Fallen Leaf Protection Assn. v. State of California

This is an appeal from a judgment of dismissal of plaintiffs’ cross-complaint for inverse condemnation after the trial court sustained the State’s demurrer without leave to amend.

Plaintiffs are the owners of private parcels of property surrounding Fallen Leaf Lake, which lies within the South Tahoe Public Utility assessment district and the Lake Tahoe watershed. The owners of these properties are disposing of waste through the use of cesspools and septic tanks, and are not placing their waste into a sewer system or holding tanks.

In 1969 the Legislature enacted sections 13950 and 13951 of the Water Code which provide as follows:

Pursuant to these statutes, the South Tahoe Public Utilities District (hereafter “STPUD”) sought to construct a sewer collector line around the shores of Fallen Leaf Lake. Plaintiffs objected to these proceedings and the subsequent litigation ensued.

On August 14, 1973, plaintiffs filed a petition and complaint seeking a writ of mandate, a writ of prohibition, declaratory and injunctive relief. Plaintiffs named as defendants the following parties: STPUD, the State of California Water Resources Control Board, the Lahontan Regional Water…