West Coast Construction Co. v. Oceano Sanitary District

In February of 1969 plaintiff instituted an action against defendant (hereinafter referred to as “District”) and others in which damages —for breach of contract involving the construction of a sewer, system and by reason of certain tortious acts—were demanded; in connection therewith, an injunction was also sought to prevent the District from expending or disbursing any monies for the construction of such sewer system except as should be necessary to maintain it in its then condition. After a hearing on February 21, at which proof was presented, a preliminary injunction was granted. Almost 11 months later, on plaintiff’s application, the injunction was broadened in scope; specifically, the District was enjoined during the pendency of the action from expending monies from a specified sewer construction fund either for payments to any contractor other than plaintiff, attorney’s fees and other costs of litigation, or the employment of experts and expert witnesses. The District appeals from the order granting the foregoing restraints.

On July 1, 1967, a written contract was entered into between plaintiff and the District to construct the sewer system in question. As…