United States v. Contra Costa County Water District
Opinion
Opinion
Williams, J.
The United States owns the Contra Costa Canal System (Canal) and by reason of a contract with the Contra Costa Water District (District) supplied the latter with its water needs. Article 5(d)(1) of the contract compels the District to pay the United States for canal operation and maintenance costs. Hanford, an adjoining land owner to the canal, performed work on his land that imperiled the strength of the canal, and under emergency conditions the Bureau of Reclamation built a 600' retaining wall to prevent partial collapse of the bank. The total cost was $116,558.08. The government made a demand upon the District to pay a portion of this cost upon the theory that the retaining wall constituted normal and necessary maintenance to permit continued use of the canal. The District refused payment, contending that the wall was a capital improvement and not ordinary maintenance. This suit followed.
In 1972, the United States sued Hanford for the cost of the wall in a separate action which was eventually settled for $75,000. Hanford paid the United States $30,000 and received an offset in the amount of $45,000 for diminution of the value of his property.