Portola Development Co. v. Board of Trustees

SALSMAN, J. The plaintiff sought declaratory relief under a written contract with the Board of Trustees of Leland Stanford Junior University (hereinafter referred to as Stanford). The Ladera Recreation District intervened. The trial court determined there was nothing due plaintiff under the contract at time of trial, and plaintiff appeals from the judgment.

The plaintiff is the developer of the Ladera subdivision adjacent to Stanford lands in San Mateo County. In order to serve the subdivision with sewers it was necessary to run an outfall sewer line across Stanford property to connect with the facilities of the Menlo Park Sanitary District. Plaintiff negotiated with Stanford for an easement for the sewer line and with the Menlo Park Sanitary District for the use of its facilities. The negotiations resulted in the written contract of November 25, 1952. Under the contract plaintiff obtained an easement from Stanford; plaintiff agreed to install the sewer line along a route to conform to Stanford’s land development program and to make the line of sufficient size to accommodate not only the needs of the Ladera subdivi[131]sion but also the needs of Stanford as its lands might be developed in the future. The plaintiff agreed to and did pay the entire cost of the sewer installation, but is to be partially reimbursed by Stanford under a paragraph of the agreement which reads, in part, as follows: “5. If and as any of the lands of Stanford are connected with and served by said sewer line as above provided Stanford shall pay to the Company an amount or amounts, not to exceed in any one payment or in the aggregate the sum of $8,000, determined as follows: (a) When the first connection is made by Stanford to said sewer line a sum equal to $2.00 per foot for each linear feet [sic] (measured along said sewer line) from the manhole at the point where said sewer line connects with the present existing sewer of the District in Alpine Road, San Mateo County, California, to the point of Stanford’s said first connection with said sewer line, (b) As each connection thereafter is made by Stanford with said sewer line, if such connection is at a point further (measured along said sewer line) from the aforesaid manhole than any previous connection by Stanford with said sewer line, a sum equal to $2.00 per foot for each linear foot (measured along said sewer line) between the previous Stanford connection which is furthest from said manhole and the connection currently being made by Stanford. If and when Stanford shall have paid the Company $8,000 pursuant to the provisions of this paragraph 5 no further payment shall be made by Stanford for any additional connections made by it with said sewer line.”