Aitchison v. Bank of America National Trust & Savings Ass'n

EDMONDS, J.

The question for decision in this case concerns the right to certain amounts owing by the Merced Irrigation District for water rights transferred to it by the plaintiffs. The amounts unpaid are claimed by the plaintiffs and also by Bank of America National Trust & Savings Association as the present owner of the various parcels of land to which the water rights were originally appurtenant. Judgment went in favor of the plaintiffs and the bank has appealed.

The action is one for declaratory relief, and was brought by a large number of persons holding contracts with the Irrigation District upon which various amounts are unpaid. It is alleged that in 1924 plaintiffs sold and conveyed to the Irrigation District all and any rights they had to receive water under certain contracts with Crocker-Huffman Land and Water Company and in consideration thereof that the district agreed to pay plaintiffs various amounts in annual instalments over a period of years; that the agreements of the district are contained in several instruments, all of which were intended to constitute one transaction; that certain of the payments due upon said contracts have not been made for the reason that Bank of America claims some right to them based upon a claim that it or its predecessor had or has some lien upon the several parcels of land formerly owned by the plaintiffs, but that such claim is without right. Edward F. Treadwell is also a plaintiff and it is alleged that the district agreed to pay five per cent of the several amounts to him. The relief asked is that the court ascertain and declare the rights of the parties.

The trial court declared by its findings and judgment that the contracts made by plaintiffs with the Irrigation District do not run with the land but belong to the parties or their assigns; that the right to receive the amounts payable to the plaintiffs thereunder never passed to the bank by

[402]

the foreclosure of the deeds of trust or the deeds made in lieu of foreclosure and that the bank has no interest in any amounts payable thereunder except in those instances where the contracts were assigned to it. The judgment also provides that each of the plaintiffs except those who assigned their contracts to the bank recover from the Irrigation District the amount due under his contract. Treadwell is also declared to be entitled to certain sums, and the bank is given judgment for the amounts due and unpaid on all contracts which have been assigned to it.