Engle

By its judgment after a bifurcated trial the trial court (1) permanently enjoined defendant city from “discharging sewage effluent from the sewage plant of the City of Oroville into the Feather River,” and (2) awarded plaintiffs damages of $11,000. The first phase (in which plaintiffs’ right to injunctive relief was decided) was tried by the court. The issue of damages was. determined (in the second phase) by a jury after an abortive appeal to this court on plaintiffs’ right to an injunction had been dismissed as premature.

Defendant urges a number of assignments of error, only two of which need consideration herein since these two assignments have merit, require a reversal with directions, and therefore dispose of the litigation, The questions we answer are:

(1) Where, during the course of litigation and before'final judgment, the conditions upon which an injunction has been issued no longer exist and cannot recur should the injunction be dissolved ?

(2) Must a judgment for damages be reversed with directions where the only evidence relevant to damages was an alleged loss of prospective profits: (a) from an unexecuted lease of property; (b) to a prospective tenant not shown to…