Belmont County Water Dist. v. State of California

Plaintiff Belmont County Water District (District) appeals from the trial court’s judgment denying relief in an action seeking damages for inverse condemnation.

The summarized facts reveal that on or about June 21, 1966, the City and County of San Francisco (City) granted appellant a revocable permit for the purpose of constructing on certain lands belonging to the City a vertical offset shaft and a pipeline leading from said offset shaft to appellant’s terminal water storage facilities (hereinafter reservoirs). The objective of the project was to connect the shaft and reservoirs with the large underground tunnel which brings Hetch-Hetchy water to the City from the Sierra-Nevada mountains and thereby to provide a secondary water supply for the District. In reliance on the permit, in 1968 appellant installed an offset shaft in the tunnel, performed route surveys, and prepared partial plans for the laying of the pipeline.

On or about January 15, 1969, subsequent to the issuance of the revocable permit, but prior to the actual construction of the pipeline, the City granted respondent State of California a scenic and recreational easement over a long stretch of land…