CITY OF CLOVERDALE v. Department of Transportation

This lawsuit concerns a drainage channel constructed by the Department of Transportation (Department) when it rerouted Highway 101 to bypass the center of the City of Cloverdale (City). Nearby property owners (plaintiffs) sued the Department and the City for flooding caused by the drainage channel, and the City cross-complained against the Department for indemnity, damages, and declaratory relief. Plaintiffs settled with the City and obtained a judgment on jury verdicts for damages against the Department. Judgment was entered for the Department on the City’s cross-complaint.

A threshold issue in the case was whether the Department, after completing the bypass project, effectively relinquished title to the drainage channel to the City. That issue was tried to the court, and the court determined that title was in fact relinquished. The court subsequently ruled for the Department on the City’s indemnity claim, and granted in part the Department’s motion to dismiss other City causes of action. This appeal by the City contests the relinquishment, indemnity, and dismissal rulings.

In the published portion of this opinion, we set forth our reasons for affirming the…