California Water Districts Win Court Victory in Breach of Contract Lawsuit

A federal court has denied the federal government’s petition for a rehearing in a breach of contract lawsuit filed by California water companies.

In a legal battle that has spanned almost two decades, Stockton East Water District, Central San Joaquin Water Conservation District, and the California Water Service Company maintained the federal government is guilty of breach of contract. The water districts claim they received far less water from the New Melones Reservoir than they had been promised by the government.

A lower court originally ruled in favor of the federal government, but the U.S. Court of Appeals for the Federal Circuit found in favor of the Water districts.

The federal government then petitioned for the case to be reheard, but the appellate court ruled that there was conclusive evidence that “the quantities of water promised were not delivered, and that therefore a breach occurred.”

Now the case is remanded to the United States Court of Federal Claims, where monetary damages will be determined.

If you are involved in a contract dispute, please contact the Orange County Business Litigation Lawyers of Daily Aljian by calling 949-861-2524.