Hi Walter,

Great photo. Italian cypress are very prone to root rot from poor drainage. If the soil is soggy, that could be part of the cause. If you can, look to see if sap is running down the trunk as there have been problems with a disease called canker in California. You might find this an interesting read even though it's from 2001. I don't agree with the recommended chemicals for the spider mite. There are other more environmentally friendly solutions (no pun intended).
http://www.arboristsite.com/archive/...php/t-104.html

From this site:
http://www.mastergardeners.org/tips/april.html

"Cypress Tree, Canker

Quite a few questions have come in about this fungus disease. It kills or disfigures many species of cypress all over California. The symptoms are the yellowing, fading, and death of individual twigs, branches, or tops of affected trees. Eventually spreading through the entire tree and killing it. Death can occur any season, but most often during warm months. As the disease progresses, the fungus begins to attack the living bark and cambium. Resinous lesions or cankers form, with heavy resin flow (less flow from old or slow growing trees) from the edges of the canker. The cypress bark moth often invades the borders of the cankers where they excrete large quantities of a reddish brown frass and stimulates even more resin flow. The only area in the state that does not have this disease is a narrow coastal band fronted by the Pacific Ocean. Italian, Leyland, and Monterey Cypresses are the most susceptible. Remove diseased branches and destroy. Spray wounds with a fungicide. Preventative spraying of a fungicide like Benomyl after the first fall rain can be helpful."

You might also be able to get some information from your local extension service.
http://cvr.ucdavis.edu/

Newt