California Supreme Court per our Constitution-Causation-Withholding of Evidence  

SBA Loan # 6641964009

The U.S. Small Business Administration Loan Agreement for Oceano Nursery states in my Deed Of Trust with First Bank Of San Luis Obispo and the SBA that I am required on Page 4 of this Deed Of Trust to Fight Inverse Condemnation of my property! 
US Small Business Administration Loan # 6641964009 US Small Business Administration Loan # 6641964009

The Following Provisions relating to eminent domain and inverse condemnation proceeding are part of this Deed of Trust.”

“Proceedings.  If any imminent domain or inverse condemnation proceeding is commenced affecting the property, Trustor shall promptly notify Lender in writing, and Trustor shall promptly take such steps as may be necessary to pursue or defend the action and obtain the award.  Trustor may be a nominal party in any such proceeding, but Lender shall be entitled, at its election, to participate in the proceeding and to be represented in the proceeding by counsel of its own choice, and Trustor will deliver or cause to be delivered to Lender such instruments and documents as may be requested by Lender from time to time to permit such participation.”

Application of Net Proceeds.  If any award is made or settlement entered into in any condemnation proceedings affecting all or any part of the property or by any proceeding or purchase in lieu of condemnation, Lender may at its election, and to the extent permitted by law, require that all or any portion of the award or settlement be applied to the indebtedness and to the repayment of all reasonable costs, expenses, and attorney’s fees incurred by trustee or Lender in connection with the proceedings.”
Pacific Capital Bank---SBA Loan # 6641964009 Inverse CondemnationPacific Capital Bank---SBA Loan # 6641964009 Inverse Condemnation

Recent E-Mail Communication with the SBA in regards to no longer being able to use the Oceano Nursery property due to Inverse Condemnation/the flooding caused by Caltrans, County of San Luis Obispo, Oceano Community Service District and Union Pacific Railroad.  Caltrans as seen in this YOUTUBE video continues to shovel debris into the Oceano Communities Storm Water drainage channel! 
California Supreme Court--Inverse Condemnation
California Supreme Court--Steve Price Caltrans District 5-Inverse Condemnation  Caltrans Steve Price, deputy district director for area operations and maintenance talks about the fix of the flooding of State Highway 1 would ...

It should be noted that there was no problems with my SBA Loan on October 22, 2009! 

From: Mendoza, Carlos G. []
Sent: Wednesday, May 26, 2010 3:23 PM
To: Bill Bookout
Cc: Ashker, Terrill K.; Mendoza, Carlos G.
Subject: FW:


Mr. Bookout:  As previously stated back in October 22, 2009, you must work with your lender for all servicing issues.   Your lender should and must be your primary contact in these matters especially when your SBA loan is  now delinquent and requires immediate attention. 




Carlos G. Mendoza

SBA, Fresno


Reference:  SBA loan # 6641964009


From: Bill Bookout []
Sent: Tuesday, May 25, 2010 4:17 PM
Cc: Mendoza, Carlos G.; Truly, Ronald E.; SBA National Ombudsman; 'Ombudsman Washington';
Subject: RE:


May 25, 2010


Hello, Mrs. Sheffield, SBA Carlos Mendoza and Ronald Truly


As I am required with my SBA loan # 6641964009 to fight Inverse Condemnation; I am trying to keep Pacific Capital Bank and the SBA aware of why Oceano Nursery is still flooding and can no longer be used.  The SBA is aware of illegal actions by Heritage Oaks Bank that have previously affected this SBA loan.


I would appreciate it if each, of you could acknowledge your receipt of this e-mail and your knowledge of the web-site


Would the SBA or Pacific Capital Bank/First Bank of San Luis Obispo be willing to take this property back in lieu of foreclosure per the March 2, 2010 demand letter from Pacific Capital Bank?  The Pacific Capital Bank July 2, 2007 Appraisal file # 10885 of this property showed an Appraisal value of $530,000.00.  We have since had over 20 floods of this property due to Caltrans, County Of San Luis Obispo, Oceano Community Service District and Union Pacific Railroad not correcting the problems they have created as seen at




Bill Bookout

SBA loan # 664194009

 San Luis Obispo New Times Article--2010

Washed away


After fighting multiple government agencies for five years over historical flooding in Oceano, Oceano Nursery owner Bill Bookout is facing foreclosure.
Bill Bookout is a man consumed by the legal battles he’s waged. In May 2006, he sued Caltrans, San Luis Obispo County, Union Pacific Railroad, the Pismo Oceano Vegetable Exchange, and the Oceano Community Services District, all with the perhaps naïve hope that someone would clean out a drainage channel bordering Highway 1 in Oceano and stop the flooding that plagues the area every year where his nursery is located.

Bookout’s obsession with his lawsuit and a compulsory finger-pointing at Caltrans crews, whom he’s photographed and videotaped shoveling debris into a drainage channel, has cost him hundreds of thousands of dollars in legal fees. He shut down his business in early 2008 and laid off 12 employees. Now, 10 years after he opened the Oceano Nursery, he’s probably going to lose it to foreclosure.

On a brisk and windy day, Bookout eagerly clomped through the drainage channel leading to a drainage pipe that clogs every year and floods the highway and surrounding businesses.He grabbed a clump of waist-high weeds in the channel.

“Now no one wants to maintain the channel,”
he said.

Bookout argues that Caltrans is responsible for maintaining the drainage channel, but crews regularly clog it with debris. He argued this in court, but lost, and now has $200,000 in liens on his various businesses, he said. He’s filed an appeal, but that hasn’t gone to court yet.

“The source of the water is coming from outside of state property—the highway—so our position is that a solution to this flooding rests outside our jurisdiction,” said Jim Shivers, Caltrans public information officer.

Bookout has coated the walls of the nursery, both inside and outside, with pictures of the flooding and Caltrans crews, links to his blog and YouTube pages, and government letters. He’s left the fading paint on water-damaged buildings and scattered piles of junk. In essence, he’s created a massive advertisement for his lawsuit and the flood damage.

Bookout kept making monthly payments on his loan until January, he said. With the debt from his lawsuit, Bookout is now in too much financial trouble to refinance or get a new loan. On March 2, his lender notified him he would have to shell out about $400,000, the remainder of his loan, by March 8 or face foreclosure. He didn’t make the payment and fully expects to lose the business.

Over the past year, it’s flooded 13 times, he said, and in the next big storm it will probably flood again until someone takes responsibility for the drainage channel.

Supervisor Katcho Achadjian hopes that the ongoing case will finally identify a responsible party to take care of the flooding.

“My hopes are that whatever comes out of that lawsuit will point the finger to someone,” Achadjian said.

Bookout said he plans to keep fighting all the way to the Supreme Court. And it’s a fight he seems to see as something much more than flooding or drainage channels: “There’s gonna be a lot of things said in the future about me.”




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