County Of Butte v. Waters

SCHOTTKY, J. pro tem. tem.Respondent county of Butte filed an action to quiet title to real and personal property in the possession of the appellant Bidwell Municipal Utility District, a district organized September 12, 1934, under the provisions of the Municipal Utility District Act (Stats. 1921, p. 245, as amended; Deering’s Gen. Laws, Act 6393.) The district is located in northern Butte County, and includes the incorporated city of Chico and unincorporated eommu[186]nities of Paradise and Durham. The directors of the district were joined as defendants in the action, both as directors and individuals, and the banks holding moneys of the district on deposit were also joined as defendants.

Apparently both the formation of the district and its acquisition of property were opposed vigorously. The proceedings by which it was organized were challenged and finally upheld. (Morrison v. White, 10 Cal.App.2d 261 [52 P.2d 261]; and id., 10 Cal.App.2d 266 [52 P.2d 263].) In a later case the county auditor was required to deliver to the district a warrant for the amount of district taxes which had been collected. (Bidwell Mun. Utility Dist. v. Knott, 16 Cal.App.2d 432 [60 P.2d 588]. On December 6, 1935, a petition signed by qualified electors of the district was filed with the secretary of the district asking that the question of dissolution of the district be submitted to a vote of the electors. On February 20, 1936, the directors having failed to call an election as requested by said petition, a petition for a writ of mandamus in the Superior Court of Butte County was filed, and a writ was issued on May 13, 1936. An appeal was taken, and on March 29, 1938, the Supreme Court affirmed the judgment of the superior court ordering, the election upon the question of the dissolution of the district to be held. (Wahl v. Waters, 11 Cal.2d 81 [77 P.2d 1072].) On June 28, 1938, the election was held and a majority of the electors voted for the dissolution of the district, and on July 6, 1938, the vote of the election was canvassed. On November 17, 1939, the present action was filed by the county of Butte.

Respondent’s complaint sets forth in fifteen separate paragraphs the various acts of the defendants since the formation of the district, and alleges that during said time the appellant district acquired certain real and personal property, and prays that, in accordance with section 28 of the Municipal Utility Act of 1921, the title to said property be declared vested in plaintiff.

Appellants in their answer to respondent’s complaint specifically and affirmatively pleaded the ntimerous acts performed since the organization of the district, and without denying that the election on the question of the dissolution of the district was legally held and that the votes were canvassed and showed a majority in favor of dissolution, denied that the district was dissolved, and denied that the county of Butte became the owner of the property of the district. Said