Perrin v. Derbyshire Scenic Acres Water Corp.

Chester M. Derbyshire and his wife were owners of land situated near Kent in King County, which Derbyshire subdivided into thirty-two 1%- and sixteen 1%-acre tracts. He obtained from the state a ground-water permit and installed a water system consisting of a 250-foot well, with a motor capable of pumping 50 gallons per minute, a booster pump, and a 35,000-gallon storage tank. Lines were run to the various tracts, there being one outlet on each 1%-acre tract.

The plaintiff Ray W. Perrin was a “speculative builder,” who purchased several of these tracts and built homes upon them. The deeds…