Diamond Springs Lime Co. v. American River Constructors

In December 1964 several days of torrential rainfall created great pressure on the partially constructed Hell Hole Dam, located on the Rubicon River, a tributary to the Middle Fork of the American River. The dam burst. Impounded water poured downstream and damaged a limestone quarry and rock-crushing plant situated on the Middle Fork. Diamond Springs Lime Company, operator of the quarry, brought this damage action against American River Constructors, the contractor building the dam, and Placer County Water Agency, owner of the dam. A jury trial resulted in a verdict finding that ARC had been negligent and awarding damages against it. The jury exonerated Water Agency. ARC appeals from the ensuing judgment. Plaintiff has filed a cross-appeal from judgment favoring Water Agency.

Hell Hole Dam was part of the Middle Fork American River Project being constructed by ARC under a contract between it and Water Agency. The contract was signed on May 2, 1963. The dam was to be of “dumped” rockfill construction. In the construction of such a dam an abutment is established on one side of the canyon across which the dam is to extend. From this abutment rock is dumped into a prepared…