Opinion
This case involves a dispute between the owners of an apartment house located in the City of Rancho Mirage (plaintiffs/ appellants Kenneth and Deidre Bunch—hereafter, the Bunches) and a local water district (defendant/appellant Coachella Valley Water District— hereafter, the District) concerning flood damage suffered by the Bunches’ apartment house in 1979. 1 The flood damage was alleged to have been caused by a failure of one of the District’s flood control facilities. The action sounded in inverse condemnation. The issue of liability was tried to the trial court, while the issue of damages was tried to a jury.
The trial court found in the Bunches’ favor with respect to the issue of liability. Following the jury’s subsequent determination of damages, judgment was entered. The Bunches have appealed from the judgment only with regard to the calculation of interest which was included as a part of the overall award of damages. The District has appealed from the judgment in all regards. 2
As we discuss below, we conclude that this matter must be reversed and remanded to the trial court for further trial proceedings in light of our Supreme Court’s recent decision in
Belair
v.
Riverside County Flood Control Dist.
(1988)
Facts
Inasmuch as this matter must be remanded to the trial court for further proceedings on a single, specific issue, the statement of facts need not be extensive. 3
In the late 1940’s-early 1950’s, flood control facilities were built on the Magnesia Cove alluvial plain to control the floodwaters which were periodically discharged from Magnesia Springs Canyon. These facilities consisted of earthen levees and dikes and were intended to direct the Magnesia Springs Canyon floodwaters in a northwesterly direction and into the West Magnesia Channel.
In 1966, the District became the owner of these flood control facilities.
In 1976, the flood control facilities here in question, the levee/dike system lying at the base of Magnesia Springs Canyon, were breached by storm waters which flowed northerly from the point of breach and flooded the Magnesia Cove alluvial plain. The facilities were thereafter rebuilt, possibly in a somewhat more substantial manner than that in which they had originally been built.
In 1979, the flood control facilities were once again breached by storm waters. This failure of the facilities occurred in the same location as had the 1976 failure—the point at which the facilities channeled the flow of waters from a more northerly direction to a more northwesterly direction. Once again, the Magnesia Cove alluvial plain was flooded. This time, the floodwaters reached and damaged the Bunches’ apartment house.
In 1982, the Bunches filed the within inverse condemnation action. The matter came on for trial in 1987. Following the liability phase of the trial, a phase which saw the introduction of numerous pieces of demonstrative evidence and the extensive rendition of expert testimony, the trial court concluded, in pertinent part: “[District] flood control facilities were intended to divert flood waters from their natural direction of flow.
“[T]he CVWD [District] flood control facilities failed in exactly the same place as the 1976 failure [a point described by the trial court as being ‘at or
“The Court is convinced beyond any doubt that the damage to plaintiffs’ real property was caused by a concentrated and rapidly flowing powerful body of water discharged from the point of failure of the CVWD flood control facilities. It was not local runoff that caused the damage to the subject property.
“The physical evidence is overwhelming that water from the break in the CVWD flood control facilities was the cause of the damage to plaintiffs’ real property, much less a substantial cause of that damage.
“Accordingly, the Court renders judgment in favor of plaintiffs and against defendant CVWD on the issue of liability.”
Of interest to us at this stage of the proceedings, the trial court conducted no inquiry into (and reached no conclusion as to) the reasonableness vel non of the District’s actions in designing, constructing, operating, or maintaining the Magnesia Cove flood control facilities.
In December 1988, after this matter had come before us on appeal, our Supreme Court rendered its opinion in the Belair case and revitalized the issue of reasonableness in the context of determining whether the flood control actions of a public agency give rise to liability under a theory of inverse condemnation.
The threshold issues presented to us by this appeal, then, are whether the Belair analysis and rationale are applicable to this case and, if so, whether such applicability requires a remand of the matter to the trial court for further proceedings. We conclude in both instances that the answer is “yes.”
Discussion
I
The Applicability of the Belair Opinion
In
Belair,
our Supreme Court reexamined the issue of a governmental entity’s liability under a theory of inverse condemnation in the context of
Belair
holds that establishing the existence of substantial causation requires a showing that the flood control facility in question failed to function within its design capacity or otherwise as intended and that such failure bore “ ‘ “a substantial cause-and-effect relationship excluding the probability that other forces
alone
produced the injury” [citations]’ ” to the damages suffered by the property owners.
(Belair, supra,
47 Cal.3d at pp. 559-562, quoting from
Souza
v.
Silver Development Co.
(1985)
Under the
Belair
analysis, establishing the existence of unreasonableness is yet another factual undertaking: “The reasonableness of the public agency’s conduct must be determined on the facts of each individual case, taking into consideration the public benefit and the private damages in each instance. (See
Keys
v.
