Tucker Land Co. v. State

The primary issue presented in this appeal is whether the constituent members of a Joint Powers Agency (JPA), created by a joint powers agreement pursuant to Government Code section 6500 et seq., are liable for the contractual obligations of the JPA, where the joint powers agreement specifies that they are not and does not provide for liability other than that of the JPA. We conclude they are not, and finding no other basis of liability, affirm.

*1194 Background

In 1969 appellant Tucker Land Company purchased 1,500 acres of undeveloped land in the Santa Monica Mountains from the Getty Trust. Ten years later, Tucker sold the land to Eastport Associates for $750,000 in cash and a note for $11.75 million, with an agreement that the note would be reduced to $6.75 million if Eastport were unable to construct an access road to the property.

Eastport was unable to obtain access and ultimately defaulted by failing to pay property taxes. Tucker recorded a notice of default claiming it was owed in excess of $15 million. Eastport filed an action for declaratory relief against Tucker claiming it owed $7.6 million.

While the Tucker/Eastport litigation was pending, Tucker learned…