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Bank of America National Trust and Savings Association, Trustee, and Robecor, Inc. v. Summerland County Water District and Does I Through Xv

Citations: 767 F.2d 544; 1985 U.S. App. LEXIS 20909Docket: 84-5719

Court: Court of Appeals for the Ninth Circuit; July 26, 1985; Federal Appellate Court

Narrative Opinion Summary

In this case, Bank of America National Trust and Savings Association, alongside Robecor, Inc., challenged the Summerland County Water District's revised water allocation system, arguing it violated both state laws and constitutional protections. The District had modified its system to prioritize parcel size and land use, limiting water distribution, which adversely affected Bank of America's substantial water application. The plaintiffs sought a preliminary injunction and a temporary restraining order against the new allocation system, citing violations under state land use and water laws, and constitutional breaches under the Fifth and Fourteenth Amendments and 42 U.S.C. § 1983. However, the U.S. District Court invoked the Pullman abstention doctrine, staying proceedings to allow state court resolution of complex state law issues and denied the injunction, recognizing only a fair chance of success for the plaintiffs. The Ninth Circuit affirmed this decision, supporting the abstention doctrine's application to avoid premature constitutional rulings and confirming the rational basis for the District's water user classifications. The court also left the disqualification of the District's counsel for future consideration, dependent on state court outcomes. Ultimately, the federal claims were retained for potential adjudication post-state court resolution.

Legal Issues Addressed

Disqualification of Counsel

Application: The district court's decision to defer the disqualification of counsel for the Summerland County Water District to the state court was affirmed, leaving the issue for reconsideration if the case returns for federal adjudication.

Reasoning: The decision on disqualification is left to the state court, with instructions for the district court to consider disqualification if the case returns for constitutional adjudication.

Preliminary Injunction Standards

Application: The trial judge denied Bank of America's injunction request as the plaintiffs only had a fair chance of success on their constitutional claims, failing to demonstrate a strong likelihood of success or serious questions going to the merits with a balance of hardships.

Reasoning: The trial judge correctly denied the injunction as the plaintiffs had only a fair chance of success on their constitutional claims.

Property Rights under Water Law

Application: Bank of America was unable to claim deprivation of property, due process, or equal protection under California water law, as it lacked property rights as a potential water user.

Reasoning: As a potential water user, Bank of America lacks property rights under California law and cannot claim deprivation of property, due process, or equal protection.

Pullman Abstention Doctrine

Application: The Ninth Circuit affirmed the district court's use of the Pullman abstention doctrine to avoid ruling on constitutional claims dependent on unresolved state law issues regarding water rights and land use.

Reasoning: The district court denied the injunction and stayed the proceedings, invoking the Pullman abstention doctrine to avoid deciding constitutional claims that were dependent on complex state law issues.

Rational Basis Review of Water Allocation

Application: The court found the District's classification of water users to be rationally related to conserving water resources, thus upholding the allocation system against constitutional challenges.

Reasoning: The classification of water users by the District is rationally related to conserving resources.