Public Drinking Water Suppliers, Wildfire Liability, & Inverse Condemnation 

Public comment on California’s public drinking water supplies to the state commissioners.

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The same legal regime that has threatened the financial standing of California’s major electric and gas providers threatens the very existence of the state’s public drinking water suppliers and their ability to provide safe, dependable drinking water to customers. 

The dangers posed by the current application of the inverse condemnation doctrine are highlighted by the judgment against the Yorba Linda Water District (“YLWD”) after the 2008 Freeway Complex Fire. In this case the Superior Court determine that, “neither the Plaintiffs nor the YLWD (or any YLWD public improvement) caused the Freeway Complex Fire.” Despite this, Yorba Linda Water District had to pay out nearly $70 million because a portion of its water system was damaged by the fire, which interrupted the flow of water to the fire hydrants in one neighborhood. The Superior Court did not find that Yorba Linda Water District did anything wrong or was negligent: “The interruption of water service . . . was an accident that was not desired or intended by anyone. The service interruption was not caused by a decision of YLWD’s Board of Directors.” Yorba Linda Water District had “full liability” even though it was also a victim of the fire and because the fire damaged the water system. 

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Inverse Condemnation - Part 1

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Inverse Condemnation and Public Water Systems: A Legal Nexus of Complexity, Exposure, and Uncertainty