Bank of America National Trust and Savings Association, Trustee, and Robecor, Inc. v. Summerland County Water District and Does I Through Xv

Bank of America and other appeal from denial of a preliminary injunction and from an order staying proceedings in federal court pending state court adjudication of state law questions. Appellants also urge that the district court should have granted their motion to disqualify counsel for the Summerland County Water District. We affirm the stay and denial of the injunction. The disqualification issue will receive further consideration by the district court, if necessary, following the state court proceedings.

The Summerland County Water District allocates water for the Summerland area of Santa Barbara County. It controls a limited amount of water, measured in acre-feet per year, which it dispenses primarily for single-family accounts, called meters.

In October 1974 the District declared a water shortage emergency and established a “sequency” list of applications from persons who hoped to be given meters when and if the shortage was remedied. The sequency list gave priority in the order applications were filed.

As a result of rationing and conservation the District had water available for new meters in 1983. Under Summerland County Water District Ordinance No. 76-4(5), the…