Property Reserve, Inc. v. Superior Court of San Joaquin County

375 P.3d 887, 1 Cal. 5th 151, 2016 WL 3924221
CourtCalifornia Supreme Court
DecidedJuly 21, 2016
DocketS217738
StatusPublished
Cited by26 cases

This text of 375 P.3d 887 (Property Reserve, Inc. v. Superior Court of San Joaquin County) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Property Reserve, Inc. v. Superior Court of San Joaquin County, 375 P.3d 887, 1 Cal. 5th 151, 2016 WL 3924221 (Cal. 2016).

Opinions

Opinion

CANTIL-SAKAUYE, C. J.

In an effort to improve the reliability of the water supply system in California as well as to address environmental and ecological concerns, the Department of Water Resources (hereafter, the [166]*166Department) undertook to investigate the feasibility of constructing a new tunnel or canal in the Sacramento-San Joaquin Delta as a means of delivering fresh water from Northern California to Central and Southern California. As part of the preliminary steps in going forward with the project, the Department sought to conduct environmental and geological studies and testing on more than 150 privately owned parcels of land that the state, in the future, might seek to acquire for the project through negotiation or eminent domain.

In pursuing the proposed studies and testing, the Department proceeded through the specific statutory procedure established by the Eminent Domain Law (Code Civ. Proc., pt. 3, tit. 7, § 1230.010 et seq.) relating to precondem-nation entry and testing (Code Civ. Proc., §§ 1245.010-1245.060).1 The Department filed petitions in superior court relating to the privately owned properties, seeking a court order granting the Department authority to enter the properties and undertake various environmental and geological testing activities. The Department maintained that these activities were necessary to determine the suitability of each property for the project and to comply with the numerous state and federal environmental laws governing such a project.

After a four-day hearing, the trial court issued a detailed and lengthy order authorizing the Department to enter all of the private properties and conduct various environmental studies and testing under specified limitations. After a separate hearing, the trial court denied the Department’s request to conduct geological testing—testing that contemplated the drilling and refilling of deep test holes on certain properties in question—on the ground that the Department’s authority to conduct that drilling could be obtained only through a classic condemnation action rather than through the statutory precondemnation procedure.2

Both the landowners and the Department sought review of the trial court’s rulings in the Court of Appeal. The Court of Appeal, in a two-to-one decision, upheld the trial court’s denial of the Department’s request to enter and to [167]*167conduct geological testing, but reversed the trial court’s grant of authority to conduct environmental testing. The majority in the Court of Appeal concluded (1) that the procedure established by the precondemnation entry and testing statutes does not satisfy the demands of the takings clause of the California Constitution with regard to any precondemnation entry and testing activity that would constitute a taking or damaging of property within the meaning of the state takings clause, and (2) that both the geological testing sought by the Department and the environmental activities authorized by the trial court fell within that category. The Court of Appeal majority held that in order to conduct such activities, the Department was required to proceed to condemn a temporary easement through a classic condemnation action, rather than proceeding by means of the procedure established by the precondemnation entry and testing statutes.

The Department sought review of the Court of Appeal decision in this court. We granted review and posed three questions for briefing and argument: (1) Do the geological testing activities proposed by the Department constitute a taking? (2) Do the environmental testing activities authorized by the trial court’s order constitute a taking? (3) If so, do the precondemnation entry and testing statutes provide a constitutionally valid eminent domain proceeding for the activities?

For the reasons set forth below, we conclude that there is no need to determine under the first two questions whether the authorized environmental testing activities or the proposed geological testing activities constitute a taking or damaging of property for purposes of the state constitutional takings clause. (Cal. Const., art. I, § 19, subd. (a).) Assuming, without deciding, that both the environmental and the geological activities in question amount to a taking or damaging of property for which just compensation must be paid under the California takings clause, we conclude that in answer to our third question the procedure established by the precondemnation entry and testing statutes satisfies the requirements of the California takings clause when the procedure is reformed to comply with the jury trial requirement of that clause. As we explain, the precondemnation entry and testing statutes (1) require a public entity, before undertaking such entry and testing, to seek and obtain a court order specifically authorizing the activities that are to be conducted on the property and to deposit in court an amount that the court determines is the probable compensation for the authorized activities, and (2) permit the property owner to obtain damages in the same proceeding for any actual damage and substantial interference with the possession or use of the property caused by the public entity’s entry and testing activities. This procedure satisfies the California takings clause when reformed to permit the property owner to obtain a jury determination of damages in the proceeding if the property owner so chooses.

[168]*168Accordingly, we conclude that the Court of Appeal judgment should be reversed in its entirety, both insofar as the Court of Appeal affirmed the trial court’s denial of the Department’s proposed geological testing and insofar as it reversed the trial court’s authorization of environmental testing.

I. Facts and Proceedings Below

In this case, the Department proposed to enter more than 150 privately owned properties in the Sacramento-San Joaquin Delta area (Delta) in order to conduct environmental and geological studies and testing needed to investigate the feasibility of adding new water conveyance facilities—such as tunnels or additional canals—in the Delta and to determine the suitability of potential alternative routes for the contemplated project. The proposed new facilities would become part of the Bay Delta Conservation Plan and are intended to improve the reliability of the water supply statewide as well as to restore the Delta ecosystem and native fish populations.3

Because the alternative potential locations for the new facilities cross or lie beneath privately owned lands, the Department sought to enter the private properties in question to ascertain preliminary environmental and geological information about the properties. The Department maintains that the proposed entries and testing are necessary for two reasons: (1) to determine the feasibility and best potential location for the contemplated conveyance system, and (2) to assess the potential effects of the project on biological, environmental, geological, and archeological resources within the properties in order to comply with numerous applicable state and federal environmental laws, including the California Environmental Quality Act (Pub. Resources Code, § 21000 et seq.), the National Environmental Policy Act of 1969 (42 U.S.C. § 4321 et seq.), the California Endangered Species Act (Fish & G. Code, § 2050 et seq.), the federal Endangered Species Act of 1973 (16 U.S.C.

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Cite This Page — Counsel Stack

Bluebook (online)
375 P.3d 887, 1 Cal. 5th 151, 2016 WL 3924221, Counsel Stack Legal Research, https://law.counselstack.com/opinion/property-reserve-inc-v-superior-court-of-san-joaquin-county-cal-2016.