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  • IN RE: SAN DIEGO COUNTY WATER AUTHORITY OTHER CIVIL PETITIONS ( writ of mandate; declatory relief; determination of invalidity; breach of contract) document preview
  • IN RE: SAN DIEGO COUNTY WATER AUTHORITY OTHER CIVIL PETITIONS ( writ of mandate; declatory relief; determination of invalidity; breach of contract) document preview
  • IN RE: SAN DIEGO COUNTY WATER AUTHORITY OTHER CIVIL PETITIONS ( writ of mandate; declatory relief; determination of invalidity; breach of contract) document preview
  • IN RE: SAN DIEGO COUNTY WATER AUTHORITY OTHER CIVIL PETITIONS ( writ of mandate; declatory relief; determination of invalidity; breach of contract) document preview
  • IN RE: SAN DIEGO COUNTY WATER AUTHORITY OTHER CIVIL PETITIONS ( writ of mandate; declatory relief; determination of invalidity; breach of contract) document preview
  • IN RE: SAN DIEGO COUNTY WATER AUTHORITY OTHER CIVIL PETITIONS ( writ of mandate; declatory relief; determination of invalidity; breach of contract) document preview
  • IN RE: SAN DIEGO COUNTY WATER AUTHORITY OTHER CIVIL PETITIONS ( writ of mandate; declatory relief; determination of invalidity; breach of contract) document preview
  • IN RE: SAN DIEGO COUNTY WATER AUTHORITY OTHER CIVIL PETITIONS ( writ of mandate; declatory relief; determination of invalidity; breach of contract) document preview
						
                                

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1 MANATT, PHELPS & PHILLIPS, LLP Exempt from filing fee pursuant to Barry W. Lee (SBN 88685) Government Code § 6103 2 Justin Jones Rodriguez (SBN 279080) One Embarcadero Center, 30th Floor ELECTRONICALLY 3 San Francisco, California 94111 F I L E D Telephone: (415) 291-7450 Superior Court of California, 4 Facsimile: (415) 291-7474 County of San Francisco Email: bwlee@manatt.com 03/21/2022 5 Email: jjrodriguez@manatt.com Clerk of the Court BY: YOLANDA TABO-RAMIREZ 6 THE METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA Deputy Clerk Marcia Scully (SBN 80648) 7 Heather C. Beatty (SBN 161907) Patricia J. Quilizapa (SBN 233745) 8 700 North Alameda Street Los Angeles, CA 90012-2944 9 Telephone: (213) 217-6834 Facsimile: (213) 217-6890 10 Email: hbeatty@mwdh2o.com 11 Attorneys for Respondent, Defendant, and Cross-Complainant THE METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA 12 Additional counsel listed on following page 13 14 SUPERIOR COURT OF THE STATE OF CALIFORNIA 15 FOR THE COUNTY OF SAN FRANCISCO 16 SAN DIEGO COUNTY WATER Case No. CPF-14-514004; consolidated with AUTHORITY, Case Nos. CPF-16-515282 & CPF-18- 17 516389 Petitioner and Plaintiff, 18 Assigned for all purposes to the v. Hon. Anne-Christine Massullo, Dept. 306 19 THE METROPOLITAN WATER DISTRICT METROPOLITAN WATER DISTRICT 20 OF SOUTHERN CALIFORNIA, ALL OF SOUTHERN CALIFORNIA’S PERSONS INTERESTED IN THE OPPOSITION TO THE WATER 21 VALIDITY OF THE RATES ADOPTED BY AUTHORITY’S SEPARATE THE METROPOLITAN WATER DISTRICT STATEMENT FILED IN SUPPORT OF 22 OF SOUTHERN CALIFORNIA ON APRIL 8, MOTION FOR SUMMARY 2014 TO BE EFFECTIVE JANUARY 1, 2015 ADJUDICATION (2014 ACTION) 23 AND JANUARY 1, 2016; and DOES 1-10, [Filed concurrently with (1) opposition; (2) 24 Respondents and Defendants. appendix of evidence; (3) request for judicial notice; (4) response to request for judicial 25 notice; (5) objections to evidence; (6) proposed order re objections.] 26 Hearing Date: April 13, 2022, 2:00 p.m. 27 28 MANATT, PHELPS & METROPOLITAN’S OPPOSITION TO THE WATER AUTHORITY’S SEPARATE STATEMENT IN SUPPORT PHILLIPS, LLP OF MOTION FOR SUMMARY ADJUDICATION ATTORNEYS AT LAW SAN FRANCISCO (CASE NO. CPF-14-514004) 1 THE METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA, 2 Respondent, Defendant and Cross- 3 Complainant, 4 vs. 5 SAN DIEGO COUNTY WATER AUTHORITY, 6 Petitioner, Plaintiff and Cross- 7 Defendant. 