Utility responsible for relocation costs

Abstract

A privately owned public utility's franchise rights in a public street are subject to an implied obligation to relocate its facilities at its own expense when such relocation is necessary to make way for a proper governmental use of the street, according to a California appellate court. The Metropolitan Water District of Southern California maintained a pipeline in the right of way of a city street in Buena Park. When the adjoining city of Anaheim extended its storm drain, Metropolitan had to relocate its facilities. Anaheim expected Metropolitan to bear the relocation cost, but Metropolitan refused. Anaheim paid the expenses and then sued Metropolitan to recover the cost. The trial court ruled in favor of Metropolitan. In the appeal, Metropolitan argued that the law governing privately owned utilities was inapplicable when the competing surface users of the public street right of way are governmental entities. It maintained that in such cases the entity whose facilities were in place first was entitled to be compensated for relocation necessitated by a later governmental use by another entity. But inasmuch as Metropolitan could be required by Anaheim to relocate water mains in public streets within the city of Anaheim at its own expense, the court saw no reason to draw a distinction between relocations within the city and outside the city boundaries. Thus, the court concluded that Anaheim could recover expenses from Metropolitan.