweah River, and that it construct a suit *693 able headgate at the expense of the district for the diversion of such water.

On December 3, 1928, the irrigation district commenced this proceeding, seeking a writ of mandate to enforce its right to receive its proportion of water as a stockholder in the Wutchumna Water Company. Certain lower riparian owners asked permission to intervene in the action, in opposition to the claims of the district, and permission being denied, have taken another appeal, which is now pending. After a trial, judgment was entered declaring the irrigation district to be the owner of 16.33 shares of stock in the water company, and as such stockholder, entitled to receive at Lee Drop, 16.33/91sts of the water flowing in the main canal from time to time. From this judgment, this appeal is taken.

Mandamus is a proper remedy where a stockholder in such a corporation as the Wutchumna Water Company is improperly denied its proportionate share of water. (Miller v. Imperial Water Co., 156 Cal. 27 [24 L. R A. (N. S.) 372, 103 Pac. 227, 228].) In that case the court said: “We have the case of a member of a corporation who is improperly precluded by the corporation from participating in the only practical right resulting from such membership, that of having water available for the purpose furnished at cost upon his' land, in proportion to the amount of stock held by him. He is seeking to enforce a plain right based entirely upon his membership in a mutual water company, deprivation of which right would practically exclude him for the time from all privileges of membership, in a case where, it must be held under the decisions, there is not a plain, speedy, and adequate remedy, in the ordinary course of law. It is one of the well recognized offices of the remedy by mandamus to enforce the plain rights of stockholders or members of corporations in the absence of any other adequate remedy. ...

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Lindsay-Strathmore Irrigation District v. Wutchumna Water Co., 296 P. 933, 111 Cal. App. 688, 1931 Cal. App. LEXIS 1273 (Cal. Ct. App. 1931).

296 P. 933 (Lindsay-Strathmore Irrigation District v. Wutchumna Water Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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