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 -2- MANATT, PHELPS & METROPOLITAN’S OPPOSITION TO THE WATER AUTHORITY’S SEPARATE STATEMENT IN SUPPORT PHILLIPS, LLP OF MOTION FOR SUMMARY ADJUDICATION ATTORNEYS AT LAW SAN FRANCISCO (CASE NO. CPF-14-514004) 1 MILLER BARONDESS LLP Mira Hashmall (SBN 216842) 2 1999 Avenue of the Stars, Suite 1000 Los Angeles, California 90067 3 Telephone: 310-552-4400 Facsimile: 310-552-8400 4 Email: mhashmall@millerbarondess.com 5 MORGAN, LEWIS & BOCKIUS LLP Colin C. West (SBN 184095) 6 One Market, Spear Street Tower San Francisco, California 94105-1596 7 Telephone: (415) 422-1000 Facsimile: (415) 422-1101 8 Email: colin.west@morganlewis.com 9 Attorneys for Respondent, Defendant, and Cross-Complainant THE METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 -3- MANATT, PHELPS & METROPOLITAN’S OPPOSITION TO THE WATER AUTHORITY’S SEPARATE STATEMENT IN SUPPORT PHILLIPS, LLP OF MOTION FOR SUMMARY ADJUDICATION ATTORNEYS AT LAW SAN FRANCISCO (CASE NO. CPF-14-514004) 1 TABLE OF CONTENTS 2 Page 3 I. METROPOLITAN’S RESPONSES TO THE WATER AUTHORITY’S FACTS ........... 1 4 A. Issue 1 ..................................................................................................................... 1 B. Issues 2-15 ............................................................................................................... 3 5 C. Issues 16-25 ........................................................................................................... 50 6 D. Issues 26-27 ........................................................................................................... 60 7 E. Issue 28 ................................................................................................................. 62 F. Issue 29 ................................................................................................................. 63 8 G. Issues 30-32 ........................................................................................................... 64 9 H. Issues 33-34 ........................................................................................................... 82 10 I. Issues 35-36 ........................................................................................................... 84 II. METROPOLITAN’S ADDITIONAL MATERIAL FACTS ........................................... 85 11 A. Issue 1 ................................................................................................................... 85 12 B. Issues 2–15 ............................................................................................................ 97 13 C. Issues 16–25 ........................................................................................................ 100 D. Issues 26–27 ........................................................................................................ 103 14 E. Issue 28 ............................................................................................................... 103 15 F. Issue 29 ............................................................................................................... 103 16 G. Issues 30–32 ........................................................................................................ 104 H. Issues 33–34 ........................................................................................................ 104 17 I. Issues 35–36 ........................................................................................................ 105 18 19 20 21 22 23 24 25 26 27 28 MANATT, PHELPS & PHILLIPS, LLP -i- ATTORNEYS AT LAW SAN FRANCISCO 1 In support of Respondent, Defendant, and Cross-Complainant Metropolitan Water District 2 of Southern California (“Metropolitan”)’s opposition to Petitioner, Plaintiff, and Cross-Defendant 3 San Diego County Water Authority (“Water Authority”)’s motion for summary adjudication, 4 Metropolitan submits the following responses and additional material facts to San Diego’s 5 separate statement: 6 I. METROPOLITAN’S RESPONSES TO THE WATER AUTHORITY’S FACTS 7 A. Issue 1 8 Issue 1: Whether “Metropolitan’s first cause of action in its 2014 cross-complaint, for declaratory relief regarding the Water Stewardship Rate, is barred by issue preclusion.” 