Palmer v. West Kern County Water District

193 Cal. App. 2d 41, 13 Cal. Rptr. 834, 1961 Cal. App. LEXIS 1665
CourtCalifornia Court of Appeal
DecidedJune 12, 1961
DocketCiv. No. 6522
StatusPublished

This text of 193 Cal. App. 2d 41 (Palmer v. West Kern County Water District) 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
Palmer v. West Kern County Water District, 193 Cal. App. 2d 41, 13 Cal. Rptr. 834, 1961 Cal. App. LEXIS 1665 (Cal. Ct. App. 1961).

Opinion

COUGHLIN, J.

The issues on this appeal concern the rights of two attorneys to recover from a county water district for legal services allegedly rendered in connection with the formation of that district.

The first amended complaint herein alleges that the defendant, West Kern County Water District, which is the respondent herein, was formed on May 19, 1959; that prior thereto the plaintiffs Palmer and Vizzard, who are the appellants herein, “were retained by the organizers and directors of [43]*43said District to prepare the necessary papers, resolutions, petitions, notices, and to perforin other legal steps required to form and organize said District; that pursuant to such employment, plaintiffs did prepare the necessary papers, resolutions, petitions, notices, and did perform other legal steps required to organize and form said District.” The first and second causes of action set forth in this amended complaint allege, respectively, (1) that the plaintiff Palmer “pursuant to such employment . . . rendered services to and disbursed costs for said District; that the reasonable value of said services is $5,425.00”; and the costs disbursed amount to $177.27; and (2) that the plaintiff Vizzard “rendered services for” the district; that the reasonable value thereof was $908; and in addition that he advanced costs in the amount of $21.51. Itemized statements of the services and costs aforesaid were attached to the first amended complaint as exhibits.

A general and special demurrer to these two causes of action was sustained without leave to amend, and a judgment of dismissal followed from which the plaintiffs have taken this appeal.

At the outset it should be noted that the parties, in their briefs, refer to a number of facts which are not a part of the record. The sufficiency of the amended complaint before us must be determined from the facts alleged therein (Weil v. Barthel, 45 Cal.2d 835, 837 [291 P.2d 30]), which must be regarded as true (Carruth v. Fritch, 36 Cal.2d 426, 429 [224 P.2d 702, 24 A.L.R.2d 1403] ; Speegle v. Board of Fire Underwriters, 29 Cal.2d 34, 41 [172 P.2d 867]), together with the facts of which this court may take judicial notice. (Weil v. Barthel, supra, 45 Cal.2d 835, 837; Talley v. Northern San Diego County Hospital Dist., 41 Cal.2d 33, 36 [257 P.2d 22].)

Pursuant to statute, the voters in a designated area, by petition presented to the board of supervisors, may propose the formation of a county water district (Wat. Code, §§ 30200-30204) ; after notice, a hearing on the petition is held before the board, which determines whether the statute has been complied with (Wat. Code, § 30263), fixes the boundaries of the proposed district in accordance with a stated rule (Wat. Code, § 30264), and calls an election for the purpose of determining whether the district shall be formed. (Wat. Code, § 30290). In the event the required vote is not obtained “the formation fails but without prejudice to renewing proceedings at any time in the future.” (Wat. Code, § 30297.) On the other hand, if the required vote is obtained the board of [44]*44supervisors makes an order declaring the district formed, and in due course a certificate of incorporation is issued by the Secretary of State, whereupon the district becomes incorporated. (Wat. Code, §§ 30320-30323.)

In support of their claim that they are entitled to compensation for services rendered in forming the district, the plaintiffs rely upon the following provisions of the Water Code, i.e.,

“The district may issue warrants to pay its formation expenses bearing interest at 6 percent per year from date of issue until funds are available to pay the warrants” (§ 31301); and

“A district may cause taxes to be levied to pay the expenses of its formation, including fees of attorneys and others employed to conduct the formation proceedings” (§31652).

