Nelson v. Lake Hemet Water Co.

PRESTON, J.

We have been led to a conclusion on a simple question of law which disposes of the appeals in both of the above causes, which were tried together, and renders superfluous a discussion of the various other questions so ably urged by appellant. This conclusion is that the respective rights of the parties to this litigation have been previously determined and settled by ,a judgment of this court; hence the doctrine of

res judicata

has thereby intervened. We refer to the case of

Allen

v.

Railroad Com.,

179 Cal. 68 [8 A. L. R. 249, 175 Pac. 466], hereinafter called the Allen case for convenience. Reference is made to said case for a complete history of defendant corporation, its manner of doing business, together with a description of the rights and claims of Allen and others, all of whom, including respondents, were in an identical situation; therefore, only a brief recital of the facts is required.

[96]

Appellant and an allied corporation acquired ownership of a large area of agricultural lands along the San Jacinto River in Riverside County, together with a water supply from said river and its tributaries. Between the years 1889 and 1915 it subdivided said lands and sold them in small areas, selling likewise with each tract a perpetual water right appurtenant thereto, evidenced by a contract in the form of so-called water certificates, which provided for one-eighth of a miner’s inch of water per acre for each of said tracts during the irrigation season at an annual rate of two dollars per acre. Several hundred of these tracts were sold and a corresponding number of water certificates were issued. In the course of time the weight of these contracts at so low a figure bore heavily upon the corporation. Accordingly, in 1915 it came before the Railroad Commission and petitioned, alleging itself a public utility with respect to the service to the owners of these water certificates, and praying to be allowed to abrogate said contracts and that each holder be required to pay an increased charge for his water supply. The commission entertained the petition; presumably all the legal steps, such as notice and publication, were duly taken and the parties were brought before the commission regularly for the hearing. The hearing was held, evidence taken and the proceeding resulted in an order of the commission, made in 1916, granting the prayer of the petitioner and declaring it a public utility and attempting to increase the water rate of each holder from two dollars to three dollars, directing a compliance therewith. Respondents themselves or their predecessors in interest were thus legally before the commission as parties in the matter of this hearing.