9 The Water Authority’s undisputed Metropolitan’s response and supporting 10 material facts and supporting evidence: 11 evidence: On April 24, 2014, this Court issued its Undisputed that the Court issued a statement 12 1. “Statement of Decision on Rate Setting of decision. Challenges” in CPF-10-510830 and Disputed that the statement of decision in 13 CPF-12-512466 (the “prior cases”). (Ex. the 2010/2012 Actions has preclusive effect 1.) on the issues identified in the Water 14 Authority’s motion. As explained in Metropolitan’s opposition brief, the Water 15 Authority bears the burden on issue preclusion, but has failed to analyze the 16 elements for preclusion in the motion. See Hong Sang Mkt., Inc. v. Peng, 20 Cal. App. 17 5th 474, 489 (2018) (“A party who asserts claim or issue preclusion as a bar to further 18 litigation bears the burden of proving that the requirements of the doctrine are 19 satisfied.” (citing Vella v. Hudgins, 20 Cal. 3d 251, 257 (1977))). Here, multiple 20 elements of preclusion, including the identical issues element, are not met for the 21 reasons stated in Metropolitan’s brief. 22 In addition, a trial court ruling lacks preclusive effect if properly appealed and 23 the Court of Appeal does not embrace the grounds of the appeal. See Samara v. Matar, 24 5 Cal. 5th 322, 334 (2018) (“we now 25 conclude that a ground reached by the trial court and properly challenged on appeal, but 26 not embraced by the appellate court’s decision, should not affect the judgment’s 27 preclusive effect.”). 28 -1- MANATT, PHELPS & METROPOLITAN’S OPPOSITION TO THE WATER AUTHORITY’S SEPARATE STATEMENT IN SUPPORT PHILLIPS, LLP OF MOTION FOR SUMMARY ADJUDICATION ATTORNEYS AT LAW SAN FRANCISCO (CASE NO. CPF-14-514004) 1 The Water Authority’s undisputed Metropolitan’s response and supporting material facts and supporting evidence: 2 evidence: 3 On August 28, 2015, this Court issued its Undisputed that the Court issued a statement 2. second “Statement of Decision” in the of decision. 4 prior cases. (Ex. 2.) Disputed that the statement of decision in the 2010/2012 Actions has preclusive effect 5 on the issues identified in the Water Authority’s motion. As explained in 6 Metropolitan’s opposition brief, the Water Authority bears the burden on issue 7 preclusion, but has failed to analyze the elements for preclusion in the motion. See 8 Hong Sang Mkt., Inc. v. Peng, 20 Cal. App. 5th 474, 489 (2018) (“A party who asserts 9 claim or issue preclusion as a bar to further litigation bears the burden of proving that 10 the requirements of the doctrine are satisfied.” (citing Vella v. Hudgins, 20 Cal. 11 3d 251, 257 (1977))). Here, multiple elements of preclusion, including the 12 identical issues element, are not met for the reasons stated in Metropolitan’s brief. 13 In addition, a trial court ruling lacks 14 preclusive effect if properly appealed and the Court of Appeal does not embrace the 15 grounds of the appeal. See Samara v. Matar, 5 Cal. 5th 322, 334 (2018) (“we now 16 conclude that a ground reached by the trial 17 court and properly challenged on appeal, but not embraced by the appellate court’s 18 decision, should not affect the judgment’s preclusive effect.”). 19 The California Court of Appeal, First Undisputed. 3. District, Division 3, issued its decision in 20 San Diego County Water Authority v. 21 Metropolitan Water Dist. of Southern California (2017) 12 Cal.App.5th 1124 22 (SDCWA I), as modified on denial of rehearing on July 18, 2017. (Ex. 5.) 23 On remand from SDCWA I, this Court Undisputed. 4. issued its Judgment in the prior cases on 24 or about August 13, 2020. (Ex. 6.) 25 On or about August 14, 2020, this Court Undisputed. 5. issued its Peremptory Writ of Mandate in 26 the prior cases. (Ex. 7.) On September 21, 2021, the California Undisputed. 27 6. Court of Appeal, First District, Division 28 -2- MANATT, PHELPS & METROPOLITAN’S OPPOSITION TO THE WATER AUTHORITY’S SEPARATE STATEMENT IN SUPPORT PHILLIPS, LLP OF MOTION FOR SUMMARY ADJUDICATION ATTORNEYS AT LAW SAN FRANCISCO (CASE NO. CPF-14-514004) 1 The Water Authority’s undisputed Metropolitan’s response and supporting material facts and supporting evidence: 2 evidence: 3 3, affirmed this Court’s Judgment and Peremptory Writ of Mandate in San 4 Diego County Water Authority v. Metropolitan Water Dist. of Southern 5 California (Cal. Ct. App., Sept. 21, 2021, No. A161144) 2021 WL 4272331 6 (SDCWA II). (Ex. 8.) 