Coast Counties Real Estate & Investment Co. v. Monterey County Water Works

This is an appeal from a judgment in favor of plaintiff and against defendant and comes to this court upon a bill of exceptions.

The facts of the case follow. In the year 1907 plaintiff, referred to hereinafter as the Realty Company, had bought a tract of land in Monterey County. The purpose of the Realty Company was to subdivide the land and offer it for sale to the public. The area embraced somé 1600 lots. As a necessity, water was required and there was none available to the tract. A corporation, predecessor of defendant, was then operating in Monterey County and engaged in the business of furnishing water to certain localities in said county. As there is no question presented on the distinction between the rights, duties, or liabilities of defendant and its predecessor, we will drop all mention of the predecessor and proceed as though the present corporation defendant has been the actual party contracting from the inception of the transaction. The defendant throughout will be styled Water Company. In 1907 the Water Company, in furnishing water to the localities served, employed wholly a gravity system. In other words, the point of supply was above the points of distribution.…