Yue

This appeal is taken from an order and judgment of dismissal entered by the trial court after sustaining the general demurrer to plaintiffs’ second amended complaint for inverse condemnation without leave to amend. We shall reverse.

Facts and Procedural History

On May 23, 1986, Richard Yue, on behalf of RHRH, Inc. (doing business as the Shanghai Restaurant and Bar) filed a claim against the city of Auburn alleging that his restaurant and bar, located in the old city portion of Auburn, was damaged on February 18, 1986, by flooding and excessive water “caused by [a] poorly engineered drainage system.” This claim was rejected by the city on June 12, 1986.

On December 3, 1986, plaintiffs filed a complaint in superior court alleging a taking by inverse condemnation and a second cause of action for negligence. After a succession of amendments and demurrers, plaintiffs abandoned their negligence cause of action because of their failure to meet the filing requirements of the Government Tort Claims Act (Gov. Code, § 900 et seq.), and ultimately filed a second amended complaint based solely on inverse condemnation. This complaint sought money damages for loss in value to…