Romley
(1966)
On its face, the
Belair
opinion applies to the situation at hand—a situation in which property owners have alleged inverse condemnation liability
A: Estoppel to Argue the Unreasonableness Requirement
The Bunches have drawn our attention to statements made by the District in its trial brief to the effect that a rule of strict liability (liability without regard to reasonableness) obtains in inverse condemnation cases involving property damage which would not have occurred but for an intentional governmental diversion of waters from their natural channel or course. The Bunches go on to argue that this is such a case and that the District (having “induced” the trial court to use a standard of strict liability) is thus estopped to now contend for any standard of liability based in part on a finding of unreasonableness. The Bunches are in error. Inasmuch as the Belair opinion was not even in existence at the time this matter was before the trial court, it hardly makes sense to suggest that the District’s trial brief induced the trial court to disregard the applicability of Belair to the facts of this case. The District has argued the applicability of Belaif s standard of unreasonableness to the facts of this case at its earliest opportunity—on appeal.
B: Limitation of Belair Analysis to “Common Enemy Doctrine” Cases
Next, the Bunches argue that
Belair
only applies to those inverse condemnation cases in which the common-law “common enemy doctrine” (the doctrine) comes into play, and that this is not one of those cases. While we
The doctrine is a common law principle of tort law that “emanat[es] from the complex and unique province of water law.”
(Holtz
v.
Superior Court
(1970)
The doctrine was prominently applied to the issue of a governmental agency’s liability for flood damage in the case of
Archer
v.
City of Los Angeles
(1941)
The Bunches observe, correctly, that
Belair
concerns a situation in which the doctrine traditionally would have applied. (In
Belair,
the Supreme Court concluded that the flood control facilities had not diverted waters from their natural channels and that those facilities had been designed to protect against the “common enemy” of historic, periodic flooding.) The Bunches also correctly observe that
Belair
specifically rejects the doctrine as
It is, of course, axiomatic that it is only the ratio decidendi of a Supreme Court opinion that is fully binding as precedent on the lower courts of this state.
(Ginns
v.
Savage
(1964)
We are persuaded that the far-reaching and elaborate analysis undertaken in
Belair
should be given application beyond the limited facts of that case, and that the principled dicta of that opinion should guide our consideration of the issues presented in the case before us. While we are generally persuaded to such effect by the entire tenor of the
Belair
opinion, we are persuaded in particular by the following two passages that Belair’s
Had it been the Supreme Court’s intention in Belair to merely elucidate the extant standard of liability in “common enemy’Vinverse condemnation cases, there would have been no need to reach beyond the Archer-Albers-Holtz line of authority (i.e., to reach beyond “prior case law”) in so doing. However, in focusing its attention on constitutional principles as opposed to those common law principles embodied in the doctrine, and in broadening the scope of its analysis to include “public policy and common sense” in addition to “prior case law,” the Supreme Court appears to us to have signaled an intention to seek a uniform standard of liability that would apply across the entire spectrum of flood control/inverse condemnation cases involving unintended physical damage to property. Such a standard would permit an equitable, and constitutional, balancing of the competing legal and public policy considerations present in such cases without requiring hypertechnical, and hopelessly contrived, distinctions as to the nature and source of the floodwaters or as to whether the floodwaters were intentionally “diverted” to or from a particular place.
The better rule of law is the one that results in the application of Belair's reasoning and analysis to all flood control/inverse condemnation cases involving unintended physical damage to property—whether or not those cases call the “common enemy doctrine” into play.
C: Applicability of Belair to “Intentional Diversion ” Cases
Finally, the Bunches argue that Belair does not apply to cases, such as this one, which involve a public agency’s intentional diversion of waters from their natural course or channel. We conclude to the contrary.
Belair
does acknowledge a line of District Court of Appeal cases which have imposed a rule of strict, absolute liability in “intentional diversion”
This immediately preceding quote from Belair serves to highlight one of the semantic confusions which seems to have attended this general area of the law from the outset: When one speaks of the “diversion” of water, is one speaking of a diversion of water from a particular place or to a particular place? The answer would appear to have a great deal to do with whether or not a diversion is deemed to be “intentional.” A flood control facility which collects stream waters from two natural watercourses and moves them to yet a third clearly produces an intentional diversion of waters from the first two natural watercourses. However, were this same flood control facility to “spring a leak” and disgorge its contents in an area where no such disgorgement was planned or anticipated, the facility would equally clearly produce an ««intentional diversion of water to a particular location.
At least two different statements in
Belair
suggest that the Supreme Court’s focus in that opinion is on ««intentional diversions of water
to
a particular place: (1) At the very outset of the opinion, in setting forth the general nature of the holding reached in
Belair,
the Supreme Court states: “We conclude that
in the case of an unintended breach of a flood control improvement,
plaintiffs are not entitled to recover absent proof of such unreasonable conduct.”
(Belair, supra,
In summary, we hold that the standard of reasonableness which is enunciated in Belair is uniformly applicable in all flood control/inverse condemnation cases in which unintended physical damage to property is alleged to have been substantially caused by an unintended breach in flood control facilities—that is, by a failure of those facilities to function within their design capacity or otherwise as intended.
