Watts

Donald and Mary Dale (Dale), and R. Robert Watts (Watts), appeal from an order dismissing their respective cross-complaints against Crocker-Citizens National Bank (Crocker) on grounds of the four-year statute of limitations (Code Civ. Proc., § 337). For the reasons set forth below, we have concluded that the order must be reversed.

The pertinent underlying facts are not in dispute and were stipulated below as follows: In 1949, Crocker acquired all of the property here in dispute under a trust created by Minardi, the owners of the original un divided interest. As trustee, Crocker operated the Miradero Water System from December 1969 to April 1974.

On December 30, 1969, Crocker, as trustee for Minardi and the Miradero Water System, entered into a letter agreement with Dale, which obligated Crocker to install, within six months, a “one-inch water line to supply water” for the parcel that Dale was purchasing through Maxwell Realty. In exchange, Dale agreed to quitclaim to Crocker a small parcel of property that then was the subject of a boundary dispute, as Dale’s property line intersected a building on the adjacent parcel. Dale’s quitclaim deed to Crocker was recorded on…