7 The Court of Appeal stated (in SDCWA Undisputed that the Court of Appeal 7. II) that its prior determination (in decision in SDCWA II includes the quoted 8 SDCWA I) regarding Metropolitan’s language. Water Stewardship Rate “concerned a Disputed that the Court of Appeal’s 9 particular category of costs (‘water language has bearing on any issue other 10 stewardship rate’) which did not vary than the Water Stewardship Rate. Further from year to year”; that “there was no disputed that the Water Stewardship Rate 11 need nor did we intend to limit our presents a live controversy in these cases. determination to any particular rate Metropolitan has paid all amounts for its 12 year.” (Ex. 8 at p. *5.) prior inclusion of the Water Stewardship Rate in its transportation rates for the years 13 at issue. The parties’ corresponding claims 14 and the Water Authority’s motion are moot. The Court of Appeal stated (in SDCWA Undisputed that the Court of Appeal 8. II): “That Metropolitan apparently decision in SDCWA II includes the quoted 15 believes that in some future rate year it language. 16 can recover a water stewardship rate as a Disputed that the Court of Appeal’s cost subcomponent of its transportation language has bearing on any issue other 17 costs in its wheeling rate or the than the Water Stewardship Rate. Further 18 transportation rates charged under the disputed that the Water Stewardship Rate exchange agreement, thereby presents a live controversy in these cases. 19 contravening our prior opinion, supports Metropolitan has paid all amounts for its the trial court’s continuing jurisdiction to prior inclusion of the Water Stewardship 20 assure compliance with its judgment.” Rate in its transportation rates for the years (Ex. 8 at p. *6.) at issue. The parties’ corresponding claims 21 and the Water Authority’s motion are moot. 22 B. Issues 2-15 23 Issue 2: Whether “Metropolitan has an enforceable duty under the Wheeling Statutes and the 24 Exchange Agreement to charge no more than ‘fair compensation,’ which is defined as ‘including reasonable credit for any offsetting benefits for the use of the conveyance system.’ (Wat. Code, § 25 1811, subd. (c).)” 26 27 28 -3- MANATT, PHELPS & METROPOLITAN’S OPPOSITION TO THE WATER AUTHORITY’S SEPARATE STATEMENT IN SUPPORT PHILLIPS, LLP OF MOTION FOR SUMMARY ADJUDICATION ATTORNEYS AT LAW SAN FRANCISCO (CASE NO. CPF-14-514004) 1 The Water Authority’s undisputed Metropolitan’s response and supporting material facts and supporting evidence: 2 evidence: 3 Paragraph 5.2 of the 2003 Amended and Undisputed. 9. Restated Exchange Agreement states that 4 “the Price shall be equal to the charge or charges set by Metropolitan’s Board of 5 Directors pursuant to applicable law and regulation and generally applicable to 6 the conveyance of water by Metropolitan 7 on behalf of its member agencies.” (Ex. 3, ¶ 5.2.) 8 In SDCWA I, the Court of Appeal stated: Disputed. 10. “A water agency’s payments to its 9 The Water Authority has omitted key members to encourage water language from the Court of Appeal decision conservation is outside the scope of in SDCWA I in order to create the 10 recoverable costs contemplated by the impression that the decision stands for a 11 wheeling statute,” and therefore, different proposition than the ones stated in Metropolitan’s “water stewardship rate the decision. The omitted text for instance, 12 used to fund conservation programs” is includes the Wheeling Statutes’ requirement not “recoverable as ‘fair compensation’ that there must be “unused capacity” in the 13 for use of the conveyance system.” (Ex. conveyance system in order for the 14 5, SDCWA I, supra, 12 Cal.App.5th at Wheeling Statutes to apply. See SDCWA I, pp. 1150–51.) 12 Cal. App. 5th at 1150. As detailed 15 throughout Metropolitan’s motion for summary adjudication papers and in its 16 papers in opposition to this motion, the 17 parties’ Exchange Agreement is not a wheeling agreement for many reasons, 18 including because the exchange of water is not contingent on unused capacity. 