II
Remanding to the Trial Court for a Retroactive Application of Belair
While Belair does not directly overrule prior case law, it does reexamine and reevaluate the legal precedents which had become recognized landmarks in this area of flood control/inverse condemnation law. Further, as noted above, Belair has cast the reasoning of at least one line of District Court of Appeal “intentional diversion” cases into doubt. 9 Finally, Belair has for the first time suggested a uniform standard of analysis for this entire area of the law. The question arises, then, whether the Belair analysis and rationale represent such a dramatic departure from prior authority as to constitute a de facto “overruling” of that authority, and, if so, whether the “new rule” should be applied retroactively to the case at hand.
Our interpretation of
Belair
clearly yields at least one rule of law that directly contravenes prior District Court of Appeal case authority: An “unreasonableness” standard of liability, as opposed to a “strict” standard of liability, applies to all flood control/inverse condemnation cases involving unintended physical damage to property substantially caused by an unintended breach in flood control
facilities—without regard
to whether the
Given that this is our view of
Belair,
we turn our attention next to the question of the retroactive application of the new rule. Ordinarily, an overruling opinion
is
given retroactive application.
(Peterson
v.
Superior Court
(1982)
Conclusion
This matter shall be remanded to the trial court for further proceedings limited to the issue of unreasonableness.
10
Our remand is made in the same spirit as was that which was ordered in the case of
Keys
v.
Romley, supra,
Disposition
The judgment is reversed, and this matter is remanded to the trial court for further limited proceedings consistent with this opinion.
McDaniel, J., and Hollenhorst, J., concurred.
The petition of plaintiffs and appellants for review by the Supreme Court was denied December 13, 1989. Mosk, J., was of the opinion that the petition should be granted.
Notes
During the pendency of this case in the trial court, the Bunches’ property damage insurer, Safeco Insurance Co., joined in the matter as a plaintiff in intervention. However, Safeco is not a party to this appeal.
These appeals were taken separately, under separate appellate case numbers. Pursuant to motion and stipulation of the parties, we ordered that both appeals be consolidated for all purposes.
On appeal, the District has mounted a concerted attack on the admissibility and substantiality of the evidence relied on by the trial court in rendering its judgment. We do not reach those evidentiary issues on this appeal. Thus, our statement of facts is intended by us only as
Belair notes that a finding of substantial causation does not require a showing that the failure of the flood control facility was the sole cause of the damages. Rather, all that is required is a showing that the facility’s failure was a “substantial concurring cause of the injury, i.e., where the injury occurred in substantial part because the improvement failed to function as it was intended.” (Belair, supra, at pp. 559-560.)
Belair’s citation of this particular portion of the Keys opinion is instructive inasmuch as it is precisely at this point in the Keys opinion that the Supreme Court stated that “[t]he issue of reasonableness becomes a question of fact to be determined in each case upon a consideration of all the relevant circumstances,. . .” {Keys, supra, at p. 410.) The inescapable conclusion is that Belair views the issue of unreasonableness in the flood control/inverse condemnation context as being a question of fact rather than a question of law.
Implicitly, of course, quite aside from whether the Bunches properly pled and proved unreasonableness, this argument also addresses the fact that the trial court, in any event, reached no conclusion as to the unreasonableness of the District’s flood control activities.
Yee
v.
City of Sausalito
(1983)
We do not wish to be understood, of course, as suggesting that intentional diversions of water to a particular place cannot give rise to inverse condemnation liability or that establishing that liability in such a case would require an inquiry into the reasonableness of the public agency’s conduct. Such a diversion would result in intentional physical damage to property and would almost always give rise to governmental liability as a matter of course. However, we are concerned in this instance, as the Supreme Court was in Belair, with unintentional physical damage.
Contrary to the Bunches’ assertion,
Belair
did not leave the District Court of Appeal “intentional diversion” cases (see fn. 7,
ante)
“untouched.” The fact that
Belair
did not expressly overrule these decisions is of no particular significance. As our Supreme Court has had occasion to observe of itself: “[W]e do not recognize any obligation on the part of this court to interpret and distinguish decisions of the district court of appeal because it is contended that the rule there laid down is inconsistent with the one adopted by this court, either in its previous opinions or in the opinion pronounced,. . .”
(Burgesser
v.
Bullock’s
(1923)
The Bunches have argued that there is no need for a remand of this case to the trial court to deal with the issue of unreasonableness. Briefly, their argument is twofold: (1) The state of the record is such that a trier of fact must conclude that the District’s flood control activities in this case were unreasonable; and (2) this court, in the interest of judicial economy and efficiency, should exercise its independent power to make factual determinations (Code Civ. Proc., § 909) and resolve the issue of unreasonableness. Neither argument is persuasive.
First, whatever the state of the record may be, it does not contain an explicit, factual balancing of public need and private harm of the sort contemplated by
Belair.
This is a task best suited to the skills and resources of the trial court, and we leave it to that forum for resolution. Second, the power of this court to make independent factual determinations does not extend to cases, such as this one, in which the trial court has made
no
relevant findings.
(Estate ofPendell
(1932)
While our remand may be made in the same spirit as that which was ordered in
Keys,
it is not made to precisely the same effect. The issue of (unreasonableness in a
“Belair
case” is not an affirmative defense to be raised and proved by the defending public agency. Rather,
