Water war: Court rules in favor of Town of Apple Valley versus Liberty Utilities (January 16, 2025)
California’s Fourth District Court of Appeals has reversed the trial court’s decision in the case of the Town of Apple Valley versus Apple Valley Ranchos Water, now Liberty Utilities.
The announcement Wednesday, came after town officials in September 2024, reported that the court rendered a “tentative decision” in the case.
Town officials last year, stated that a three-judge panel issued a “tentative opinion” reversing the trial court’s decision against the town and reversing the award of attorney’s fees in favor of Liberty.
California’s Fourth District Court of Appeals has reversed the trial court’s decision in the case of the Town of Apple Valley versus Apple Valley Ranchos Water, now Liberty Utilities.
Recent ruling
The appellate court’s decision in January 2025, overturns the court’s previous ruling citing two main reasons for its judgment, which include:
- Improper Standard of Review: The trial court applied the wrong standard of review, failing to appropriately defer to the findings of the Town Council.
- Post-Resolution of Necessity Facts: The trial court improperly based its decision on facts arising after the adoption of the Resolution of Necessity, specifically focusing on the conduct of Liberty Utilities rather than that of the prior owners.
“We are pleased with the appellate court’s decision, which reinforces the legitimacy of the town’s case and corrects significant errors in the trial court’s ruling,” Town Manager Doug Robertson said in a written statement. “The trial court allowed Liberty to argue using evidence and work completed years after the town committed to acquiring the water system, which is contrary to the standard that should have been applied.”
California’s Fourth District Court of Appeals has reversed the trial court’s decision in the case of the Town of Apple Valley versus Apple Valley Ranchos Water, now Liberty Utilities.
Moving forward
The appellate court’s ruling remands the case to the trial court, providing discretion, which would result in one of three options, which include:
- Permit the town to take ownership of the water system.
- Remand the issue to the town council for further administrative proceedings.
- Hold a new trial applying the correct legal standards.
While the decision is subject to further review, it represents a significant step forward in the town’s efforts to acquire the water company, town officials stated.
“This outcome reflects the strength of our position and the support of the Apple Valley community in ensuring fair access to a reliable water system,” Mayor Scott Nassif said.
The recent ruling is part of an effort started in 2011 by town officials to acquire the water system.
The town filed its eminent domain lawsuit in January 2016 when the system was owned by Ranchos Water Company in response to what they said was a public outcry over rising water rates, the Daily Press reported.
Residents back Apple Valley in water war
Apple Valley voters helped pass Measure F in June 2017, earning the town a victory in its struggle to acquire Liberty Utilities’ water system, the Daily Press reported.
With 7,200 of 12,438 voters (57.89%) casting “yes” ballots, according to the San Bernardino County Registrar of Voters, the town received approval to issue up to $150 million in revenue-bond debt for a potential purchase of the system.
Source: Rene Ray De La Cruz, vvdailypress.com/story/news/2025/01/16/court-rules-in-favor-of-town-of-apple-valley-versus-liberty-utilities-in-water-fight/77733691007/