Santa Clarita Org. etc. v. Castaic Lake Water Agency


(California Court of Appeal) – In a lawsuit to unwind a public water agency’s acquisition of all of the stock of a retail water purveyor within its territory, the trial court’s order refusing to unwind the transaction is affirmed where: 1) the streamlined procedures available for validating certain acts of public agencies, Code Civ. Proc.section 860 et seq., are inapplicable; 2) substantial evidence supports the trial court’s factual finding that the purveyor did not become the agency’s alter ego in this case; and 3) the agency did not violate article XVI, section 17.