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Pescadero property. On June 22, 1988, the water control board
issued a permit granting petitioners the exclusive right to use
the water contained in the reservoir.
On August 22, 1988, petitioners initiated a lawsuit against
Dell'Oca in the Superior Court of the State of California, San
Mateo County (State court). Petitioners alleged that they had
suffered damages in the form of loss of agricultural income and
damage to their livestock, wildlife, fish, and recreational use.
In a second amended complaint, petitioners alleged that
Dell'Oca's alleged overconsumption of the reservoir water limited
petitioners' ability to utilize the reservoir for fire
protection, fish and wildlife enhancement, stock watering,
recreation, domestic, and irrigation purposes or to entice
prospective lessees. Petitioners also alleged that the value of
the Pescadero property had been diminished. Petitioners sought
relief, among other things, through: (1) A cause of action to
quiet title to interest in water; (2) a cause of action to quiet
title to interest in land; (3) a cause of action for declaratory
relief regarding interest in land (prescriptive easement).
On July 23, 1993, the State court entered final judgment
apportioning the parties' use of the water. Petitioners received
the preponderance of the available water arising from the permit
issued by the water control board. The parties were limited in
the amount of water they could procure although the legal
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