Laguna Hermosa Corporation v. B. E. Martin

INTRODUCTION

This case reaches us on an appeal by the United States, representing B. E. Martin, the Regional Director of the Bureau of Reclamation. The district court entered a declaratory judgment extending the Concession Agreement of Laguna Hermosa Corporation (“Laguna”) with Napa County (“the County”), the United States’ predecessor in interest. The United States claims that the district court lacked jurisdiction, and that the United States could not be estopped on the facts of this case. We affirm.

FACTS

Laguna is a concessionaire providing public use facilities at Lake Berryessa (“the Lake”) in northern California. The Lake was created by the Solano Project undertaken by the Bureau of Reclamation.

In 1958 the United States and the County entered into a management agreement. The agreement authorized the County to administer development of the Lake. The management agreement limited all concession agreements to 20-year terms. In December 1958, Laguna entered into a 20-year Concession Agreement with the County.

The 1958 management agreement proved impractical. Because of the 20-year limit on the concession agreements, the concessionaires were unable to obtain financing. In…