19 In SDCWA I, the Court of Appeal further Undisputed that the Court of Appeal 11. stated that “to the extent that the price decision in SDCWA I includes the quoted 20 language. Metropolitan charged the Water 21 Authority for wheeling was based on an Disputed that the Court of Appeal’s unlawful rate, there was a breach of the language has bearing on any issue other 22 amended exchange agreement providing than the Water Stewardship Rate. Further for future prices ‘equal to the charge or disputed that the Water Stewardship Rate 23 charges set by Metropolitan's Board of presents a live controversy in these cases. Directors pursuant to applicable law and Metropolitan has paid all amounts for its 24 regulation and generally applicable to prior inclusion of the Water Stewardship 25 the conveyance of water by Metropolitan Rate in its transportation rates for the years on behalf of its member agencies.’” (Ex. at issue. The parties’ corresponding claims 26 5, SDCWA I, supra, 12 Cal.App.5th at p. and the Water Authority’s motion are moot. 1154.) 27 28 -4- MANATT, PHELPS & METROPOLITAN’S OPPOSITION TO THE WATER AUTHORITY’S SEPARATE STATEMENT IN SUPPORT PHILLIPS, LLP OF MOTION FOR SUMMARY ADJUDICATION ATTORNEYS AT LAW SAN FRANCISCO (CASE NO. CPF-14-514004) 1 The Water Authority’s undisputed Metropolitan’s response and supporting material facts and supporting evidence: 2 evidence: 3 In SDCWA I, the Court of Appeal stated Undisputed that the Court of Appeal 12. that “the evidence sufficiently decision in SDCWA I includes the quoted 4 establishes a violation of the contractual language. price term, not just the wheeling rate, 5 and actionable injury by payment of a water stewardship rate unrelated to the 6 transportation services provided.” (Ex. 7 5, SDCWA I, supra, 12 Cal.App.5th at p. 1154.) 8 In SDCWA II, the Court of Appeal Undisputed that the Court of Appeal 13. stated: “In its 2010 and 2012 actions, the decision in SDCWA II includes the quoted 9 Water Authority’s requests for language. mandamus were predicated on a claim Disputed that the Court of Appeal’s 10 that Metropolitan failed to act as language has bearing on any issue other 11 required by law in determining ‘fair than the Water Stewardship Rate. Further compensation’ for a wheeler’s use of an disputed that the Water Stewardship Rate 12 owner’s water conveyance system for presents a live controversy in these cases. transporting water under both the Metropolitan has paid all amounts for its 13 Wheeling Statutes and the parties’ prior inclusion of the Water Stewardship 14 exchange agreement under which Rate in its transportation rates for the years Metropolitan had a duty to calculate at issue. The parties’ corresponding claims 15 water rates pursuant to applicable law and the Water Authority’s motion are moot. and regulation.” (Ex. 8, SDCWA II, 16 supra, 2021 WL 4272331, at p. *7.) The Court of Appeal stated: “Thus, the Undisputed that the Court of Appeal 17 14. writ properly compels Metropolitan to decision in SDCWA II includes the quoted perform its clear and present legal language. 18 obligation, pursuant to Water Code Disputed that the Court of Appeal’s 19 sections 1810 and 1812, requiring the language has bearing on any issue other owner of a water conveyance facility to than the Water Stewardship Rate. Further 20 timely determine fair compensation for disputed that the Water Stewardship Rate use of its water conveyance services for presents a live controversy in these cases. 21 the benefit of the Water Authority, Metropolitan has paid all amounts for its 22 which is an entity entitled to use the prior inclusion of the Water Stewardship facilities upon the payment of fair Rate in its transportation rates for the years 23 compensation.” (Ex. 8, SDCWA II, at issue. The parties’ corresponding claims supra, 2021 WL 4272331, at p. *8.) and the Water Authority’s motion are moot. 24 Water Code section 1811, subdivision Undisputed that the Water Code includes 15. (c), defines “fair compensation” as the quoted language. 