Thousand Trails, Inc. v. California Reclamation District Number 17

In an effort to divert raging floodwaters during torrential rains in January 1997, defendant California Reclamation District Number 17 (District 17) decided to cut a levee to the south of Turtle Beach campground (campground), owned by plaintiff Thousand Trails, Inc., and National American Corporation (Trails). To cut the levee, District 17 commandeered a bulldozer operated by an employee of Brown Sand, Inc. (Brown Sand). Unfortunately, the resulting levee cuts released floodwater and further inundated the campground.

Trails filed suit against District 17, alleging strict liability, inverse condemnation, negligence, dangerous and defective condition, trespass, and nuisance. Subsequently, Trails requested permission to file a third amended complaint; the trial court denied the request. District 17 brought two motions for summary judgment, arguing it was immune under the police power exception to inverse condemnation liability and asserting immunity under the Government Code. The trial court granted both motions. Trails appeals, contending the court erred in granting summary judgment since immunity does not apply and in denying its motion for leave to amend its complaint.…