Anna Mae Schott v. City of Kingman, an Incorporated Arizona Municipality

The question presented in this diversity case is whether, under Arizona law, a subdivider of property adjacent to a city who installs a water system in satisfaction of a state-imposed condition to the right to sell subdivision lots, which system is' then connected to the city system, can thereafter recover from the city the cost of such installation. The district Court held that she could. Its findings of fact, conclusions of law and judgment are reported, Schott v. City of Kingman, 317 F.Supp. 427 (D.Ariz.1970). We reverse.

From 1962 through 1965 appellee and her late husband developed two subdivisions outside the city limits of Kingman, Arizona, in the course of which water distribution lines were installed under the subdivision streets. The District Court found:

Arizona law contains the usual requirements for city and county approval of subdivisions adjacent to city limits and the recording of approved plats. Ariz.Rev.Stat. §§ 9-474 — 9-479 (West 1956), as amended by 1958 Ariz.Laws Ch. 81, § 1. Further, it provides:

That the appellee took into consideration such state-required costs of subdivision in fixing the price of the lots seems apparent, although her testimony was far…