Kern County Water Agency v. Belridge Water Storage District

This action arose from a dispute among several water districts, all members of Kern County Water Agency (KCWA), over how certain costs charged to KCWA by the State of California Department of Water Resources (State) should be allocated among the member districts. Following a month-long nonjury trial, the court below issued a declaratory judgment generally favorable to two member districts. On review we conclude that the trial court did not err in its procedural and evidentiary rulings or in its interpretation of the relevant contractual provisions. We will affirm.

Facts and Procedural Background

KCWA is a political subdivision organized by legislative act and voter approval, mainly to contract with State for water from the State Water Project (Project) on behalf of its 14 member districts. On November 15, 1963, KCWA and State entered into a written agreement (the Master Contract) pursuant to which State agreed to make available to KCWA annual entitlements of water subject to payment and delivery under the terms of the contract. Between the period of 1966 and 1974, pursuant to its authority, KCWA entered into water supply contracts with each of its member districts:…