Lines

Lines v. Marin Municipal Water District

Good Law
1964 Cal. App. LEXIS 1066·228 Cal. App. 2d 155·39 Cal. Rptr. 294
Court of Appeal of CaliforniaJune 24, 1964Civ. No. 21179California1,420 words

Opinion

Lead Opinion

Draper, J.

Plaintiff, as trustee in bankruptcy for Stegge Development Corporation, had judgment for $21,140. Defendant district appeals. The question is whether the award is justified under the statute providing for relief from forfeiture (Civ. Code, §3275).

In 1955, Stegge owned some 2,500 acres of land, which it planned to develop by construction of more than 3,750 residences. Water service, of course, was essential to the development. Stegge and defendant district executed a written contract which acknowledged the district policy not to finance subdivisions, but to require the subdivider to assume the risk of development by advancing all costs for extension of water *157 service thereto. The agreement set out in detail the water service facilities to be constructed and required that Stegge proceed with all within 60 months. The work was divided into 8 stages, each to serve a particular area of Stegge’s land, but it was expressly provided that “Notwithstanding the separate or stage statement of program and costs, this contract shall be deemed to be non-severable. No part of the service shall be given except upon the express understanding that the whole program will be carried through by…

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