Town of Apple Valley v. Apple Valley Rancho Water, et al.

Date: 01-15-2025

Case Number: CIVDS1600180

Judge: Donald R. Alvarez

Court: Superior Court, San Dernardino County, California

Plaintiff's Attorney:

Defendant's Attorney:

Description: San Bernardino, California condemnation lawyers represented the parties in an eminent domain action.

The Town of Apple Valley (TAV) sought to condemn via eminent domain a private water utility system. In November 2015, TAV passed two resolutions of necessity (RON) to acquire the water system, which was then owned by Carlyle Infrastructures Partners and operated by Apple Valley Ranchos Water (AVR). In January 2016, TAV filed this eminent domain action to acquire the water system. A day later, Carlyle's sale of the water system to respondent Liberty Utilities closed.

After extensive proceedings, including a 67-day bench trial held between late 2019 and early 2021, the trial court issued a Statement of Decision (SOD) finding that TAV did not have the right to acquire the water system. The court thus entered judgment and an award of attorney's fees for Liberty. TAV timely appealed.

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In general, a public entity may take property via eminent domain only if the proposed "project" meets three criteria, which we refer to as the "public necessity elements": (1) the public interest and necessity require the project; (2) the project is planned or located in the manner that will be most compatible with the greatest public good and the least private injury; and (3) the property sought to be acquired is necessary for the project. (§ 1240.030, subds. (a)-(c); SFFP v. Burlington Northern &Santa Fe Ry. Co. (2004) 121 Cal.App.4th 452, 468.) When, as here, the taking involves property already used for a public use (such as a utility), there is a fourth element; (4) the project's
proposed use of the property must be "a more necessary public use than the use to which the property is appropriated" (the MNPU element) (§ 1240.610).


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Legal issue Can a local public entity condemn a public utility system via eminent domain, considering the appropriate standard of review and reliance on post-resolution of necessity evidence?

Key Phrases Eminent domain action. Public utility takings. Rebuttable presumption. Judicial review standards. Intraterritorial and extraterritorial takings.

Outcome: Reversed.

Plaintiff's Experts:

Defendant's Experts:

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