State of California, United States of America v. Everett G. Rank

We have granted rehearing to appellant irrigation and utility districts upon the question whether in the light of our opinion, 9 Cir., 293 F.2d 340 , they should be dismissed from this case. They assert that their only interest in the subject matter of this action is through their contracts with the United States for the purchase of project water; that since we have ordered the United States dismissed, they too, in all consistency, should be dismissed.

There can be little doubt that absence of the United States and of the Secretary of the Interior has posed perplexing questions respecting the appro priateness of issues raised in the district court and respecting the effectiveness of the determination of those issues. However, all' parties from the outset seem to have approached this litigation with the thought that it would provide a vehicle for disposing of disputes in which they were commonly interested. There can be no doubt that the districts had a real interest in the outcome and that those disputes were vigorously litigated. While the resolution of those disputes may be limited in effectiveness as res judicata due to the absence of certain interested parties, this seems no…