Security Pacific National Bank v. City of San Diego

Security Pacific National Bank, as executor of the estate of Florence Edna Blunt, deceased, and Joe Blunt (plaintiffs) appeal from a judgment in favor of City of San Diego (City) in an action seeking, by way of declaratory relief, a determination of the rights of the parties in a parcel of land which is owned in fee by plaintiffs but flooded with impounded water used by City as part of its water system.

The property (hereinafter referred to as plaintiffs’ land), which is the *423 subject of the litigation consists of that portion of lots 67 and 68 of Rancho Mission in San Diego which lies below the 100-foot contour line of what is now Murray Reservoir, formerly known as La Mesa Reservoir. Both portions together equal approximately 102.6 acres.

Plaintiffs’ predecessor in interest, the Junípero (incorrectly referred to as “Junipierro”) Land and Water Company, entered into an agreement on May 14, 1887 (the 1887 agreement) under the terms of which San Diego Flume Company (Flume Company) granted to Junípero an option to a perpetual supply of all water needed for domestic use on and irrigation of Junipero’s land, including lots 67 and 68; limited, however, to a certain…