Clemmensen

BACKGROUND

Dora Belle is a mutual water company formed pursuant to Articles of Incorporation (the “Articles”) dated August 3, 1962, and subsequent bylaws approved at a meeting on August 28, 1962. The Articles reflect that Dora Belle was formed by Stephen and Maxine Young as a non-profit corporation to provide water to the owners of property in Shaver Lake Heights Subdivision No. 4, which was apparently originally owned by the Youngs who were subdividing it for sale. The crux of this dispute involves the provision of water to Lots 8 and 9. On July 3, 2014, the Clemmensens purchased both of these lots from Richard and Linda Tappe, who were successors in interest to the original purchasers, Virgil and Thelma Tappe. Thereafter, the Clemmensens became interested in building another structure on the second lot, and sought to confirm they would have access to water if they elected to do so. Dora Belle refused to agree to supply water to both lots, causing the Clemmensens to file suit.

2. Certain of the foundational documents for Dora Belle, including the Articles, suggest the corporation intended to issue up to 22 shares of stock, which would be sufficient to include separate shares…