City of San Diego v. La Mesa Lemon Grove & Spring Valley Irrigation District

This is an appeal from an order and judgment restraining the defendant Irrigation District from discontinuing or shutting off a supply of water, and from raising the rate of the service of such water until such time as such, action should be authorized, either by the Railroad Commission of the state of California or by the City of San Diego. The action was submitted to the trial court upon stipulated facts, which were adopted by the court as its findings. The agreed facts may be briefly stated as follows: For some time prior to April 5, 1924, the Cuyamaca Water Company was a public utility engaged in impounding and distributing water for domestic use and irrigation purposes over a considerable area in San Diego County. On April 5, 1924, the Cuyamaca Water Company gave to the La Mesa, Lemon Grove and Spring Valley Irrigation District an option to buy, in consideration of $1,100,000, its entire system with the exception of a portion which was to remain outside of the Irrigation District, in which area the public utility was to continue to serve the consumers and as to which territory the option contained the following provision: “ It is understood that for East San Diego, Normal…