California Court of Appeal

In a dispute between a property owners association and a rancher over water rights governed by a contract between the parties that obligated the rancher to use "best efforts" to maintain a full reservoir, it is held that when a contract does not define the phrase "best efforts," the promisor must use the diligence of a reasonable person under comparable circumstances, and a promise to use best efforts does not create an obligation equivalent to a fiduciary duty, so the trial court did not err in holding that the best efforts clause had to be examined in the context of the agreement and what constituted best practices for a rancher in Modoc County using his water rights licenses for the stated purposes.

Appellate Information

• Decided 05/24/2012
• Published 05/24/2012

Judges

• Mauro

Court

• California Court of Appeal

Counsel

• For Appellant:
  
• Minasian, Spruance, Meith, Soares & Sexton, Law Offices of Gifford & Harr