Kaupke v. Lemoore Canal and Irrigation Co.

MARKS, J.

This is an action by plaintiff as treasurer of the Kings River Water Association to recover from defendant its unpaid proportionate share of the expenses of operating the association. The action was commenced in Fresno County and defendant moved that the place of trial be changed to Kings County in which is located its principal place of business. This motion was denied and this appeal followed.

The Kings River Water Association is an unincorporated association of nineteen corporations and irrigation districts engaged in the business of the distribution of irrigation water to farmers. The association has its origin in an “Administrative Agreement” and a “Water Right Indenture” which were executed by its members, including defendant, in 1927. Its affairs are administered by a board of directors selected by its members. Chas. L. Kaupke is, and has been since the organization of the association, its secretary and treasurer.

The administrative agreement empowers the board of directors to annually estimate the cost of conducting the business of the association and to levy an assessment for these expenses as well as any indebtedness remaining from the

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operations of the previous year. The board also has power to levy special assessments. It is provided that each member shall pay a fixed fractional share of such assessments.

The agreement contains the following: “That it is expressly understood and agreed that when said Association through its Board of Directors, Secretary or Treasurer shall have made upon any of the parties hereto a demand or requisition for any money, according to the terms of this Agreement, and any such party shall have failed to pay the same within sixty (60) days from the date of such requisition or demand, to the Treasurer of said association, then and in that event the sum of money so specified in said demand or requisition shall be due and payable to said Treasurer from the party hereto upon which such demand or requisition shall have been made, and such Treasurer shall have the right in his own name to sue for and collect the same from said party hereto so in default, together with all costs of suit and such reasonable attorney’s fees as such Treasurer may have incurred in such action.”