These two sections of the Water Code, at the most, authorize the district to assume the expenses of its formation but do not require it to do so; authorize the issuance of warrants and the levy of taxes to pay its formation expenses, but do not require either; impliedly permit the payment of these expenses but do not impose this obligation upon it.

The first amended complaint alleges that the plaintiffs “were retained by the organizers and directors” of the district to perform the “legal steps required to form and organize said district,” and that the services were rendered by them “pursuant to such employment.” Obviously, the directors of the district did not employ the plaintiffs because the directors, as such, did not then exist; were the subjects of a future election; and became such only upon receipt of a prescribed vote. (Wat. Code, §§ 30294, 30295.) Therefore, the plaintiffs are required to rely upon the allegation that the organizers employed them. As a consequence, the obligation under which they claim is the obligation of the organizers. There is no allegation that the district assumed this obligation ; rather, the allegation that the plaintiffs’ claim was rejected by the district’s board of directors establishes the contrary. Under these circumstances, the complaint purportedly states a cause of action against the organizers of the district but not against the district.

The general rule that “the acts of promoters performed prior to the existence of the corporation are not binding upon the corporation, unless made so by the act under which the incorporation took place or adopted by the corporation after it comes into existence” applies to county [45]*45water districts. (Biggart v. Lewis, 183 Cal. 660, 665-667 [192 P.437].) Such districts, being public agencies created by statute, can exercise only those powers “which are conferred on them by the act under which they are incorporated, or such as are necessarily incidental to the exercise of their corporate rights, the performance of their corporate duties, and the accomplishment of the purposes for which they are created.” (Biggart v. Lewis, supra, 183 Cal. 660, 666; Leeman v. Perris Irrigation Dist., 140 Cal. 540, 543 [74 P. 24] ; Stimson v. Alessandro Irr. Dist., 135 Cal. 389, 392 [67 P. 496, 1034] ; Allen v. Hussey, 101 Cal.App.2d 457, 472 [225 P.2d 674] ; Bottoms v. Madera Irr. Dist., 74 Cal.App. 681, 695 [242 P. 100].)

No provision in the act under consideration requires the district to pay the expenses incurred in its formation; and nowhere in this act is any authority expressly conferred upon the district’s board of directors to ratify any contract made by the organizers of the district to pay for services rendered to effect formation. The only statutory provisions which refer to the subject in any manner are those heretofore related and, at the most, these provisions carry only an implied authority to reimburse the organizers for the expenses incurred. If existent, such implied authority would not require reimbursement but merely constitutes a grant of permission to reimburse.

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Related

Speegle v. Board of Fire Underwriters
172 P.2d 867 (California Supreme Court, 1946)
Weil v. Barthel
291 P.2d 30 (California Supreme Court, 1955)
Carruth v. Fritch
224 P.2d 702 (California Supreme Court, 1950)
Talley v. Northern San Diego County Hospital District
257 P.2d 22 (California Supreme Court, 1953)
Wing v. Forest Lawn Cemetery Assn.
101 P.2d 1099 (California Supreme Court, 1940)
Allen v. Hussey
225 P.2d 674 (California Court of Appeal, 1950)
Melikian v. Truck Insurance Exchange
283 P.2d 269 (California Court of Appeal, 1955)
Bottoms v. Madera Irrigation District
242 P. 100 (California Court of Appeal, 1925)
Ser-Vis v. Victor Valley Irrigation District
214 P. 223 (California Supreme Court, 1923)
Stimson v. Alessandro Irrigation District
67 P. 496 (California Supreme Court, 1902)
Biggart v. Lewis
192 P. 437 (California Supreme Court, 1920)
Leeman v. Perris Irrigation District
74 P. 24 (California Supreme Court, 1903)

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Bluebook (online)
193 Cal. App. 2d 41, 13 Cal. Rptr. 834, 1961 Cal. App. LEXIS 1665, Counsel Stack Legal Research, https://law.counselstack.com/opinion/palmer-v-west-kern-county-water-district-calctapp-1961.