25 “including reasonable credit for any Disputed that the Water Authority is entitled 26 offsetting benefits for the use of the to a credit for offsetting benefits for the conveyance system.” (See Ex. 9 at pp. multiple reasons stated in Metropolitan’s 27 6–7, 11–12; Ex. 11 at p. 2; Ex. 12; Ex. pending motion for summary adjudication 28 -5- MANATT, PHELPS & METROPOLITAN’S OPPOSITION TO THE WATER AUTHORITY’S SEPARATE STATEMENT IN SUPPORT PHILLIPS, LLP OF MOTION FOR SUMMARY ADJUDICATION ATTORNEYS AT LAW SAN FRANCISCO (CASE NO. CPF-14-514004) 1 The Water Authority’s undisputed Metropolitan’s response and supporting material facts and supporting evidence: 2 evidence: 3 13.) and in its opposition to the Water Authority’s motion. 4 In SDCWA I, the Court of Appeal stated: Undisputed that the Court of Appeal 16. “Metropolitan has made several decision in SDCWA I includes the quoted 5 assertions on appeal denying an language. enforceable contract and actionable Disputed that the language has preclusive 6 effect as to Metropolitan’s cross-claims and breach but none is persuasive.” (Ex. 5, SDCWA I, supra, 12 Cal.App.5th at p. affirmative defenses in these cases. The 7 portion of SDCWA I that the Water 1154; see also Ex. 4 at pp. 114–130.) Authority cites mentions only one defense, 8 illegality, which Metropolitan has not pleaded in these cases. SDCWA I, 12 Cal. 9 App. 5th at 1154. The Water Authority also relies on Metropolitan’s opening brief on 10 appeal in the 2010/2012 Actions. But the entire section of the brief the Water 11 Authority cites also focuses on a defense not at issue in these cases (illegality) and other 12 issues that are not embraced by the cross- claims and affirmative defenses at issue in 13 the motion. (See SD Ex. 4, pp. 114-30.) In addition, a party’s appellate brief does not 14 have preclusive effect on a later case. 15 For the reasons stated in Metropolitan’s opposition to the motion, the cross-claims 16 and defenses at issue in these cases rely on additional factual allegations that were not 17 at issue in the earlier cases, including the 18 Water Authority’s new allegations about offsetting benefits and the Water 19 Authority’s prior representations or silence on offsetting benefits during contract 20 negotiations and performance. (See, e.g., Answers ¶¶ 11-12, 34-49.) The Water 21 Authority can thus not meet the identical 22 issue element of issue preclusion. See Key v. Tyler, 34 Cal. App. 5th 505, 534 (2019), as 23 modified on denial of reh’g (May 7, 2019) (“The identical issue requirement for issue 24 preclusion addresses whether identical 25 factual allegations are at stake, ‘not whether the ultimate issues or dispositions are the 26 same.’” (quoting Lucido v. Superior Court, 51 Cal. 3d 335, 342 (1990))). 27 28 -6- MANATT, PHELPS & METROPOLITAN’S OPPOSITION TO THE WATER AUTHORITY’S SEPARATE STATEMENT IN SUPPORT PHILLIPS, LLP OF MOTION FOR SUMMARY ADJUDICATION ATTORNEYS AT LAW SAN FRANCISCO (CASE NO. CPF-14-514004) 1 The Water Authority’s undisputed Metropolitan’s response and supporting material facts and supporting evidence: 2 evidence: 3 The Court of Appeal stated: “Fees and Undisputed that the Court of Appeal 17. rates are ‘subject to attack’ when decision in SDCWA I includes the quoted 4 reenacted, even if they are essentially the language. same as previous ones.” (Ex. 5, SDCWA Disputed that SDCWA I has preclusive 5 I, supra, 12 Cal.App.5th at p. 1142; see effect on this issue for the reasons stated in also Ex. 9 at pp. 7–10, 12–13.) Metropolitan’s opposition to the motion. 6 7 Issue 3: Whether “Metropolitan’s second cause of action in its 2014 cross-complaint, for 8 declaratory relief regarding offsetting benefits, is barred because Metropolitan has an enforceable duty under the Wheeling Statutes and the Exchange Agreement to charge no more than ‘fair 9 compensation,’ which is defined as ‘including reasonable credit for any offsetting benefits for the use of the conveyance system.’ (Wat. Code, § 1811, subd. (c).)” 10 The Water Authority’s undisputed Metropolitan’s response and supporting 11 material facts and supporting evidence: evidence: 12 Paragraph 5.2 of the 2003 Amended and Undisputed. 18. Restated Exchange Agreement states that 13 “the Price shall be equal to the charge or 14 charges set by Metropolitan’s Board of Directors pursuant to applicable law and 15 regulation and generally applicable to the conveyance of water by Metropolitan 16 on behalf of its member agencies.” (Ex. 17 3, ¶ 5.2.) In SDCWA I, the Court of Appeal stated: Dis